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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets Goodwill The annual changes in the carrying amount of goodwill, by segment, as of December 31, 2018 and 2019, were as follows, respectively:
(in thousands) | North America |  | Europe |  | Asia Pacific |  | Total
Balance as of January 1, 2018 |  |  |  |  |  |  |
Goodwill | $ | 106,421 |  |  | $ | 53,311 |  |  | $ | 1,489 |  |  | $ | 161,221 |
Accumulated impairment losses | (10,666 | ) |  | (13,415 | ) |  | — |  |  | (24,081 | )
| 95,755 |  |  | 39,896 |  |  | 1,489 |  |  | 137,140 |
Goodwill acquired | 913 |  |  | — |  |  | — |  |  | 913 |
Foreign exchange | (233 | ) |  | (739 | ) |  | (145 | ) |  | (1,117 | )
Impairment | — |  |  | (6,686 | ) |  | — |  |  | (6,686 | )
Balance as of December 31, 2018 |  |  |  |  |  |  | 0 |
Goodwill | 107,101 |  |  | 52,573 |  |  | 1,344 |  |  | 161,018 |
Accumulated impairment losses | (10,666 | ) |  | (20,102 | ) |  | — |  |  | (30,768 | )
| 96,435 |  |  | 32,471 |  |  | 1,344 |  |  | 130,250 |
Goodwill acquired | — |  |  | 1,815 |  |  | — |  |  | 1,815 |
Foreign exchange | 129 |  |  | 14 |  |  | (9 | ) |  | 134 |
Reclassifications(1) | (320 | ) |  | — |  |  | — |  |  | (320 | )
Balance as of December 31, 2019 |  |  |  |  |  |  | 0 |
Goodwill | 106,910 |  |  | 54,402 |  |  | 1,335 |  |  | 162,647 |
Accumulated impairment losses | (10,666 | ) |  | (20,102 | ) |  | — |  |  | (30,768 | )
| $ | 96,244 |  |  | $ | 34,300 |  |  | $ | 1,335 |  |  | $ | 131,879 |
(1) Reclassifications in 2019 of $481 thousand in non-compete agreements, trademarks and other, with a corresponding reductions of $320 thousand in goodwill and $161 thousand in other assets related to Radius Track acquisition. The Company tests goodwill for impairment at the reporting unit level on an annual basis (in the fourth quarter). Our goodwill balance is not amortized to expense, and we may assess qualitative factors to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The reporting unit level is generally one level below the operating segment, which is at the country level, except for the United States, Australia and S&P Clever reporting units. The Company determined that the United States reporting unit includes four components: Northwest United States, Southwest United States, Northeast United States and Southeast United States. The Australia reporting unit includes two components: Australia and New Zealand. The S&P Clever reporting unit includes ten components: S&P Switzerland, S&P Poland, S&P Austria, S&P The Netherlands, S&P Portugal, S&P Germany, S&P France, Socom, S&P Nordic and S&P Spain. For each of these reporting units, the Company aggregated the components because management concluded that they are economically similar and that the goodwill is recoverable from these components working in concert. We evaluate the recoverability of goodwill in accordance with Accounting Standard Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other. In addition, the Company prospectively adopted as part of its review in 2018 the Financial Accounting Standard Board (FASB) issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. We first assess qualitative factors related to the goodwill of the reporting units to determine whether it is necessary to perform an impairment test. If the Company judges that it is more likely than not that the fair value of the reporting unit is greater than the carrying amount, including goodwill, no further testing is required. This assessment method was utilized in our 2019 annual goodwill impairment test. In 2018 and 2017, the Company performed a quantitative approach for the reporting units. For all reporting units, the Company compares the fair value of the reporting unit to its carrying value. The fair value calculation uses both the income approach (discounted cash flow method) and the market approach, equally weighted. If the Company judges that the carrying value of the net assets assigned to the reporting unit, including goodwill, exceeds the fair value of the reporting unit, the Company would record an impairment charge equal to the difference between the implied of the goodwill and the carrying value, not to exceed the goodwill asset's carrying amount. The 2018 annual testing of goodwill for impairment resulted in an impairment charge. The carrying value of the Denmark reporting unit exceeded its fair value in an amount that approximated the carrying value of its goodwill, primarily due to the reporting unit not meeting management's pre-tax operating profit objectives. As a result, the Company impaired all of the Denmark reporting unit’s goodwill, which was $6.7 million at December 31, 2018. The 2019 and 2017 annual testing of goodwill for impairment did not result in impairment charges. Amortizable Intangible Assets Intangible assets from acquired businesses are recognized at their estimated fair values at the date of acquisition and consist of patents, unpatented technology, non-compete agreements, trademarks, customer relationships and other intangible assets. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from three to 21 years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. The Company performs an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired. The total gross carrying amount and accumulated amortization of definite-lived intangible assets at December 31, 2019 were $59.3 million and $34.2 million, respectively. The aggregate amount of amortization expense of intangible assets for the years ended December 31, 2019, 2018 and 2017 was $5.5 million, $6.0 million and $6.1 million, respectively. The annual changes in the carrying amounts of patents, unpatented technologies, customer relationships and non-compete agreements and other intangible assets subject to amortization for the years ended December 31, 2019 and 2018 were as follows:
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Patents |  |
Balance at January 1, 2018 | $ | 2,350 |  |  | $ | (545 | ) |  | $ | 1,805 |
Amortization | — |  |  | (107 | ) |  | (107 | )
Removal of fully amortized assets | (241 | ) |  | 241 |  |  | — |
Balance at December 31, 2018 | 2,109 |  |  | (411 | ) |  | 1,698 |
Purchases of intangible assets | 2,550 |  |  | — |  |  | 2,550 |
Amortization | — |  |  | (150 | ) |  | (150 | )
Balance at December 31, 2019 | $ | 4,659 |  |  | $ | (561 | ) |  | $ | 4,098 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Unpatented Technology |  |
Balance at January 1, 2018 | $ | 21,667 |  |  | $ | (10,979 | ) |  | $ | 10,688 |
Amortization | — |  |  | (2,557 | ) |  | (2,557 | )
Reclassifications (1) | 277 |  |  | — |  |  | 277 |
Foreign exchange | (90 | ) |  | — |  |  | (90 | )
Removal of fully amortized assets | (1,192 | ) |  | 1,192 |  |  | — |
Balance at December 31, 2018 | 20,662 |  |  | (12,344 | ) |  | 8,318 |
Amortization | — |  |  | (2,017 | ) |  | (2,017 | )
Foreign exchange | 166 |  |  | $ | — |  |  | 166 |
Balance at December 31, 2019 | $ | 21,616 |  |  | $ | (14,361 | ) |  | $ | 7,255 |
(1) Reclassifications in 2018 of $0.3 million in unpatented technology, with a corresponding reduction in other assets related to Technogrout asset acquisition.
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Non-Compete Agreements, Trademarks and Other |  |
Balance at January 1, 2018 | $ | 12,225 |  |  | (2,817 | ) |  | 9,408 |
Assets acquisitions, net of cash acquired | 879 |  |  | — |  |  | 879 |
Amortization | — |  |  | (1,757 | ) |  | (1,757 | )
Reclassifications(1) | (24 | ) |  | — |  |  | (24 | )
Removal of fully amortized assets | (855 | ) |  | 855 |  |  | — |
Balance at December 31, 2018 | 12,225 |  |  | (3,719 | ) |  | 8,506 |
Purchases of intangible assets | 2,081 |  |  | — |  |  | 2,081 |
Assets acquisitions, net of cash acquired | 6 |  |  | — |  |  | — |
Amortization | — |  |  | (1,910 | ) |  | (1,910 | )
Reclassifications(2) | 481 |  |  | — |  |  | 481 |
Foreign exchange | 10 |  |  | — |  |  | 10 |
Removal of fully amortized asset | (100 | ) |  | 100 |  |  | — |
Balance at December 31, 2019 | $ | 14,703 |  |  | $ | (5,529 | ) |  | $ | 9,174 |
(1)Reclassifications in 2018 of $24 thousand in non-compete agreements, trademarks and other, with a corresponding decrease in other assets related to Technogrout acquisition. (2)Reclassifications in 2019 of $481 thousand in non-compete agreements, trademarks and other, with a corresponding reductions of $320 thousand in goodwill and $161 thousand in other assets related to Radius Track acquisition.
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer Relationships |  |
Balance at January 1, 2018 | $ | 17,678 |  |  | (10,869 | ) |  | 6,809 |
Amortization | — |  |  | (1,430 | ) |  | (1,430 | )
Foreign exchange | (115 | ) |  | — |  |  | (115 | )
Balance at December 31, 2018 | 17,563 |  |  | (12,299 | ) |  | 5,264 |
Amortization | — |  |  | (1,433 | ) |  | (1,433 | )
Foreign exchange | (27 | ) |  | — |  |  | (27 | )
Balance at December 31, 2019 | $ | 17,660 |  |  | $ | (13,732 | ) |  | $ | 3,928 |
At December 31, 2019, estimated future amortization of intangible assets was as follows: (in thousands)
2020 | $ | 5,933 |
2021 | 5,341 |
2022 | 3,436 |
2023 | 2,616 |
2024 | 1,665 |
Thereafter | 5,464 |
| $ | 24,455 |
Indefinite-Lived Intangible Assets As of December 31, 2019, the only indefinite-lived intangible asset, consisting of a trade name, totaled $0.6 million. Definite-lived and indefinite-lived assets, net, by segment as of December 31, 2019 and 2018 were as follows:
| December 31, 2018
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
(in thousands) |  |
Total Intangible Assets |  |
North America | $ | 30,825 |  |  | $ | (16,002 | ) |  | $ | 14,823 |
Europe | 22,353 |  |  | (12,774 | ) |  | 9,579 |
Total | $ | 53,178 |  |  | $ | (28,776 | ) |  | $ | 24,402 |
| At December 31, 2019
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
(in thousands) |  |
Total Intangible Assets |  |
North America | $ | 33,756 |  |  | $ | (19,173 | ) |  | $ | 14,583 |
Europe | 25,500 |  |  | (15,012 | ) |  | 10,488 |
Total | $ | 59,256 |  |  | $ | (34,185 | ) |  | $ | 25,071 |

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