Goodwill and Intangible Assets
Goodwill
Changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| Sealing Systems | | Fluid Handling Systems | | Industrial Specialty Group | | Total |
| Balance as of December 31, 2023 | $ | 47,775 | | | $ | 80,303 | | | $ | 12,736 | | | $ | 140,814 | |
| | | | | | | |
| Foreign exchange translation | (371) | | | — | | | — | | | (371) | |
| Balance as of December 31, 2024 | 47,404 | | | 80,303 | | | 12,736 | | | 140,443 | |
| Foreign exchange translation | 253 | | | — | | | — | | | 253 | |
| Balance as of December 31, 2025 | $ | 47,657 | | | $ | 80,303 | | | $ | 12,736 | | | $ | 140,696 | |
The Company performed its annual goodwill impairment during the fourth quarters of 2025, 2024 and 2023.
During the fourth quarter of 2025, the Company performed a quantitative goodwill impairment test. The fair value of each reporting unit was determined and compared to its carrying value. If the carrying value had exceeded the fair value, an impairment charge would have been recorded for the difference. The results of the annual quantitative impairment analyses indicated that the fair value of all reporting units exceeded their carrying values, resulting in no goodwill impairment for the year ended December 31, 2025.
During the fourth quarter of 2024, the Company performed a qualitative assessment, which was partly informed by quantitative valuations of each reporting unit conducted as of January 1, 2024, following a change to the Company’s management reporting structure with the launch of global product line-focused business segments. Based on this assessment, the Company concluded that it is more likely than not that the fair value of each reporting unit exceeds its carrying amount, and therefore, no goodwill impairment was required for the year ended December 31, 2024.
During the fourth quarter of 2023, the Company performed a quantitative goodwill impairment test. The fair value of each reporting unit was determined and compared to its carrying value. If the carrying value had exceeded the fair value, an impairment charge would have been recorded for the difference. The results of the annual quantitative impairment analyses indicated that the fair value of all reporting units exceeded their carrying values, resulting in no goodwill impairment for the year ended December 31, 2023.
The write off of goodwill of $1,300 during the year ended December 31, 2023 is related to the sale of the European technical rubber products business. Refer to Note 4. “Divestitures” for additional information.
Intangible Assets
Definite-lived intangible assets and accumulated amortization balances as of December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | | | | | | | |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Customer relationships | $ | 152,572 | | | $ | (141,885) | | | $ | 10,687 | |
| Other | 39,393 | | | (21,102) | | | 18,291 | |
| Balance as of December 31, 2025 | $ | 191,965 | | | $ | (162,987) | | | $ | 28,978 | |
| | | | | |
| Customer relationships | $ | 152,054 | | | $ | (137,654) | | | $ | 14,400 | |
| Other | 37,737 | | | (18,332) | | | 19,405 | |
| Balance as of December 31, 2024 | $ | 189,791 | | | $ | (155,986) | | | $ | 33,805 | |
Estimated amortization expense for the next five years is shown in the table below:
| | | | | | | | |
| Year | | Expense |
| 2026 | | $ | 5,400 | |
| 2027 | | 5,140 | |
| 2028 | | 4,199 | |
| 2029 | | 3,171 | |
| 2030 | | 2,870 | |