Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill during the years ended December 31, 2024 and 2023 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, 2023	$	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
Additions	251,364		32,775		284,139		218,286
Amortization	—		—		—		(142,994)
Foreign currency translation	(104,927)		(16,624)		(121,550)		(69,174)
Balance as of December 31, 2024	$	1,863,870	$	1,033,399	$	2,897,270	$	1,799,031

We completed our annual goodwill impairment testing as of October 1, 2024. 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 2024 or 2023.

Accumulated impairment losses for the Automotive segment were $506,721 as of December 31, 2024 and 2023. We have not incurred any accumulated impairment losses for the Industrial segment.

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, 2024 and 2023 are as follows:


	2024						2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	2,350,241	$	(778,707)	$	1,571,534	$	2,252,553	$	(695,934)	$	1,556,619
Other intangibles	369,744		(142,246)		227,497		354,641		(118,347)		236,294

	$	2,719,985	$	(920,953)	$	1,799,031	$	2,607,194	$	(814,281)	$	1,792,913

The valuation of identifiable intangible assets utilizes significant unobservable inputs and, therefore, represents a Level 3 fair value measurement. The estimated fair value of the identifiable intangible assets is generally determined using an income approach. Amortization expense for other intangible assets totaled $143 million, $147 million, and $157 million for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated other intangible assets amortization expense for the succeeding five years is as follows (in thousands):


2025	$	140,000
2026	140,000
2027	140,000
2028	130,000
2029	130,000
	$	680,000