| 9. | Goodwill and Other Intangible Assets |
The change in the net carrying amount of goodwill for the years ended December 31, 2013 and 2012 by segment is as follows (in thousands):
| Steel Mills |
Steel Products |
Raw Materials |
All Other |
Total | ||||||||||||||||
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Balance, December 31, 2011 |
$ | 268,466 | $ | 790,441 | $ | 682,902 | $ | 88,852 | $ | 1,830,661 | ||||||||||
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Acquisitions and dispositions |
138,579 | (3,489 | ) | 20,323 | — | 155,413 | ||||||||||||||
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Translation |
— | 18,464 | — | — | 18,464 | |||||||||||||||
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Balance, December 31, 2012 |
407,045 | 805,416 | 703,225 | 88,852 | 2,004,538 | |||||||||||||||
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Reclassifications |
88,852 | — | — | (88,852 | ) | — | ||||||||||||||
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Translation |
— | (26,067 | ) | — | — | (26,067 | ) | |||||||||||||
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Other |
— | (4,863 | ) | — | — | (4,863 | ) | |||||||||||||
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Balance, December 31, 2013 |
$ | 495,897 | $ | 774,486 | $ | 703,225 | $ | — | $ | 1,973,608 | ||||||||||
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The majority of goodwill is not tax deductible.
Previously, Nucor’s steel trading businesses and rebar distribution businesses were reported in the “All other” category. Beginning in the first quarter of 2013, these businesses were reclassified to the steel mills segment as part of a realignment of Nucor’s reportable segments to better reflect the way in which they are managed (see Note 1).
Intangible assets with estimated lives of 5 to 22 years are amortized on a straight-line or accelerated basis and are comprised of the following (in thousands):
| December 31, 2013 | December 31, 2012 | |||||||||||||||
| Gross Amount |
Accumulated Amortization |
Gross Amount |
Accumulated Amortization |
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Customer relationships |
$ | 1,147,786 | $ | 391,254 | $ | 1,156,979 | $ | 325,819 | ||||||||
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Trademarks and trade names |
151,332 | 40,397 | 152,869 | 32,653 | ||||||||||||
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Other |
21,869 | 15,182 | 28,610 | 20,746 | ||||||||||||
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| $ | 1,320,987 | $ | 446,833 | $ | 1,338,458 | $ | 379,218 | |||||||||
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Intangible asset amortization expense was $74.4 million in 2013 ($73.0 million in 2012 and $67.8 million in 2011). Annual amortization expense is estimated to be $70.0 million in 2014; $68.2 million in 2015; $66.5 million in 2016; $64.8 million in 2017; and $61.1 million in 2018.
The Company completed its annual goodwill impairment testing as of the first days of the fourth quarters of 2013, 2012 and 2011 and concluded that as of such dates there was no impairment of goodwill for any of its reporting units. We do not believe there are currently any reporting units at risk of goodwill impairment in the near term. However,
assumptions in estimating reporting unit fair values are subject to a high degree of judgment and complexity. Changes in assumptions and estimates may affect the estimated reporting unit fair values and could result in impairment charges in future periods.