Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company estimated the fair value of its reporting units for 2021 using an income approach and market-based approach using a weighting of 75.0% and 25.0%, respectively, for six of its reporting units and an income approach for its seventh reporting unit. The income approach estimates fair value utilizing a discounted cash flow analysis and requires judgmental assumptions about projected sales growth, future operating margins, discount rates and terminal values. The market-based approach considers current trading multiples of earnings before interest, taxes, depreciation and amortization for companies operating in businesses similar to each of the Company’s reporting units, in addition to recent available market sale transactions of comparable businesses. If the estimated fair value of the reporting unit is less than its carrying value, the Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit.

The Company performed its annual impairment test on the first day of the fourth quarter of 2021, which includes an evaluation of its reporting units. On December 1, 2021, the Company created two reporting units from an existing reporting unit. The additional reporting increased the number of the Company’s reporting units from six to seven at December 1, 2021. Due to the new reporting units, the Company reallocated the existing goodwill of the existing reporting unit to the two new reporting units on a relative fair value basis. The reporting units were tested for impairment before and after the reallocation and no impairment was identified. Goodwill was not reallocated between operating segments. As of December 31, 2021, the Company had seven reporting units.

No goodwill impairment charges were recorded for the years ended December 31, 2021, 2020 and 2019 and no “triggering” events have occurred subsequent to the performance of the 2021 annual impairment test, except for the addition of the seventh reporting unit on December 1, 2021. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge to net income may be required.

The following is a rollforward of the Company’s goodwill by segment ($ in millions):


	Specialty Products & Technologies		Equipment & Consumables		Total





Balance, December 31, 2020	$	2,099.0	$	1,108.4	$	3,207.4
Foreign currency translation	(69.3)		(6.1)		(75.4)
Balance, December 31, 2021	$	2,029.7	$	1,102.3	$	3,132.0

Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions):


	2021				2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangibles:
Patents and technology	$	313.8	$	(215.3)	$	326.8	$	(205.4)
Customer relationships and other intangibles	907.4		(610.9)		936.0		(573.3)
Trademarks and trade names	216.3		(75.4)		199.1		(65.9)
Total finite-lived intangibles	1,437.5		(901.6)		1,461.9		(844.6)
Indefinite-lived intangibles:
Trademarks and trade names	510.5		—		535.4		—
Total intangibles	$	1,948.0	$	(901.6)	$	1,997.3	$	(844.6)

Total intangible amortization expense in 2021, 2020 and 2019 was $81.5 million, $87.3 million and $85.5 million, respectively. Based on the intangible assets recorded as of December 31, 2021, amortization expense is estimated to be $90.3 million during 2022, $86.0 million during 2023, $70.8 million during 2024, $70.4 million during 2025 and $62.8 million during 2026.