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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | 9. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is tested at the reporting unit level annually and if necessary, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In 2018, the Company determined certain definite lived intangible assets within the switchgear reporting unit had carrying values that exceeded its fair value. As a result, the Company recorded impairment charges of $870, $377 and $103 against technology-related industry accreditation, customer relationships and non-complete agreements, respectively. Prior to 2017, the Company tested goodwill for impairment using a quantitative analysis consisting of a two-step approach. The first step of our quantitative analysis consisted of a comparison of the carrying value of our reporting units, including goodwill, to the estimated fair value of our reporting units using a discounted cash flow methodology. If step one results in the carrying value of the reporting unit exceeding the fair value of such reporting unit, we would then proceed to step two which would require us to calculate the amount of impairment loss, if any, that we would record for such reporting unit. In the fourth quarter of 2017 the Company adopted ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment” and eliminated Step 2 from the goodwill impairment test. As of the measurement date October 1, 2018, dry type transformers and critical power reporting units had negative carrying values. The Company allocated $5.6 million and $3.0 million of goodwill to dry type and critical power reporting units, respectively. The Company recorded an impairment charge of $1.4 million to the remaining goodwill of the switchgear reporting unit in 2017, which is included within the T&D Solutions Segment. The Company recorded no impairment to goodwill during the year ended December 31, 2018. Changes in the carrying amount of goodwill by reportable segment during the years ended December 31, 2018 and 2017 are as follows:
|  | T&D |  |  | Critical Power |  |  |  |
|  | Solutions |  |  | Solutions |  |  | Total |
|  | Segment |  |  | Segment |  |  | Goodwill |
Gross Goodwill: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of January 1, 2017 |  | $ | 7,978 |  |  | $ | 2,970 |  |  | $ | 10,948 |
No activity |  |  | — |  |  |  | — |  |  |  | — |
Balance as of December 31, 2017 |  | $ | 7,978 |  |  | $ | 2,970 |  |  | $ | 10,948 |
Accumulated impairment losses: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of January 1, 2017 |  | $ | (976 | ) |  | $ | — |  |  | $ | (976 | )
Impairment charges |  |  | (1,445 | ) |  |  | — |  |  |  | (1,445 | )
Balance as of December 31, 2017 |  | $ | (2,421 | ) |  | $ | — |  |  | $ | (2,421 | )
Net Goodwill |  | $ | 5,557 |  |  | $ | 2,970 |  |  | $ | 8,527 |
Gross Goodwill: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of January 1, 2018 |  | $ | 7,978 |  |  | $ | 2,970 |  |  | $ | 10,948 |
No activity |  |  | — |  |  |  | — |  |  |  | — |
Balance as of December 31, 2018 |  | $ | 7,978 |  |  | $ | 2,970 |  |  | $ | 10,948 |
Accumulated impairment losses: |  |  |  |  |  |  |  |  |  |  |  |
Balance as of January 1, 2018 |  | $ | (2,421 | ) |  | $ | — |  |  | $ | (2,421 | )
No activity |  |  | — |  |  |  | — |  |  |  | — |
Balance as of December 31, 2018 |  | $ | (2,421 | ) |  | $ | — |  |  | $ | (2,421 | )
Net Goodwill |  | $ | 5,557 |  |  | $ | 2,970 |  |  | $ | 8,527 |
Changes in intangible asset balances for the years ended December 31, 2018 and 2017 consisted of the following:
|  | T&D |  |  | Critical Power |  |  | Total |
|  | Solutions |  |  | Solutions |  |  | Intangible |
|  | Segment |  |  | Segment |  |  | Assets |
Balance as of January 1, 2017 |  | $ | 5,565 |  |  | $ | 2,603 |  |  | $ | 8,168 |
Amortization |  |  | (415 | ) |  |  | (1,358 | ) |  |  | (1,773 | )
Foreign currency translation |  |  | 4 |  |  |  | — |  |  |  | 4 |
Balance as of December 31, 2017 |  | $ | 5,154 |  |  | $ | 1,245 |  |  | $ | 6,399 |
Amortization |  |  | (339 | ) |  |  | (1,121 | ) |  |  | (1,460 | )
Impairment charges |  |  | (1,350 | ) |  |  | — |  |  |  | (1,350 | )
Foreign currency translation |  |  | (5 | ) |  |  | — |  |  |  | (5 | )
Balance as of December 31, 2018 |  | $ | 3,460 |  |  | $ | 124 |  |  | $ | 3,584 |
The components of intangible assets at December 31, 2018 are summarized below:
|  | Weighted Average Amortization Years |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Impairment Charges |  |  | Foreign Currency Translation |  |  | Net Book Value |
Customer relationships |  | 7 (a) |  |  | $ | 7,202 |  |  | $ | (6,175 | ) |  | $ | (377 | ) |  | $ | — |  |  | $ | 650 |
Non-compete agreements |  | 4 (a) |  |  |  | 705 |  |  |  | (587 | ) |  |  | (103 | ) |  |  | — |  |  |  | 15 |
Trademarks |  | Indefinite |  |  |  | 1,816 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,816 |
Internally developed software |  | 7 |  |  |  | 289 |  |  |  | (165 | ) |  |  | — |  |  |  | — |  |  |  | 124 |
Developed technology |  | 10 |  |  |  | 492 |  |  |  | (197 | ) |  |  | — |  |  |  | — |  |  |  | 295 |
Technology-related industry accreditations |  | Indefinite (a) |  |  |  | 1,576 |  |  |  | — |  |  |  | (870 | ) |  |  | (22 | ) |  |  | 684 |
Total intangible assets |  |  |  |  |  | $ | 12,080 |  |  | $ | (7,124 | ) |  | $ | (1,350 | ) |  | $ | (22 | ) |  | $ | 3,58 4 |
| (a) | During 2018, the Company recorded impairment charges to customer relationships, non-compete agreements and technology-related industry accreditations intangible assets of the switchgear business upon determining that the carrying value of these assets was not recoverable.
The components of intangible assets at December 31, 2017 are summarized below:
| Weighted Average Amortization Years |  | Gross Carrying Amount |  | Accumulated Amortization |  | Foreign Currency Translation |  | Net Book Value
Customer relationships | 7 |  | $ | 7,202 |  | $ | (4,907) |  | $ | - |  | $ | 2,295
Non-compete agreements | 6 |  |  | 705 |  |  | (485) |  |  | - |  |  | 220
Trademarks | Indefinite |  |  | 1,816 |  |  | - |  |  | - |  |  | 1,816
Distributor territory license | (a) |  |  | 474 |  |  | (474) |  |  | - |  |  | -
Internally developed software | 7 |  |  | 289 |  |  | (124) |  |  | - |  |  | 165
Developed technology | 10 |  |  | 492 |  |  | (148) |  |  | - |  |  | 344
Technology-related industry accreditations | Indefinite |  |  | 1,576 |  |  | - |  |  | (17) |  |  | 1,559
Total intangible assets |  |  | $ | 12,554 |  | $ | (6,138) |  | $ | (17) |  | $ | 6,399
| (a) | During 2017, the Company accelerated and fully amortized distributor territory license intangible asset upon the termination of its distribution agreement with a supplier.
Future scheduled annual straight-line amortization expense over the useful lives of finite life intangible assets is as follows:
Years Ending December 31, |  |  | Total |
2019 |  |  | $ | 215 |
2020 |  |  |  | 200 |
2021 |  |  |  | 200 |
2022 |  |  |  | 124 |
2023 |  |  |  | 106 |
Thereafter |  |  |  | 239 |
|  |  | $ | 1,084 |

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- 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
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