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Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill

The following table sets forth the change in the carrying amount of goodwill for the Company:
2022
Engineered ProductsPrecision ProductsStructuresTotal
In thousands 
Gross balance at beginning of period$199,306 $41,375 $66,559 $307,240 
Accumulated impairment— — (66,559)(66,559)
Net balance at beginning of period199,306 41,375 — 240,681 
Additions(1)
169,790 — — 169,790 
Impairments— (25,306)— (25,306)
Foreign currency translation(5,311)— — (5,311)
Net balance at end of period$363,785 $16,069 $— $379,854 
Accumulated impairment at end of period$— $(25,306)$(66,559)$(91,865)
(1) The additions to goodwill in the year ended December 31, 2022 were attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments, for further information on this acquisition.


2021
Engineered ProductsPrecision ProductsStructuresTotal
In thousands 
Gross balance at beginning of period$205,869 $41,375 $66,559 $313,803 
Accumulated impairment— — (66,559)(66,559)
Net balance at beginning of period205,869 41,375 — 247,244 
Additions— — — — 
Impairments— — — — 
Foreign currency translation(6,563)— — (6,563)
Net balance at end of period$199,306 $41,375 $— $240,681 
Accumulated impairment at end of period$— $— $(66,559)$(66,559)
12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED)

Goodwill - continued

2022 Analysis

Qualitative assessments were performed for the Specialty Bearings, Bal Seal and Aircraft Wheel and Brake reporting units, which took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units, the assessment of assumptions used in the previous fair value calculations and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to a quantitative assessment
In accordance with ASC 350, the Company evaluates goodwill for possible impairment on at least an annual basis. Additionally, the Company is required to evaluate goodwill for possible impairment testing if an event occurs or circumstances change that indicate that the fair value of the reporting entity may be below its carrying amount. In December 2022, the Company announced it will consolidate the production of JPF fuzes to its Middletown facility resulting in the closure of the Orlando facility in 2024 due to reduced demand as the JPF program continues to move through its life cycle. The Company considered the reduction in demand, as well as the updated forecasts for the reporting unit, which indicated the forecasted cash flows for the KPP-Orlando reporting unit were lower than amounts previously forecasted. Management performed a quantitative analysis on the KPP-Orlando reporting unit using an income methodology based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using a rate commensurate with the risks associated with those cash flows. The quantitative analysis resulted in a conclusion that the fair value of the KPP-Orlando reporting unit was $25.3 million below its carrying value; therefore, goodwill was impaired. In the year ended December 31, 2022, the Company recorded a goodwill impairment charge of $25.3 million for the KPP-Orlando reporting unit. This impairment charge was included in goodwill and other intangibles impairment on the Company's Statement of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information. An additional $16.1 million of goodwill remains at this reporting unit.

In accordance with ASC 360, the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. In conjunction with the reduction in JPF demand and lower forecasted cash flows, the company evaluated the long-lived assets of the KPP-Orlando location for possible impairment. No such impairment was determined.

2021 Analysis

In 2021, the Company performed a qualitative assessment for the Specialty Bearings and KPP-Orlando reporting units, while a quantitative assessment was performed for the Bal Seal reporting unit.

The qualitative assessments performed for the Specialty Bearings and KPP-Orlando reporting units took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units, the assessment of assumptions used in the previous fair value calculations and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to a quantitative assessment.

The results of the quantitative analysis performed for the Bal Seal reporting unit indicated that the fair value of the reporting unit exceeded its respective carrying value. The Company performed a sensitivity analysis relative to the discount rate and growth rate selected and determined a decrease of one percentage point in the terminal growth rate or an increase of one percentage point in the discount rate would not result in a fair value calculation less than the carrying value.

2020 Analysis

The spread of COVID-19 and the precautionary measures instituted by governments and businesses to mitigate the risk of its spread contributed to the general slowdown in the global economy and significant volatility in financial markets, which resulted in a significant decrease in the Company's stock price and market capitalization in the first quarter of 2020. As COVID-19 continued to impact the organization throughout 2020 and the Company’s stock price remained at a similar level, management assessed each reporting unit for triggering events for potential impairment on a quarterly basis.
12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED)

Goodwill - continued

2020 Analysis - continued

As part of management's evaluation of triggering events in the third quarter of 2020, the assessment of the Company's operating results identified a decline in earnings compared to forecasts used in prior periods for its Aerosystems reporting unit. The Company considered this decline, as well as the updated forecasts for the reporting unit, which indicated the forecasted cash flows for this reporting unit were lower than amounts previously forecasted. As a result, management identified a triggering event for possible goodwill impairment in its Aerosystems reporting unit. Management performed a quantitative analysis on the Aerosystems reporting unit using an income methodology based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. In addition, management used a market-based valuation method involving analysis of market multiples of revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for (i) a group of comparable companies and (ii) recent transactions, if any, involving comparable companies. In estimating the fair value of the reporting unit, a weighting of 80% to the income approach and 20% to the market-based valuation method was selected, consistent with quantitative analyses performed in prior periods. The estimated fair value of the reporting unit was adjusted based on an assumption of excess working capital, which represents management's identification of specific contract-related assets that will generate cash flows in the future. The quantitative analysis resulted in a conclusion that the fair value of the Aerosystems reporting unit was $56.1 million below its carrying value; therefore, goodwill was impaired. In the year ended December 31, 2020, the Company recorded a goodwill impairment charge of $50.3 million for the Aerosystems reporting unit, which represented the entire goodwill balance for the reporting unit. This impairment charge was included in goodwill and other intangibles impairment on the Company's Statement of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information.

Other Intangible Assets

Other intangible assets consisted of:
At December 31,At December 31,
20222021
Amortization
Period		Gross
Amount		Accumulated
Amortization		Gross
Amount		Accumulated
Amortization
In thousands     
Customer lists / relationships
6-38 years
$363,549 $(41,695)$127,206 $(35,096)
Developed technologies
7-20 years
45,028 (17,508)45,170 (13,591)
Trademarks / trade names
15-40 years
16,681 (3,153)16,982 (2,659)
Non-compete agreements and other
1-15 years
17,336 (7,974)4,629 (4,617)
Patents
17 years
551 (484)523 (473)
Total $443,145 $(70,814)$194,510 $(56,436)
The increase in customer lists / relationships and non-compete agreements and other was primarily attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments, for further information on this acquisition.

Intangible asset amortization expense of $15.3 million, $10.5 million and $15.7 million in 2022, 2021 and 2020, respectively, was included in intangible asset amortization expense on the Company's Consolidated Statements of Operations.

Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2022 is as follows:
In thousands
2023$26,031 
2024$21,610 
2025$20,825 
2026$20,804 
2027$20,547 
12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED)

Other Intangible Assets - continued

In order to determine the useful life of acquired intangible assets, the Company considers numerous factors, most importantly the industry considerations associated with the acquired entities. The Company determines the amortization period for acquired intangible assets, such as customer relationships, based primarily on an analysis of their historical customer sales attrition information and the period over which the assets are expected to deliver meaningful cash flow generation in support of the fair value of the asset.