Goodwill and Other Intangibles, Net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

A reconciliation of the change in the carrying amount of goodwill by reportable segment is as follows:


	Diversified Industrial		Energy		Financial Services		Corporate and Other		Total
Balance as of December 31, 2019
Gross goodwill	$	180,855	$	67,143	$	6,515	$	81	$	254,594
Accumulated impairments	(40,178)		(64,790)		—		—		(104,968)
Net goodwill	140,677		2,353		6,515		81		149,626
Acquisitions ^(a)	2,300		—		—		—		2,300

Currency translation adjustments	5		—		—		—		5

Balance as of June 30, 2020
Gross goodwill	183,160		67,143		6,515		81		256,899
Accumulated impairments	(40,178)		(64,790)		—		—		(104,968)
Net goodwill	$	142,982	$	2,353	$	6,515	$	81	$	151,931

(a) Related to the acquisition of Metallon. See Note 4 - "Acquisitions."

A summary of Other intangible assets, net is as follows:


	June 30, 2020										December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	213,731	$	113,630	$	100,101	$	216,428	$	109,701	$	106,727
Trademarks, trade names and brand names	51,125		19,065		32,060		51,414		18,469		32,945
Developed technology, patents and patent applications	32,146		18,053		14,093		31,984		17,176		14,808
Other	18,764		16,375		2,389		17,963		13,850		4,113
Total	$	315,766	$	167,123	$	148,643	$	317,789	$	159,196	$	158,593

Trademarks with indefinite lives as of June 30, 2020 and December 31, 2019 were $11,341 and $11,320, respectively. Amortization expense related to intangible assets was $5,112 and $5,438 for the three months ended June 30, 2020 and 2019, respectively, and $10,394 and $10,703 for the six months ended June 30, 2020 and 2019, respectively. As a result of COVID-19 related declines in our youth sports business within the Energy segment, intangible assets of $617, primarily customer relationships, were fully impaired during the first quarter of 2020. The impairment is included in Asset impairment charges in the accompanying statement of operations for the six months ended June 30, 2020.

As of June 30, 2020, the Company reviewed its goodwill, other intangible assets and long-lived assets for indicators of impairment as a result of the impact of the COVID-19 pandemic. As a result of the COVID-19 pandemic, the Company believes that indicators of impairment were present for all these asset classes due to a general deterioration in macroeconomic conditions, reduced cash flow projections and a significant decline in the Company's market capitalization. Therefore, we assessed whether it was more likely than not that our goodwill, other intangible assets and long-lived assets were impaired as of June 30, 2020. We

reviewed our previous forecasts and assumptions based on our current projections that are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows, the duration and extent of impact to our businesses from the COVID-19 pandemic and the reduction in the Company's market capitalization. Based on our interim impairment assessment as of June 30, 2020, we have determined that our goodwill, other intangible assets, except for our youth sports related intangibles described above, and long-lived assets are not impaired. However, as a result of the COVID-19 pandemic, it is possible in future periods that further declines in market conditions, customer demand or other potential changes in operations may increase the risk that these assets are impaired. In addition, at June 30, 2020, the goodwill related to the performance materials business, within our Diversified Industrial segment, is at risk of future impairment if the fair value of this reporting unit, and its associated assets, decrease in value due to further declines in market conditions or customer demand. The goodwill related to our energy business within our Energy segment is also at risk of future impairment if the fair value of this reporting unit, and its associated assets, decrease in value due to reductions in customer demand as a result of continued or sustained declines in the price of oil.