Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill during the years ended December 31, 2021 and 2020 by reportable segment, as well as other identifiable intangible assets, are summarized as follows:


	Goodwill
	Automotive		Industrial		Total		Other Intangible Assets, Net
Balance as of January 1, 2020	$	1,897,495	$	396,024	$	2,293,519	$	1,492,097
Additions	15,061		5,261		20,322		21,890

Amortization	—		—		—		(94,962)
Impairments	(506,721)		—		(506,721)		—
Foreign currency translation	99,688		10,669		110,357		79,232
Balance as of December 31, 2020	1,505,523		411,954		1,917,477		1,498,257
Additions	85,182		2,701		87,883		72,189
Amortization	—		—		—		(103,273)
Foreign currency translation	(83,243)		(6,810)		(90,053)		(60,772)
Balance as of December 31, 2021	$	1,507,462	$	407,845	$	1,915,307	$	1,406,401

2021 Goodwill Impairment Assessments

The Company completed its annual quantitative and qualitative goodwill assessments as of October 1, 2021. Under the quantitative assessment, fair value was calculated using a combination of both income and market approaches, which involved significant unobservable inputs (Level 3 inputs), and compared to carrying value. The assumptions used in the income approach include projected revenue growth rates, operating margins, the estimated weighted average cost of capital and terminal value. The assumptions used in the market approach include benchmark company market multiples. The Company used inputs and assumptions it believed are consistent with those a hypothetical marketplace participant would use. Under the Company's qualitative assessments, which included reviewing historical revenue and operating profit growth trends, the Company has determined that it is not more likely than not that the goodwill is impaired for all reporting units.

No goodwill impairments were recognized during 2021. Should actual results differ from certain key assumptions used in the interim or annual impairment tests, including revenue and operating margin growth rates, which are both impacted by economic conditions, or should other key impairment testing assumptions change in subsequent periods, there can be no assurance that goodwill at one or more reporting units may not be impaired.

2020 Goodwill Impairment Assessments

Due to several factors that coalesced in the second quarter of 2020 the Company performed an interim impairment test as of May 31, 2020 for its European reporting unit and recorded a goodwill impairment charge of $506,721. The factors primarily resulted from the ongoing market volatility and uncertainty caused by the COVID-19 pandemic, which extended into the second quarter and impacted several critical impairment testing assumptions including weighted average cost of capital and market multiples, and near-term revenue and operating margin projections for the reporting unit. During the second quarter of 2020, the Company also assessed the finite-lived, identifiable tangible and intangible assets at the European reporting unit for impairment under the undiscounted cash flows approach and concluded there was no impairment.

The European reporting unit’s fair value was calculated using a combination of both income and market approaches and involved significant unobservable inputs (Level 3 inputs). The assumptions used in the income approach include projected revenue growth rates, operating margins, the estimated weighted average cost of capital and terminal value. The weighted-average cost of capital used in the income approach was adjusted to reflect the specific risks and uncertainties associated with the COVID-19 pandemic in developing the cash flow projections. The assumptions used in the market approach include benchmark company market multiples. The Company used inputs and assumptions it believed are consistent with those a hypothetical marketplace participant would use.

Other Intangible Assets

The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2021 and 2020 are as follows:


	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	1,590,733	$	(464,198)	$	1,126,535	$	1,578,153	$	(388,120)	$	1,190,033
Trademarks	337,802		(58,073)		279,729		358,253		(50,227)		308,026
Non-competition agreements	5,430		(5,293)		137		5,719		(5,521)		198
	$	1,933,965	$	(527,564)	$	1,406,401	$	1,942,125	$	(443,868)	$	1,498,257

Amortization expense for other intangible assets totaled $103,273, $94,962, and $92,206 for the years ended December 31, 2021, 2020, and 2019, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows:


2022	$	99,280
2023	98,649
2024	97,900
2025	97,580
2026	96,707
	$	490,116