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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill The following table sets forth the changes in the carrying value of goodwill by reportable segment for the periods presented:
| EES |  | CSS |  | UBS |  | Total
(In thousands) |  |  |  |  |  |  |
Balance as of January 1, 2020 | $ | 573,447 |  |  | $ | 235,711 |  |  | $ | 949,882 |  |  | $ | 1,759,040 |
Adjustments to goodwill for acquisitions (Note 6)(1) (2) (3) | 264,538 |  |  | 868,936 |  |  | 250,553 |  |  | 1,384,027 |
Foreign currency exchange rate changes | 15,471 |  |  | 10,853 |  |  | 17,778 |  |  | 44,102 |
Balance as of December 31, 2020 | $ | 853,456 |  |  | $ | 1,115,500 |  |  | $ | 1,218,213 |  |  | $ | 3,187,169 |
Adjustments to goodwill for acquisitions (Note 6)(4) | 1,124 |  |  | 8,603 |  |  | 4,215 |  |  | 13,942 |
Foreign currency exchange rate changes and other | 6,378 |  |  | (2,391) |  |  | 3,235 |  |  | 7,222 |
Balance as of December 31, 2021 | $ | 860,958 |  |  | $ | 1,121,712 |  |  | $ | 1,225,663 |  |  | $ | 3,208,333 |
(1) Adjustments to goodwill include the final allocation of the purchase price paid to acquire SLS, as disclosed in Note 6, "Acquisitions and Disposals", which is reflected in the EES segment. (2) Adjustments to goodwill include an increase of $33.9 million resulting from the out-of-period adjustment related to inventory cost absorption accounting, as described in Note 2, "Accounting Policies", which affected the EES, CSS and UBS segments by $20.2 million, $2.0 million, and $11.7 million, respectively. (3) Adjustments to goodwill include $26.1 million that was classified as held for sale on the UBS segment as of December 31, 2020, as disclosed in Note 7, "Assets and Liabilities Held For Sale". Such amount was disposed in the first quarter of 2021 as part of the Canadian divestitures disclosed in Note 6, "Acquisitions and Disposals". (4) Includes the effect on goodwill of the adjustments to the assets acquired and liabilities assumed in the merger with Anixter since their initial measurement, as described in Note 6, "Acquisitions and Disposals". Intangible Assets The components of intangible assets are as follows:
|  |  | December 31, 2021 |  | December 31, 2020
| Life (in years) |  | Gross Carrying Amount (1) |  | Accumulated Amortization (1) |  | Net Carrying Amount |  | Gross Carrying Amount (1) |  | Accumulated Amortization (1) |  | Net Carrying Amount
|  |  | (In thousands)
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks(2) | Indefinite |  | $ | 795,065 |  |  | $ | — |  |  | $ | 795,065 |  |  | $ | 833,793 |  |  | $ | — |  |  | $ | 833,793 |
Customer relationships(3) | 10 - 20 |  | 1,431,251 |  |  | (308,180) |  |  | 1,123,071 |  |  | 1,434,554 |  |  | (227,585) |  |  | 1,206,969 |
Distribution agreements(3) | 15 - 19 |  | 29,212 |  |  | (22,714) |  |  | 6,498 |  |  | 29,212 |  |  | (21,040) |  |  | 8,172 |
Trademarks(2)(3) | 1 - 12 |  | 38,758 |  |  | (20,058) |  |  | 18,700 |  |  | 24,898 |  |  | (11,415) |  |  | 13,483 |
Non-compete agreements | 2 |  | 4,300 |  |  | (3,493) |  |  | 807 |  |  | 4,462 |  |  | (1,384) |  |  | 3,078 |
|  |  | $ | 2,298,586 |  |  | $ | (354,445) |  |  | $ | 1,944,141 |  |  | $ | 2,326,919 |  |  | $ | (261,424) |  |  | $ | 2,065,495 |
(1)Excludes the original cost and related accumulated amortization of fully-amortized intangible assets. (2)As disclosed in Note 2, "Accounting Policies", the Company assigned remaining estimated useful lives to certain trademarks, including those that previously had indefinite lives. (3)The net carrying amount as of December 31, 2020 excluded $1.0 million of trademarks, $3.3 million of customer relationships and $1.4 million of distribution agreements that were classified as held for sale and disposed in the first quarter of 2021 as part of the Canadian divestitures disclosed in Note 7, "Assets and Liabilities Held For Sale". Amortization expense related to intangible assets totaled $119.6 million, $66.5 million and $35.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. For the year ended December 31, 2021, amortization expense includes $32.0 million resulting from the changes in estimated useful lives of certain legacy trademarks that are migrating to the Company's master brand architecture, as described in Note 2, "Accounting Policies". The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:
For the year ending December 31, | (In thousands)
2022 | $ | 92,593 |
2023 | 83,287 |
2024 | 80,827 |
2025 | 77,710 |
2026 | 60,834 |
Thereafter | 753,825 |
The Company performed its annual impairment tests of goodwill and indefinite-lived intangible assets during the fourth quarter of 2021 by assessing qualitative factors to determine whether it was more likely than not that the fair values of its reporting units and indefinite-lived intangible assets were less than their respective carrying amounts. In performing this qualitative assessment, the Company assessed relevant events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant events such as changes in key personnel, changes in the composition or carrying amount of the net assets of a reporting unit, and changes in share price. As a result of this assessment, the Company determined that it was more likely than not that the fair values of its reporting units and indefinite-lived intangible assets continued to exceed their respective carrying amounts and, therefore, a quantitative impairment test was unnecessary. The annual impairment tests of goodwill and indefinite-lived intangible assets involve the assessment of factors, events and circumstances at a point in time that are subject to change. As a result, there can be no assurance that the fair values of the Company's reporting units and indefinite-lived intangible assets will exceed their carrying values in the future, and that goodwill and indefinite-lived intangible assets will be fully recoverable.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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