GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 4 GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the year ended December 31, 2019 are as follows by reporting segment:

	Beauty +				Food +		Corporate
	Home		Pharma		Beverage		& Other		Total
Balance as of December 31, 2017
Goodwill	$	223,947	$	203,069	$	16,871	$	1,615	$	445,502
Accumulated impairment losses		—		—		—		(1,615)		(1,615)
	$	223,947	$	203,069	$	16,871	$	—	$	443,887
Acquisition		5,565		174,343		103,678		—		283,586
Reallocation, net		—		(8,048)		8,048		—		—
Foreign currency exchange effects		(5,579)		(9,481)		(318)		—		(15,378)
Balance as of December 31, 2018
Goodwill	$	223,933	$	359,883	$	128,279	$	1,615	$	713,710
Accumulated impairment losses		—		—		—		(1,615)		(1,615)
	$	223,933	$	359,883	$	128,279	$	—	$	712,095
Acquisition		—		57,934		—		—		57,934
Foreign currency exchange effects		(2,275)		(4,167)		(126)		—		(6,568)
Balance as of December 31, 2019
Goodwill	$	221,658	$	413,650	$	128,153	$	1,615	$	765,076
Accumulated impairment losses		—		—		—		(1,615)		(1,615)
	$	221,658	$	413,650	$	128,153	$	—	$	763,461

During the fourth quarter of 2018, certain CSP Technologies product lines were transferred from Pharma segment to the Food + Beverage segment affecting the Active Packaging and Food + Beverage reporting units to better align our customer needs. The changes resulted in the reassignment of the assets and liabilities to the reporting units affected. The goodwill was reallocated to the reporting units affected using the relative fair value approach.

During the third quarter of 2019, we performed a separate quantitative impairment assessment using a discounted cash flow analysis of the Active Packaging reporting unit, which was formed as a result of the CSP Technologies Acquisition in the third quarter of 2018. We calculated the fair value of the Active Packaging reporting unit and compared it with the associated carrying value (the “step one” approach) as of July 1, 2019. Based on this quantitative analysis, the fair value of the reporting unit exceeded the carrying value and therefore no impairment loss was recognized.

We have completed the annual impairment analysis of our reporting units as of October 1, 2019 using a qualitative analysis of goodwill commonly referred to as the “step zero” approach for each of our reporting units. Based on our review of macroeconomic, industry, and market events and circumstances as well as the overall financial performance of the reporting units, we determined that it was more likely than not that the fair value of these reporting units was greater than their carrying amounts. No impairment was recognized during the years ended December 31, 2019, 2018 or 2017.

The table below shows a summary of intangible assets for the years ended December 31, 2019 and 2018.

		2019							2018
Weighted Average		Gross						Gross
Amortization Period		Carrying		Accumulated		Net		Carrying		Accumulated		Net
	(Years)	Amount		Amortization		Value		Amount		Amortization		Value
Amortized intangible assets:
Patents	7.2	$	2,804		(1,318)	$	1,486	$	5,427	$	(5,294)	$	133
Acquired technology	13.0		100,511		(25,430)		75,081		92,389		(18,304)		74,085
Customer relationships	13.6		217,934		(33,924)		184,010		179,597		(20,439)		159,158
Trademarks and trade names	7.0		35,015		(11,003)		24,012		21,243		(5,914)		15,329
License agreements and other	10.3		16,153		(9,658)		6,495		13,852		(7,653)		6,199
Total intangible assets	12.6	$	372,417	$	(81,333)	$	291,084	$	312,508	$	(57,604)	$	254,904

Aggregate amortization expense for the intangible assets above for the years ended December 31, 2019, 2018 and 2017 was $27,608, $15,455 and $10,339, respectively.

Estimated amortization expense for the years ending December 31 is as follows:

2020	$	31,135
2021		29,582
2022		29,343
2023		29,171
2024 and thereafter		171,853

Future amortization expense may fluctuate depending on changes in foreign currency rates. The estimates for amortization expense noted above are based upon foreign exchange rates as of December 31, 2019.