v3.20.2
GOODWILL AND INTANGIBLE ASSETS (Tables)
 6 Months Ended
Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
Changes in the carrying amount of goodwill for the six months ended June 28, 2020 by segment are as follows:
(thousands)
 
Manufacturing
 
Distribution
 
Total
Balance - December 31, 2019
 
$
268,402

 
$
50,947

 
$
319,349

Acquisitions
 
6,008

 
—

 
6,008

Adjustments to preliminary purchase price allocations
 
(603
)
 
1,724

 
1,121

Balance - June 28, 2020
 
$
273,807

 
$
52,671

 
$
326,478


Schedule of intangible assets, net
Intangible assets, net consist of the following as of June 28, 2020 and December 31, 2019:
(thousands)

June 28,
2020

Weighted Average Useful Life
(in years)

December 31,
2019

Weighted Average Useful Life
(in years)
Customer relationships

$
360,962


10.1

$
357,513


10.1
Non-compete agreements

15,149


5.0

16,202


5.0
Patents

16,495


14.6

16,495


14.6
Trademarks
 
89,058

 
Indefinite
 
88,524

 
Indefinite
 

481,664


 

478,734


 
Less: accumulated amortization

(136,759
)



(121,720
)

 
Intangible assets, net

$
344,905


 

$
357,014


 

Schedule of changes in intangible assets
Changes in the carrying value of intangible assets for the six months ended June 28, 2020 by segment are as follows:
(thousands)

Manufacturing

Distribution

Total
Balance - December 31, 2019

$
282,123

 
$
74,891


$
357,014

Acquisitions

9,220

 
—


9,220

Amortization

(15,838
)
 
(3,541
)

(19,379
)
Impairment of intangible assets (1)
 
(119
)
 
(1,831
)
 
(1,950
)
Adjustments to preliminary purchase price allocations

138

 
(138
)

—

Balance - June 28, 2020

$
275,524

 
$
69,381


$
344,905


(1) Certain immaterial operations permanently ceased activities during the second quarter of 2020. As a result, we recorded a $2.0 million pre-tax impairment of customer relationships and trademarks of these operations after determining the net carrying value of the assets was no longer recoverable. The impairment was calculated using our internal projections of discounted cash flows, which rely on Level 3 inputs in the fair value hierarchy based on the unobservable nature of the underlying data. The impairment was recorded in selling, general and administrative in our condensed consolidated statements of income for the second quarter and six months ended June 28, 2020.