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Goodwill and Related Intangible Assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Related Intangible Assets | GOODWILL AND RELATED INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the years ended December 31 were as follows (in thousands):
| Residential Products |  | Industrial and Infrastructure Products |  | Renewable Energy and Conservation |  | Total
Balance at December 31, 2014 | $ | 181,285 |  |  | $ | 54,759 |  |  | $ | — |  |  | $ | 236,044 |
Acquired goodwill | — |  |  | — |  |  | 57,180 |  |  | 57,180 |
Foreign currency translation | — |  |  | (1,055 | ) |  | 221 |  |  | (834 | )
Balance at December 31, 2015 | $ | 181,285 |  |  | $ | 53,704 |  |  | $ | 57,401 |  |  | $ | 292,390 |
Acquired goodwill | — |  |  | — |  |  | 12,283 |  |  | 12,283 |
Impairment | — |  |  | — |  |  | (929 | ) |  | (929 | )
Foreign currency translation | — |  |  | 180 |  |  | 108 |  |  | 288 |
Balance at December 31, 2016 | $ | 181,285 |  |  | $ | 53,884 |  |  | $ | 68,863 |  |  | $ | 304,032 |
Goodwill is recognized net of accumulated impairment losses of $235,419,000 and $255,530,000 as of December 31, 2016 and 2015, respectively. Annual Impairment Testing The Company performed its annual goodwill impairment test as of October 31, 2016, 2015, and 2014. The Company did not recognize any impairment charges during 2016 or 2015 as a result of the annual goodwill impairment test. However, subsequent to the annual goodwill impairment test as of October 31, 2016, the Company discontinued its European residential solar racking business which resulted in an impairment charge against goodwill. During 2014, the Company incurred impairment charges as a result of the October 31 annual test. During the October 31, 2016 impairment test, the Company conducted a quantitative analysis for nine of the ten reporting units identified for review. For the remaining reporting unit, Nexus, the Company conducted a qualitative test rather than a quantitative test due to the recent acquisition date of this reporting unit on October 11, 2016. As such, for purposes of the annual goodwill impairment test as of October 31, 2016, the Company concluded that the fair value was greater than the net book value of $23,300,000 million and a quantitative test was not required to be conducted. Step one of the quantitative impairment test consists of comparing the fair value of a reporting unit with its carrying value including goodwill. The fair value of each reporting unit evaluated under the quantitative test was determined using two valuation techniques: an income approach and a market approach. Each valuation approach relies on significant assumptions including a weighted average cost of capital ("WACC"). The WACC is calculated based upon the capital structure of market participants in the Company’s peer groups. Other assumptions used to calculate fair value for each reporting unit include projected revenue growth, forecasted cash flows, and earnings multiples based on the market value of the Company and market participants within its peer groups. The following table summarizes the WACC calculation ranges used during the annual goodwill impairment tests performed during 2016 and 2015:
|  | Residential and I&I Products Segments |  | Renewable Energy & Conservation Segment
|  | All Reporting Units |  | Greenhouse Reporting Unit |  | Solar Reporting Unit
Date of Impairment Test |  | WACC |  | WACC |  | WACC
October 31, 2016 |  | 12.4% to 13.0% |  | 15.1% |  | 16.1%
October 31, 2015 |  | 11.3% to 13.1% |  | *nmf |  | *nmf
*nmf - For the October 31, 2015 annual impairment test, the Company performed a qualitative test vs. a quantitative test for goodwill impairment purposes. Therefore, a WACC percentage was not calculated for these reporting units. As a result of our annual testing for 2016 and 2015, none of the reporting units with goodwill as of our testing date had carrying values in excess of their fair values. However, subsequent to the annual goodwill impairment test as of October 31, 2016, the Company discontinued its European residential solar racking business which resulted in an impairment charge against goodwill of $929,000 which was recorded for the year ended December 31, 2016. The Company did not record any goodwill impairment charges during 2015. During our 2014 annual goodwill impairment test, we identified reporting units with carrying values in excess of fair value. Therefore, the Company initiated step two of the goodwill impairment test which involved calculating the implied fair value of goodwill by allocating the fair value of the reporting unit to the fair value of its assets and liabilities other than goodwill, calculating an implied fair value of goodwill, and comparing the implied fair value to the carrying amount of goodwill. As a result of step two of the annual goodwill impairment test, the Company estimated that the implied fair value of goodwill for the reporting units was less than their carrying values by $104,565,000 for the year ended December 31, 2014 which has been recorded as impairment charges of which $90,330,000 was recorded in our Industrial and Infrastructure Products segment and the remaining $14,235,000 was recorded in our Residential Products segment. Interim Impairment Testing We test goodwill and indefinite-lived intangible assets for impairment on an annual basis as of October 31 and at interim dates when indicators of impairment are present. In 2016, 2015 and 2014, no indicators of impairment were identified as of interim dates; therefore, no interim tests were performed. Acquired Intangible Assets Acquired intangible assets consist of the following (in thousands):
| December 31, 2016 |  | December 31, 2015 |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization |  | Estimated Useful Life
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |
Trademarks | $ | 44,720 |  |  | $ | — |  |  | $ | 50,538 |  |  | $ | — |  |  | Indefinite
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |
Trademarks | 5,808 |  |  | 2,427 |  |  | 5,861 |  |  | 1,884 |  |  | 5 to 15 Years
Unpatented technology | 26,720 |  |  | 10,041 |  |  | 28,072 |  |  | 10,656 |  |  | 5 to 20 Years
Customer relationships | 78,569 |  |  | 33,585 |  |  | 85,419 |  |  | 35,673 |  |  | 5 to 17 Years
Non-compete agreements | 1,649 |  |  | 623 |  |  | 3,107 |  |  | 1,771 |  |  | 4 to 10 Years
Backlog | 900 |  |  | 900 |  |  | 6,480 |  |  | 6,480 |  |  | .5 to 2 Years
| 113,646 |  |  | 47,576 |  |  | 128,939 |  |  | 56,464 |  |  |
Total acquired intangible assets | $ | 158,366 |  |  | $ | 47,576 |  |  | $ | 179,477 |  |  | $ | 56,464 |  |  |
The Company recognized impairment charges related to indefinite-lived trademark intangible assets for the years ended December 31, 2016, 2015 and 2014. The Company also recognized impairment charges related to finite-lived intangible assets for the years ended December 31, 2016 and 2014. The Company recorded $9.0 million of impairment charges related to indefinite-lived intangibles during 2016. $7.8 million of impairment charges recorded for the year ended December 31, 2016 relate to the Company's discontinued European residential solar racking business and U.S. bar grating product line. The remaining $1.2 million were recognized as a result of the Company's annual impairment test of indefinite-lived intangibles. The impairment charges related to the indefinite-lived trademarks in 2015 and 2014 were recognized as a result of the Company’s annual impairment test of indefinite-lived intangibles. The fair values of the impaired trademarks were determined using an income approach consisting of the relief-from-royalty method. As a result of the Company's discontinued European solar racking business, the Company also recognized $0.2 million of impairment charges related to definite-lived intangibles. The 2014 impairment charges related to the finite-lived intangibles were recognized as a result of the estimated future discounted cash flows of the asset being less than its carrying value during the Company's annual impairment test. The fair value of the impaired finite-lived intangibles was determined using an income approach consisting of either the relief-from-royalty method or the excess earnings method. In addition, the Company recognized amortization expense related to the definite-lived intangible assets. The following table summarizes the impairment charges for the years ended December 31 (in thousands):
| 2016 |  | 2015 |  | 2014
| Indefinite-lived intangibles |  | Definite-lived intangibles |  | Indefinite-lived intangibles |  | Definite-lived intangibles |  | Indefinite-lived intangibles |  | Definite-lived intangibles
Residential Products | $ | — |  |  | $ | — |  |  | $ | 440 |  |  | $ | — |  |  | $ | 1,200 |  |  | $ | — |
Industrial and Infrastructure Products | 7,980 |  |  | — |  |  | 4,423 |  |  | — |  |  | 1,500 |  |  | 705 |
Renewable Energy and Conservation | 1,068 |  |  | 198 |  |  | — |  |  | — |  |  | — |  |  | — |
Impairment charges | $ | 9,048 |  |  | $ | 198 |  |  | $ | 4,863 |  |  | $ | — |  |  | $ | 2,700 |  |  | $ | 705 |
The following table summarizes amortization expense for the years ended December 31 (in thousands):
| 2016 |  | 2015 |  | 2014
Amortization expense | $ | 9,637 |  |  | $ | 12,679 |  |  | $ | 5,720 |
Amortization expense related to acquired intangible assets for the next five years ended December 31 is estimated as follows (in thousands):
2017 | $ | 8,500 |
2018 | $ | 7,945 |
2019 | $ | 7,273 |
2020 | $ | 6,760 |
2021 | $ | 6,159 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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