Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill during the years ended December 31, 2022 and 2021 by reportable segment, as well as other identifiable intangible assets, are summarized as follows:


	Goodwill
	Automotive		Industrial		Total		Other Intangible Assets, Net
Balance as of January 1, 2021	$	1,505,523	$	411,954	$	1,917,477	$	1,498,257
Additions	85,182		2,701		87,883		72,189

Amortization	—		—		—		(103,273)
Foreign currency translation	(83,243)		(6,810)		(90,053)		(60,772)
Balance as of December 31, 2021	1,507,462		407,845		1,915,307		1,406,401
Additions	149,896		609,892		759,788		663,077
Amortization	—		—		—		(157,437)
Impairments	—		—		—		(17,461)
Foreign currency translation	(77,824)		(9,158)		(86,982)		(82,070)
Balance as of December 31, 2022	$	1,579,534	$	1,008,579	$	2,588,113	$	1,812,510

We completed our annual goodwill impairment testing as of October 1, 2022 using a mixture of quantitative and qualitative assessments for our various reporting units. To complete a qualitative assessment, we evaluate historical revenue and operating profit growth trends, market conditions and other factors to determine whether it is more likely than not that the reporting unit's goodwill is impaired. We complete quantitative assessments for reporting units that fail our qualitative assessments, or otherwise on a periodic basis. To complete a quantitative assessment, we calculate a reporting unit's fair value using a combination of income and market approaches, which involve significant unobservable inputs (Level 3). In the income approach, we primarily use these assumptions: projected revenue growth rates, EBITDA margins, the estimated weighted average cost of capital, and terminal value. In the market approach, we primarily use benchmark company market multiples. We believe the inputs and assumptions we use are consistent with those a hypothetical marketplace participant would use. Once calculated, we verify whether the reporting unit's fair value is higher than its carrying amount. If the fair value is lower, we recognize an impairment, generally for the difference.

Based on these assessments, we did not recognize any goodwill impairments during 2022 or 2021. Due to several factors that coalesced in the second quarter of 2020, we performed an interim impairment test as of May 31, 2020 for our European reporting unit and recorded a goodwill impairment charge of $507 million.

If there are sustained declines in macroeconomic or business conditions in future periods affecting the projected earnings and cash flows at our reporting units, among other things, there can be no assurance that goodwill at one or more reporting units may not be impaired.

In June 2022, we recognized a $17 million non-cash impairment charge related to our decision to retire certain legacy Industrial trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of the KDG integration and rebranding strategy. We evaluate other intangible assets for potential impairment indicators annually, or more frequently if circumstances change.

Other Intangible Assets

The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2022 and 2021 are as follows:


	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	2,121,171	$	(566,111)	$	1,555,060	$	1,590,733	$	(464,198)	$	1,126,535
Trademarks	342,136		(85,188)		256,948		337,802		(58,073)		279,729
Non-competition agreements	5,575		(5,073)		502		5,430		(5,293)		137
	$	2,468,882	$	(656,372)	$	1,812,510	$	1,933,965	$	(527,564)	$	1,406,401

Amortization expense for other intangible assets totaled $157 million, $103 million, and $95 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows:


2023	$	145,357
2024	131,443
2025	130,103
2026	128,508
2027	127,706
	$	663,117