XML 29 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

The table below presents changes in the carrying amount of goodwill and our accumulated impairment losses (in thousands):

Goodwill (gross) at December 31, 2016
$
194,674

Acquired goodwill
3,068

Foreign currency translation adjustments
1,572

Goodwill (gross) at December 31, 2017
199,314

 
 
Accumulated impairment losses at December 31, 2016
(9,879
)
Goodwill impairment

Accumulated impairment losses at December 31, 2017
(9,879
)
 
 
Goodwill (net) at December 31, 2017
$
189,435

 
 
Goodwill (gross) at December 31, 2017
$
199,314

Acquired goodwill
334

Foreign currency translation adjustments
(1,297
)
Goodwill (gross) at December 31, 2018
198,351

 
 
Accumulated impairment losses at December 31, 2017
(9,879
)
Goodwill impairment

Accumulated impairment losses at December 31, 2018
(9,879
)
 
 
Goodwill (net) at December 31, 2018
$
188,472



In October 2018 and October 2017, we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level. As of October 1, 2018, we had 223 reporting units with allocated goodwill balances.  The most significant goodwill balance for a reporting unit was $5.7 million and the average goodwill balance was $0.8 million.

Other intangible assets consisted of the following (in thousands):

 
December 31,
 
Weighted Average Useful Life
 
2018
 
2017
 
 
Intangibles Gross
 
Accumulated Amortization
 
Intangibles Net
 
Intangibles Gross
 
Accumulated Amortization
 
Intangibles Net
 
Horizon tradename
$
8,400

 
$

 
$
8,400

 
$
8,400

 
$

 
$
8,400

 
Indefinite
Pool Systems tradename and trademarks
1,002

 

 
1,002

 
1,109

 

 
1,109

 
Indefinite
National Pool Tile (NPT) tradename
1,500

 
(812
)
 
688

 
1,500

 
(738
)
 
762

 
20
Non-compete agreements
5,019

 
(3,157
)
 
1,862

 
5,078

 
(2,243
)
 
2,835

 
4.89
Patents
473

 
(421
)
 
52

 
523

 
(406
)
 
117

 
5
Total other intangibles
$
16,394


$
(4,390
)

$
12,004

 
$
16,610

 
$
(3,387
)
 
$
13,223

 
 

The Horizon and Pool Systems tradenames and trademarks have indefinite useful lives and are not subject to amortization.  However, we evaluate the useful lives of these intangible assets and test for impairment annually.  The NPT tradename, our non-compete agreements and our patents have finite useful lives, and we amortize the estimated fair value of these agreements using the straight-line method over their respective useful lives. We have not identified any indicators of impairment related to these assets. The useful lives for our non-compete agreements are based on their contractual terms, and the useful lives for our patents are based on expected future cash flows. We recognize expenses related to patent renewal costs as incurred.

Other intangible amortization expense was $1.1 million in 2018, $1.0 million in 2017 and $1.0 million in 2016.

The table below presents estimated amortization expense for other intangible assets for the next five years (in thousands):

2019
 
$
953

2020
 
866

2021
 
298

2022
 
108

2023
 
75