GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Amortized Intangible Assets

The components of amortized intangible assets at March 28, 2020 and December 28, 2019 were as follows:


	March 28, 2020
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	224,920	$	137,988	13 years

Patents & Proprietary Technology	23,867		6,718		13 years
Other	7,879		6,498		4 years
	$	256,666	$	151,204


	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

Amortization expense for intangible assets for the thirteen weeks ended March 28, 2020 and March 30, 2019, respectively was as follows:


Thirteen weeks ended
2020		2019
$	4,593	$	4,390

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


	Estimated Amortization Expense
2020	$	17,446
2021	15,516
2022	13,462
2023	11,830
2024	9,923

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.

Non-amortized intangible assets

Intangible assets with indefinite lives are not amortized and consist solely of trade names. The carrying value of trade names at March 28, 2020 and December 28, 2019 are as follows:


	March 28, 2020		December 28, 2019		Year Acquired
Newmark	$	11,111	$	11,111	2004
Webforge	8,704		9,143		2010
Convert Italia S.p.A	8,352		8,378		2018
Valmont SM	7,929		7,966		2014
Ingal EPS/Ingal Civil Products	7,096		7,454		2010
Walpar	3,500		3,500		2018
Shakespeare	4,000		4,000		2014
Other	16,852		17,555
	$	67,544	$	69,107

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 in the third quarter of 2019. The values of each trade name was determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired.

Goodwill

The carrying amount of goodwill by segment as of March 28, 2020 and December 28, 2019 was as follows:


	Engineered Support Structures Segment		Utility Support Structures Segment		Coatings Segment		Irrigation Segment		Total
Gross Balance December 28, 2019	$	228,634	$	130,594	$	93,747	$	25,136	$	478,111
Accumulated impairment losses	(18,670)		(14,355)		(16,222)		—		(49,247)
Balance at December 28, 2019	209,964		116,239		77,525		25,136		428,864
Acquisitions	—		1,100		—		—		1,100


Foreign currency translation	(6,144)		(139)		(1,287)		120		(7,450)
Balance at March 28, 2020	$	203,820	$	117,200	$	76,238	$	25,256	$	422,514

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 $42,300 of goodwill, is the reporting unit that did not have a substantial excess of estimated fair value over its carrying value during the 2019 annual impairment test. The model assumed geographic expansion of its architectural product lines, which realized recent organic growth in its existing market. If the Company determines it is more likely than not that forecasted operating income and operating cash flow amounts will

be not be realized, an interim test of goodwill recoverability would be required. A hypothetical 1.0% change in the discount rate would increase/decrease the fair value of this reporting unit by approximately $15,000, which approximates the cushion between the estimated fair value and carrying value of this reporting unit. The Company continues to monitor changes in the global economy, including the impact from COVID-19, that could impact future operating results of its reporting units. If such conditions arise, the Company will test a given reporting unit for impairment prior to the annual test.