Goodwill and Other Intangible Assets, net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill


	Operating Segments
In millions	Performance Chemicals		Performance Materials		Total
December 31, 2019	$	432.1	$	4.3	$	436.4

Foreign currency translation	(20.7)		—		(20.7)
June 30, 2020	$	411.4	$	4.3	$	415.7

There were no events or circumstances indicating that goodwill might be impaired as of June 30, 2020.

Other Intangible Assets


	June 30, 2020										December 31, 2019
In millions	Gross		Accumulated amortization		Net		Gross		Accumulated amortization		Net
Intangible assets subject to amortization
Customer contracts and relationships	$	303.7	$	61.6	$	242.1	$	314.5	$	51.6	$	262.9
Brands ⁽¹⁾	75.8		13.2		62.6		80.3		11.1		69.2
Developed technology	66.5		8.3		58.2		68.6		5.7		62.9
Other	2.7		1.9		0.8		2.7		1.5		1.2
Total Other intangibles, net	$	448.7	$	85.0	$	363.7	$	466.1	$	69.9	$	396.2

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(1) Represents trademarks, trade names and know-how.

At June 30, 2020 and December 31, 2019, the intangible assets subject to amortization were allocated among our business segments as follows:


In millions	June 30, 2020		December 31, 2019
Performance Chemicals	$	361.5	$	396.2
Performance Materials	2.2		—
Total Other intangibles, net	$	363.7	$	396.2

The amortization expense related to our intangible assets in the table above is shown in the table below.


	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2020		2019		2020		2019
Cost of sales	$	—	$	0.1	$	0.1	$	0.3
Selling, general and administrative expenses	7.9		7.3		16.1		12.6
Total amortization expense⁽¹⁾	$	7.9	$	7.4	$	16.2	$	12.9

_______________

(1) See Note 4 for more information about the Caprolactone Acquisition, and the related increase in amortization expense.

Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: 2020 - $32.3 million, 2021 - $31.5 million, 2022 - $31.3 million, 2023 - $31.2 million, and 2024 - $30.9 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency.