GOODWILL IMPAIRMENT

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

As of December 31, 2019, goodwill allocated to our Commercial Trailer Products, Diversified Products (“DPG”), and Final Mile Products (“FMP”) segments was approximately $2.6 million, $140.7 million, and $167.7 million, respectively. Within the DPG segment, goodwill was allocated between the Tank Trailers and Process Systems reporting units in the amount of $98.4 million and $42.3 million, respectively.

The Company did not perform in-line with expectations during the first quarter of 2020, partially as a result of the ongoing COVID-19 pandemic. In addition, subsequent to December 31, 2019, the Company’s share price and market capitalization declined. As a result, indicators of impairment were identified and the Company performed an interim quantitative assessment as of March 31, 2020, utilizing a combination of the income and market approaches, which were weighted evenly. The results of the quantitative analysis indicated the carrying value of the FMP and Tank Trailers reporting units exceeded their respective fair values and, accordingly, goodwill impairment charges of $95.8 million and $11.0 million, respectively, were recorded during the first quarter of 2020. The goodwill impairment charges, which are based on Level 3 fair value measurements, are included in Impairment and other, net in the Condensed Consolidated Statements of Operations. The Company considered whether there were any indicators of impairment during the three months ended September 30, 2020 and concluded there were none.

For the period ended September 30, 2020, the changes in the carrying amounts of goodwill were as follows (in thousands):


	Commercial Trailer Products		Diversified Products		Final Mile Products		Total
Balance at December 31, 2018
Goodwill	$	4,288	$	145,688	$	167,715	$	317,691
Accumulated impairment losses	(1,663)		(4,944)		—		(6,607)
Net balance as of December 31, 2018	2,625		140,744		167,715		311,084
Impact of divestiture on goodwill	—		(4,944)		—		(4,944)
Impact of divestiture on accumulated impairment losses	—		4,944		—		4,944
Effects of foreign currency	—		(58)		—		(58)
Balance as of December 31, 2019
Goodwill	4,288		140,686		167,715		312,689
Accumulated impairment losses	(1,663)		—		—		(1,663)
Net balance as of December 31, 2019	2,625		140,686		167,715		311,026
Goodwill impairments	—		(10,971)		(95,766)		(106,737)
Effects of foreign currency	—		131		—		131
Balance at March 31, 2020
Goodwill	4,288		140,817		167,715		312,820
Accumulated impairment losses	(1,663)		(10,971)		(95,766)		(108,400)
Net balance as of March 31, 2020	2,625		129,846		71,949		204,420
Goodwill impairments	—		—		—		—
Effects of foreign currency	—		(2)		—		(2)
Balance at June 30, 2020
Goodwill	4,288		140,815		167,715		312,818
Accumulated impairment losses	(1,663)		(10,971)		(95,766)		(108,400)
Net balance as of June 30, 2020	2,625		129,844		71,949		204,418
Goodwill impairments	—		—		—		—
Effects of foreign currency	—		(67)		—		(67)
Balance at September 30, 2020
Goodwill	4,288		140,748		167,715		312,751
Accumulated impairment losses	(1,663)		(10,971)		(95,766)		(108,400)
Net balance as of September 30, 2020	$	2,625	$	129,777	$	71,949	$	204,351