Goodwill and Other Intangible Assets, net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill

As described in Note 1, we reorganized our segment reporting structure to increase transparency for our investors and better align with the markets and customers we serve through each of our segments. This structure is also consistent with the manner in which information is presently used internally by our chief operating decision maker to evaluate performance and make resource allocation decisions. This reportable segment change impacted the identification of reporting units, which are at the level of operating segment or lower, resulting in two reporting units (Performance Chemicals and Advanced Polymer Technologies).

We have reallocated goodwill as of January 1, 2023 to align to our new reporting unit structure by using a relative fair value approach and tested goodwill for impairment immediately before and after the realignment; no impairment was identified.


	Reporting Units
In millions	Performance Materials		Performance Chemicals		Advanced Polymer Technologies		Total
December 31, 2022	$	4.3	$	514.2	$	—	$	518.5
Segment change reallocation	—		(165.0)		165.0		—
Foreign currency translation	—		—		3.5		3.5
March 31, 2023	$	4.3	$	349.2	$	168.5	$	522.0

Other Intangible Assets


In millions	Customer contracts and relationships		Brands (1)		Developed Technology		Total
Gross Asset Value
December 31, 2022	$	388.5	$	89.2	$	88.5	$	566.2

Foreign currency translation	3.1		1.3		1.3		5.7
March 31, 2023	$	391.6	$	90.5	$	89.8	$	571.9
Accumulated Amortization
December 31, 2022	$	(113.8)	$	(23.9)	$	(23.7)	$	(161.4)
Amortization	(6.6)		(1.4)		(2.3)		(10.3)

Foreign currency translation	(0.7)		(0.3)		(0.5)		(1.5)
March 31, 2023	$	(121.1)	$	(25.6)	$	(26.5)	$	(173.2)
Other intangibles, net	$	270.5	$	64.9	$	63.3	$	398.7

_______________

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

Intangible assets subject to amortization were attributed to our business segments as follows:


In millions	March 31, 2023		December 31, 2022
Performance Materials	$	1.6	$	1.7
Performance Chemicals	192.2		198.0
Advanced Polymer Technologies	204.9		205.1
Other intangibles, net	$	398.7	$	404.8

Amortization expense related to our intangible assets is included in Selling, general and administrative expenses on the condensed consolidated statement of operations. During the three months ended March 31, 2023 and 2022, we recognized amortization expense of $10.3 million and $8.1 million, respectively.

Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: $31.2 million for the remainder of 2023, 2024 - $41.1 million, 2025 - $40.9 million, 2026 - $40.2 million, and 2027 - $40.2 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency exchange rates.