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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 15. Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reportable segments are consistent with our operating segments. Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable. To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In the second quarter of 2019, the Company applied the qualitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment provision was required. There were no amounts at risk due to the large spread between the fair and carrying values, of each reporting unit. On November 20, 2019, the Company acquired CirComp GmbH, a privately-held developer and manufacturer of high-performance composite components located in Kaiserslautern, Germany. The assets acquired include amortizable intangible assets of $10.0 million and goodwill of $17.3 million. 85 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 15. Goodwill and Other Intangible Assets — (continued) We are continuing to amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that have finite lives. The changes in intangible assets and goodwill from December 31, 2017 to December 31, 2019, were as follows:
(in thousands, except for years) |  | Amortization life in years |  | Balance at December 31, 2018 |  | Aquisition |  | Amortization |  | Currency Translation |  | Balance at December 31, 2019
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
AEC trademarks and trade names |  | 6-15 |  | $11 |  | $68 |  | $(6) |  | $— |  | $73
AEC technology |  | 10-15 |  | 56 |  | 5,821 |  | (73) |  | — |  | 5,804
AEC Intellectual property |  | 15 |  | — |  | 1,250 |  | (7) |  | — |  | 1,243
AEC customer contracts |  | 6 |  | 9,456 |  | — |  | (2,912) |  | — |  | 6,544
AEC customer relationships |  | 8-15 |  | 39,538 |  | 2,834 |  | (3,247) |  | 22 |  | 39,147
AEC other intangibles |  | 5 |  | 145 |  | — |  | (64) |  | — |  | 81
Total amortized intangible assets |  |  |  | $49,206 |  | $9,973 |  | $(6,309) |  | $22 |  | $52,892
Unamortized intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
MC Goodwill |  |  |  | $68,652 |  | $— |  | $— |  | $(980) |  | $67,672
AEC Goodwill |  |  |  | 95,730 |  | 17,343 |  | — |  | 189 |  | 113,262
Total amortized intangible assets |  |  |  | $164,382 |  | $17,343 |  | $— |  | $(791) |  | $180,934
(in thousands, except for years) |  | Amortization life in years |  | Balance at December 31, 2017 |  | Amortization |  | Currency Translation |  | Balance at December 31, 2018
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |
AEC trademarks and trade names |  | 15 |  | $15 |  | $(4) |  | $— |  | $11
AEC technology |  | 15 |  | 80 |  | (24) |  | — |  | 56
AEC customer contracts |  | 6 |  | 12,369 |  | (2,913) |  | — |  | 9,456
AEC customer relationships |  | 15 |  | 42,767 |  | (3,229) |  | — |  | 39,538
AEC other intangibles |  | 5 |  | 210 |  | (65) |  | — |  | 145
Total amortized intangible assets |  |  |  | $55,441 |  | $(6,235) |  | $— |  | $49,206
Unamortized intangible assets: |  |  |  |  |  |  |  |  |  |
MC Goodwill |  |  |  | $71,066 |  | $— |  | $(2,414) |  | $68,652
AEC Goodwill |  |  |  | 95,730 |  | — |  | — |  | 95,730
Total amortized intangible assets |  |  |  | $166,796 |  | $— |  | $(2,414) |  | $164,382
As of December 31, 2019, the gross carrying amount and accumulated amortization of amortized intangible assets was $76.7 million and $23.8 million, respectively. 86 Index ALBANY INTERNATIONAL CORP. Notes to Consolidated Financial Statements 15. Goodwill and Other Intangible Assets — (continued) Amortization expense related to intangible assets was reported in the Consolidated Statement of Income as follows: $3.0 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2019; $2.9 million in Cost of goods sold and $3.3 million in Selling, general and administrative expenses in 2018; and $3.3 million in Cost of goods sold and $3.6 million in Selling, general and administrative expenses in 2017. Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows:
|  | Annual amortization
Year |  | (in thousands)
2020 |  | $7,141
2021 |  | 7,071
2022 |  | 4,856
2023 |  | 4,135
2024 |  | 4,135
16. Accrued Liabilities Accrued liabilities consist of:
(in thousands) |  | 2019 |  | 2018
Salaries and wages |  | $22,878 |  | $20,821
Contract loss reserve |  | 17,190 |  | 20,708
Employee benefits |  | 14,235 |  | 12,316
Returns and allowances |  | 11,249 |  | 11,343
Accrual for compensated absences |  | 10,445 |  | 10,636
Dividends |  | 6,139 |  | 5,808
Contract liabilities |  | 5,656 |  | 9,025
Lease liability - Operating lease |  | 4,023 |  | —
Lease liability - Financing lease |  | 1,835 |  | —
Postretirement medical benefits – current portion |  | 3,808 |  | 3,890
Restructuring costs |  | 1,342 |  | 5,534
Professional fees |  | 2,999 |  | 2,575
Pension liability – current portion |  | 2,155 |  | 2,124
Workers' compensation |  | 1,982 |  | 1,794
Utilities |  | 790 |  | 974
Interest |  | 517 |  | 901
Other |  | 18,642 |  | 20,581
Total |  | $125,885 |  | $129,030
As described in Note 20, the Company adopted ASC 842, Leases effective January 1, 2019, which required the recognition of right of use assets, representing our right to use the underlying asset for the lease term, and lease liabilities, representing our obligation to make lease payments over the lease term, on the balance sheet. The cumulative effect of initially applying the new standard increased accrued liabilities $5.0 million.

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