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Goodwill and Other Intangibles | 9 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | NOTE I – GOODWILL AND OTHER INTANGIBLES The Company’s finite and indefinite-lived intangible assets consist of the following:
|  | September 30, 2022 |  |  | December 31, 2021 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |
Finite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Patents |  | $ | 4,806 |  |  | $ | (4,806 | ) |  | $ | 4,806 |  |  | $ | (4,806 | )
Land use rights |  |  | 1,105 |  |  |  | (404 | ) |  |  | 1,293 |  |  |  | (437 | )
Trademarks |  |  | 1,896 |  |  |  | (1,494 | ) |  |  | 1,837 |  |  |  | (1,533 | )
Technology |  |  | 6,446 |  |  |  | (2,869 | ) |  |  | 7,306 |  |  |  | (2,830 | )
Customer relationships |  |  | 17,899 |  |  |  | (8,861 | ) |  |  | 15,046 |  |  |  | (8,643 | )
|  | $ | 32,152 |  |  | $ | (18,434 | ) |  | $ | 30,288 |  |  | $ | (18,249 | )
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 26,347 |  |  |  |  |  | $ | 28,194 |  |  |  |
The aggregate amortization expense for other intangibles with finite lives for the three and nine months ended September 30, 2022 was $0.5 million and $1.7 million, respectively. The aggregate amortization expense for other intangibles with finite lives for the three and nine months ended September 30, 2021 was $0.5 million and $1.4 million, respectively. Amortization expense is estimated to be $1.1 million for the remainder of 2022, $1.7 million for 2023, $1.7 million for 2024, $1.5 million for 2025 and $1.4 million for 2026. The combined weighted-average remaining amortization period is approximately 11.9 years. The weighted-average remaining amortization period by intangible asset class is as follows: land use rights, 51.5 years; trademarks, 10.9 years; technology, 8.4 years; and customer relationships, 10.4 years. The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs additional interim impairment assessments as circumstances warrant. The Company may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit. For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable market multiples in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted-average cost of capital, and estimated market multiples, of which are affected by expectations of future market or economic conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units. Given the continued decline in the Company’s results in the Asia-Pacific region, the Company's reassessment of future forecasts and the rising interest rate environment, the Company concluded that an indicator of impairment was present and conducted an interim impairment review of its goodwill in the Asia-Pacific reporting unit as of September 30, 2022. The Company reviewed current results and reassessed its previous forecasts for this reporting unit and determined the market headwinds faced in the region, particularly China, would linger for longer than previously expected as the region began to emerge from the COVID-19 pandemic. The rising interest rate environment was also a factor in the decision to perform an interim impairment assessment, given the related impact to the discounted cash flow calculation. The interim impairment assessment was performed utilizing the same methodologies as the annual assessments discussed above and included revised projections, which are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows. Based on the interim impairment assessment, the Asia-Pacific reporting unit’s carrying value exceeded its fair value by more than the carrying amount of goodwill, which was caused by both a reduction in forecasted results and an increase in the weighted average cost of capital due to rising interest rates. As a result, the Company recognized a non-cash impairment charge of $6.5 million. This charge was identified separately in the consolidated income statement and impacted income from operations. No other indicators of impairment were identified for the Company’s other reporting units. The Company’s only intangible asset with an indefinite life is goodwill. The changes in the carrying amount of goodwill, by segment, for the nine months ended September 30, 2022 are as follows:
|  | USA |  |  | The Americas |  |  | EMEA |  |  | Asia-Pacific |  |  | Total |
Balance at January 1, 2021 |  | $ | 3,078 |  |  | $ | 4,251 |  |  | $ | 14,449 |  |  | $ | 7,730 |  |  | $ | 29,508 |
Currency translation |  |  | — |  |  |  | (7 | ) |  |  | (888 | ) |  |  | (419 | ) |  |  | (1,314 | )
Balance at December 31, 2021 |  |  | 3,078 |  |  |  | 4,244 |  |  |  | 13,561 |  |  |  | 7,311 |  |  |  | 28,194 |
Acquisitions |  |  | — |  |  |  | 5,068 |  |  |  | 2,455 |  |  |  | — |  |  |  | 7,523 |
Impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6,529 | ) |  |  | (6,529 | )
Currency translation |  |  | — |  |  |  | 56 |  |  |  | (2,115 | ) |  |  | (782 | ) |  |  | (2,841 | )
Balance at September 30, 2022 |  | $ | 3,078 |  |  | $ | 9,368 |  |  | $ | 13,901 |  |  | $ | — |  |  | $ | 26,347 |
The 2022 additions to goodwill relate to the anticipated synergies of acquiring Maxxweld Conectores Eletricos Ltda. and Holplast, s.r.o., while the reduction in goodwill in Asia-Pacific is due to the impairment discussed above. See Note O for additional information about acquisitions of businesses.

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