8. LONG-LIVED ASSETS

The cost basis and estimated lives of property and equipment from continuing operations as of December 31, 2018 and 2017 are as follows:


	As of December 31,
	2018		2017		Life
Land	$	1,423	$	1,423
Buildings		20,747		22,998	39	years
Machinery and equipment		107,469		103,878	2	-	10	years
Office furniture and equipment		4,387		4,202	3	-	7	years
Leasehold improvements		8,974		9,095	Asset life or life of lease
Construction in progress		172		4,138
		143,172		145,734
Less accumulated depreciation and amortization		(94,085)		(90,041)
Total property and equipment	$	49,087	$	55,693

As of December 31, 2018 and December 31, 2017, the Company had commitments of $80 and $132, respectively, related to the completion of projects within construction in progress.

As a result of the Red Wolf acquisition, the Company added $4,993 of goodwill, which was included in the Process Systems segment. See Note 16, “Segment Reporting” of these consolidated financial statements for further discussion of the Company’s segments. The goodwill represented the excess of the purchase price over the fair value of assets acquired, including identifiable intangibles and liabilities as part of the Company’s acquisition of Red Wolf.

During the second quarter of 2018, the Company identified triggering events associated with the release of Red Wolf’s final earn-out reserve, Red Wolf’s recent operating results, a reduction in Red Wolf’s major customer’s performance and the delay of new initiatives being implemented. As a result, the Company evaluated the recoverability of the Red Wolf asset group. In accordance with GAAP, the Company compared the carrying value of the Red Wolf asset group to the forecast undiscounted cash flows associated with this asset group. Based on the analysis performed, the forecast undiscounted cash flows exceeded the carrying value and no impairment of this group was indicated or recorded.

The Company next compared the carrying value of the Red Wolf reporting unit to the fair value of the Red Wolf reporting unit. The fair value was determined using significant unobservable inputs, or level 3 in the fair value hierarchy. The two main assumptions utilized in the forecast discounted cash flow analysis were the cash flows from operations and the weighted average cost of capital of 18.6%. Based on the analysis performed, the Company determined that the carrying amount of the reporting unit exceeded the fair value and recorded a $4,993 goodwill impairment charge in the second quarter of 2018. The Company utilized a third-party appraisal to validate the results of the analysis.

During the fourth quarter of 2018, the Company identified triggering events associated with Red Wolf’s recent operating results, a reduction in Red Wolf’s major customer’s performance and the delay of new initiatives being implemented. As a result, the Company tested the long‑lived assets associated with Red Wolf for impairment. The carrying value of the asset group was found to exceed both its undiscounted cash flows and its fair value determined using the asset accumulation approach. The Company relied upon a third-party valuation and determined that the customer relationship intangible asset was impaired, and recorded a corresponding $7,592 impairment charge during the fourth quarter of 2018. The two main assumptions utilized in the valuation were the cash flows from operations and the weighted average cost of capital of 18.5%.

During 2018 and 2017, the Company continued to experience triggering events associated with the Gearing segment’s history of operating losses. As a result, the Company evaluated the recoverability of certain of its long‑lived assets associated with the Gearing segment. The Company relied upon a third-party appraisal and determined that there were no significant changes to the inputs or assumptions used previously. The Company concluded that no impairment to this asset group was indicated as of December 31, 2018 or 2017.

Other intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company’s acquisition of Brad Foote completed in 2007 as well as the noncompetition agreements, trade names and customer relationships that were part of the Company’s acquisition of Red Wolf. See Note 21, “Business Combinations” of these consolidated financial statements for further discussion of the Red Wolf acquisition. Other intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from 4 to 10 years.

As of December 31, 2018 and 2017, the cost basis, accumulated amortization and net book value of intangible assets were as follows:


	December 31, 2018									December 31, 2017
									Remaining							Remaining
									Weighted							Weighted
							Net		Average					Net		Average
			Accumulated		Impairment		Book		Amortization			Accumulated		Book		Amortization
	Cost		Amortization		Charge		Value		Period	Cost		Amortization		Value		Period
Goodwill and other intangible assets:
Goodwill	$	4,993	$	—	$	(4,993)	$	-		$	4,993	$	—	$	4,993
Noncompete agreements		170		(54)		—		116	4.1		170		(26)		144	5.1
Customer relationships		15,979		(6,369)		(7,592)		2,018	6.8		15,979		(4,992)		10,987	8.0
Trade names		9,099		(4,631)		—		4,468	9.5		9,099		(4,152)		4,947	10.5
Other intangible assets	$	25,248	$	(11,054)	$	(7,592)	$	6,602	6.5	$	25,248	$	(9,170)	$	16,078	8.8

Intangible assets are amortized on a straight‑line basis over their estimated useful lives, which range from 6 to 20 years. Amortization expense was $1,884 and $1,764 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, estimated future amortization expense is as follows:


2019	$	812
2020		812
2021		812
2022		812
2023		786
2024 and thereafter		2,568
Total	$	6,602