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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill ASC 350 “Intangibles - Goodwill and Other Intangibles” provides guidance on an entity's subsequent measurement and recognition of goodwill and other intangibles, including subsequent changes to carrying amounts, including impairment and fair value adjustments. In accordance with the guidance set forth in ASC 350, and in connection with the separation of Apergy, the Company was required to calculate the portion of goodwill included in the Apergy distribution. Using a relative fair value approach, the Company reallocated $3,546 of goodwill from a reporting unit that included Apergy to a reporting unit now included within the Engineered Systems segment. See Note 18 — Segment Information for further information. The changes in the carrying value of goodwill by reportable operating segments were as follows:
| Engineered Systems |  | Fluids |  | Refrigeration & Food Equipment |  |  |  | Total
Goodwill | $ | 1,636,291 |  | $ | 1,563,938 |  | $ | 536,179 |  |  |  | $ | 3,736,408
Accumulated impairment loss | (10,591) |  | (59,970) |  | — |  |  |  | (70,561)
Balance at January 1, 2017 | $ | 1,625,700 |  | $ | 1,503,968 |  | $ | 536,179 |  |  |  | $ | 3,665,847
Acquisitions | 30,180 |  | — |  | — |  |  |  | 30,180
Purchase price adjustments | 6,826 |  | (35,939) |  | — |  |  |  | (29,113)
Disposition of business | (79,113) |  | — |  | (296) |  |  |  | (79,409)
Foreign currency translation | 61,796 |  | 36,255 |  | 816 |  |  |  | 98,867
Balance at December 31, 2017 | 1,645,389 |  | 1,504,284 |  | 536,699 |  |  |  | 3,686,372
Reallocation due to Apergy separation | 3,546 |  | — |  | — |  |  |  | 3,546
Acquisitions | — |  | 36,303 |  | 10,408 |  |  |  | 46,711
Purchase price adjustments | 328 |  | — |  | — |  |  |  | 328
Foreign currency translation | (25,603) |  | (32,985) |  | (1041) |  |  |  | (59,629)
Balance at December 31, 2018 | $ | 1,623,660 |  | $ | 1,507,602 |  | $ | 546,066 |  |  |  | $ | 3,677,328
During 2018 and 2017, the Company recognized additions of $46,711 and $30,180, respectively, to goodwill as a result of acquisitions as discussed in Note 4 — Acquisitions. During 2018 and 2017, the Company recorded adjustments totaling $328 and $(29,113), respectively, as a result of the finalization of purchase price allocation to assets acquired and liabilities assumed related to acquisitions completed in 2017 and 2016. The net goodwill transferred to Apergy on May 9, 2018 amounted to $899,888. During 2017, the Company derecognized $79,409 of goodwill as a result of the disposition of businesses as discussed in Note 5 — Discontinued and Disposed Operations. The Company reallocated goodwill upon disposal based upon the fair value of the disposed business relative to the remaining entities in its reporting unit. Annual impairment testing The Company tests goodwill for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate an impairment may have occurred. Consequently, in connection with the separation of Apergy, the Company realigned its remaining businesses and reallocated goodwill among its reporting units based on their relative fair value and tested goodwill for impairment in the second quarter of 2018. The Company concluded that no impairment indicators existed. The Company performed its annual goodwill impairment test during the fourth quarter of 2018 using a discounted cash flow analysis as discussed in Note 1 — Description of Business and Summary of Significant Accounting Policies. The Company performed a quantitative goodwill impairment test for each of its seven reporting units, concluding that the fair values of all of its reporting units were substantially in excess of their carrying values. As previously noted, the fair values of each of the Company’s reporting units was determined using a discounted cash flow analysis which includes management’s current assumptions as to future cash flows and long-term growth rates. The discount rates used in these analyses varied by reporting unit and were based on a capital asset pricing model and published relevant industry rates. The Company used discount rates commensurate with the risks and uncertainties inherent to each reporting unit and in our internally developed forecasts. Discount rates used in the 2018 reporting unit valuations ranged from 8.5% to 9.5%. While the Company believes the assumptions used in the 2018 impairment analysis are reasonable and representative of expected results, if market conditions worsen or persist for an extended period of time, an impairment of goodwill or assets may occur. The Company will continue to monitor the long-term outlook and forecasts, including estimated future cash flows, for these businesses and the impact on the carrying value of goodwill and assets. Intangible Assets The Company's definite-lived and indefinite-lived intangible assets by major asset class were as follows:
| December 31, 2018 |  |  |  |  |  | December 31, 2017 |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer intangibles | $ | 1,395,742 |  | $ | 645,305 |  | $ | 750,437 |  | $ | 1,405,361 |  | $ | 559,447 |  | $ | 845,914
Trademarks | 214,774 |  | 72,305 |  | 142,469 |  | 217,621 |  | 58,523 |  | 159,098
Patents | 144,302 |  | 128,254 |  | 16,048 |  | 145,577 |  | 123,135 |  | 22,442
Unpatented technologies | 155,380 |  | 85,560 |  | 69,820 |  | 152,913 |  | 71,284 |  | 81,629
Distributor relationships | 82,970 |  | 37,943 |  | 45,027 |  | 85,794 |  | 32,092 |  | 53,702
Drawings & manuals | 31,849 |  | 23,273 |  | 8,576 |  | 32,739 |  | 20,767 |  | 11,972
Other | 21,046 |  | 15,835 |  | 5,211 |  | 23,095 |  | 12,028 |  | 11,067
Total | 2,046,063 |  | 1,008,475 |  | 1,037,588 |  | 2,063,100 |  | 877,276 |  | 1,185,824
Unamortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trademarks | 96,668 |  | — |  | 96,668 |  | 96,800 |  | — |  | 96,800
Total intangible assets, net | $ | 2,142,731 |  | $ | 1,008,475 |  | $ | 1,134,256 |  | $ | 2,159,900 |  | $ | 877,276 |  | $ | 1,282,624
The Company recorded $24,056 of acquired intangible assets in 2018. See Note 4 — Acquisitions. Amortization expense was $143,868, $150,171 and $130,171, including acquisition-related intangible amortization of $142,170, $148,147 and $128,007, for the years ended December 31, 2018, 2017 and 2016, respectively. Estimated future amortization expense related to intangible assets held at December 31, 2018 is as follows:
| Estimated Amortization
2019 | $ | 131,936
2020 | 123,425
2021 | 117,381
2022 | 103,917
2023 | 93,854

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