XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended
--- | ---
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The changes in the carrying amount of goodwill by segment were as follows:
(dollars in millions) |  | Electronics |  | Industrial & Specialty |  | Total
Balance at December 31, 2022 |  | $ | 1,304.0 |  |  | $ | 1,108.8 |  | (1) | $ | 2,412.8 |
Transfer of Films business (2) |  | 7.9 |  |  | (7.9) |  |  | — |
Goodwill impairment |  | — |  |  | (80.0) |  |  | (80.0) |
Foreign currency translation and other |  | (13.2) |  |  | 17.1 |  |  | 3.9 |
Balance at December 31, 2023 |  | 1,298.7 |  |  | 1,038.0 |  | (3) | 2,336.7 |
Held for sale (4) |  | — |  |  | (130.4) |  |  | (130.4) |
Foreign currency translation and other |  | (40.6) |  |  | (33.7) |  |  | (74.3) |
Balance at December 31, 2024 |  | $ | 1,258.1 |  |  | $ | 873.9 |  | (1) | $ | 2,132.0 |
(1) Includes accumulated impairment losses of $46.6 million at December 31, 2024 and December 31, 2022, respectively. (2) In the first quarter of 2023, the Company transferred operational responsibility of its Films business from its Graphics Solutions business within its Industrial & Specialty segment to its Electronics segment. Goodwill was reallocated using a relative fair value approach and assessed for impairment both before and after the allocation. See Note 1, Background and Basis of Presentation, to the Consolidated Financial Statements for further information. (3) Includes accumulated impairment losses of $127 million. (4) As a result of the MGS Transaction, MacDermid Graphics Solutions' assets and liabilities, including goodwill, were classified as held for sale in the Consolidated Balance Sheets as of December 31, 2024. Goodwill held for sale includes accumulated impairment losses of $80.0 million. See Note 5, Held for Sale, to the Consolidated Financial Statements for further information regarding the MGS Transaction. Goodwill is tested for impairment at the reporting unit level in the fourth quarter of each year or when events or changes in circumstances indicate that goodwill might be impaired. During the third quarter of 2023, given the lower-than-expected results of the Graphics Solutions reporting unit, the Company determined that it was more likely than not that the fair value of this reporting unit was less than its carrying value. As a result, the Company conducted an interim goodwill impairment test which confirmed that goodwill was impaired, and the Company recorded an $80.0 million impairment charge in the Consolidated Statements of Operations to reduce the carrying value of this reporting unit to its estimated fair value. This impairment charge was primarily driven by the reduction of the expected long-term cash flows for the business due to profit margin pressures from raw material inflation across the packaging supply chain, the recent loss of a significant newspaper customer, and a higher WACC as compared to the assumptions used for the 2022 annual goodwill impairment test. After recording the impairment, the carrying value of the Graphics Solutions reporting unit was equal to its estimated fair value and there have been no events or changes in circumstances that indicated that goodwill was further impaired. As of December 31, 2024, the goodwill assigned to the Graphics Solutions reporting unit was reported as an asset held for sale. See Note 5, Held for Sale, to the Consolidated Financial Statements for further information. No impairments of goodwill were recognized for any of the Company's other reporting units during the year ended December 31, 2023 and no impairments of goodwill were recognized during the years ended December 31, 2024 and 2022. Intangible Assets, Net The major components of intangible assets, net were as follows:
|  | December 31, 2024 |  | December 31, 2023
(dollars in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
Customer relationships |  | $ | 830.5 |  |  | $ | (447.8) |  |  | $ | 382.7 |  |  | $ | 978.4 |  |  | $ | (505.9) |  |  | $ | 472.5 |
Developed technology |  | 291.4 |  |  | (233.3) |  |  | 58.1 |  |  | 410.0 |  |  | (316.2) |  |  | 93.8 |
Trade names |  | 92.9 |  |  | (37.0) |  |  | 55.9 |  |  | 95.9 |  |  | (30.9) |  |  | 65.0 |
Reacquired distribution rights |  | 187.0 |  |  | (19.7) |  |  | 167.3 |  |  | 187.0 |  |  | (7.3) |  |  | 179.7 |
Other |  | — |  |  | — |  |  | — |  |  | 0.8 |  |  | (0.5) |  |  | 0.3 |
Indefinite-lived trade name |  | 68.0 |  |  | — |  |  | 68.0 |  |  | 68.0 |  |  | — |  |  | 68.0 |
Total |  | $ | 1,469.8 |  |  | $ | (737.8) |  |  | $ | 732.0 |  |  | $ | 1,740.1 |  |  | $ | (860.8) |  |  | $ | 879.3 |
For 2024, 2023 and 2022, the Company recorded amortization expense on intangible assets of $118 million, $124 million and $120 million, respectively. No impairments of indefinite-lived intangible assets were recognized during the years ended December 31, 2024, 2023 and 2022. Estimated future amortization of intangible assets for each of the next five years is as follows:
(dollars in millions) |  | Amortization Expense
2025 |  | $ | 103.0 |
2026 |  | 70.4 |
2027 |  | 68.9 |
2028 |  | 68.8 |
2029 |  | 68.5 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration