Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

A summary of the changes in goodwill by segment for the three months ended March 31, 2019 is as follows:


	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions		Total
Goodwill at December 31, 2018	$	617,332	$	203,414	$	256,947	$	231,474	$	1,309,167




Foreign currency translation	(690)		—		(929)		108		(1,511)
Other	(2,461)		—		1,971		—		(490)
Goodwill at March 31, 2019	$	614,181	$	203,414	$	257,989	$	231,582	$	1,307,166

Measurement period adjustments made in the first three months of 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub, Highland, and Conitex Sonoco resulted in increases/(decreases) in goodwill of $(566), $(1,895) and $1,971, respectively. These adjustments are reflected above in "Other." See Note 3 for additional information.

The Company assesses goodwill for impairment annually and 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 2018. 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 discount rates, and the Company's forecast of sales volumes and prices, new business, profit margins, income taxes, capital expenditures and changes in working capital requirements. 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 operating performance does not continue to improve in line with management's expectations, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate. Total goodwill associated with this reporting unit was $203,414 at March 31, 2019. In addition, a large portion of projected sales in the Display and Packaging 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.

During the time subsequent to the annual evaluation, and at March 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

A summary of other intangible assets as of March 31, 2019 and December 31, 2018 is as follows:


	March 31, 2019		December 31, 2018
Other Intangible Assets, gross:
Patents	$	22,496	$	22,509
Customer lists	548,443		548,038
Trade names	31,010		31,174
Proprietary technology	28,333		28,748
Land use rights	286		282
Other	2,124		2,093
Other Intangible Assets, gross	$	632,692	$	632,844

Accumulated Amortization:
Patents	(10,021)		(9,539)
Customer lists	(256,696)		(246,946)
Trade names	(7,773)		(7,413)
Proprietary technology	(15,818)		(15,400)
Land use rights	(49)		(48)
Other	(1,491)		(1,461)
Total Accumulated Amortization	$	(291,848)	$	(280,807)
Other Intangible Assets, net	$	340,844	$	352,037

Measurement period adjustments made in the first three months of 2019 to finalize the fair values of the assets acquired and the liabilities assumed in the 2018 acquisitions of Compositub and Conitex Sonoco resulted in increases in other intangible assets, primarily customer lists, of $1,888 and $300, respectively.

Other intangible assets are amortized on a straight-line basis over their respective useful lives, which generally range from three to forty years. The Company has no intangible assets with indefinite lives.

Aggregate amortization expense was $12,792 and $10,202 for the three months ended March 31, 2019 and April 1, 2018, respectively. Amortization expense on other intangible assets is expected to total approximately $50,000 in 2019, $47,600 in 2020, $45,600 in 2021, $43,200 in 2022 and $38,400 in 2023.