Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS  
GOODWILL AND OTHER INTANGIBLE ASSETS

4.    GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in goodwill for the nine months ended September 30, 2021:

    

Products

    

Distribution

    

Total

Balance, December 31, 2020

$

63,698

$

2,616

$

66,314

Foreign currency translation adjustments

 

(87)

 

 

(87)

Balance, September 30, 2021

$

63,611

$

2,616

$

66,227

Gross goodwill and accumulated impairment losses was $73,812 and $7,585, respectively, at September 30, 2021 and $73,899 and $7,585, respectively, at December 31, 2020.

Intangible Assets

Intangible assets such as certain customer relationships and patents on core technologies and product technologies are amortizable over their estimated useful lives. Certain trade names and trademarks which provide exclusive and perpetual rights to manufacture and sell their respective products are deemed indefinite-lived and are therefore not subject to amortization.

Intangible assets consisted of the following as of September 30, 2021 and December 31, 2020:

September 30, 2021

    

    

    

    

Weighted 

Accumulated 

Average 

Gross

amortization

Net

 

Useful Life

Definite lived intangibles:

 

  

 

  

 

  

 

  

Customer relationships

$

74,088

 

(50,858)

 

23,230

 

11

Technology

 

11,978

 

(10,919)

 

1,059

 

7

Tradenames

 

6,472

 

(2,980)

 

3,492

 

4

Non-compete agreements

 

1,037

 

(1,037)

 

 

4

$

93,575

 

(65,794)

 

27,781

Indefinite lived intangibles:

 

  

 

  

 

  

 

  

Tradenames

 

16,678

 

 

16,678

 

Indefinite

Total

$

110,253

 

(65,794)

 

44,459

 

  

December 31, 2020

    

    

    

    

Weighted 

Accumulated 

Average 

Gross

amortization

Net

 

Useful Life

Definite lived intangibles:

 

  

 

  

 

  

 

  

Customer relationships

$

74,123

 

(45,815)

 

28,308

 

11

Technology

 

11,991

 

(10,333)

 

1,658

 

7

Tradenames

 

6,490

 

(2,135)

 

4,355

 

4

Non-compete agreements

 

1,041

 

(1,027)

 

14

 

4

$

93,645

 

(59,310)

 

34,335

Indefinite lived intangibles:

 

  

 

  

 

  

 

  

Tradenames

 

16,674

 

 

16,674

 

Indefinite

Total

$

110,319

 

(59,310)

 

51,009

 

  

The Company recorded amortization expense of $2,174 and $2,203 for the three months ended September 30, 2021 and 2020, respectively, of which $198 and $290 was included in cost of goods sold in the consolidated statements of operations and comprehensive (loss) income for the respective periods. Amortization expense for the nine months ended September 30, 2021 and 2020 was $6,538 and $7,047, respectively, of which $596 and $1,090 was included in cost of goods sold in the consolidated statements of operations and comprehensive (loss) income for the respective periods.

The estimated amortization expense for finite-lived intangible assets for the remaining three months of 2021, the next four years and thereafter is as follows:

Remainder of 2021

    

$

2,037

2022

 

7,683

2023

 

6,754

2024

 

3,856

2025

 

1,856

Thereafter

 

5,595

$

27,781