Goodwill and Other Intangible Assets (Notes)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company performed a quantitative assessment as part of its 2023 annual impairment test (October 1 annual test date) for all reporting units with goodwill after electing the option to bypass the qualitative assessment. In preparing the quantitative analysis, the Company utilized both income and market-based approaches. The income-based approach was conducted using the discounted cash flow method, for which management updated its internal five-year forecast. Assumptions in estimating the future cash flows were based on Level 3 inputs under the fair value hierarchy. The Company also selected appropriate terminal growth rates as well as weighted average cost of capital rates, which considered various factors including the level of inherent risk in achieving the forecast based on prior history and current market conditions. The market-based approach considered comparable publicly traded companies and transactions within the industries where the Company's reporting units participate, and applied their valuation multiples to management's forecast estimates. Based on results of the quantitative assessment for the 2023 annual impairment test, the Company determined there were no indications that the fair value of a reporting unit was less than its carrying value.

The Company performed a qualitative assessment as part of its 2022 and 2021 annual impairment tests (October 1 annual test date) for all reporting units, which included a review of the Company’s market capitalization. Based on results of the qualitative assessments for the 2022 and 2021 annual impairment tests, the Company determined there were no indications that the fair value of a reporting unit was less than its carrying value; therefore, the Company determined that quantitative goodwill impairment tests were not required.

Changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 are as follows (dollars in thousands):


					Specialty
	Packaging		Aerospace		Products		Total
Balance, December 31, 2021	$	238,740	$	70,190	$	6,560	$	315,490
Goodwill from acquisitions	32,370		—		—		32,370


Foreign currency translation and other	(7,560)		(490)		—		(8,050)
Balance, December 31, 2022	$	263,550	$	69,700	$	6,560	$	339,810
Goodwill from acquisitions	20,420		—		—		20,420


Foreign currency translation and other	3,380		160		—		3,540
Balance, December 31, 2023	$	287,350	$	69,860	$	6,560	$	363,770

Other Intangible Assets

For the purpose of the Company's 2023 annual indefinite-lived intangible asset impairment test (as of October 1), the Company elected the option to bypass the qualitative assessment and performed a quantitative assessment for all of its indefinite-lived intangible assets except for the Aarts trade name, using the relief-from-royalty method. The Company performed a qualitative assessment for the Aarts trade name as it was acquired less than one year prior and has long-term sales projections consistent with those expected in the purchase price valuation. Significant management assumptions used under the relief-from-royalty method reflected the Company's current assessment of the risks and uncertainties associated with the cash flows of the respective underlying indefinite-lived intangible assets and represent Level 3 inputs under the fair value hierarchy. Upon completion of the quantitative impairment test, the Company determined that one of the Company's aerospace-related trade names had a carrying value that exceeded its fair value, and therefore recorded an impairment charge of $1.1 million.

For the purposes of the Company's 2022 and 2021 annual indefinite-lived intangible asset impairment tests (as of October 1), the Company performed a qualitative assessment to determine whether it was more likely than not that the fair values of the indefinite-lived intangible assets were less than the carrying values. Based on the qualitative assessment performed, the Company did not believe that it is more likely than not that the fair values of each of its indefinite-lived intangible assets were less than the carrying values; therefore, a fair value calculation of the indefinite-lived intangible assets was not required for the 2022 and 2021 annual indefinite-lived intangible asset impairment tests.

The gross carrying amounts and accumulated amortization of the Company's other intangibles as of December 31, 2023 and 2022 are summarized below (dollars in thousands):


	As of December 31, 2023				As of December 31, 2022
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships, 5 - 12 years	$	141,260	$	(89,020)	$	131,660	$	(80,000)
Customer relationships, 15 - 25 years	129,830		(80,600)		129,650		(74,380)
Total customer relationships	271,090		(169,620)		261,310		(154,380)
Technology and other, 1 - 15 years	56,970		(41,850)		56,860		(38,990)
Technology and other, 17 - 30 years	43,300		(40,730)		43,300		(40,330)
Total technology and other	100,270		(82,580)		100,160		(79,320)
Indefinite-lived intangible assets:
Trademark/Trade names	61,860		—		60,340		—
Total other intangible assets	$	433,220	$	(252,200)	$	421,810	$	(233,700)

Amortization expense related to intangible assets as included in the accompanying consolidated statement of income is summarized as follows (dollars in thousands):


	Year ended December 31,
	2023		2022		2021
Technology and other, included in cost of sales	$	3,210	$	3,300	$	3,820
Customer relationships, included in selling, general and administrative expenses	14,970		15,800		17,740
Total amortization expense	$	18,180	$	19,100	$	21,560

Estimated amortization expense for the next five fiscal years beginning after December 31, 2023 is as follows (dollars in thousands):


Year ended December 31,	Estimated Amortization Expense
2024		$	17,220
2025		16,870
2026		15,140
2027		15,080
2028		15,060