GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 27, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Amortized Intangible Assets

The components of amortized intangible assets at March 27, 2021 and December 26, 2020 were as follows:


	March 27, 2021
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	237,388	$	160,088	13 years

Patents & Proprietary Technology	25,823		8,642		14 years
Other	7,484		7,211		4 years
	$	270,695	$	175,941


	December 26, 2020
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	237,232	$	155,760	13 years

Patents & Proprietary Technology	26,208		8,301		14 years
Other	7,602		6,786		4 years
	$	271,042	$	170,847

Amortization expense for intangible assets for the thirteen weeks ended March 27, 2021 and March 28, 2020, respectively was as follows:


Thirteen weeks ended
2021		2020
$	4,232	$	4,593

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


	Estimated Amortization Expense
2021	$	15,976
2022	13,337
2023	11,503
2024	9,587
2025	8,153

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 27, 2021 and December 26, 2020 are as follows:


	March 27, 2021		December 26, 2020		Year Acquired
Newmark	$	11,111	$	11,111	2004
Webforge	8,104		7,972		2010
Convert Italia S.p.A	8,845		9,137		2018
Valmont SM	8,443		8,720		2014
Ingal EPS/Ingal Civil Products	7,857		7,730		2010
Walpar	3,500		3,500		2018
Shakespeare	4,000		4,000		2014
Other	14,925		14,828		Various
	$	66,785	$	66,998

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 were 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 March 27, 2021 and December 26, 2020 was as follows:


	Engineered Support Structures Segment		Utility Support Structures Segment		Coatings Segment		Irrigation Segment		Total
Gross Balance December 26, 2020	$	232,323	$	135,335	$	94,309	$	30,177	$	492,144
Accumulated impairment losses	(31,245)		(14,355)		(16,222)		—		(61,822)
Balance at December 26, 2020	201,078		120,980		78,087		30,177		430,322



Foreign currency translation	1,204		(1,438)		207		(368)		(395)
Balance at March 27, 2021	$	202,282	$	119,542	$	78,294	$	29,809	$	429,927

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.