Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

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GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS:
Changes to goodwill during the years ended September 30, 2022 and 2021, follow.
Memorialization Industrial Technologies SGK Brand Solutions Consolidated
Net goodwill at September 30, 2020 $ 361,682  $ 91,969  $ 311,737  $ 765,388 
Additions during period 4,775  —  —  4,775 
Translation and other adjustments (97) 608  3,113  3,624 
Net goodwill at September 30, 2021 366,360  92,577  314,850  773,787 
Additions during period —  17,013  —  17,013 
Translation and other adjustments (4,578) (2,568) (25,779) (32,925)
Goodwill write-down —  —  (82,454) (82,454)
Net goodwill at September 30, 2022 $ 361,782  $ 107,022  $ 206,617  $ 675,421 

The net goodwill balances at September 30, 2022 and 2021 included $261,186 and $178,732 of accumulated impairment losses, respectively. Accumulated impairment losses at September 30, 2022 were $5,000, $23,946, and $232,240 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively. Accumulated impairment losses at September 30, 2021 were $5,000, $23,946, and $149,786 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively.
Fiscal 2022:
In fiscal 2022, the additions to Industrial Technologies goodwill reflects the acquisition of OLBRICH and R+S Automotive.
The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2022 (January 1, 2022) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's SGK Brand Solutions reporting unit (formerly the Graphics Imaging reporting unit) exceeded the carrying value (expressed as a percentage of carrying value) by approximately 10%.
The SGK Brand Solutions reporting unit has experienced recent declines, primarily resulting from weakened economic conditions (particularly in Europe) and unfavorable changes in foreign exchange rates. Additionally, recent increases in the cost of certain materials, labor, and other inflation-related pressures have had an unfavorable impact on the reporting unit's results of operations. During the fourth quarter of fiscal 2022, in its assessment of these potential impacts, and in light of the limited excess fair value over carrying value for its SGK Brand Solutions reporting unit (discussed above), management determined a triggering event occurred, resulting in a re-evaluation of goodwill for the reporting unit, as of September 1, 2022. As a result of this interim assessment, the Company recorded a goodwill write-down totaling $82,454 during the fiscal 2022 fourth quarter. Subsequent to this write-down, the fair value of the SGK Brand Solutions reporting unit approximated its carrying value at September 1, 2022. The fair value for the reporting unit was determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology. If current projections are not achieved or specific valuation factors outside the Company's control (such as discount rates and continued economic and industry challenges) significantly change, additional goodwill write-downs may be necessary in future periods.

Fiscal 2021:

In fiscal 2021, the additions to Memorialization goodwill and SGK Brand Solutions goodwill reflect acquisitions of small businesses within each segment.

Fiscal 2020:

In fiscal 2020, in its assessment of the potential impacts of COVID-19 on the estimated future earnings and cash flows for the SGK Brand Solutions segment, and in light of the limited excess fair values over carrying values for the segment's two reporting units, management determined that COVID-19 represented a triggering event, resulting in a re-evaluation of the goodwill for the reporting units within the SGK Brand Solutions segment (Graphics Imaging and Cylinders, Surfaces and Engineered Products), as of March 31, 2020. As a result of this interim assessment, the Company recorded a goodwill write-
down totaling $90,408 during the fiscal 2020 second quarter. Subsequent to this write-down, the fair values of the two reporting units within the SGK Brand Solutions segment (Graphics Imaging and Cylinders, Surfaces and Engineered Products) approximated their carrying values at March 31, 2020. The fair values for these reporting units were determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology.

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2022 and 2021, respectively.
Carrying
Amount		 Accumulated
Amortization		 Net
September 30, 2022  
Indefinite-lived trade names $ 30,540  $ —  $ 30,540 
Definite-lived trade names 150,528  (117,572) 32,956 
Customer relationships 380,593  (248,464) 132,129 
Copyrights/patents/other 20,878  (14,349) 6,529 
  $ 582,539  $ (380,385) $ 202,154 
September 30, 2021      
Indefinite-lived trade names $ 30,540  $ —  $ 30,540 
Definite-lived trade names 148,867  (104,211) 44,656 
Customer relationships 388,699  (210,361) 178,338 
Copyrights/patents/other 23,584  (15,576) 8,008 
  $ 591,690  $ (330,148) $ 261,542 

The net change in intangible assets during fiscal 2022 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to the acquisition of OLBRICH and R+S Automotive.

During the second quarter of fiscal 2021, the Company reassessed the useful lives for certain of its customer relationships. As a result of this reassessment, the Company reduced the remaining useful lives for these customer relationships to reflect their estimated remaining duration, utilizing actual historical customer attrition rates.
Amortization expense on intangible assets was $57,084, $84,233, and $71,514 in fiscal 2022, 2021 and 2020, respectively. Fiscal year amortization expense is estimated to be approximately $41,427 in 2023, $35,889 in 2024, $18,601 in 2025, $14,357 in 2026 and $13,364 in 2027.