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Goodwill and Other Intangibles | 9 Months Ended
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Sep. 30, 2021
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:
|  | September 30, 2021 |  |  | December 31, 2020 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |
Finite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Patents |  | $ | 4,813 |  |  | $ | (4,806 | ) |  | $ | 4,806 |  |  | $ | (4,806 | )
Land use rights |  |  | 1,324 |  |  |  | (451 | ) |  |  | 1,286 |  |  |  | (396 | )
Trademarks |  |  | 1,857 |  |  |  | (1,528 | ) |  |  | 1,756 |  |  |  | (1,474 | )
Technology |  |  | 7,453 |  |  |  | (2,749 | ) |  |  | 7,673 |  |  |  | (2,402 | )
Customer relationships |  |  | 16,148 |  |  |  | (9,122 | ) |  |  | 16,441 |  |  |  | (8,441 | )
|  | $ | 31,595 |  |  | $ | (18,656 | ) |  | $ | 31,962 |  |  | $ | (17,519 | )
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 28,695 |  |  |  |  |  | $ | 29,508 |  |  |  |
The aggregate amortization expense for other intangibles with finite lives for the three and nine-month periods ended September 30, 2021 was $.5 million and $1.4 million, respectively. The aggregate amortization expense for other intangibles with finite lives for the three and nine-month periods ended September 30, 2020 was $.5 million and $1.3 million, respectively. Amortization expense is estimated to be $.4 million for the remainder of 2021, $1.7 million for 2022 and 2023, $1.6 million for 2024 and $1.4 million for 2025. The combined weighted-average remaining amortization period is approximately 11.9 years. The weighted-average remaining amortization period by intangible asset class is as follows: patents, 0 years; land use rights, 54.8 years; trademarks, 6.4 years; technology, 9.3 years; and customer relationships, 8.8 years. The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs additional interim impairment assessments as circumstances warrant. 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 to 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. Given the continued decline in the Company’s results in the Asia Pacific region and the uncertainty surrounding COVID-19 including the lingering impacts of the Delta variant, the Company concluded that an indicator of impairment was present and conducted an interim impairment review of its goodwill in the Asia-Pacific reporting unit as of September 30, 2021. The Company reassessed its previous forecasts for this reporting unit which expected increased sales levels in the second half of 2021. However, actual results were lower than forecast due to extended lockdowns and the postponing of projects. The interim impairment assessment was performed utilizing the same methodologies as the annual assessments discussed above and included revised projections, which are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows. Based on the interim impairment assessment, the Asia-Pacific reporting unit’s fair value exceeded its carrying value by approximately 10% (15% as of October 1, 2020). While the interim test did not indicate an impairment charge was warranted, the reporting unit continues to be at risk of impairment in the future if there is a continued negative impact on the long-term outlook resulting from the continued effects of the COVID-19 pandemic or other factors such as a postponement of government capital spending. Total goodwill associated with this reporting unit was $7.4 million at September 30, 2021. No indicators of impairment were identified for the Company's other reporting units. The Company’s only intangible asset with an indefinite life is goodwill. The changes in the carrying amount of goodwill, by segment, for the nine months ended September 30, 2021 are as follows:
|  | USA |  |  | The Americas |  |  | EMEA |  |  | Asia-Pacific |  |  | Total |
Balance at January 1, 2021 |  | $ | 3,078 |  |  | $ | 4,251 |  |  | $ | 14,449 |  |  | $ | 7,730 |  |  | $ | 29,508 |
Currency translation |  |  | 0 |  |  |  | 43 |  |  |  | (558 | ) |  |  | (298 | ) |  |  | (813 | )
Balance at September 30, 2021 |  | $ | 3,078 |  |  | $ | 4,294 |  |  | $ | 13,891 |  |  | $ | 7,432 |  |  | $ | 28,695 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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