We test goodwill for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. During the second quarter of 2022, we completed the annual goodwill impairment assessment. Due to a decline in our market capitalization, we performed our annual assessment on a quantitative basis for goodwill for each of our three reporting units. The result of our annual assessment was that the fair value

of the North America, International and EMEA reporting units exceeded their carrying values as of our measurement date of May 31, 2022 and we concluded that no impairment existed.

During the third quarter of 2022, our market capitalization declined further compared to the second quarter of 2022. In addition, our forecasted cash flows for our North America and EMEA reporting units decreased due to lower inventory replenishment by major retailers, lower sales of gaming accessories, and a challenging demand environment in several countries within EMEA. As a result, we identified a triggering event indicating it was more likely than not that an impairment loss had been incurred. Accordingly, as of August 31, 2022, we completed a goodwill impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our assessment was that the fair value of the North America reporting unit did not exceed its carrying value resulting in an impairment charge of $98.7 million. The result of our assessment for International and EMEA reporting units was that the fair value of each exceeded its carrying values by greater than ten percent and we concluded that no impairment existed.

Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both a discounted cash flows and market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, discount rate, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units.

We believe the assumptions used in our goodwill impairment analysis are appropriate and result in reasonable estimates of the implied fair value of each reporting unit. However, given the economic environment and the uncertainties regarding the impact on our business, there can be no assurance that our estimates and assumptions, made for purposes of our goodwill impairment testing, will prove to be an accurate prediction of the future. If our assumptions regarding future performance are not achieved we may be required to record additional goodwill impairment charges in future periods.

Changes in the net carrying amount of goodwill by segment were as follows:


(in millions)		ACCO Brands North America				ACCO Brands EMEA				ACCO Brands International			Total
Balance at December 31, 2021	$		446.7		$		178.6		$		177.2	$		802.5
Goodwill impairment			(98.7	)			—				—			(98.7	)
Foreign currency translation			—				(37.2	)			0.3			(36.9	)
Balance at September 30, 2022	$		348.0		$		141.4		$		177.5	$		666.9

The gross carrying value and accumulated amortization by class of identifiable intangible assets as of September 30, 2022 and December 31, 2021, were as follows:


		September 30, 2022										December 31, 2021
(in millions)		Gross Carrying Amounts			Accumulated Amortization				Net Book Value			Gross Carrying Amounts			Accumulated Amortization				Net Book Value
Indefinite-lived intangible assets:
Trade names(1)	$		401.5	$		(44.5	)	$		357.0	$		417.6	$		(44.5	)	$		373.1
Amortizable intangible assets:
Trade names			363.0			(118.0	)			245.0			373.2			(110.5	)			262.7
Customer and contractual relationships			346.4			(186.8	)			159.6			366.5			(182.4	)			184.1
Vendor relationships			82.4			(9.9	)			72.5			82.4			(5.7	)			76.7
Patents			7.7			(3.3	)			4.4			8.6			(3.0	)			5.6
Subtotal			799.5			(318.0	)			481.5			830.7			(301.6	)			529.1
Total identifiable intangibles	$		1,201.0	$		(362.5	)	$		838.5	$		1,248.3	$		(346.1	)	$		902.2

(1)

Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased.

The Company's intangible amortization expense for the three and nine months ended September 30, 2022 was $9.9 million and $31.5 million, respectively, and $11.6 million and $35.2 million for the three and nine months ended September 30, 2021, respectively.

Estimated amortization expense for amortizable intangible assets, as of September 30, 2022, for the current year and the next five years is as follows:


(in millions)		2022			2023			2024			2025			2026			2027
Estimated amortization expense(2)	$		42.4	$		40.1	$		38.5	$		36.9	$		34.7	$		32.2

(2)

Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events.

We test indefinite-lived intangibles for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, for our indefinite-lived trade names and concluded that no impairment existed as of our measurement date of May 31, 2022.

During 2022, our revenue generated from our Leitz indefinite-lived trade name has declined. Accordingly, as of August 31, 2022, we completed an impairment assessment, on a quantitative basis, for our Leitz indefinite-lived trade name. The result of our assessment was that the fair value of the Leitz indefinite-lived trade name exceeded its carrying value and we concluded that no impairment existed. The excess fair value over our carrying value was less than 10 percent as of August 31, 2022.