GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill by segment were as follows:


(dollars in millions)	Electronics		Industrial & Specialty			Total
Balance at December 31, 2021	$	1,292.2	$	1,234.1	(1)	$	2,526.3
Acquisition (2)	—		7.1			7.1
Transfer of Films business (3)	80.4		(80.4)			—
Foreign currency translation and other	(68.6)		(52.0)			(120.6)
Balance at December 31, 2022	1,304.0		1,108.8			2,412.8
Transfer of Films business (4)	7.9		(7.9)			—
Goodwill impairment	—		(80.0)			(80.0)
Foreign currency translation and other	(13.2)		17.1			3.9
Balance at December 31, 2023	$	1,298.7	$	1,038.0		$	2,336.7

(1) Includes accumulated impairment losses of $46.6 million.

(2) The Company completed the HSO Acquisition on January 26, 2022.

(3) In the second quarter of 2022, the Company transferred operational responsibility of its Films business from its Industrial Solutions business within its Industrial & Specialty segment to its Electronics segment. Goodwill was reallocated using a relative fair value approach and assessed for impairment both before and after the allocation. See Note 1, Background and Basis of Presentation, to the Consolidated Financial Statements for further information.

(4) In the first quarter of 2023, the Company transferred operational responsibility of its Films business from its Graphics Solutions business within its Industrial & Specialty segment to its Electronics segment. Goodwill was reallocated using a relative fair value approach and assessed for impairment both before and after the allocation. See Note 1, Background and Basis of Presentation, to the Consolidated Financial Statements for further information.

Goodwill is tested for impairment at the reporting unit level in the fourth quarter of each year or when events or changes in circumstances indicate that goodwill might be impaired. During the third quarter of 2023, given the lower-than-expected results of the Graphics Solutions reporting unit, the Company determined that it was more likely than not that the fair value of this reporting unit was less than its carrying value. As a result, the Company conducted an interim goodwill impairment test which confirmed that goodwill was impaired and the Company recorded an $80.0 million impairment charge in the Condensed Consolidated Statement of Operations to reduce the carrying value of this reporting unit to its estimated fair value. This impairment charge was primarily driven by the reduction of the expected long-term cash flows for the business due to profit margin pressures from raw material inflation across the packaging supply chain, the recent loss of a significant newspaper customer, and a higher WACC as compared to the assumptions used for the 2022 annual goodwill impairment test.

After recording the impairment, the carrying value of the Graphics Solutions reporting unit was equal to its estimated fair value and there have been no events or changes in circumstances that indicated that goodwill was further impaired. As of December 31, 2023, the goodwill assigned to the Graphics Solutions reporting unit was approximately $130 million. No impairments of goodwill were recognized for any of the Company's other reporting units during the year ended December 31, 2023 and no impairments of goodwill were recognized during the years ended December 31, 2022 and 2021.

Intangible Assets

The major components of intangible assets were as follows:


	December 31, 2023						December 31, 2022
(dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	978.4	$	(505.9)	$	472.5	$	967.5	$	(434.1)	$	533.4
Developed technology	410.0		(316.2)		93.8		408.9		(277.0)		131.9
Trade names	95.9		(30.9)		65.0		96.0		(23.8)		72.2
Reacquired distribution rights	187.0		(7.3)		179.7		—		—		—
Other	0.8		(0.5)		0.3		—		—		—
Indefinite-lived trade name	68.0		—		68.0		68.0		—		68.0
Total	$	1,740.1	$	(860.8)	$	879.3	$	1,540.4	$	(734.9)	$	805.5

For 2023, 2022 and 2021, the Company recorded amortization expense on intangible assets of $124 million, $120 million and $124 million, respectively. No impairments of indefinite-lived intangible assets were recognized during the years ended December 31, 2023, 2022 and 2021.

Estimated future amortization of intangible assets for each of the next five years is as follows:


(dollars in millions)	Amortization Expense
2024	$	121.3
2025	115.0
2026	72.8
2027	71.0
2028	70.8