GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2023

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES

NOTE 5 – GOODWILL AND INTANGIBLES

The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2023 and 2022 were as follows:

					The Harris
	Americas		International		Products
	Welding		Welding		Group		Consolidated
Balance as of December 31, 2021	$	279,983	$	107,093	$	43,086	$	430,162
Additions and adjustments (1)		215,617		31,288		(159)		246,746
Foreign currency translation		(3,413)		(8,462)		224		(11,651)
Balance as of December 31, 2022		492,187		129,919		43,151		665,257
Additions and adjustments (2)		(2,899)		23,111		—		20,212
Foreign currency translation		8,312		449		222		8,983
Balance as of December 31, 2023	$	497,600	$	153,479	$	43,373	$	694,452

(1) Additions to Americas Welding reflect goodwill recognized in the acquisition of Fori and Kestra in 2022. International Welding reflect goodwill recognized in the acquisition of Fori in 2022.

(2) Adjustments to Americas Welding reflect goodwill recognized in the acquisition of Powermig offset by Fori purchase accounting adjustments in 2023. Additions to International Welding reflect Fori purchase accounting adjustments in 2023.

Gross carrying values and accumulated amortization of intangible assets other than goodwill by asset class were as follows:

	December 31, 2023				December 31, 2022
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Intangible assets not subject to amortization
Trademarks and trade names	$	16,038			$	15,963
Intangible assets subject to amortization
Trademarks and trade names	$	93,065	$	52,510	$	93,424	$	47,969
Customer relationships		171,338		102,643		170,231		95,385
Patents		25,150		15,879		23,603		15,113
Other		111,816		59,708		112,404		54,452
Total intangible assets subject to amortization	$	401,369	$	230,740	$	399,662	$	212,919

During 2023, the Company acquired intangible assets either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average as follows:

	Year Ended December 31, 2023
	Purchase Price		Weighted
	Allocation		Average Life
Acquired intangible assets subject to amortization
Trademarks and trade names	$	2,326	15
Customer relationships		4,050	10
Other		2,025	9
Total acquired intangible assets subject to amortization	$	8,401

Aggregate amortization expense was $25,983, $21,908 and $21,155 for 2023, 2022 and 2021, respectively. During 2023 and 2022, the Company determined that for certain intangible assets, the carrying value of the assets exceeded the fair value resulting in an impairment. The Company recognized non-cash impairment charges of $1,564 and $1,018 in 2023 and 2022, respectively, which is recorded in Rationalization and asset impairment charges in the Company’s Consolidated Statements of Income. During 2023, the Company Estimated annual amortization expense for intangible assets for each of the next five years is $31,245 in 2024, $30,322 in 2025, $28,621 in 2026, $26,332 in 2027 and $23,550 in 2028.