GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

NOTE F — GOODWILL AND INTANGIBLE ASSETS

The Company’s intangible assets, all of which are included in the U.S. and International segments, consist of the following (in thousands):

	Year Ended December 31,
	2018										2017
	Gross		Impairment			Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Goodwill	$	93,895	$	(2,205	)	$	—		$	91,690	$	15,772	$	—		$	15,772
Indefinite -lived intangible assets:
Trade names		58,216		—			—			58,216		7,616		—			7,616
Finite -lived intangible assets:
Licenses		15,847					(9,825	)		6,022		15,847		(9,375	)		6,472
Trade names		43,689					(13,965	)		29,724		33,368		(11,109	)		22,259
Customer relationships		175,482					(27,538	)		147,944		52,961		(16,966	)		35,995
Other		6,510					(1,259	)		5,251		1,165		(800	)		365
Total	$	393,639	$	(2,205	)	$	(52,587	)	$	338,847	$	126,729	$	(38,250	)	$	88,479

A summary of the activities related to the Company’s intangible assets for the years ended December 31, 2018, 2017 and 2016 consists of the following (in thousands):

	Intangible Assets			Goodwill			Total Intangible Assets and Goodwill
Goodwill and Intangible Assets, December 31, 2015	$	78,492		$	18,101		$	96,593
Acquisition of trade names		5,159			—			5,159
Acquisition of customer relationships		8,878			—			8,878
Acquisition of other intangible assets		50			—			50
Foreign currency translation adjustment		(11,400	)		(3,900	)		(15,300	)
Amortization		(6,161	)		—			(6,161	)
Goodwill and Intangible Assets, December 31, 2016		75,018			14,201			89,219
Acquisition of goodwill		—			434			434
Acquisition of trade names		1,134			—			1,134
Acquisition of customer relationships		563			—			563
Foreign currency translation adjustment		2,823			1,137			3,960
Amortization		(6,831	)		—			(6,831	)
Goodwill and Intangible Assets, December 31, 2017		72,707			15,772			88,479
Acquisition of goodwill		—			78,795			78,795
Acquisition of trade names		61,500						61,500
Acquisition of customer relationships		124,430						124,430
Acquisition of other intangible assets		5,367			—			5,367
Foreign currency translation adjustment		(1,524	)		(672	)		(2,196	)
Amortization		(15,323	)		—			(15,323	)
Impairment of goodwill		—			(2,205	)		(2,205	)
Goodwill and Intangible Assets, December 31, 2018	$	247,157		$	91,690		$	338,847

The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2018 are as follows:

	Years
Trade names		15
Licenses		33
Customer relationships		14
Other		10

Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands):

Year ending December 31,
2019	$	16,841
2020		16,827
2021		16,349
2022		16,349
2023		16,309

Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $15.3 million, $6.8 million and $6.2 million, respectively.

Annual indefinite-lived trade name impairment test

In 2018, the Company elected to first perform a qualitative assessment to determine if it was more likely than not that the fair values of the Company’s indefinite-lived trade names were less than the carrying values. The Company considered events and circumstances that could affect the significant inputs used to determine the fair values of the indefinite-lived trade names. Based on the qualitative assessment, the Company determined it was not more likely than not that the fair values of the Company’s indefinite-lived trade names were less than the carrying values as of October 1, 2018.

Goodwill impairment test

During the third quarter of 2018, the Company performed an interim impairment assessment of its European tableware business due to a decline in operating performance and reduced expectations for future cash flows. The impairment assessment resulted in a $2.2 million non-cash goodwill impairment charge.

The European tableware business is a reporting unit within the International segment. The fair value of the reporting unit was determined based on a combined income and market approach. The resulting fair value was approximately

% below the reporting unit’s carrying value.

The Company bypassed the optional qualitative impairment analysis for its reporting units with goodwill for its annual October 1, 2018 impairment test. Accordingly, the estimated fair value of each of the reporting units was determined using the income approach and market approach. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. Under the income approach, the resultant estimated fair value of the reporting units exceeded their carrying value as of October 1, 2018.

As of October

2018

, the excess of fair value of the European kitchenware reporting unit, which carries goodwill of $

10.0

million, was approximately

% over its carrying value. Management’s projections used to estimate the cash flows include increasing net sales and operational improvements expected as a results of the consolidation of locations in the U.K. As a result of the European restructuring plan, the European kitchenware and tableware reporting units will be combined into one reporting unit as of January

2019

. Changes in any of the significant assumptions, including the identified restructuring activities used in the valuation of the reporting unit could materially affect the expected cash flows, and such impacts could potentially result in a material non-cash impairment charge.

As of October

2018

, the fair value of the U.S. reporting unit, which carries goodwill of approximately $

81.6

million was approximately

% over its carrying value. Management’s projections used to estimate fair value included increasing net

sales and the realization of the savings due to additional synergies expected from the Company’s acquisition of Filament. Changes in any of the significant assumptions used in the valuation of the reporting unit could materially affect the expected cash flows, and such impacts could potentially result in a material non-cash impairment

charge.

The Company is not currently aware of any negative changes in its assumptions that could lead to the fair value of the reporting units being less than the carrying value.

As of December 31, 2018, the Company assessed the carrying value of goodwill and determined based on qualitative factors, no impairment existed.