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Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
Movements in goodwill during the years ended December 31, 2018, 2019 and 2020 were as follows:
(DOLLARS IN THOUSANDS)Goodwill
Balance at January 1, 2018$1,156,288 
Acquisitions(a)
4,253,541 
Disposals(19,069)
Foreign exchange(12,372)
Balance at December 31, 20185,378,388 
Acquisitions(b)
98,411 
Frutarom measurement period adjustment30,876 
Foreign exchange(10,079)
Balance at December 31, 20195,497,596 
Measurement period adjustments(c)
(15,283)
Foreign exchange110,939 
Balance at December 31, 2020$5,593,252 
_______________________ 
(a)Primarily relates to the Company's acquisition of Frutarom.
(b)Additions primarily relate to the 2019 Acquisition Activity. See Note 3 for details.
(c)Measurement period adjustments relate to adjustments recorded in connection with completing the purchase price allocation related to the 2019 Acquisition Activity. See Note 3 for details.
Reallocation of goodwill
In the first quarter of 2020, in connection with the reorganization of the Company's reporting structure, certain entities were moved between reporting units. As a result of the movements, Goodwill was reallocated between reporting units as follows:
(DOLLARS IN THOUSANDS)Increase (decrease) to Goodwill
Cosmetic Active Ingredients85,235 
Natural Product Solutions(57,102)
Fine Ingredients (25,256)
Taste(2,877)
Total— 
See Note 15 for further information on the reorganization.
Goodwill by segment was as follows: 
December 31,
(DOLLARS IN THOUSANDS)20202019
Taste$4,859,531 $4,788,988 
Scent733,721 708,608 
Total$5,593,252 $5,497,596 
Annual Goodwill Impairment Test
For the annual impairment test as of November 30, 2020, the Company utilized Step 0 of the guidance in ASC Topic 350, Intangibles – Goodwill and Other, which allows for the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Based on a review of qualitative factors, the Company determined that for four of the reporting units, a quantitative (Step 1) impairment analysis was not necessary to determine if the carrying values of the reporting unit exceeded their fair values. For the other four reporting units (Savory, Natural Product Solutions, FSI, and Inclusions), the Company determined that a Step 1 test was necessary.
The Company assessed the fair value of the reporting units primarily using an income approach. Under the income approach, the Company determines the fair value by using a discounted cash flow method at a rate of return that reflects the relative risk of the projected future cash flows of each reporting unit, as well as a terminal value. The Company uses the most current actual and forecasted operating data available. Key estimates and assumptions used in these valuations include revenue growth rates and profit margins based on internal forecasts and historical operating trends of the Company, and a specific weighted-average cost of capital used to discount future cash flows.
In performing the quantitative impairment test, the Company determined that the fair value of the four reporting units exceeded their carrying values and, taken together with the results of the qualitative test, we determined that there was no impairment of goodwill at any of the Company's eight reporting units in 2020. Based on the quantitative impairment test performed at November 30, 2020, the Company determined that the excess of fair values over their respective carrying values ranged from 35% to 105% for two reporting units (FSI and Inclusions). The remaining two reporting units (Savory and Natural Product Solutions) had less than 10% excess fair value over carrying value.
As of November 30, 2020, the Savory reporting unit had excess fair value over carrying value of approximately 5% and goodwill of $1.21 billion, and the Natural Product Solutions reporting unit had excess fair value over carrying value of approximately 1% and goodwill of $851.4 million. While management believes that the assumptions used in the impairment test were reasonable, changes in key assumptions, including, lower revenue growth, lower operating margin, lower terminal growth rates or increasing discount rates could result in a future impairment.
If current long-term projections for these reporting units are not realized or materially decrease, the Company may be required to write-off all or a portion of the goodwill. Such charge could have a material effect on the Consolidated Statements of Operations and Balance Sheets.
Other Intangible Assets
Other intangible assets, net consisted of the following amounts:
 December 31,
(DOLLARS IN THOUSANDS)20202019
Asset Type
Customer relationships$2,728,100 $2,653,446 
Technological know-how479,254 468,256 
Trade names & patents186,716 178,968 
Other38,431 40,362 
Total carrying value 3,432,501 3,341,032 
Accumulated Amortization
Customer relationships(470,514)(302,047)
Technological know-how(168,069)(135,269)
Trade names & patents(37,935)(27,213)
Other(28,808)(24,568)
Total accumulated amortization(705,326)(489,097)
Other intangible assets, net$2,727,175 $2,851,935 
Amortization expense was $192.6 million for the year ended December 31, 2020, and $193.1 million and $75.9 million for the years ended December 31, 2019 and 2018, respectively. Amortization expense for the next five years and thereafter, based on valuations and determinations of useful lives, is expected to be as follows:
December 31,
(DOLLARS IN THOUSANDS)20212022202320242025
Estimated future intangible amortization expense$196,358 $192,303 $192,180 $192,180 $191,679