GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2018 and 2017 were as follows:



	Americas Welding			International Welding			The Harris Products Group			Consolidated
Balance as of December 31, 2016	$	196,378		$	23,664		$	11,877		$	231,919
Additions and adjustments ⁽¹⁾	(76		)	—			(301		)	(377		)
Impairment charges ⁽²⁾	(1,091		)	—			—			(1,091		)
Foreign currency translation	2,048			2,003			80			4,131
Balance as of December 31, 2017	197,259			25,667			11,656			234,582
Additions and adjustments ⁽³⁾	44,408			1,224			6,525			52,157
Foreign currency translation	(2,452		)	(2,643		)	(350		)	(5,445		)
Balance as of December 31, 2018	$	239,215		$	24,248		$	17,831		$	281,294


(1)	Adjustments to Harris Products Group include the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial reporting purposes.


(2)	The Company performed an interim goodwill impairment test, using a combination of income and market valuation approaches, resulting in a non-cash impairment charge to the carrying value of goodwill. The impairment charge is recorded within Rationalization and asset impairment charges in the accompanying Consolidated Statements of Income.


(3)	Additions to Americas Welding reflect goodwill recognized in the acquisitions of Coldwater, Pro Systems and Inovatech in 2018. Additions to The Harris Products Group reflect goodwill recognized in the acquisition of Worthington in 2018.

Gross carrying values and accumulated amortization of intangible assets other than goodwill by asset class were as follows:



	December 31, 2018				December 31, 2017
	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Intangible assets not subject to amortization
Trademarks and trade names	$	23,385			$	24,235
Intangible assets subject to amortization
Trademarks and trade names	$	50,458	$	26,357	$	41,203	$	24,147
Customer relationships	113,837		52,518		93,139		47,175
Patents	26,848		13,307		27,777		12,978
Other	60,373		34,773		57,351		31,953
Total intangible assets subject to amortization	$	251,516	$	126,955	$	219,470	$	116,253

During 2018, the Company acquired intangible assets either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average lives as follows:



	Year Ended December 31, 2018
	Purchase Price Allocation	Weighted Average Life
Acquired intangible assets subject to amortization
Trademarks and trade names	8,786	10
Customer relationships	21,493	10
Other	5,632	9
Total acquired intangible assets subject to amortization	35,911

Aggregate amortization expense was $15,744, $15,671 and $14,525 for 2018, 2017 and 2016, respectively. Estimated annual amortization expense for intangible assets for each of the next five years is $17,316 in 2019, $16,101 in 2020, $15,264 in 2021, $13,801 in 2022 and $12,441 in 2023.

- 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.

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