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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill

ASC 350, Intangibles - Goodwill and Other Intangibles, provides guidance on an entity's subsequent measurement and recognition of goodwill and other intangibles, including subsequent changes to carrying amounts, including impairment and fair value adjustments. In accordance with the guidance set forth in ASC 350, and in connection with the separation of Apergy, in 2018, the Company was required to calculate the portion of goodwill included in the Apergy distribution. Using a relative fair value approach, the Company reallocated $3,546 of goodwill from a reporting unit that included Apergy to a reporting unit now included within the Engineered Products segment. In 2019, in connection with the change in segment structure, the Company changed its reporting units which resulted in a reallocation of $40,394 of goodwill from the Engineered Products segment to the Imaging & Identification segment using the relative fair value approach. See Note 19 — Segment Information for further information.

The changes in the carrying value of goodwill by reportable operating segments were as follows:
 Engineered ProductsFueling SolutionsImaging & IdentificationPumps & Process SolutionsRefrigeration & Food EquipmentTotal
Goodwill$695,041  $794,635  $960,939  $769,619  $536,699  $3,756,933  
Accumulated impairment loss(10,591) —  —  (59,970) —  (70,561) 
Balance at January 1, 2018684,450  794,635  960,939  709,649  536,699  3,686,372  
Reallocation due to Apergy separation3,546  —  —  —  —  3,546  
Acquisitions—  —  —  36,303  10,408  46,711  
Purchase price adjustments—  —  328  —  —  328  
Foreign currency translation(8,803) (24,016) (16,799) (8,970) (1,041) (59,629) 
Balance at December 31, 2018679,193  770,619  944,468  736,982  546,066  3,677,328  
Acquisitions—  97,898  —  21,614  —  119,512  
Reallocation due to reporting unit changes(40,394) —  40,394  —  —  —  
Disposition of business—  —  —  (4,739) —  (4,739) 
Foreign currency translation(2,228) 4,864  (7,793) (3,230) (367) (8,754) 
Balance at December 31, 2019$636,571  $873,381  $977,069  $750,627  $545,699  $3,783,347  

During 2019 and 2018, the Company recognized additions of $119,512 and $46,711, respectively, to goodwill as a result of acquisitions as discussed in Note 4 — Acquisitions. During 2019 and 2018, the Company recorded adjustments totaling $0 and $328, respectively, as a result of the finalization of purchase price allocation to assets acquired and liabilities assumed related to acquisitions completed in 2018 and 2017.

During 2019, the Company derecognized $4,739 of goodwill as a result of the disposition of businesses as discussed in Note 5 — Discontinued and Disposed Operations. The Company reallocated goodwill upon disposal based upon the fair value of the disposed business relative to the remaining entities in its reporting unit.

Annual impairment testing

The Company tests goodwill for impairment annually in the fourth quarter of each year, whenever events or circumstances indicate an impairment may have occurred, or when a change in the composition of reporting units occurs for other reasons, such as a change in segments. Concurrent with the timing of the annual impairment test, effective October 1, 2019, the Company changed its management structure which resulted in a change in its operating segments and reporting units. As a result, management tested goodwill for impairment before and after the segment change under the old and new reporting unit structures.

The Company performed its annual goodwill impairment test during the fourth quarter of 2019 using a discounted cash flow analysis as discussed in Note 1 — Description of Business and Summary of Significant Accounting Policies. The Company performed a quantitative goodwill impairment test for each of its seven reporting units under the old structure and fifteen reporting units under the new structure, concluding that the fair values of all of its reporting units were substantially in excess of their carrying values. No impairment of goodwill was required. As previously noted, the fair values of each of the
Company’s reporting units was determined using a discounted cash flow analysis which includes management’s current assumptions as to future cash flows and long-term growth rates. The discount rates used in these analyses varied by reporting unit and were based on a capital asset pricing model and published relevant industry rates. The Company used discount rates commensurate with the risks and uncertainties inherent to each reporting unit and in our internally developed forecasts. Discount rates used in the 2019 reporting unit valuations ranged from 8.0% to 9.5%.

While the Company believes the assumptions used in the 2019 impairment analysis are reasonable and representative of expected results, actual results may differ from expectations.
Intangible Assets
The Company's definite-lived and indefinite-lived intangible assets by major asset class were as follows:
 December 31, 2019December 31, 2018
 
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying Amount
Amortized intangible assets:    
Customer intangibles$1,410,636  $714,566  $696,070  $1,395,742  $645,305  $750,437  
Trademarks218,064  85,791  132,273  214,774  72,305  142,469  
Patents159,376  133,677  25,699  144,302  128,254  16,048  
Unpatented technologies154,505  99,276  55,229  155,380  85,560  69,820  
Distributor relationships82,779  44,202  38,577  82,970  37,943  45,027  
Drawings & manuals27,500  22,403  5,097  31,849  23,273  8,576  
Other22,355  16,939  5,416  21,046  15,835  5,211  
Total2,075,215  1,116,854  958,361  2,046,063  1,008,475  1,037,588  
Unamortized intangible assets:    
Trademarks96,653  —  96,653  96,668  —  96,668  
Total intangible assets, net$2,171,868  $1,116,854  $1,055,014  $2,142,731  $1,008,475  $1,134,256  

The Company recorded $91,980 of acquired intangible assets in 2019. See Note 4 — Acquisitions.

Amortization expense was $138,947, $143,868 and $150,171, including acquisition-related intangible amortization of $136,963, $142,170 and $148,147, for the years ended December 31, 2019, 2018 and 2017, respectively.

Estimated future amortization expense related to intangible assets held at December 31, 2019 is as follows:
Estimated Amortization  
2020$127,990  
2021122,079  
2022108,670  
202398,960  
202494,528