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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible Assets
The cost and accumulated amortization of intangible assets subject to amortization as of December 31, 2022 and 2021, is as follows:
 20222021
(Thousands)Gross Carrying AmountAccumulated AmortizationNetGross Carrying AmountAccumulated AmortizationNet
Customer relationships$110,347 $(28,950)$81,397 $111,220 $(22,777)$88,443 
Technology44,886 (10,420)34,466 45,014 (6,917)38,097 
Licenses and other 34,300 (10,562)23,738 34,468 (7,879)26,589 
Total$189,533 $(49,932)$139,601 $190,702 $(37,573)$153,129 

During 2021, the Company acquired $50.2 million in customer relationships with a useful life of 13 years and $35.3 million in technology with a useful life of 13 years, as well as a $22.3 million trade name with a useful life of 15 years related to the HCS-Electronic Materials acquisition.
During 2020, the Company accelerated amortization on $26.2 million of intangible assets for its LAC business that was shut down on December 31, 2020. These assets were fully amortized as of December 31, 2020 and fully written off in 2021 with no impact to the Consolidated Statements of Income in 2021.
Amortization expense for 2022, 2021, and 2020 was $12.4 million, $6.0 million, and $2.4 million, respectively.
Estimated amortization expense for each of the five succeeding years is as follows:
Amortization
(Thousands)Expense
202312,473 
202412,473 
202511,851 
202610,626 
202710,471 
Intangible assets also includes deferred costs relating to the Company's revolving credit and consignments lines of $3.6 million and $3.6 million at December 31, 2022 and 2021, respectively.
Goodwill
In 2021, the Company acquired HCS-Electronic Materials for a total purchase price of $398.9 million, and recorded goodwill of $181.3 million. Goodwill of $157.0 million and $24.3 million associated with the HCS-Electronic Materials acquisition was allocated to the Electronic Materials and Performance Materials segments, respectively.
The balance of goodwill at December 31, 2022 and 2021 was $319.5 million and $318.6 million, respectively.
A summary of changes in goodwill by reportable segment is as follows:
(Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsTotal
Balance at December 31, 2020$1,899 $50,527 $92,490 $144,916 
Acquisition23,904 154,277 — 178,181 
Impairment charge— — — — 
Other— (284)(4,193)(4,477)
Balance at December 31, 2021$25,803 $204,520 $88,297 $318,620 
Acquisition— — 
Impairment charge— — — — 
Other354 2,150 (1,626)878 
Balance at December 31, 2022$26,157 206,670 $86,671 $319,498 
Due to recent acquisitions, the Company elected to perform a quantitative annual impairment assessment of its reporting units' goodwill as of October 1, 2022 and determined that the estimated fair values for each of its reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's Precision Optics reporting unit exceeded the carrying value by less than 10%.
Management believes the future sales growth and EBITDA margins in the long range plan, terminal growth rate and the discount rate used in the valuations requires significant use of judgment. If any of our reporting units do not meet our long range plan estimates or our discount rate increase significantly, we could be required to perform an interim goodwill impairment analysis or recognize charges in future periods. Any impairment charges that the Company may take in the future could be material to its consolidated results of operations and financial condition. The assumptions used for the reporting units with fair values exceeding carrying values of less than 10% are more sensitive to future performance and will be monitored accordingly.
The results of the Company's 2022 and 2021 annual goodwill impairment assessments indicated that no goodwill impairment existed.
The Company's accumulated goodwill impairment losses were $20.6 million as of December 31, 2022, 2021 and 2020. Accumulated impairment losses were from the closure of the LAC reporting unit which was closed as of December 31, 2020.