XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the second quarter of 2020, the Company determined potential indicators of impairment within the Welded Pipe & Tube reporting unit included in the Metals Segment, with an associated goodwill balance of $16.2 million, existed. Continued deterioration in macroeconomic conditions, continued risks within the stainless steel industrial business, reporting unit operating losses and a decline in the reporting unit's net sales compared to forecast, collectively, indicated that the reporting unit had experienced a triggering event. As a result, the Company quantitatively evaluated the Welded Pipe & Tube reporting unit for impairment. Fair value of the reporting unit was determined using an income approach. Determining the fair value of the reporting unit and allocation of that fair value to individual assets and liabilities within the reporting unit to determine the implied fair value of the goodwill is judgmental in nature and requires the use of significant management estimates and assumptions. These estimates and assumptions include the discount rate, terminal growth rate, tax rate, projected capital expenditures, and overall operational forecasts, including sales growth, gross margins, and operating margins. Any changes in the judgments, estimates, or assumptions could produce significantly different results. As a result of the goodwill impairment evaluation, it was concluded that the estimated fair value of the Welded Pipe and Tube reporting unit was greater than its carrying value by 1.7% and, as such, no goodwill impairment was necessary in the quarter ended June 30, 2020. During the second quarter of 2020, due to the continued curtailment of operations related to the COVID-19 pandemic and managements decision to pursue a sale and exit of the Palmer business, the intangible customer list related to Palmer was written down to its estimated fair market value of zero, resulting in an impairment charge of $1.3 million, which is included in "Asset impairments" on the accompanying unaudited condensed consolidated statements of operations. The gross carrying amounts of goodwill are as follows:
(in thousands) | June 30, 2020 |  | December 31, 2019
Metals Segment | $ | 16,203 |  |  | $ | 16,203 |
Specialty Chemicals Segment | 1,355 |  |  | 1,355 |
Goodwill | $ | 17,558 |  |  | $ | 17,558 |
The balance of intangible assets subject to amortization are as follows:
(in thousands) | June 30, 2020 |  | December 31, 2019
Intangible assets, gross | $ | 30,866 |  |  | $ | 32,126 |
Accumulated amortization of intangible assets | (18,031 | ) |  | (16,412 | )
Intangible assets, net | $ | 12,835 |  |  | $ | 15,714 |
Estimated amortization expense related to intangible assets for the next five years are as follows (in thousands):
Remainder of 2020 | $ | 1,409 |
2021 | 2,721 |
2022 | 2,501 |
2023 | 1,050 |
2024 | 952 |
2025 | 855 |
Thereafter | 3,347 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration