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Goodwill and Identifiable Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2020
Goodwill and Identifiable Intangible Assets, Net |
Goodwill and Identifiable Intangible Assets, Net | 6. Goodwill and Identifiable Intangible Assets, Net Goodwill The changes in the carrying amount of goodwill are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Mechanical Services | ​ | Electrical Services | ​ | ​
​ |  | Segment |  | Segment | ​ | Total
Balance at December 31, 2018 | ​ | $ | 235,182 | ​ | $ | — | ​ | $ | 235,182
Acquisitions and purchase price adjustments (See Note 5) | ​ |  | 579 | ​ |  | 96,686 | ​ | ​ | 97,265
Impact of segment reorganization | ​ | ​ | (1,101) | ​ | ​ | 1,101 | ​ | ​ | —
Balance at December 31, 2019 | ​ | ​ | 234,660 | ​ | ​ | 97,787 | ​ | ​ | 332,447
Acquisitions and purchase price adjustments (See Note 5) | ​ | ​ | 72,788 | ​ | ​ | 59,157 | ​ | ​ | 131,945
Balance at December 31, 2020 | ​ | $ | 307,448 | ​ | $ | 156,944 | ​ | $ | 464,392
The aggregate goodwill balance as of December 31, 2020 and 2019 includes $116.6 million of accumulated impairment charges, all of which relate to the mechanical services segment. We perform our annual impairment testing on October 1, or more frequently, if events and circumstances indicate impairment may have occurred. As discussed in Note 2, “Summary of Significant Accounting Policies,” we have the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying value. During our annual impairment testing on October 1, 2019, we performed a quantitative assessment where the fair value of each reporting unit was estimated using a discounted cash flow model combined with a market valuation approach. We assigned a weighting of 50% to the discounted cash flow analysis and 50% to the public company approach for the year ended December 31, 2019. Based on this assessment, we concluded that the fair value of each of the reporting units was greater than its carrying value. The calculated fair values for the majority of the Company’s reporting units that have goodwill were significantly in excess (all greater than 80%) of the respective reporting unit’s carrying value, while two reporting units that were recently acquired had calculated fair values in excess of carrying value of at least 27%. During our annual impairment testing on October 1, 2020, we performed a qualitative assessment for all of our reporting units except one, which considered various factors, including changes in the carrying value of the reporting unit, forecasted operating results, long-term growth rates and discount rates. Additionally, we considered qualitative key events and circumstances (i.e. macroeconomic environment, industry and market specific conditions, cost factors and events specific to the reporting unit, etc.). Based on this assessment, we concluded that it was more likely than not that the fair value of each of the reporting units was greater than its carrying value. Accordingly, no further testing was required. For Walker, we performed a step 1 quantitative assessment and the calculated fair value exceeded the carrying value by 24%. As a result of uncertainty caused by COVID-19 and Walker’s smaller excess of fair value percentage, this reporting unit is more susceptible to impairment risk from additional adverse changes in its operating environment, including micro- and macroeconomic environment conditions that could negatively impact them. Such adverse changes could include worsening economic conditions in the locations or markets they primarily serve, whether due to COVID-19 or other events and conditions. As of December 31, 2020, Walker had a goodwill balance of $96.8 million. There are significant inherent uncertainties and management judgment involved in estimating the fair value of each reporting unit. While we believe we have made reasonable estimates and assumptions to estimate the fair value of our reporting units, it is possible that a material change could occur. If actual results are not consistent with our current estimates and assumptions, or the current economic outlook worsens, goodwill impairment charges may be recorded in future periods. Identifiable Intangible Assets, Net Identifiable intangible assets consist of the following (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Weighted-Average | ​ | December 31, 2020 | ​ | December 31, 2019
​ |  | Remaining Useful Lives |  | Gross Book |  | Accumulated |  | Gross Book |  | Accumulated
​ |  | in Years |  | Value |  | Amortization |  | Value |  | Amortization
Customer Relationships |  | 8.0 | ​ | $ | 255,692 | ​ | $ | (103,919) | ​ | $ | 183,061 | ​ | $ | (80,813)
Backlog |  | 2.0 | ​ |  | 19,800 | ​ |  | (12,600) | ​ |  | 7,400 | ​ |  | (6,388)
Trade Names |  | 20.5 | ​ |  | 91,495 | ​ |  | (18,661) | ​ |  | 71,995 | ​ |  | (15,281)
Total | ​ | 11.7 | ​ | $ | 366,987 | ​ | $ | (135,180) | ​ | $ | 262,456 | ​ | $ | (102,482)
​ The amounts attributable to customer relationships and tradenames are amortized to “Selling, General and Administrative Expenses” based upon the estimated consumption of their economic benefits, or a straight-line method over periods from one to twenty-five years if the pattern of economic benefit cannot otherwise be reliably estimated. The amounts attributable to backlog are being amortized to “Cost of Services” on a proportionate method over the remaining backlog period. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $32.7 million, $27.1 million and $20.1 million, respectively. As of December 31, 2020, future amortization expense of identifiable intangible assets was as follows (in thousands):
​ | ​ | ​ | ​ | ​
Year ended December 31— |  | ​ |  | ​
2021 | ​ | $ | 32,344 | ​
2022 | ​ |  | 27,412 | ​
2023 | ​ |  | 23,514 | ​
2024 | ​ |  | 22,164 | ​
2025 | ​ | ​ | 19,977 | ​
Thereafter | ​ |  | 106,396 | ​
Total | ​ | $ | 231,807 | ​
​

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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