Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill during the years ended December 31, 2023 and 2022 by reportable segment, as well as other identifiable intangible assets, are summarized as follows:


	Goodwill
(in thousands)	Automotive		Industrial		Total		Other Intangible Assets, Net
Balance as of January 1, 2022	$	1,507,462	$	407,845	$	1,915,307	$	1,406,401
Additions	149,896		609,892		759,788		663,077

Amortization	—		—		—		(157,437)
Impairments	—		—		—		(17,461)
Foreign currency translation	(77,824)		(9,158)		(86,982)		(82,070)
Balance as of December 31, 2022	1,579,534		1,008,579		2,588,113		1,812,510
Additions	111,831		8,046		119,877		98,652
Amortization	—		—		—		(147,178)
Foreign currency translation	26,068		623		26,691		28,929
Balance as of December 31, 2023	$	1,717,433	$	1,017,248	$	2,734,681	$	1,792,913

We completed our annual goodwill impairment testing as of October 1, 2023. We assess the value of our goodwill under either a quantitative or qualitative assessment for our various reporting units. To complete a qualitative assessment, we evaluate historical revenue and operating profit growth trends, market conditions and other factors to determine whether it is more likely than not that the reporting unit's goodwill is impaired. We complete quantitative assessments for reporting units that fail our qualitative assessments, or otherwise on a periodic basis. To complete a quantitative assessment, we calculate a reporting unit's fair value using a combination of income and market approaches, which involve significant unobservable inputs (Level 3). In the income approach, we primarily use these assumptions: projected revenue growth rates, EBITDA margins, the estimated weighted average cost of capital, and terminal value. In the market approach, we primarily use benchmark company market multiples. We believe the inputs and assumptions we use are consistent with those a hypothetical marketplace participant would use. Once calculated, we verify whether the reporting unit's fair value is higher than its carrying amount. If the fair value is lower, we recognize an impairment, generally for the difference. Based on these assessments, we did not recognize any goodwill impairments during 2023 or 2022.

If there are sustained declines in macroeconomic or business conditions in future periods affecting the projected earnings and cash flows at our reporting units, among other things, there can be no assurance that goodwill at one or more reporting units may not be impaired.

In June 2022, we recognized a $17 million non-cash impairment charge related to our decision to retire certain legacy Industrial trade names, classified as other intangible assets, prior to the end of their estimated useful lives as part of the KDG integration and rebranding strategy. We evaluate other intangible assets for potential impairment indicators annually, or more frequently if circumstances change.

Other Intangible Assets

The gross carrying amounts and accumulated amortization relating to other intangible assets at December 31, 2023 and 2022 are as follows:


	2023						2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	2,252,553	$	(695,934)	$	1,556,619	$	2,121,171	$	(566,111)	$	1,555,060
Trademarks	349,022		(113,123)		235,899		342,136		(85,188)		256,948
Non-competition agreements	5,619		(5,224)		395		5,575		(5,073)		502
	$	2,607,194	$	(814,281)	$	1,792,913	$	2,468,882	$	(656,372)	$	1,812,510

Amortization expense for other intangible assets totaled $147 million, $157 million, and $103 million for the years ended December 31, 2023, 2022, and 2021, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows (in thousands):


2024	$	131,365
2025	129,822
2026	128,357
2027	122,591
2028	119,995
	$	632,130