Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill by segment for the year ended December 31, 2022, are as follows:


	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Balance as of January 1, 2022	$	572,416	$	367,780	$	384,305	$	1,324,501
Acquisitions	366,098		34,473		—		400,571


Measurement period adjustments	(28,987)		—		—		(28,987)
Foreign currency translation	(10,902)		(7,427)		(2,445)		(20,774)
Balance as of December 31, 2022	$	898,625	$	394,826	$	381,860	$	1,675,311

Goodwill activity reflected under the caption “Acquisitions” relates to the January 26, 2022 acquisition of Metal Packaging, the August 31, 2022 acquisition of Nordeste, and the November 15, 2022 acquisition of Skjern. Activity reflected under the caption “Measurement period adjustments” relates to the Metal Packaging acquisition. See Note 3 for additional information.

The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2022, and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company's assessments reflected a number of significant management assumptions and estimates, including the Company's forecast of sales growth, gross profit margins, and discount rates. Changes in these assumptions could materially impact the Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units.

Although no reporting units failed the annual impairment test, in management’s opinion, the goodwill of the Plastics - Healthcare and Protexic reporting units are at risk of impairment in the near term if the reporting units' operations do not perform in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate.

In the annual goodwill impairment analysis completed during the third quarter of 2022, projected future cash flows for the Plastics - Healthcare and Protexic reporting units were discounted at 9.8% and 9.5%, respectively, and their estimated fair values were determined to exceed their carrying values by approximately 18.0% and 18.3%, respectively. Based on the discounted cash flow model and holding other valuation assumptions constant, the discount rates for the Plastics - Healthcare and Protexic reporting units would have to be increased to 11.0% and 11.5%, respectively, in order for the estimated fair values of the reporting units to fall below their carrying values. Total goodwill associated with the Plastics - Healthcare and Protexic reporting units were $62,607 and $29,051, respectively, at December 31, 2022.

During the time subsequent to the annual evaluation, and at December 31, 2022, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events have occurred.

Other intangible assets

Details at December 31 are as follows:


	2022		2021
Other Intangible Assets, Gross:
Patents	$	29,303	$	29,315
Customer lists	1,092,232		592,195
Trade names	34,220		32,043
Proprietary technology	57,720		22,846
Other	6,721		2,807
Other Intangible Assets, Gross	$	1,220,196	$	679,206
Accumulated Amortization:
Patents	$	(17,889)	$	(16,275)
Customer lists	(417,034)		(347,274)
Trade names	(15,892)		(14,106)
Proprietary technology	(25,113)		(21,394)
Other	(2,670)		(2,014)
Accumulated Amortization	$	(478,598)	$	(401,063)
Other Intangible Assets, Net	$	741,598	$	278,143

The acquisitions of Metal Packaging in January 2022 and Skjern in November 2022 resulted in the addition of $498,000 and $42,818, respectively, of intangible assets, primarily related to customer lists. These intangibles will be amortized over an average useful life of 14 years. The fair values of intangible assets associated with these acquisitions were determined using an income valuation approach.

Aggregate amortization expense on intangible assets was $80,445, $49,419 and $52,899 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization expense on intangible assets is expected to approximate $80,900 in 2023, $74,100 in 2024, $63,600 in 2025, $60,400 in 2026 and $59,000 in 2027 based on intangible assets as of December 31, 2022.