Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company performed its annual goodwill impairment test on the first business day of the fourth quarter of 2022. The Company used a combination of techniques, including an income approach and a market-based approach in performing its annual goodwill impairment test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value amount. The Company’s reporting units are the financial components of operating segments which constitute businesses for which discrete financial information is available and regularly reviewed by segment management.

No goodwill impairment charges were recorded for the years ended December 31, 2022, 2021 and 2020 and no “triggering” events have occurred subsequent to the performance of the 2022 annual impairment test. 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, 2021	$	2,029.7	$	1,102.3	$	3,132.0
Acquisitions	77.3		373.1		450.4
Foreign currency translation	(59.2)		(26.6)		(85.8)
Balance, December 31, 2022	$	2,047.8	$	1,448.8	$	3,496.6

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): 

	2022				2021
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangibles:
Patents and technology	$	432.2	$	(236.4)	$	313.8	$	(215.3)
Customer relationships and other intangibles	924.1		(648.7)		907.4		(610.9)
Trademarks and trade names	224.8		(100.2)		216.3		(75.4)
Total finite-lived intangibles	1,581.1		(985.3)		1,437.5		(901.6)
Indefinite-lived intangibles:
Trademarks and trade names	490.9		—		510.5		—
Total intangibles	$	2,072.0	$	(985.3)	$	1,948.0	$	(901.6)

Total intangible amortization expense in 2022, 2021 and 2020 was $106.0 million, $81.5 million and $87.3 million, respectively. Based on the intangible assets recorded as of December 31, 2022, amortization expense is estimated as follows for the next five years and thereafter:

Years Ending December 31,
2023	$	99.3
2024	89.6
2025	89.1
2026	81.1
2027	76.5
Thereafter	160.2
	$	595.8