Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company performed a qualitative assessment as part of its 2022, 2021 and 2020 annual impairment tests (October 1 annual test date) for all reporting units, which included a review of the Company’s market capitalization. Based on results of the qualitative assessments for the 2022, 2021 and 2020 annual impairment tests, the Company determined there were no indications that the fair value of a reporting unit was less than its carrying amount; therefore, the Company determined that quantitative goodwill impairment tests were not required.

During the third quarter of 2020, as a result of a decline in its aerospace-related business' financial results, a significant reduction in its financial projections for the remainder of 2020 compared with prior projections, and uncertainty around the duration and magnitude of the impact of the COVID-19 pandemic on future financial results given their dependence on future levels of air travel and new aircraft builds, the Company determined there was a triggering event requiring an interim quantitative goodwill impairment assessment of each of its two aerospace-related reporting units: Aerospace Fasteners and Aerospace Engineered Products.

Upon completion of the quantitative goodwill impairment tests, the Company determined that the carrying values of the Aerospace Fasteners and Aerospace Engineered Products reporting units exceeded their fair values, resulting in goodwill impairment charges of $70.8 million in its Aerospace Fasteners reporting unit and $56.0 million in its Aerospace Engineered Products reporting unit.

Changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 are as follows (dollars in thousands):


					Specialty
	Packaging		Aerospace		Products		Total
Balance, December 31, 2020	$	234,560	$	62,850	$	6,560	$	303,970
Goodwill from acquisitions	10,550		7,220		—		17,770


Foreign currency translation and other	(6,370)		120		—		(6,250)
Balance, December 31, 2021	$	238,740	$	70,190	$	6,560	$	315,490
Goodwill from acquisitions	32,370		—		—		32,370


Foreign currency translation and other	(7,560)		(490)		—		(8,050)
Balance, December 31, 2022	$	263,550	$	69,700	$	6,560	$	339,810

Other Intangible Assets

For the purposes of the Company's 2022, 2021 and 2020 annual indefinite-lived intangible asset impairment tests (as of October 1), the Company performed a qualitative assessment to determine whether it was more likely than not that the fair values of the indefinite-lived intangible assets were less than the carrying values. Based on the qualitative assessment performed, the Company did not believe that it is more likely than not that the fair values of each of its indefinite-lived intangible assets were less than the carrying values; therefore, a fair value calculation of the indefinite-lived intangible assets was not required for the 2022, 2021 and 2020 annual indefinite-lived intangible asset impairment tests.

During the third quarter of 2020, as a result of the significant forecast reduction in the Company's aerospace-related businesses, the Company also performed an interim quantitative assessment for the indefinite-lived intangible assets within the Aerospace segment, using the relief-from-royalty method. Significant management assumptions used under the relief-from-royalty method reflected the Company's current assessment of the risks and uncertainties associated with the aerospace industry. Upon completion of the quantitative impairment test, the Company determined that certain of its aerospace-related trade names had carrying values that exceeded their fair values, and therefore recorded impairment charges of $7.8 million.

The gross carrying amounts and accumulated amortization of the Company's other intangibles as of December 31, 2022 and 2021 are summarized below (dollars in thousands):


	As of December 31, 2022				As of December 31, 2021
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships, 5 - 12 years	$	131,660	$	(80,000)	$	124,310	$	(71,150)
Customer relationships, 15 - 25 years	129,650		(74,380)		130,190		(68,190)
Total customer relationships	261,310		(154,380)		254,500		(139,340)
Technology and other, 1 - 15 years	56,860		(38,990)		57,060		(36,140)
Technology and other, 17 - 30 years	43,300		(40,330)		43,300		(39,920)
Total technology and other	100,160		(79,320)		100,360		(76,060)
Indefinite-lived intangible assets:
Trademark/Trade names	60,340		—		57,270		—
Total other intangible assets	$	421,810	$	(233,700)	$	412,130	$	(215,400)

Amortization expense related to intangible assets as included in the accompanying consolidated statement of operations is summarized as follows (dollars in thousands):


	Year ended December 31,
	2022		2021		2020
Technology and other, included in cost of sales	$	3,300	$	3,820	$	4,930
Customer relationships, included in selling, general and administrative expenses	15,800		17,740		15,820
Total amortization expense	$	19,100	$	21,560	$	20,750

Estimated amortization expense for the next five fiscal years beginning after December 31, 2022 is as follows (dollars in thousands):


Year ended December 31,	Estimated Amortization Expense
2023		$	17,990
2024		$	16,490
2025		$	16,140
2026		$	14,420
2027		$	14,360