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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 | Goodwill and Other Intangible Assets The Company performed the first step of the impairment test as of the first day of the fiscal 2019 fourth quarter by calculating the fair value of the reporting units and comparing it against its carrying amount. The Company estimated the fair value of our steel and on-board weighing reporting units using the income approach and a market approach to valuation. The income approach to valuation uses our estimates of the future cash flows of the reporting unit discounted to their net present value using a discount rate determined using the capital asset pricing model and adjusted for the forecast risk inherent in our projections of future cash flows. The income approach to valuation is dependent on inputs from management such as expected revenue growth, profitability, capital expenditures, and working capital requirements. The market approach to valuation uses the market capitalization of public companies similar to the reporting unit to calculate an implied EBITDA multiple, and we apply that calculated EBITDA multiple to the expected EBITDA of the reporting unit to estimate the fair value of the reporting unit, after consideration of appropriate control premiums. We weigh the results of the income approach and the market approach to arrive at the estimated fair value of the reporting unit. We estimate the fair value of our instrumentation reporting unit using the income approach. If the fair value exceeds the carrying value, no further evaluation is required and no impairment loss is recognized. An impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the reporting unit fair value.After completing the impairment test, the Company determined the fair value exceeded the carrying value for all reporting units. For the year ended December 31, 2018, the carrying value of the instrumentation reporting unit exceeded the fair value and the Company recorded an impairment charge of $2.5 million. The impairment was primarily from lower margins on the forecasted projections due to product mix related to the Pacific acquisition. The impairment test for the remaining reporting units resulted in the fair value exceeding the carrying value, passing the quantitative impairment test. The Company's analysis in 2017 resulted in the fair value exceeding the carrying value for all reporting units. The determination of the fair value of the reporting unit and the allocation of that value to individual assets and liabilities within the reporting unit requires the Company to make significant estimates and assumptions. These estimates and assumptions include the selection of appropriate peer group companies, control premiums appropriate for acquisitions in the industries in which the Company competes, the discount rate, terminal growth rates, and forecasts of revenue, operating income, depreciation and amortization, and capital expenditures. Due to the inherent uncertainty involved in making these estimates, actual financial results could differ from those estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charges. The change in the carrying amount of goodwill by segment is as follows (in thousands):
| Total |  | Weighing and Control Systems Segment |  | Foil Technology Products Segment
|  |  | KELK Acquisition |  | DSI Acquisition |  | Stress-Tek Acquisition |  | Pacific Instruments
Balance at January 1, 2018 | $ | 19,181 |  |  | $ | 6,828 |  |  | $ | — |  |  | $ | 6,311 |  |  | $ | 6,042 |
Impairment charges | (2,500 | ) |  | — |  |  | — |  |  | — |  |  | (2,500 | )
Foreign currency translation adjustment | (540 | ) |  | (540 | ) |  | — |  |  | — |  |  | — |
Balance at December 31, 2018 | 16,141 |  |  | 6,288 |  |  | — |  |  | 6,311 |  |  | 3,542 |
Goodwill acquired | 18,606 |  |  |  |  | 18,606 |  |  | — |  |  | — |
Foreign currency translation adjustment | 271 |  |  | 271 |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2019 | $ | 35,018 |  |  | $ | 6,559 |  |  | $ | 18,606 |  |  | $ | 6,311 |  |  | $ | 3,542 |
Intangible assets were as follows (in thousands):
| December 31,
| 2019 |  | 2018
Intangible assets subject to amortization |  |  |
(Definite-lived): |  |  |
Patents and acquired technology | $ | 19,504 |  |  | $ | 9,067 |
Customer relationships | 25,690 |  |  | 20,941 |
Trade names | 1,690 |  |  | 1,674 |
Non-competition agreements | 11,745 |  |  | 11,820 |
| 58,629 |  |  | 43,502 |
Accumulated amortization: |  |  |
Patents and acquired technology | (4,718 | ) |  | (4,103 | )
Customer relationships | (11,727 | ) |  | (10,399 | )
Trade names | (1,690 | ) |  | (1,674 | )
Non-competition agreements | (11,717 | ) |  | (11,748 | )
| (29,852 | ) |  | (27,924 | )
Net intangible assets subject to amortization | $ | 28,777 |  |  | $ | 15,578 |
Intangible assets not subject to amortization |  |  |
(Indefinite-lived): |  |  |
Trade names | 5,421 |  |  | 2,078 |
| $ | 34,198 |  |  | $ | 17,656 |
Certain intangible assets are subject to foreign currency translation. In conjunction with the acquisition of DSI on November 1, 2019 (See Note 3), the Company allocated $14.6 million for the purchase price to definite-lived intangibles assets and $3.3 million to indefinite-lived intangible assets at December 31, 2019. The Company has determined that the trade name is an indefinite-lived intangibles asset. The Company performed an impairment test on the indefinite-lived trade names as of the first day of the fiscal 2019 fourth quarter and determined there was no impairment. In 2018, the Company recorded an impairment charge of $0.3 million related to the Pacific acquisition. The impairment was primarily from lower margins on the forecasted projections due to product mix. The value of the trade names was determined using an income approach, where the Company estimated the future cash flows associated with the trade names and discounted those cash flows back to their net present value. Due to the decline in cash flows as a result of the lower margins, the Company reduced the royalty rate, under the relief of royalty method, when performing the income approach valuation. The Company's annual impairment test on the indefinite-lived trade names in 2017 resulted in no impairment. Amortization expense was $1.7 million, $1.7 million, and $1.9 million, for the years ended December 31, 2019, 2018, and 2017, respectively. Amortization expense in 2019 included $0.2 million related to the DSI acquisition. Estimated annual amortization expense for each of the next five years is as follows (in thousands):
2020 | $ | 2,465 |
2021 | 2,416 |
2022 | 2,415 |
2023 | 2,311 |
2024 | 2,279 |

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