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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]  
Goodwill and Intangible Assets Disclosure [Text Block] Goodwill and Intangible Assets
The Company evaluates the carrying amount of goodwill and indefinite-lived intangible assets for impairment annually as of May 1st and between annual evaluations if changes in circumstances or the occurrence of certain events indicate potential impairment. The Company uses either a qualitative or quantitative analysis to determine whether fair value exceeds carrying value. As part of the quantitative testing process for goodwill, the Company estimates fair values using a discounted cash flow approach from the perspective of a market participant and comparable market values for similar businesses. Significant estimates in the discounted cash flow approach are cash flow forecasts of the reporting units, the discount rate, the terminal business value and the projected income tax rate. The cash flow forecasts of the reporting units are based upon management’s long-term view of markets and are the forecasts that are used by senior management and the Board of Directors to evaluate operating performance. The discount rate utilized is management’s estimate of what the market’s weighted average cost of capital is for a company with a similar debt rating and stock volatility, as measured by beta. The projected income tax rates utilized are the statutory tax rates for the countries where each reporting unit operates. The terminal business value is determined by applying a business growth factor to the latest year for which a forecast exists. As part of the goodwill quantitative testing process, the Company evaluates whether there are reasonably likely changes to management’s estimates that would have a material impact on the results of the goodwill impairment testing.

The annual testing for impairment was conducted as of May 1, 2022. The fair value of each reporting unit was in excess of its carrying value and thus, no impairment exists.

During 2021, the Company completed the annual testing of impairment of goodwill as of May 1, 2021 and an interim impairment test as of December 31, 2021 at the reporting unit level for the related goodwill. Based on the annual testing, the fair value of each reporting unit was in excess of its carrying value and no impairment existed. During 2021, the Company continued to experience pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery. These items significantly impacted the Company's results of operations in 2021. In addition, the timeframe for the expected easing of these factors impacted the Company's near and long-term forecasts. Accordingly, in
connection with the preparation of its 2021 financial statements, the Company conducted an interim goodwill impairment test as of December 31, 2021 for the JAPIC and Bolzoni reporting units. As a result, the Company recognized a $55.6 million goodwill impairment charge for the JAPIC reporting unit in the fourth quarter of 2021, of which $11.7 million was attributable to the noncontrolling interest. No impairment of goodwill for the Bolzoni reporting unit was identified.

The following table summarizes goodwill by segment as of December 31, 2022 and 2021:
Carrying Amount of Goodwill
AmericasEMEAJAPICBolzoniTotal
Balance at January 1, 2021$1.7 $1.1 $54.2 $57.7 $114.7 
Impairment— — (55.6)— (55.6)
Foreign currency translation— (0.1)1.4 (3.9)(2.6)
Balance at December 31, 2021$1.7 $1.0 $— $53.8 $56.5 
Disposals   (1.7)(1.7)
Foreign currency translation   (3.5)(3.5)
Balance at December 31, 2022$1.7 $1.0 $ $48.6 $51.3 

The Company has indefinite-lived intangible assets for the Bolzoni trademarks. Fair values used in testing for potential impairment of the trademarks are calculated by applying an estimated market value royalty rate to the forecasted revenues of the businesses that utilize those assets. The assumed cash flows from this calculation are discounted using Bolzoni’s weighted average cost of capital. The Company completed the annual testing of impairment as of May 1, 2022. The fair value of the indefinite-lived intangible assets was in excess of its carrying value and thus, no impairment existed.

The following table summarizes intangible assets, other than goodwill, recorded in the consolidated balance sheets:
December 31, 2022Gross Carrying AmountAccumulated AmortizationNet Balance
Intangible assets not subject to amortization
Trademarks$16.0 $ $16.0 
Intangible assets subject to amortization
Customer and contractual relationships36.6 (19.9)16.7 
Patents and technology19.6 (13.3)6.3 
Trademarks5.4 (1.7)3.7 
Total$77.6 $(34.9)$42.7 
December 31, 2021Gross Carrying AmountAccumulated AmortizationNet Balance
Intangible assets not subject to amortization
Trademarks$17.0 $— $17.0 
Intangible assets subject to amortization
Customer and contractual relationships40.0 (19.5)20.5 
Patents and technology21.0 (12.1)8.9 
Trademarks5.8 (1.5)4.3 
Total$83.8 $(33.1)$50.7 

Amortization expense for intangible assets, which is recognized on a straight-line basis over the estimated useful life of the related asset, was $4.5 million and $5.4 million in 2022 and 2021, respectively. Expected annual amortization expense of other intangible assets, based upon December 31, 2022 U.S. dollar values, for the next five years is as follows: $3.9 million in 2023, $3.9 million in 2024, $3.9 million in 2025, $3.2 million in 2026 and $2.2 million in 2027. The weighted-average amortization period for intangible assets is as follows:
Intangible assets subject to amortizationWeighted-Average Useful Lives (Years)
Customer relationships10
Patents and technology4
Trademarks14