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GOODWILL AND INTANGIBLES
12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 were as follows:

    

    

The Harris

    

Americas

International

Products

Welding

    

Welding

    

Group

    

Consolidated

Balance as of December 31, 2020

$

279,810

$

39,060

$

16,723

$

335,593

Additions and adjustments (1)

 

 

77,317

 

26,519

 

103,836

Foreign currency translation

 

173

 

(9,284)

 

(156)

 

(9,267)

Balance as of December 31, 2021

 

279,983

 

107,093

 

43,086

 

430,162

Additions and adjustments (2)

 

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

(1)Additions to International Welding reflect goodwill recognized in the acquisition of Zeman in 2021. Additions to The Harris Products Group reflect goodwill recognized in the acquisition of FTP in 2021.
(2)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.

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

December 31, 2022

December 31, 2021

Gross

    

Accumulated

    

Gross

    

Accumulated

 

Amount

    

Amortization

    

Amount

    

Amortization

Intangible assets not subject to amortization

  

 

  

 

  

 

  

Trademarks and trade names

$

15,963

 

  

$

15,828

 

  

Intangible assets subject to amortization

 

  

 

  

 

  

 

  

Trademarks and trade names

$

93,424

$

47,969

$

72,755

$

44,623

Customer relationships

 

170,231

 

95,385

 

154,634

 

92,404

Patents

 

23,603

 

15,113

 

24,734

 

15,058

Other

 

112,404

 

54,452

 

83,223

 

49,696

Total intangible assets subject to amortization

$

399,662

$

212,919

$

335,346

$

201,781

During 2022, 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, 2022

Purchase Price

Weighted

Allocation

    

Average Life

Acquired intangible assets subject to amortization

 

  

 

  

Trademarks and trade names

$

23,770

 

13

Customer relationships

 

24,243

 

13

Other

 

30,661

 

9

Total acquired intangible assets subject to amortization

$

78,674

 

  

Aggregate amortization expense was $21,908, $21,155 and $20,363 for 2022, 2021 and 2020, respectively. During 2020 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 $1,018 and $45,468 in 2022 and 2020, respectively, which are recorded in Rationalization and asset impairment charges in the Company’s Consolidated Statements of Income. During 2022, the Company Estimated annual amortization expense for intangible assets for each of the next five years is $25,327 in 2023, $23,728 in 2024, $22,823 in 2025, $21,372 in 2026 and $19,302 in 2027.