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Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill

The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company:
 
 
At December 31,
 
 
2019
 
2018
In thousands
 
 
 
 
Gross balance at beginning of period
 
$
212,413

 
$
218,765

Accumulated impairment
 
(16,252
)
 
(16,252
)
Net balance at beginning of period
 
196,161

 
202,513

Change in goodwill due to disposals(1)
 
—

 
(447
)
Foreign currency translation
 
(847
)
 
(5,905
)
Net balance at end of period(2)
 
$
195,314

 
$
196,161

 
 
 
 
 
Accumulated impairment at end of period
 
$
(16,252
)
 
$
(16,252
)

(1) The Company sold its U.K. Tooling business and substantially all of the assets and liabilities of its Engineering Services business in 2018. This amount reflects the proportionate goodwill based on these businesses' relative fair value of the Aerosystems reporting unit.
(2) Goodwill of the Distribution business was included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations, for further information on the Company's sale of the Distribution business.

2019 Analysis

In accordance with ASC 350, the Company evaluates goodwill for possible impairment on at least an annual basis. The Company elected to perform a Step 1 analysis on the Aerosystems, Specialty Bearings and Engineered Products and KPP - Orlando reporting units. The results of the Step 1 analyses indicated that the Company did not need to proceed to Step 2, as the fair values of the reporting units exceeded the respective carrying values. The Company performed a sensitivity analysis relative to the discount rates and growth rates selected and determined a decrease of one percentage point in the terminal growth rates or an increase of one percentage point in the discount rates would not result in a fair value calculation less than the carrying value for each reporting unit.

12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED)

Goodwill - continued

2018 Analysis

Upon completion of the 2018 qualitative assessment of events and circumstances affecting recorded goodwill as described in Note 1, Summary of Significant Accounting Policies, the Company concluded that the Aerosystems reporting unit should receive a Step 1 analysis, while qualitative assessments should be performed for the Specialty Bearings and Engineered Products and KPP - Orlando reporting units.

The qualitative assessment performed for Specialty Bearings and Engineered Products and KPP - Orlando took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting unit, the assessment of assumptions used in the previous fair value calculation and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to the two-step impairment test.

A Step 1 analysis was performed for the Aerosystems reporting unit. The results of the Step 1 analysis indicated that the Company did not need to proceed to Step 2, as the as the fair value of the reporting unit exceeded its carrying value. The Company performed a sensitivity analysis relative to the discount rate and growth rate selected and determined a decrease of one percentage point in the terminal growth rate or an increase of one percentage point in the discount rate would not result in a fair value calculation less than the carrying value for the reporting unit.

Other Intangible Assets

Other intangible assets consisted of:

 
 
 
 
At December 31,
 
At December 31,
 
 
 
 
2019
 
2018
 
 
Amortization
Period
 
Gross
Amount
 
Accumulated
Amortization
 
Gross
Amount
 
Accumulated
Amortization
In thousands
 
 
 
 
 
 
 
 
 
 
Customer lists / relationships
 
6-26 years
 
$
56,789

 
$
(21,415
)
 
$
57,263

 
$
(18,587
)
Developed technologies
 
10-20 years
 
19,552

 
(5,217
)
 
19,729

 
(3,998
)
Trademarks / trade names
 
15-17 years
 
5,012

 
(1,368
)
 
5,117

 
(1,055
)
Non-compete agreements and other
 
1-15 years
 
2,338

 
(2,321
)
 
2,350

 
(2,330
)
Patents
 
17 years
 
523

 
(454
)
 
523

 
(445
)
Total(1)
 
 
 
$
84,214

 
$
(30,775
)
 
$
84,982

 
$
(26,415
)

(1) Other intangible assets of the Distribution business were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations, for further information on the Company's sale of the Distribution business.

The decrease in the other intangible assets, net balance at December 31, 2019, as compared to December 31, 2018, was primarily due to amortization. Intangible asset amortization expense was $4.5 million, $7.0 million and $7.5 million in 2019, 2018 and 2017, respectively.

12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED)

Other Intangible Assets - continued

In accordance with ASC 360 - Property, Plant, and Equipment ("ASC 360"), the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. In 2018, management identified a triggering event for possible impairment at a certain asset group in its U.K. business based on a review of its historical performance, the current forecast for the remainder of the year and the loss of future orders from one of its significant customers, requiring the Company to evaluate the intangible assets for impairment. The Company performed a recoverability test as defined under ASC 360 by comparing the undiscounted cash flows of the asset group to its carrying value. The estimated undiscounted cash flows of the business did not exceed the carrying value of the assets. Based on these results, the Company calculated the fair value of the asset group, using an income approach based on the estimated future cash flows, discounted to present value using a rate commensurate with the risks associated with the asset group's weighted average cost of capital. This calculation resulted in a write-off of $10.0 million for a certain asset group at the U.K. business, which was included in other intangible assets impairment on the Company's Consolidated Statements of Operations. This charge has been included in the operating results of the Company's Aerospace business. Other intangible assets, gross, and accumulated amortization decreased by $21.0 million and $11.0 million, respectively, as a result of the $10.0 million impairment of customer lists/relationships at the asset group within the Company's U.K. business incurred in the year ended December 31, 2018. No such triggering events were identified in the year ended December 31, 2019.

Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2019, is as follows:
In thousands
 
2020
$
4,559

2021
$
4,524

2022
$
4,137

2023
$
4,118

2024
$
3,908



In order to determine the useful life of acquired intangible assets, the Company considers numerous factors, most importantly the industry considerations associated with the acquired entities. The Company determines the amortization period for acquired intangible assets, such as customer relationships, based primarily on an analysis of their historical customer sales attrition information and the period over which the assets are expected to deliver meaningful cash flow generation in support of the fair value of the asset.