Goodwill and Intangible Assets

The Company’s intangible assets were recorded in connection with its acquisitions of EZ Dumper and McCullough in

2019,

its acquisition of Berlin Metals in

2018

and its acquisition of CTI in

2011.

The intangible assets were evaluated on the premise of highest and best use to a market participant, primarily utilizing the income approach valuation methodology. The useful life of the customer relationships was determined to be

fifteen

years, based primarily on the consistent and predictable revenue source associated with the existing customer base, the present value of which extends through the

fifteen

-year amortization period. The useful life of the non-compete agreements was determined to be the length of the non-compete agreements which range from

one

five

years. The useful life of the trade names was determined to be indefinite primarily due to their history and reputation in the marketplace, the Company’s expectation that the trade names will continue to be used, and the conclusion that there are currently

other factors identified that would limit their useful life. The Company will continue to evaluate the useful life assigned to its amortizable customer relationships and noncompete agreements in future periods.

Goodwill, by reportable unit, was as follows as of

December 31, 2019

and

December 31, 2018,

respectively. The goodwill is deductible for tax purposes.

(in thousands)	Carbon Flat Products		Specialty Metals Flat Products		Tubular and Pipe Products		Total

Balance as of December 31, 2018	$	-	$	2,358	$	-	$	2,358
Acquisitions		1,065		-		-		1,065
Impairments		-		-		-		-
Balance as of December 31, 2019	$	1,065	$	2,358	$	-	$	3,423

During

2019

and

2018,

a step

zero

test was performed for the indefinitely lived intangible assets and

indication of impairment was present.

Intangible assets, net, consisted of the following as of

December 31, 2019

and

2018,

respectively:

	As of December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net

Customer relationships - subject to amortization	$	18,022	$	(7,900	)	$	10,122
Covenant not to compete - subject to amortization		259		(117	)		142
Trade name - not subject to amortization		18,995		-			18,995
	$	37,276	$	(8,017	)	$	29,259

	As of December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net

Customer relationships - subject to amortization	$	13,972	$	(6,698	)	$	7,274
Covenant not to compete - subject to amortization		157		(42	)		115
Trade names - not subject to amortization		17,525		-			17,525
	$	31,654	$	(6,740	)	$	24,914

The Company estimates that amortization expense for its intangible assets subject to amortization will be approximately

$1.3

million per year for the next

two

years and

$1.2

million per year for the

three

years thereafter.