XML 27 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Goodwill and Other Intangibles
6 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles

NOTE H – GOODWILL AND OTHER INTANGIBLES

The Company’s finite and indefinite-lived intangible assets consist of the following:

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patents

 

$

4,806

 

 

$

(4,806

)

 

$

4,806

 

 

$

(4,788

)

Land use rights

 

 

1,134

 

 

 

(203

)

 

 

1,134

 

 

 

(203

)

Trademarks

 

 

1,712

 

 

 

(1,297

)

 

 

1,707

 

 

 

(1,247

)

Technology

 

 

5,387

 

 

 

(1,439

)

 

 

2,994

 

 

 

(1,334

)

Customer relationships

 

 

14,340

 

 

 

(6,775

)

 

 

11,804

 

 

 

(6,415

)

 

 

$

27,379

 

 

$

(14,520

)

 

$

22,445

 

 

$

(13,987

)

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

28,726

 

 

 

 

 

 

$

15,621

 

 

 

 

 

 

The aggregate amortization expense for other intangibles with finite lives for the three and six months ended June 30, 2019 was $.3 million and $.6 million, respectively. The aggregate amortization expense for other intangibles with finite lives for the three and six months ended June 30, 2018 was $.3 million and $.5 million, respectively.  Amortization expense is estimated to be $1.1 million for the remaining period of 2019, $1.2 million for 2020 and 2021, and $1.1 million for and 2022 and 2023. The weighted-average remaining amortization period is approximately 15.3 years. The weighted-average remaining amortization period by intangible asset class is as follows: patents, 6.5 years; land use rights, 56.5 years; trademarks, 8.1 years; technology, 13.6 years; and customer relationships, 12.0 years.

The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs its annual impairment test for goodwill utilizing a discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly different. However, the Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.  The Company’s valuation method uses Level 3 inputs under the fair value hierarchy.

The Company’s only intangible asset with an indefinite life is goodwill. The changes in the carrying amount of goodwill, by segment, for the six months ended June 30, 2019 are as follows:

 

 

 

USA

 

 

The Americas

 

 

EMEA

 

 

Asia-Pacific

 

 

Total

 

Balance at January 1, 2019

 

$

3,078

 

 

$

3,997

 

 

$

1,355

 

 

$

7,191

 

 

$

15,621

 

Currency translation

 

 

0

 

 

 

135

 

 

 

(151

)

 

 

(71

)

 

 

(87

)

Additions

 

 

 

 

 

 

 

 

 

 

13,192

 

 

 

 

 

 

 

13,192

 

Balance at June 30, 2019

 

$

3,078

 

 

$

4,132

 

 

$

14,396

 

 

$

7,120

 

 

$

28,726

 

 

Refer to Note S, “Business Combinations” for further information regarding additions.