Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill by segment for the year ended December 31, 2019, are as follows:


	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions		Total
Balance as of January 1, 2019	$	617,332	$	203,414	$	256,947	$	231,474	$	1,309,167
Acquisitions	75,595		—		43,427		—		119,022


Measurement period adjustments	(2,461)		—		2,246				(215)
Foreign currency translation	777		—		421		174		1,372
Balance as of December 31, 2019	$	691,243	$	203,414	$	303,041	$	231,648	$	1,429,346

Acquisitions in 2019 resulted in the addition of $119,022 of goodwill, including $43,427 in connection with the August 2019 acquisition of Corenso and $75,595 in connection with the December 2019 acquisition of TEQ. Additionally, measurement period adjustments were made in 2019 to the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub, Highland, and Conitex Sonoco resulting in increases/(decreases) in goodwill of $(566), $(1,895) and $2,246, respectively. These adjustments are reflected above in "Measurement period adjustments." See Note 3 for additional information.

The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2019. As part of this testing, the Company analyzed certain qualitative and quantitative factors in determining goodwill impairment. The Company's assessments reflected a number of significant management assumptions and estimates including the Company's forecast of sales, profit margins, and discount rates. Changes in these assumptions could materially impact the

Company's conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units.

Although no reporting units failed the assessments noted above, in management’s opinion, the goodwill of the Display and Packaging reporting unit is at risk of impairment in the near term if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate. A large portion of projected sales in this reporting unit is concentrated in several major customers, the loss of any of which could impact the Company's conclusion regarding the likelihood of goodwill impairment for the unit. Total goodwill associated with this reporting unit was $203,414 at December 31, 2019. Based on the latest annual impairment test, the estimated fair value of the Display and Packaging reporting unit exceeded its carrying value by approximately 35%. In its 2019 annual goodwill impairment analysis, projected future cash flows for Display and Packaging were discounted at 8.9%. Based on the discounted cash flow model and holding other valuation assumptions constant, Display and Packaging projected operating profits across all future periods would have to be reduced approximately 27%, or the discount rate increased to 12.5%, in order for the estimated fair value to fall below the reporting unit’s carrying value.

During the time subsequent to the annual evaluation, and at December 31, 2019, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's opinion that no such events have occurred.

Other intangible assets

Details at December 31 are as follows:


	2019		2018
Other Intangible Assets, Gross:
Patents	$	26,096	$	22,509
Customer lists	632,036		548,038
Trade names	32,427		31,174
Proprietary technology	24,525		28,748
Land use rights	172		282
Other	2,125		2,093
Other Intangible Assets, Gross	$	717,381	$	632,844
Accumulated Amortization:
Patents	$	(11,669)	$	(9,539)
Customer lists	(287,831)		(246,946)
Trade names	(9,985)		(7,413)
Proprietary technology	(17,910)		(15,400)
Land use rights	(51)		(48)
Other	(1,643)		(1,461)
Accumulated Amortization	$	(329,089)	$	(280,807)
Other Intangible Assets, Net	$	388,292	$	352,037

The acquisitions of Corenso in August 2019 and TEQ in December 2019 resulted in the addition of $29,170 and $56,170, respectively, of intangible assets, mostly related to customer lists. In addition, measurement period adjustments were made in 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub and Conitex Sonoco resulting in increases in other intangible assets, primarily customer lists, of $1,888 and $300, respectively. See Note 3 for additional information. In the fourth quarter of 2019, the Company wrote off patents with a net book value totaling $340 resulting from the loss of the single flexible packaging customer it served using the particular technology.

Aggregate amortization expense on intangible assets was $51,580, $47,177 and $38,165 for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization expense on intangible assets is expected to approximate $54,200 in 2020, $52,500 in 2021, $49,700 in 2022, $44,500 in 2023 and $35,000 in 2024.