GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

(8) GOODWILL AND INTANGIBLE ASSETS

Amortized Intangible Assets

The components of amortized intangible assets at December 28, 2019 and December 29, 2018 were as follows:



	December 28, 2019
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	237,626	$	149,720	13 years
Patents & Proprietary Technology	24,068		6,358		14 years
Other	8,054		7,035		5 years
	$	269,748	$	163,113



	December 29, 2018
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	219,508	$	132,180	13 years
Patents & Proprietary Technology	23,662		4,837		14 years
Other	7,971		6,891		5 years
	$	251,141	$	143,908

Amortization expense for intangible assets was $18,087, $15,328 and $15,911 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively.

Estimated annual amortization expense related to finite‑lived intangible assets is as follows:



	Estimated Amortization Expense
2020	$	17,343
2021	15,298
2022	13,120
2023	11,345
2024	9,434

The useful lives assigned to finite‑lived intangible assets included consideration of factors such as the Company’s past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset and the Company’s expected use of the intangible asset.

(8) GOODWILL AND INTANGIBLE ASSETS (Continued)

Non-amortized intangible assets

Intangible assets with indefinite lives are not amortized. The carrying values of trade names at December 28, 2019 and December 29, 2018 were as follows:



	December 28, 2019		December 29, 2018		Year Acquired
Newmark	$	11,111	$	11,111	2004
Webforge	9,143		8,872		2010
Valmont SM	7,966		8,155		2014
Ingal EPS/Ingal Civil Products	7,454		7,233		2010
Shakespeare	4,000		4,000		2014
Walpar	3,500		4,300		2018
Convert	8,378		8,580		2018
Other	17,555		16,472
	$	69,107	$	68,723

In its determination of these intangible assets as indefinite‑lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological and competitive factors that may impact the useful life or value of the intangible asset and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized.

The Company's trade names were tested for impairment separately from goodwill in the third quarter of 2019. The value of each trade name was determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired. The Company recorded a charge of $1,425 in the third quarter of 2018 for the offshore and other complex steel structures (Valmont SM) trade name.

Goodwill

The carrying amount of goodwill by segment as of December 28, 2019 and December 29, 2018 was as follows:



	Engineered Support Structures Segment			Utility Support Structures Segment			Coatings Segment			Irrigation Segment			Total
Gross balance at December 29, 2018	$	204,735		$	123,618		$	80,937		$	25,164		$	434,454
Accumulated impairment losses	(18,670		)	(14,355		)	(16,222		)	—			(49,247		)
Balance at December 29, 2018	186,065			109,263			64,715			25,164			$	385,207
Acquisitions	21,870			7,889			12,374			—			42,133
Foreign currency translation	2,029			(913		)	436			(28		)	1,524
Balance at December 28, 2019	$	209,964		$	116,239		$	77,525		$	25,136		$	428,864

(8) GOODWILL AND INTANGIBLE ASSETS (Continued)



	Engineered Support Structures Segment			Utility Support Structures Segment			Coatings Segment			Irrigation Segment			Other			Total
Gross balance at December 30, 2017	$	170,076		$	90,248		$	76,696		$	19,778		$	15,814		$	372,612
Accumulated impairment losses	(18,670		)	—			(16,222		)	—			—			(34,892		)
Balance at December 30, 2017	151,406			90,248			60,474			19,778			15,814			337,720
Acquisitions	42,216			34,280			5,120			5,503			—			87,119
Impairment	—			(14,355		)	—			—			—			(14,355		)
Divestiture of grinding media	—			—			—			—			(15,814		)	(15,814		)
Foreign currency translation	(7,557		)	(910		)	(879		)	(117		)	—			(9,463		)
Balance at December 29, 2018	$	186,065		$	109,263		$	64,715		$	25,164		$	—		$	385,207

The Company’s annual impairment test of goodwill was performed during the third quarter of 2019, using the discounted cash flow method. The estimated fair value of all of our reporting units exceeded their respective carrying value, so no goodwill was impaired. The access systems reporting unit with $45,727 of goodwill, is the reporting unit that did not have a substantial excess of estimated fair value over its carrying value. The model assumes geographic expansion of its architectural product lines with realized recent organic growth in its existing market. If architectural systems sales do not increase, the Company will be required to perform an interim test of goodwill. A hypothetical 1% change in the discount rate would increase/decrease the fair value of the reporting unit by approximately $15,000, which approximates the cushion between estimated fair value and carrying value. In the third quarter of 2018, the Company recognized a goodwill impairment totaling $14,355, which represented all of the goodwill of the offshore and other complex steel reporting unit.