Goodwill And Intangibles

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

The following table sets forth the changes in the carrying amount of goodwill:


	Nine Months Ended September 30,
	2020		2019
Balance at January 1	$	82,092	$	100,722
Goodwill arising from business combinations	—		9,426
Adjustment to goodwill during measurement period	—		448
Foreign exchange adjustment	228		(642)
Impairment losses	(44,589)		—
Balance at September 30	$	37,731	$	109,954

During the fourth quarter of 2018, the Company acquired 100% of the membership units of Genesis Systems Group, LLC ("Genesis"). During the first quarter of 2019, the working capital adjustment to the purchase price was finalized resulting in an increase in the purchase price of $448. The additional purchase price was allocated entirely to goodwill. At the time the acquisition was completed, the Company concluded that Genesis was a separate reporting unit.

During the third quarter of 2020, the Company concluded that declines in revenue and order flow for the Genesis custom systems business caused by pandemic-related decreases in capital spending in the aerospace and transportation industries were a triggering event requiring a goodwill impairment evaluation. The Company performed a quantitative assessment using the discounted cash flow method under the income approach as well as the guideline public company analysis and guideline transaction analysis under the market approach to estimate the fair value of the custom systems business. As a result, the Company recognized a non-cash impairment loss of $44,589, which was equal to the carrying amount of goodwill prior to its

impairment. The analysis considered internal forecasts of sales, profitability and capital expenditures, as well as valuation multiples of comparable public companies and valuation multiples of transactions of comparable companies.

Intangible assets, subject to amortization, consisted of the following:


	September 30, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives
Customer relationships	$	57,897	$	(16,184)	$	41,713	11 years	$	57,866	$	(11,993)	$	45,873	11 years
Technology, trademark and trade name	40,414		(19,527)		20,887		7 years	41,297		(16,128)		25,169		7 years
Production know-how	9,250		(7,983)		1,267		7 years	9,180		(7,415)		1,765		7 years
Patents	8,036		(6,904)		1,132		8 years	8,036		(6,572)		1,464		8 years
Total	$	115,597	$	(50,598)	$	64,999		$	116,379	$	(42,108)	$	74,271

Amortization expense for the three months ended September 30, 2020 and 2019 was $2,947 and $3,617, respectively. Amortization expense for the nine months ended September 30, 2020 and 2019 was $9,029 and $10,581, respectively. The estimated future amortization expense for intangibles for the remainder of 2020 and subsequent years is as follows:


2020 (a)		2021		2022	2023		2024		Thereafter		Total
$	2,939	$	11,574	10,746	$	9,858	$	7,510	$	22,372	$	64,999

(a) For the three-month period beginning October 1, 2020.