GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

The components of goodwill and identifiable intangibles at December 31, 2018 and 2017, and related amortization periods for continuing operations are as follows:



(In thousands)	2018		2017		Amortization Periods
Goodwill	$	81,404	$	128,208	Not amortized
Identifiable intangible assets:
Customer relationships (cost basis of $29,568 in 2018 and $29,647 in 2017)	22,785		25,444		10-12 years
Proprietary technology (cost basis of $6,185 in 2018 and $6,203 in 2017)	1,093		1,700		Not more than 15 years
Trade names (cost basis of $13,690 in 2018 and $13,887 in 2017)	12,417		13,408		5 - 13 years^(a)
Total carrying value of identifiable intangibles	36,295		40,552
Total carrying value of goodwill and identifiable intangible assets	$	117,699	$	168,760

(a) Includes $4.8 million of trade names with an indefinite life.

A reconciliation of the beginning and ending balance of goodwill for each of the two years in the period ended December 31, 2018 is as follows:



(In thousands)	PE Films			Aluminum Extrusions		Total
Net carrying value of goodwill at January 1, 2017	$	104,126		$	13,696	$	117,822
Acquisitions	—			10,370		10,370
Increase (decrease) due to foreign currency translation	16			—		16
Net carrying value of goodwill at December 31, 2017	104,142			24,066		128,208
Goodwill impairment charge	(46,792		)	—		(46,792		)
Increase (decrease) due to foreign currency translation	(12		)	—		(12		)
Net carrying value of goodwill at December 31, 2018	$	57,338		$	24,066	$	81,404

The goodwill of PE Films is carried by its Surface Protection component in the amount $57.3 million as of December 31, 2018. The goodwill of Aluminum Extrusions is carried by its AACOA and Futura (which was acquired on February 15, 2017) components in the amounts of $13.7 million and $10.4 million, respectively, as of December 31, 2018.

The Company recorded a goodwill impairment charge of $46.8 million ($38.2 million after taxes) for goodwill associated with the acquisition of certain components of PE Films. During the third quarter of 2018, the Company performed a goodwill impairment analysis related to the Personal Care component of PE Films. This review was undertaken as a result of the expected loss of business from a key customer and revised projections for PE Films. Based on an evaluation of projections under various business planning scenarios, the Company concluded that the fair value of the Personal Care component of PE Films was less than its carrying value.

A reconciliation of the beginning and ending balance of identifiable intangibles for each of the two years in the period ended December 31, 2018 is as follows:



(In thousands)			Customer Relationships			Proprietary Technology			Trade Names			Total
PE Films:
	Net carrying value at January 1, 2017		$	—		$	959		$	—		$	959
		Amortization expense	—			(114		)	—			(114		)
	Net carrying value at December 31, 2017		—			845			—			845
		Amortization expense	—			(115		)	—			(115		)
	Net carrying value at December 31, 2018		$	—		$	730		$	—		$	730

Flexible Packaging Films:
	Net carrying value at January 1, 2017		$	12,084		$	5,574		$	6,375		$	24,033
		Amortization expense	(1,793		)	(1,161		)	—			(2,954		)
		Increase (decrease) due to foreign currency translation	(16		)	(2		)	(33		)	(51		)
		Impairment loss	(9,444		)	(4,051		)	(4,005		)	(17,500		)
	Net carrying value at December 31, 2017		831			360			2,337			3,528
		Amortization expense	(82		)	(55		)	(299		)	(436		)
		Increase (decrease) due to foreign currency translation	(88		)	(17		)	(176		)	(281		)
	Net carrying value at December 31, 2018		$	661		$	288		$	1,862		$	2,811

Aluminum Extrusions:
	Net carrying value at January 1, 2017		$	2,760		$	1,049		$	4,800		$	8,609
		Additions related to acquisition of Futura	24,000			—			6,700			30,700
		Amortization expense	(2,147		)	(554		)	(429		)	(3,130		)
	Net carrying value at December 31, 2017		24,613			495			11,071			36,179
		Amortization expense	(2,489		)	(420		)	(516		)	(3,425		)
	Net carrying value at December 31, 2018		$	22,124		$	75		$	10,555		$	32,754

Total net carrying value of identifiable intangibles at December 31, 2018			$	22,785		$	1,093		$	12,417		$	36,295

During the fourth quarter of 2017, in conjunction with annual business planning as well as valuation activities and other efforts, the Company determined that the carrying value of Terphane’s remaining long-lived assets were impaired (Terphane’s goodwill was written off in 2015). Accordingly, the Company wrote down these assets based on an enterprise valuation for all of Terphane of approximately $30 million. This write-down resulted in a non-cash asset impairment loss recognized during the fourth quarter of 2017 of $101 million ($87 million after non-cash tax benefits). As part of this write-down, customer relationships, proprietary technology and trade names were impaired by $9.4 million, $4.1 million and $4.0 million, respectively, reducing their values to $0.8 million, $0.4 million and $2.4 million, respectively. The remaining part of this write-down was related to property, plant and equipment. Also, Terphane’s trade names were assigned estimated useful lives of 5 to 13 years, a change from the previous designation of an indefinite life.

Amortization expense for continuing operations over the next five years is expected to be as follows:



Year	Amount (In thousands)
2019	$	3,585
2020	3,585
2021	3,585
2022	3,450
2023	2,824