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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Amortized Intangible Assets

The components of amortized intangible assets at September 26, 2020 and December 28, 2019 were as follows:


	September 26, 2020
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	232,511	$	148,198	13 years

Patents & Proprietary Technology	25,240		7,699		14 years
Other	7,492		6,553		4 years
	$	265,243	$	162,450


	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 and thirty-nine weeks ended September 26, 2020 and September 28, 2019, respectively was as follows:


Thirteen weeks ended				Thirty-nine weeks ended
2020		2019		2020		2019
$	4,518	$	4,484	$	13,621	$	13,506

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


	Estimated Amortization Expense
2020	$	17,687
2021	15,005
2022	13,027
2023	11,086
2024	9,446

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 September 26, 2020 and December 28, 2019 are as follows:


	September 26, 2020		December 28, 2019		Year Acquired
Newmark	$	11,111	$	11,111	2004
Webforge	7,489		9,143		2010
Convert Italia S.p.A	8,721		8,378		2018
Valmont SM	8,317		7,966		2014
Ingal EPS/Ingal Civil Products	7,261		7,454		2010
Walpar	3,500		3,500		2018
Shakespeare	4,000		4,000		2014
Other	14,489		17,555
	$	64,888	$	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 2020. 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. In conjunction with an interim second quarter 2020 goodwill impairment test, impairment indicators were noted for the Webforge and Locker trade names requiring an interim impairment test. As a result, an impairment charge of approximately $3,900 was recognized against these two trade names in fiscal 2020.

Goodwill

The carrying amount of goodwill by segment as of September 26, 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		—		5,038		6,138
Asset impairment	(12,575)		—		—		—		(12,575)

Foreign currency translation	(1,605)		1,629		(409)		(95)		(480)
Balance at September 26, 2020	$	195,784	$	118,968	$	77,116	$	30,079	$	421,947

The Company’s annual impairment test of goodwill was performed during the third quarter of 2020, using primarily 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.

In April 2020, the price of a barrel of oil began a large decline and various economic forecasts show the lower price of oil will continue into the next few years. This lower price for oil and a revised assessment of the Australian market performed in conjunction with the executed restructuring activities required the Company to re-assess the financial projections for the Access Systems reporting unit. This resulted in lower projected net sales, operating income, and cash flows for this reporting unit, resulting in the need for an interim impairment test. The results of the test showed that the reporting unit's carrying value was higher than its estimated fair value. Accordingly, the Company recorded a $12,575 impairment of access system's goodwill in the second quarter of 2020.