Annual report pursuant to Section 13 and 15(d)

Goodwill And Other Intangible Assets

Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill And Other Intangible Assets [Abstract]

NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Based on the results of the Company’s annual impairment tests completed during the fourth quarter, the Company determined that goodwill was not impaired. The following table summarizes the changes in goodwill by segment:


	Black Diamond		Sierra		Total

Balance at December 31, 2016	$	-	$	-	$	-

Increase due to acquisition		-		17,745		17,745

Balance at December 31, 2017	$	-	$	17,745	$	17,745

Increase due to working capital adjustment		-		345		345

Balance at December 31, 2018	$	-	$	18,090	$	18,090

Indefinite Lived Intangible Assets

The Company’s indefinite lived intangible assets consists of certain tradenames and trademarks that provide Black Diamond Equipment, PIEPS and Sierra with the exclusive and perpetual rights to manufacture and sell their respective products. Tradenames and trademarks are not amortized, but reviewed annually for impairment or upon the existence of a triggering event. Based on the results of the Company’s annual impairment tests, the Company determined that indefinite lived intangible assets were not impaired. The following table summarizes the changes in indefinite lived intangible assets:


Balance at December 31, 2017	$	41,843

Impact of foreign currency exchange rates		(149)

Balance at December 31, 2018	$	41,694

Other Intangible Assets, net

The Company’s other intangible assets, such as certain customer lists and relationships, product technologies, tradenames, trademarks and core technologies are amortizable over their estimated useful lives. The following table summarizes the changes in gross other intangible assets:


Gross balance at December 31, 2017	$	33,062

Increase due to acquisition of SKINourishment		163
Impact of foreign currency exchange rates		(215)

Gross balance at December 31, 2018	$	33,010

Other intangible assets, net of amortization as of December 31, 2018 and 2017, were as follows:


	December 31, 2018
	Gross		Accumulated Amortization		Net		Weighted Average Useful Life

Intangibles subject to amortization
Customer relationships	$	26,047	$	(10,710)	$	15,337		15.2 years
Product technologies		4,753		(1,853)		2,900		11.9 years
Tradename / trademark		1,263		(218)		1,045		9.4 years
Core technologies		947		(813)		134		10.0 years
	$	33,010	$	(13,594)	$	19,416		14.3 years

	December 31, 2017
	Gross		Accumulated Amortization		Net		Weighted Average Useful Life

Intangibles subject to amortization
Customer relationships	$	26,166	$	(7,841)	$	18,325		15.1 years
Product technologies		4,849		(1,203)		3,646		12.0 years
Tradename / trademark		1,100		(62)		1,038		10.0 years
Core technologies		947		(718)		229		10.0 years
	$	33,062	$	(9,824)	$	23,238		14.4 years

Amortization expense for the years ended December 31, 2018, 2017, and 2016, was $3,873, $2,376, and $1,075, respectively. Future amortization expense for other intangible assets as of December 31, 2018 is as follows:


Years Ending December 31,	Amortization Expense
2019	$	3,558
2020		3,045
2021		2,626
2022		2,316
2023		2,046
Thereafter		5,825
	$	19,416

- 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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