Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

The components of goodwill and identifiable intangibles at December 31, 2021 and 2020, and related amortization periods are as follows:


(In thousands)	2021		2020		Amortization Periods
Goodwill	$	70,608	$	67,708	Not amortized
Identifiable intangible assets, net:
Customer relationships (cost basis of $26,526 in 2021 and $29,450 in 2020)	13,259		17,551		10-12 years
Proprietary technology (cost basis of $3,721 in 2021 and $3,726 in 2020)	118		194		Not more than 15 years
Trade names (cost basis of $13,338 in 2021 and $13,397 in 2020)	775		1,075		5 - 13 years
Total carrying value of identifiable intangibles	14,152		18,820
Total carrying value of goodwill and identifiable intangible assets	$	84,760	$	86,528

A reconciliation of goodwill at December 31, 2021 and 2020 is as follows:


(In thousands)	Aluminum Extrusions(a)		PE Films(a)		Total
Net carrying value of goodwill at December 31, 2019	$	24,066	$	57,338	$	81,404
Goodwill impairment charge	(13,696)		—		(13,696)
Net carrying value of goodwill at December 31, 2020	10,370		57,338		67,708
Out-of-period adjustment	2,900		—		2,900
Net carrying value of goodwill at December 31, 2021	$	13,270	$	57,338	$	70,608
(a) The goodwill of Aluminum Extrusions and PE Films is carried by the Futura and Surface Protection reporting units, respectively.

During the fourth quarter of 2021, the Company recorded an out-of-period adjustment in connection with the original valuation of intangible assets and goodwill related to the acquisition of Futura in February 2017. This adjustment resulted in a reclassification of $2.9 million from acquired customer relationship intangible assets to goodwill and a $0.9 million decrease to accumulated amortization and amortization expense as of and for the period ended December 31, 2021.

A reconciliation of identifiable intangibles at December 31, 2021 and 2020 is as follows:


(In thousands)	Customer Relationships		Proprietary Technology		Trade Names		Total
Aluminum Extrusions:
Net carrying value at December 31, 2019	$	19,644	$	55	$	—	$	19,699
Amortization expense	(2,480)		(20)		—		(2,500)
Net carrying value at December 31, 2020	17,164		35		—		17,199
Amortization expense(a)	(2,239)		(20)		—		(2,259)
Out-of-period Adjustment(b)	(1,953)		—		—		(1,953)
Net carrying value at December 31, 2021	$	12,972	$	15	$	—	$	12,987
PE Films:
Net carrying value at December 31, 2019	$	—	$	610	$	—	$	610
Amortization expense	—		(120)		—		(120)
Bright View disposal	—		(490)		—		(490)
Net carrying value at December 31, 2020	—		—		—		—
Amortization expense	—		—		—		—
Net carrying value at December 31, 2021	$	—	$	—	$	—	$	—
Flexible Packaging Films:
Net carrying value at December 31, 2019	$	554	$	230	$	1,543	$	2,327
Amortization expense	(84)		(53)		(260)		(397)
Increase (decrease) due to foreign currency translation	(83)		(18)		(208)		(309)
Net carrying value at December 31, 2020	387		159		1,075		1,621
Amortization expense	(82)		(53)		(257)		(392)
Increase (decrease) due to foreign currency translation	(18)		(3)		(43)		(64)
Net carrying value at December 31, 2021	$	287	$	103	$	775	$	1,165
Total net carrying value of identifiable intangibles at December 31, 2021	$	13,259	$	118	$	775	$	14,152
(a) Excludes a reduction of $0.9 million to amortization expense related to the out-of-period adjustment. (b) Represents a $2.9 million gross reclassification from customer relationship intangible assets to goodwill offset by a $0.9 million decrease to accumulated amortization as a result of the out-of-period adjustment.

Amortization expense over the next five years is expected to be as follows:


Year	Amount (In thousands)
2022	$	2,579
2023	1,953
2024	1,913
2025	1,913
2026	1,913