Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reportable segments are consistent with our operating segments.

Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.

To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company, as well as publicly available industry information, to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

In the second quarter of 2019, management performed their annual qualitative goodwill impairment test. As part of this qualitative evaluation, the Company considered earnings before interest expense, taxes, depreciation and amortization (EBITDA) and market multiples for the Machine Clothing and AEC – Salt Lake City reporting units. Based on the results of this analysis, management concluded that it was more likely than not that the fair value was in excess of the carrying value for all reporting units and that a step one of the goodwill impairment test was not considered necessary.

In the first quarter of 2020, global equity market conditions deteriorated in reaction to the COVID-19 pandemic resulting in a corresponding decrease in the Company's stock price and market capitalization. As a result, management performed assessments as to whether the fair value of reporting units was less than carrying value as of March 31, 2020 and concluded that it was more likely than not that the fair value continued to be in excess of the carrying value for all reporting units.

Management is scheduled to perform the 2020 annual goodwill impairment test during the second quarter. In the event that the Company’s market value declines further, or additional changes to the outlook for the Company’s reporting units occur, a goodwill impairment charge could be required.

Index

We are continuing to amortize certain patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of March 31, 2020 and December 31, 2019, were as follows:

As of March 31, 2020 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization	Net carrying amount

Amortized intangible assets:
AEC Trademarks and trade names	6-15	$208	$(139)	$69
AEC Technology	10-15	6,142	(537)	5,605
AEC Intellectual property	15	1,250	(28)	1,222
AEC Customer contracts	6	17,471	(11,655)	5,816
AEC Customer relationships	8-15	51,556	(13,010)	38,546
AEC Other intangibles	5	322	(257)	65
Total amortized intangible assets		$76,949	$(25,626)	$51,323

Unamortized intangible assets:
MC Goodwill		$66,679	$-	$66,679
AEC Goodwill		112,687	-	112,687
Total unamortized intangible assets:		$179,366	$-	$179,366

As of December 31, 2019 (in thousands)	Weighted average amortization life in years	Gross carrying amount	Accumulated amortization	Net carrying amount

Amortized intangible assets:
AEC Trademarks and trade names	6-15	$208	$(135)	$73
AEC Technology	10-15	6,191	(387)	5,804
AEC Intellectual property	15	1,250	(7)	1,243
AEC Customer contracts	6	17,471	(10,927)	6,544
AEC Customer relationships	8-15	51,255	(12,108)	39,147
AEC Other intangibles	5	322	(241)	81
Total amortized intangible assets		$76,697	$(23,805)	$52,892

Unamortized intangible assets:
MC Goodwill		$67,672	$-	$67,672
AEC Goodwill		113,262	-	113,262
Total unamortized intangible assets:		$180,934	$-	$180,934

Index

The changes in intangible assets, net and goodwill from December 31, 2019 to March 31, 2020, were as follows:

(in thousands)	December 31, 2019	Other Changes	Amortization	Currency Translation	March 31, 2020

Amortized intangible assets:
AEC Trademarks and trade names	$73	$-	$(4)	$-	$69
AEC Technology	5,804	-	(150)	(49)	5,605
AEC Intellectual property	1,243	-	(21)	-	1,222
AEC Customer contracts	6,544	-	(728)	-	5,816
AEC Customer relationships	39,147	329	(871)	(59)	38,546
AEC Other intangibles	81	-	(16)	-	65
Total amortized intangible assets	$52,892	$329	$(1,790)	$(108)	$51,323

Unamortized intangible assets:
MC Goodwill	$67,672	$-	$-	$(993)	$66,679
AEC Goodwill	113,262	(227)	-	(348)	112,687
Total unamortized intangible assets:	$180,934	$(227)	$-	$(1,341)	$179,366

Estimated amortization expense of intangibles for the years ending December 31, 2020 through 2024, is as follows:

Year	Annual amortization (in thousands)
2020	$7,200
2021	7,100
2022	4,900
2023	4,200
2024	4,200