INTANGIBLE ASSETS
The components of intangible assets for each of the years ended December 31, 2021 and 2020, were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | |
| Weighted- Average Useful Lives (in Years) | | 2021 | | 2020 |
| Amortizable intangible assets: | | | | | |
| | | | | |
| Patents, trademarks, and other | 11.41 | | $ | 10,084 | | | $ | 10,181 | |
| Total at cost | | | 10,084 | | | 10,181 | |
| Less accumulated amortization | | | (8,586) | | | (8,206) | |
| | | $ | 1,498 | | | $ | 1,975 | |
During the fourth quarter of 2020, the Company recorded an impairment charge of $6.0 million related to the customer relationships intangible asset in Australia as a result of attrition of several customers since the business was initially acquired in 2012.
Amortization related to intangible assets for the years 2021, 2020, and 2019 totaled $0.6 million, $2.3 million, and $2.2 million, respectively.
The estimated aggregate amortization expense at December 31, 2021, for each of the years (or other periods) set forth below was as follows (amounts in thousands):
| | | | | |
| 2022 | $ | 145 | |
| 2023 | 145 | |
| 2024 | 132 | |
| 2025 | 123 | |
| 2026 | 123 | |
| Thereafter | 830 | |
| | $ | 1,498 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.