GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill.

During the fourth quarters of 2020, 2019, and 2018, the Company completed its goodwill impairment test using the quantitative assessment. Except for the impairment charges during the first quarter of 2020 and third quarter of 2018 discussed below, based on all assessments performed in each of the last three years the Company believed it was more likely than not that the fair value of its reporting units were greater than their carrying amount and no additional impairment of goodwill was recognized.

As of December 31, 2019, goodwill allocated to the Company’s CTP, DPG, and FMP segments was approximately $2.6 million, $140.7 million, and $167.7 million, respectively. Within the DPG segment, goodwill was allocated between the Tank Trailers and Process Systems reporting units in the amount of $98.4 million and $42.3 million, respectively.

The Company did not perform in-line with expectations during the first quarter of 2020, partially as a result of impacts to our business and operations due to the COVID-19 pandemic. In addition, subsequent to December 31, 2019, the Company’s share price and market capitalization declined. As a result, indicators of impairment were identified and the Company performed an interim quantitative assessment as of March 31, 2020, utilizing a combination of the income and market approaches, which were weighted evenly. The results of the quantitative analysis indicated the carrying value of the FMP and Tank Trailers reporting units exceeded their respective fair values and, accordingly, goodwill impairment charges of $95.8 million and $11.0 million, respectively, were recorded during the first quarter of 2020. The goodwill impairment charges, which are based on Level 3 fair value measurements, are included in Impairment and other, net in the Consolidated Statements of Operations.

During the third quarter of 2018, the Company performed an interim impairment analysis after identifying indicators of impairment based on the results of the AVTE reporting unit. Based on this assessment, it was determined that all of the goodwill allocated to the AVTE reporting unit was impaired resulting in an impairment charge for the Diversified Products reporting segment of $4.9 million.

As further described in Note 20, during the fourth quarter of 2020 the Company sold its Beall® brand of tank trailers and associated assets. Prior to the divestiture Beall® was an operating unit within the Tank Trailers reporting unit. In accordance with the relevant accounting guidance, as part of the sale the Company allocated $4.7 million of goodwill based upon the relative fair value of the Beall® operating unit compared to the Tank Trailers reporting unit as a whole. This goodwill was included in the carrying value of the disposed assets and the resulting loss recognized in connection with the sale. Subsequent to the divestiture, the Company performed an impairment assessment for the Tank Trailers reporting unit and concluded the fair value of the reporting unit continued to exceed the carrying value.

For the years ended December 31, 2020, 2019, and 2018, the changes in the carrying amounts of goodwill were as follows (in thousands):


	Commercial Trailer Products		Diversified Products		Final Mile Products		Total
Balance at December 31, 2018
Goodwill	$	4,288	$	145,688	$	167,715	$	317,691
Accumulated impairment losses	(1,663)		(4,944)		—		(6,607)
Net balance at December 31, 2018	2,625		140,744		167,715		311,084
Impact of divestiture on goodwill	—		(4,944)		—		(4,944)
Impact of divestiture on accumulated impairment losses	—		4,944		—		4,944
Effects of foreign currency	—		(58)		—		(58)
Balance at December 31, 2019
Goodwill	4,288		140,686		167,715		312,689
Accumulated impairment losses	(1,663)		—		—		(1,663)
Net balance as of December 31, 2019	2,625		140,686		167,715		311,026
Goodwill impairments	—		(10,971)		(95,766)		(106,737)
Impact of divestiture on goodwill	—		(4,685)		—		(4,685)
Effects of foreign currency	—		(44)		—		(44)
Balance as of December 31, 2020
Goodwill	4,288		135,957		167,715		307,960
Accumulated impairment losses	(1,663)		(10,971)		(95,766)		(108,400)
Net balance as of December 31, 2020	$	2,625	$	124,986	$	71,949	$	199,560

Intangible Assets.

As of December 31, 2020, the balances of intangible assets, other than goodwill, were as follows (in thousands):


	Weighted Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Tradenames and trademarks	20 years	$	51,481	$	(19,975)	$	31,506
Customer relationships	13 years	276,973		(145,356)		131,617
Technology	12 years	12,828		(9,064)		3,764
Total		$	341,282	$	(174,395)	$	166,887

As of December 31, 2019, the balances of intangible assets, other than goodwill, were as follows (in thousands):


	Weighted Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Tradenames and trademarks	20 years	$	53,103	$	(17,962)	$	35,141
Customer relationships	13 years	282,863		(132,903)		149,960
Technology	12 years	14,045		(9,248)		4,797
Total		$	350,011	$	(160,113)	$	189,898

Intangible asset amortization expense was $22.0 million, $20.5 million, and $19.5 million for 2020, 2019, and 2018, respectively. Annual intangible asset amortization expense for the next 5 fiscal years is estimated to be $23.0 million in 2021; $17.9 million in 2022; $15.3 million in 2023; $15.1 million in 2024; and $14.0 million in 2025. Net intangible assets of approximately $1.1 million were written-off during the fourth quarter of 2020 in connection with the Beall® divestiture.