Goodwill and Long-Lived Assets

Gross and net carrying amounts of goodwill at December 31, 2017 and 2016 were as follows:



In thousands	Performance Materials		Technical Nonwovens		Thermal/ Acoustical Metals			Totals
Goodwill	$	12,777	$	50,829	$	12,160		$	75,766
Accumulated amortization/impairment	—		—		(12,160		)	(12,160		)
Balance at December 31, 2016	12,777		50,829		—			63,606
Goodwill	13,307		55,662		12,160			81,129
Accumulated amortization/impairment	—		—		(12,160		)	(12,160		)
Balance at December 31, 2017	$	13,307	$	55,662	$	—		$	68,969

The changes in the carrying amounts of goodwill in 2017 and 2016 were as follows:



In thousands	Performance Materials			Technical Nonwovens			Totals
Balance at January 1, 2016	$	12,898		$	3,943		$	16,841
Goodwill addition	—			47,987			47,987
Currency translation adjustment	(121		)	(1,101		)	(1,222		)
Balance at December 31, 2016	12,777			50,829			63,606
Goodwill adjustment	—			323			323
Currency translation adjustment	530			4,510			5,040
Balance at December 31, 2017	$	13,307		$	55,662		$	68,969

Goodwill Associated with Acquisitions and Divestitures

The goodwill adjustment of $0.3 million in 2017 within the Technical Nonwovens segment is the result of the final post-closing adjustments related to the acquisition of Gutsche on December 31, 2016.

The goodwill addition of $48.0 million in 2016 within the Technical Nonwovens segment results from the acquisitions of Texel on July 7, 2016 and Gutsche on December 31, 2016. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from its entrance into the geosynthetic market, expansion in the liquid filtration and other industrial markets and Texel's and Gutsche's assembled workforce. None of the goodwill associated with the Texel acquisition is expected to be deductible for income tax purposes. Of the $22.3 million of goodwill associated with the Gutsche acquisition at December 31, 2017, $19.0 million is expected to be deductible for income tax purposes.

Goodwill Impairment Testing

During the fourth quarter of 2017, the Company performed its annual impairment analysis of the $13.3 million of goodwill in the Performance Materials reporting unit (PM reporting unit) and $55.7 million in the Technical Nonwovens reporting unit. The Company used the qualitative method to analyze the goodwill for the Performance Materials and Technical Nonwovens reporting units. When considering capital markets environment, economic conditions, industry trends, results of operations, and other factors, the Company concluded that it is not more likely than not that the fair value of each reporting unit was less than its carrying amount. For the Performance Materials reporting unit the Company also considered changes in assumptions used in the Company's most recent quantitative annual testing, including results of operations, the magnitude of excess of fair value over carrying value and other factors. As a result, the Company concluded that the Performance Materials and Technical Nonwovens reporting units' goodwill was not impaired.

Other Intangible Assets

The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2017 and 2016:



	December 31, 2017					December 31, 2016
In thousands	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Customer relationships	$	39,474	$	(4,460	)	$	36,131	$	(1,284	)
Patents	4,504		(3,821		)	4,028		(3,300		)
Technology	2,500		(644		)	2,500		(477		)
Trade names	4,288		(1,461		)	3,912		(394		)
License agreements	640		(640		)	583		(583		)
Other	586		(423		)	536		(205		)
Total amortized intangible assets	$	51,992	$	(11,449	)	$	47,690	$	(6,243	)

In connection with the acquisition of Texel on July 7, 2016, the Company recorded intangible assets of $22.9 million, which included $20.8 million of customer relationships and $2.1 million of trade names. As of December 31, 2017, the weighted average useful lives of the Texel intangible assets was 12 years.

In connection with the acquisition of Gutsche on December 31, 2016, the Company recorded intangible assets of $15.6 million, which included $13.8 million of customer relationships, $1.7 million of trade names and $0.1 million of backlog. As of December 31, 2017, the weighted average useful lives of the Gutsche intangible assets was 11 years.

Amortization of all intangible assets for the years ended December 31, 2017, 2016, and 2015 was $4.5 million, $1.5 million, and $0.8 million, respectively. The increase in amortization expense during 2017, compared to 2016, was primarily due to the acquisitions of Texel and Gutsche. Estimated amortization expense for intangible assets is expected to be $6.0 million, $5.7 million, $5.3 million, $4.5 million and $3.8 million for each of the years ending December 31, 2018 through 2022, respectively. As of December 31, 2017, the weighted average useful life of intangible assets was approximately 11 years.

Impairment of Long-Lived Assets

During the first quarter of 2017, the Company tested for impairment a discrete long-lived asset group in the Performance Materials segment with a carrying value of $1.3 million, as a result of indicators of possible impairment. To determine the recoverability of this asset group, the Company completed an undiscounted cash flow analysis and compared it to the asset group carrying value. This analysis was primarily dependent on the expectations for net sales over the estimated remaining useful life of the underlying asset group. The impairment test concluded that the asset group was not recoverable as the resulting undiscounted cash flows were less than their carrying amount. Accordingly, the Company determined the fair value of the asset group to assess if there was an impairment. Determining fair value is judgmental in nature and requires the use of significant estimates and assumptions considered to be Level 3 inputs. To determine the estimated fair value of the asset group the Company used the market approach. Under the market approach, the determination of fair value considered market conditions including an independent appraisal of the components of the asset group. The estimated fair value of the asset group was $0.5 million, below its carrying value of $1.3 million, which resulted in a long-lived asset impairment charge of $0.8 million included in selling, product development and administrative expenses during the quarter ended March 31, 2017. This long-lived asset group, with a net book value of $0.5 million, is classified as held for sale as of December 31, 2017.