Goodwill and Intangible Asset

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Asset

Goodwill and Intangible Asset

As of December 31, 2019, the Company had goodwill with a carrying value of $2,676, none of which was tax deductible. As a result of the COVID-19 pandemic, which has spread across the globe to many countries in which the Company does business and is impacting worldwide economic activity, the Company has determined that the potential impact on its business, including, but not limited to, a potential decrease in revenue, supply chain disruptions and/or facility closures, represented facts and circumstances indicating that it was likely that its goodwill and indefinite lived trade name could be impaired, and performed interim impairment tests. Based on the results of the Company's interim goodwill impairment test performed in the third quarter of 2020, the Company determined its one reporting unit's goodwill was impaired. The Company recorded a non-cash goodwill impairment charge of $2,676 during the three months ended September 30, 2020, reducing the remaining balance of its goodwill to zero as of September 30, 2020.

The gross carrying value of the Company's trade name intangible asset, which is not subject to amortization, was $5,500 at both September 30, 2020 and December 31, 2019. Based on the results of the interim impairment tests of the indefinite-lived trade name assets performed in the first, second and third quarters of 2020, the Company determined its one reporting unit's indefinite-lived trade name asset was not impaired as of September 30, 2020.

While the Company considered the impact the COVID-19 pandemic may have on its future cash flows when preparing its interim goodwill and intangible asset impairment tests, the full extent of the impact that the COVID-19 pandemic will have on the Company's business, operations and financial condition is currently unknown. The Company will continue to assess its indefinite-lived trade name intangible asset for impairment as events and circumstances change.