Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the goodwill balance by reportable segment:



	Rail Products and Services		Construction Products		Tubular and Energy Services		Total
Balance at December 31, 2016	$	13,785	$	5,147	$	—	$	18,932
Foreign currency translation impact	767		—		—		767
Balance at September 30, 2017	$	14,552	$	5,147	$	—	$	19,699

The Company performs goodwill impairment tests annually during the fourth quarter, and also performs interim goodwill impairment tests if it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying amount. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount. No goodwill impairment test was required in connection with these evaluations for the nine months ended September 30, 2017. The Company continues to monitor the recoverability of the long-lived assets associated with certain reporting units of the Company and the long-term financial projections of the businesses. Sustained declines in the markets we serve may result in future long-lived asset impairment.

The following table represents the gross other intangible assets balance by reportable segment:



	September 30, 2017		December 31, 2016
Rail Products and Services	$	57,538	$	56,476
Construction Products	1,348		1,348
Tubular and Energy Services	29,179		29,179
	$	88,065	$	87,003

The components of the Company’s intangible assets are as follows:



	September 30, 2017
	Weighted Average Amortization Period In Years	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Non-compete agreements	5	$	4,233	$	(2,872	)	$	1,361
Patents	10	392		(160		)	232
Customer relationships	17	37,597		(8,542		)	29,055
Trademarks and trade names	14	10,078		(3,879		)	6,199
Technology	14	35,765		(13,477		)	22,288
		$	88,065	$	(28,930	)	$	59,135

	December 31, 2016
	Weighted Average Amortization Period In Years	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Non-compete agreements	5	$	4,219	$	(2,217	)	$	2,002
Patents	10	373		(143		)	230
Customer relationships	18	36,843		(6,582		)	30,261
Trademarks and trade names	14	10,018		(3,238		)	6,780
Technology	14	35,550		(11,304		)	24,246
		$	87,003	$	(23,484	)	$	63,519

Intangible assets are amortized over their useful lives, which range from 4 to 25 years, with a total weighted average amortization period of approximately 15 years at September 30, 2017. Amortization expense for the three months ended September 30, 2017 and 2016 was $1,764 and $1,763, respectively. Amortization expense for the nine months ended September 30, 2017 and 2016 was $5,218 and $7,818, respectively.

Estimated amortization expense for the remainder of 2017 and thereafter is as follows:



	Amortization Expense
2017	$	1,782
2018	7,024
2019	6,302
2020	5,980
2021	5,960
2022 and thereafter	32,087
	$	59,135

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details