GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 25, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Amortized Intangible Assets

The components of amortized intangible assets at December 25, 2021 and December 26, 2020 were as follows:


	December 25, 2021
	Gross Carrying Amount		Accumulated Amortization		Weighted Average Life
Customer Relationships	$	224,597	$	160,626	13 years
Patents & Proprietary Technology	58,699		13,955		9 years
Trade Name	2,850		183		7 years
Other	4,534		3,959		6 years
	$	290,680	$	178,723


	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 was $21,320, $18,147 and $18,087 for the fiscal years ended December 25, 2021, December 26, 2020 and December 28, 2019, respectively. During the fourth quarter of fiscal 2021, an impairment test was required when the Company received clarifying information on the competitive environment of the Valmont SM business in Europe. As a result, an impairment charge of approximately $4,483 was recognized against the remaining net book value of the Valmont SM customer relationship.

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


	Estimated Amortization Expense
2022	$	19,466
2023	17,692
2024	15,768
2025	14,301
2026	10,123

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. The carrying values of these trade names at December 25, 2021 and December 26, 2020 were as follows:


	December 25, 2021		December 26, 2020		Year Acquired
Newmark	$	11,111	$	11,111	2004
Webforge	7,877		7,972		2010
Valmont SM	6,082		8,720		2014
Ingal EPS/Ingal Civil Products	7,637		7,730		2010
Shakespeare	4,000		4,000		2014
Walpar	3,500		3,500		2018
Convert	8,479		9,137		2018
Other	14,721		14,828
	$	63,407	$	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 as of August 28, 2021. 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. During the fourth quarter of fiscal 2021, an impairment test was required when the Company received clarifying information on the competitive environment of the Valmont SM business in Europe. As a result, an impairment charge of approximately $2,013 was recognized against the Valmont SM trade name. 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 December 25, 2021 and December 26, 2020 was as follows:


	Engineered Support Structures Segment		Utility Support Structures Segment		Coatings Segment		Irrigation Segment		Total
Gross balance at 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
Acquisitions	—		—		—		284,253		284,253


Foreign currency translation	(1,632)		(3,256)		(203)		(918)		(6,009)
Balance at December 25, 2021	$	199,446	$	117,724	$	77,884	$	313,512	$	708,566


	Engineered Support Structures Segment		Utility Support Structures Segment		Coatings Segment		Irrigation Segment		Total
Gross balance at 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
Impairment	(12,575)		—		—		—		(12,575)

Foreign currency translation	3,689		3,641		562		3		7,895
Balance at December 26, 2020	$	201,078	$	120,980	$	78,087	$	30,177	$	430,322

The Company’s annual impairment test of goodwill was performed as of August 28, 2021, using primarily the discounted cash flow method. The solar tracking structure reporting unit projects meaningful annual revenue growth for the foreseeable future due to strong market conditions. Therefore, we valued this reporting unit using a blend of both the discounted cash flows and a market approach. The market valuation approach estimates the terminal value for this reporting unit using a multiple of earnings before interest, taxes, depreciation and amortization (EBITDA). During fiscal 2021, no goodwill impairment was recorded.

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.