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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
(Mark One)  
 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 2020
Or
 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Transition Period from                  to                  .
Commission file number 001-10716
TRIMAS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware38-2687639
(State or other jurisdiction of
incorporation or organization)
 (IRS Employer
Identification No.)
38505 Woodward Avenue, Suite 200
Bloomfield Hills, Michigan 48304
(Address of principal executive offices, including zip code)
(248631-5450
(Registrant's telephone number, including area code)
Title of each classTrading symbol(s)Name of exchange on which registered
Common stock, $0.01 par valueTRSThe NASDAQ Global Market LLC
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No .
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No .
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
As of October 21, 2020, the number of outstanding shares of the Registrant's common stock, $0.01 par value, was 43,225,130 shares.


Table of Contents
TriMas Corporation
Index
 
   
  
   
   
  
  
  
  
 
  
 
  
  
  
  
  
  
  
 

1

Table of Contents
Forward-Looking Statements
This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about our financial condition, results of operations and business. These forward-looking statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or other comparable words, or by discussions of strategy that may involve risks and uncertainties.
These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to: the severity and duration of the ongoing corona virus (“COVID-19”) pandemic on our operations, customers and suppliers, as well as related actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict; general economic and currency conditions; material and energy costs; risks and uncertainties associated with intangible assets, including goodwill or other intangible asset impairment charges; competitive factors; future trends; our ability to realize our business strategies; our ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; information technology and other cyber-related risks; the performance of our subcontractors and suppliers; supply constraints; market demand; intellectual property factors; litigation; government and regulatory actions, including, without limitation, the impact of tariffs, quotas and surcharges; our leverage; liabilities imposed by our debt instruments; labor disputes; changes to fiscal and tax policies; contingent liabilities relating to acquisition activities; the disruption of operations from catastrophic or extraordinary events, including natural disasters or public health crises; the potential impact of Brexit; tax considerations relating to the Cequent spin-off; our future prospects; and other risks that are discussed in Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2019 and elsewhere in this report. The risks described in our Annual Report on Form 10-K and elsewhere in this report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deemed to be immaterial also may materially adversely affect our business, financial position and results of operations or cash flows.
The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We caution readers not to place undue reliance on the statements, which speak only as of the date of this report. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law.
We disclose important factors that could cause our actual results to differ materially from our expectations implied by our forward-looking statements under Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this report. These cautionary statements qualify all forward-looking statements attributed to us or persons acting on our behalf. When we indicate that an event, condition or circumstance could or would have an adverse effect on us, we mean to include effects upon our business, financial and other conditions, results of operations, prospects and ability to service our debt.
2

Table of Contents
PART I. FINANCIAL INFORMATION

Item 1.    Consolidated Financial Statements
TriMas Corporation
Consolidated Balance Sheet
(Dollars in thousands)
September 30,
2020
December 31,
2019
Assets(unaudited)
Current assets:
Cash and cash equivalents$99,740 $172,470 
Receivables, net of reserves of approximately $3.3 million and $2.1 million as of September 30, 2020 and December 31, 2019, respectively118,750 108,860 
Inventories142,600 132,660 
Prepaid expenses and other current assets13,640 20,050 
Total current assets374,730 434,040 
Property and equipment, net215,630 214,330 
Operating lease right-of-use assets36,050 27,850 
Goodwill251,870 334,640 
Other intangibles, net175,590 161,390 
Deferred income taxes5,720 500 
Other assets15,930 19,950 
Total assets$1,075,520 $1,192,700 
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable$59,530 $72,670 
Accrued liabilities56,410 42,020 
Operating lease liabilities, current portion6,940 5,100 
Total current liabilities122,880 119,790 
Long-term debt, net295,550 294,690 
Operating lease liabilities29,650 23,100 
Deferred income taxes12,220 16,830 
Other long-term liabilities57,250 40,810 
Total liabilities517,550 495,220 
Preferred stock, $0.01 par: Authorized 100,000,000 shares;
Issued and outstanding: None
  
Common stock, $0.01 par: Authorized 400,000,000 shares;
Issued and outstanding: 43,318,056 shares at September 30, 2020 and 44,562,679 shares at December 31, 2019
430 450 
Paid-in capital749,860 782,880 
Accumulated deficit(183,300)(79,850)
Accumulated other comprehensive loss(9,020)(6,000)
Total shareholders' equity557,970 697,480 
Total liabilities and shareholders' equity$1,075,520 $1,192,700 


The accompanying notes are an integral part of these consolidated financial statements.
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TriMas Corporation
Consolidated Statement of Operations
(Unaudited—dollars in thousands, except for per share amounts)
 Three months ended
September 30,
Nine months ended
September 30,
 2020201920202019
Net sales$199,460 $188,410 $581,800 $552,610 
Cost of sales(147,530)(139,420)(446,270)(403,040)
Gross profit51,930 48,990 135,530 149,570 
Selling, general and administrative expenses(25,650)(25,420)(107,570)(79,140)
Impairment of goodwill and indefinite-lived intangible assets(134,600) (134,600) 
Operating profit (loss)(108,320)23,570 (106,640)70,430 
Other expense, net:  
Interest expense(3,450)(3,520)(11,260)(10,450)
Other income (expense), net(1,200)600 (150)1,250 
Other expense, net(4,650)(2,920)(11,410)(9,200)
Income (loss) before income tax expense(112,970)20,650 (118,050)61,230 
Income tax benefit (expense)12,100 (5,410)14,600 (12,720)
Income (loss) from continuing operations(100,870)15,240 (103,450)48,510 
Income from discontinued operations, net of tax 3,870  11,710 
Net income (loss)$(100,870)$19,110 $(103,450)$60,220 
Basic earnings (loss) per share:  
Continuing operations$(2.32)$0.34 $(2.37)$1.07 
Discontinued operations 0.08  0.26 
Net income (loss) per share$(2.32)$0.42 $(2.37)$1.33 
Weighted average common shares—basic43,457,704 45,175,244 43,707,331 45,448,711 
Diluted earnings (loss) per share:  
Continuing operations$(2.32)$0.34 $(2.37)$1.06 
Discontinued operations 0.08  0.26 
Net income (loss) per share$(2.32)$0.42 $(2.37)$1.32 
Weighted average common shares—diluted43,457,704 45,415,767 43,707,331 45,745,421 


The accompanying notes are an integral part of these consolidated financial statements.
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TriMas Corporation
Consolidated Statement of Comprehensive Income
(Unaudited—dollars in thousands)
Three months ended
September 30,
Nine months ended
September 30,
2020201920202019
Net income (loss)$(100,870)$19,110 $(103,450)$60,220 
Other comprehensive income (loss):
Defined benefit plans (Note 19)160 100 470 300 
Foreign currency translation5,740 (4,180)(1,210)(4,380)
Derivative instruments (Note 12)(4,580)4,260 (2,280)5,750 
Total other comprehensive income (loss)1,320 180 (3,020)1,670 
Total comprehensive income (loss)$(99,550)$19,290 $(106,470)$61,890 


The accompanying notes are an integral part of these consolidated financial statements.


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TriMas Corporation
Consolidated Statement of Cash Flows
(Unaudited—dollars in thousands)
Nine months ended September 30,
20202019
Cash Flows from Operating Activities:
Net income (loss)$(103,450)$60,220 
Income from discontinued operations 11,710 
Income (loss) from continuing operations(103,450)48,510 
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities, net of acquisition impact:
Impairment of goodwill and indefinite-lived intangible assets134,600  
Loss on dispositions of assets1,080 60 
Depreciation21,700 18,330 
Amortization of intangible assets15,460 14,030 
Amortization of debt issue costs860 850 
Deferred income taxes(17,790)5,530 
Non-cash compensation expense5,610 4,130 
Non-cash change in legacy liability estimate23,400  
Increase in receivables(6,210)(8,380)
(Increase) decrease in inventories4,510 (560)
Decrease in prepaid expenses and other assets5,500 4,780 
Decrease in accounts payable and accrued liabilities(7,410)(26,760)
Other operating activities1,250 90 
Net cash provided by operating activities of continuing operations79,110 60,610 
Net cash provided by operating activities of discontinued operations 3,490 
Net cash provided by operating activities, net of acquisition impact79,110 64,100 
Cash Flows from Investing Activities:
Capital expenditures(17,670)(22,000)
Acquisition of businesses, net of cash acquired(95,160)(67,090)
Net proceeds from disposition of business, property and equipment1,930 10 
Net cash used for investing activities of continuing operations(110,900)(89,080)
Net cash used for investing activities of discontinued operations (1,350)
Net cash used for investing activities(110,900)(90,430)
Cash Flows from Financing Activities:
Proceeds from borrowings on revolving credit facilities300,950 145,540 
Repayments of borrowings on revolving credit facilities(303,240)(145,090)
Shares surrendered upon exercise and vesting of equity awards to cover taxes(2,600)(3,240)
Payments to purchase common stock(36,050)(21,090)
Net cash used for financing activities of continuing operations(40,940)(23,880)
Net cash provided by financing activities of discontinued operations  
Net cash used for financing activities(40,940)(23,880)
Cash and Cash Equivalents:
Decrease for the period(72,730)(50,210)
At beginning of period172,470 108,150 
At end of period$99,740 $57,940 
Supplemental disclosure of cash flow information:
Cash paid for interest$7,490 $6,570 
Cash paid for taxes$6,660 $15,690 


The accompanying notes are an integral part of these consolidated financial statements.
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TriMas Corporation
Consolidated Statement of Shareholders' Equity
Nine Months Ended September 30, 2020 and 2019
(Unaudited—dollars in thousands)
Common
Stock
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
Balances, December 31, 2019$450 $782,880 $(79,850)$(6,000)$697,480 
Net income— — 13,120 — 13,120 
Other comprehensive loss— — — (3,680)(3,680)
Purchase of common stock(20)(31,550)— — (31,570)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (1,830)— — (1,830)
Non-cash compensation expense— 1,940 — — 1,940 
Balances, March 31, 2020$430 $751,440 $(66,730)$(9,680)$675,460 
Net loss— — (15,700)— (15,700)
Other comprehensive loss— — — (660)(660)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (740)— — (740)
Non-cash compensation expense10 2,730 — — 2,740 
Balances, June 30, 2020$440 $753,430 $(82,430)$(10,340)$661,100 
Net loss— — (100,870)— (100,870)
Other comprehensive income— — — 1,320 1,320 
Purchase of common stock(10)(4,470)— — (4,480)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (30)— — (30)
Non-cash compensation expense— 930 — — 930 
Balances, September 30, 2020$430 $749,860 $(183,300)$(9,020)$557,970 

The accompanying notes are an integral part of these consolidated financial statements.














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TriMas Corporation
Consolidated Statement of Shareholders' Equity (Continued)
Nine Months Ended September 30, 2020 and 2019
(Unaudited—dollars in thousands)
Common
Stock
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
Balances, December 31, 2018$460 $816,500 $(179,660)$(16,850)$620,450 
Net income— — 19,090 — 19,090 
Other comprehensive income— — — 3,020 3,020 
Purchase of common stock— (670)— — (670)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (2,620)— — (2,620)
Non-cash compensation expense— 1,320 — — 1,320 
Impact of accounting standards adoption— — 1,190 (1,270)(80)
Balances, March 31, 2019$460 $814,530 $(159,380)$(15,100)$640,510 
Net income— — 22,020 — 22,020 
Other comprehensive loss— — — (1,530)(1,530)
Purchase of common stock(10)(14,740)— — (14,750)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (610)— — (610)
Non-cash compensation expense— 1,720 — — 1,720 
Balances, June 30, 2019$450 $800,900 $(137,360)$(16,630)$647,360 
Net income— — 19,110 — 19,110 
Other comprehensive income— — — 180 180 
Purchase of common stock— (5,670)— — (5,670)
Shares surrendered upon exercise and vesting of equity awards to cover taxes— (10)— — (10)
Non-cash compensation expense— 1,090 — — 1,090 
Balances, September 30, 2019$450 $796,310 $(118,250)$(16,450)$662,060 

The accompanying notes are an integral part of these consolidated financial statements.
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1. Basis of Presentation
TriMas Corporation ("TriMas" or the "Company"), and its consolidated subsidiaries, designs, engineers and manufactures innovative products under leading brand names for customers primarily in the consumer products, aerospace & defense, and industrial markets.
In the second quarter of 2020, the Company elected to change its method of accounting for asbestos-related defense costs from accruing for probable and reasonably estimable defense costs associated with known claims expected to settle to accrue for all future defense costs for both known and unknown claims, which the Company now believes are reasonably estimable. The Company believes this change is preferable, as asbestos-related defense costs represent expenditures related to legacy activities that do not contribute to current or future revenue generating activities, and recording an estimate of the full liability for asbestos-related costs, where estimable with reasonable precision, provides a more complete assessment of the liability associated with resolving asbestos-related claims. This accounting change has been reflected as a change in accounting estimate effected by a change in accounting principle. See Note 15, "Commitments and Contingencies," for further information on this change.
In the first quarter of 2020, TriMas began reporting its machined components operations, located in Stanton, California and Tolleson, Arizona, as part of its Aerospace segment. The operations were previously reported in the Specialty Products segment. The move of these operations into TriMas Aerospace facilitates a more rapid approach to achieving anticipated synergies from the recent RSA Engineered Products ("RSA") acquisition, allowing the Company to better leverage the machining competencies and resources across its aerospace businesses. See Note 16, "Segment Information," for further information on each of the Company's reportable segments.
In addition, on December 20, 2019, the Company completed the sale of its Lamons division (“Lamons”), a transaction entered into with an investment fund sponsored by First Reserve on November 1, 2019. Lamons was sold for approximately $135 million in cash. The financial results of Lamons were previously reported within the Company's Specialty Products segment, and are presented as discontinued operations for all periods presented in the financial statements attached hereto. See Note 3, "Discontinued Operations," for further information on the sale of Lamons and its historical financial results.
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries and, in the opinion of management, contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. The preparation of financial statements also requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results may differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the ongoing outbreak of a new strain of the coronavirus (“COVID-19”). While the full impact of COVID-19 is unknown and cannot be reasonably estimated at this time, the Company has made appropriate accounting estimates based on the facts and circumstances available as of the reporting date. To the extent there are differences between these estimates and actual results, the Company's consolidated financial statements may be materially affected.
Results of operations for interim periods are not necessarily indicative of results for the full year, and certain prior year amounts have been reclassified to conform to current year presentation. The accompanying consolidated financial statements and notes thereto should be read in conjunction with the Company's 2019 Annual Report on Form 10-K.
2. New Accounting Pronouncements
Recently Issued Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"), which removes specific exceptions to the general principles in Topic 740, simplifies the accounting for income taxes and provides clarification of certain aspects of current guidance. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is in the process of assessing the impact of adoption on its consolidated financial statements.
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)" ("ASU 2018-14"), which modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. ASU 2018-14 is to be applied retrospectively to all periods presented. The Company is in the process of assessing the impact of adoption on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"), which simplifies the test for goodwill impairment by eliminating the requirement to perform a hypothetical purchase price allocation to measure the amount of goodwill impairment. Instead, under ASU 2017-04, the goodwill impairment is the amount by which a reporting unit's carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The Company adopted ASU 2017-04 on January 1, 2020. See Note 8, "Goodwill and Other Intangible Assets," for further information on the Company's third quarter 2020 interim goodwill impairment assessment.
3. Discontinued Operations
On December 20, 2019, the Company completed the sale of Lamons to two wholly-owned subsidiaries of an investment fund sponsored by First Reserve, pursuant to an Asset and Stock Purchase Agreement dated as of November 1, 2019 (the “Purchase Agreement”), for a purchase price of $135 million, subject to certain adjustments as set forth in the Purchase Agreement. The purchase price was finalized in the first quarter of 2020 and resulted in a $1.8 million payment to the Company.
The Company's historical results for Lamons are shown in the accompanying consolidated statement of operations as a discontinued operation. Results of discontinued operations are summarized as follows (dollars in thousands):
 Three months ended
September 30,
Nine months ended
September 30,
 20192019
Net sales$48,420 $144,880 
Cost of sales(36,170)(108,040)
Gross profit12,250 36,840 
Selling, general and administrative expenses(7,130)(21,620)
Operating profit5,120 15,220 
Other income, net10 30 
Income from discontinued operations, before income taxes5,130 15,250 
Income tax expense(1,260)(3,540)
Income from discontinued operations, net of tax$3,870 $11,710 
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
4. Revenue
The following table presents the Company’s disaggregated net sales by primary market served (dollars in thousands):
Three months ended September 30,Nine months ended September 30,
Customer Markets2020201920202019
Consumer Products$114,220 $82,500 $298,060 $233,250 
Aerospace & Defense39,130 50,560 130,670 145,650 
Industrial46,110 55,350 153,070 173,710 
Total net sales$199,460 $188,410 $581,800 $552,610 
The Company’s Packaging segment earns revenues from the consumer products (comprised of the beauty and personal care, home care, food and beverage, pharmaceutical and nutraceutical submarkets) and industrial markets. The Aerospace segment earns revenues from the aerospace & defense market (comprised of commercial, regional and business jet and military submarkets). The Specialty Products segment earns revenues from a variety of submarkets within the industrial market.
5. Realignment Actions
In the three and nine months ended September 30, 2020, the Company executed certain realignment actions, primarily in its Aerospace and Specialty Products segments, in response to reductions in current and expected future end market demand. During the nine months ended September 30, 2020, the Company recorded a non-cash charge of approximately $13.2 million related to inventory reductions, primarily as a result of a strategic decision in its Arrow Engine division to narrow its product line focus. During the three and nine months ended September 30, 2020, the Company also recorded non-cash charges of approximately $0.1 million and $2.3 million, respectively, related to certain production equipment removed from service given reduced demand levels. In addition, the Company reduced its employment levels given lower customer demand incurring approximately $0.5 million and $3.6 million during the three and nine months ended September 30, 2020, respectively, in severance charges, of which approximately $2.9 million was paid by September 30, 2020. For the three and nine months ended September 30, 2020, approximately $0.4 million and $16.4 million of these charges were included in cost of sales, respectively, and approximately $0.2 million and $2.7 million were included in selling, general and administrative expenses, respectively, in the accompanying consolidated statement of operations.
6. Acquisitions
2020 Acquisitions
On April 17, 2020, the Company acquired the Rapak® brand, including certain bag-in-box product lines and assets ("Rapak") for an aggregate amount of approximately $11.4 million, subject to normal course adjustments. Rapak, which is reported in the Company's Packaging segment, has manufacturing locations in Indiana, California and Illinois, and historically generated approximately $30 million in annual revenue.
On February 27, 2020, the Company acquired RSA Engineered Products, a manufacturer of complex, highly-engineered and proprietary ducting, connectors and related products for air management systems used in aerospace and defense applications, for an aggregate amount of approximately $83.7 million, net of cash acquired, subject to normal course adjustments. The fair value of assets acquired and liabilities assumed included approximately $80.2 million of goodwill and intangible assets, $10.1 million of net working capital, $2.1 million of property and equipment, and $8.7 million of net deferred tax liabilities. RSA, which is reported in the Company's Aerospace segment, is located in Simi Valley, California and historically generated approximately $30 million in annual revenue.
In connection with the acquisitions, the Company recorded approximately $2.8 million of non-cash purchase accounting-related expenses during the nine months ended September 30, 2020 within cost of sales related to the step-up in value and subsequent sale of inventory.
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
2019 Acquisitions
In April 2019, the Company acquired Taplast S.p.A. ("Taplast"), a designer and manufacturer of dispensers, closures and containers for the beauty and personal care, home care, and food and beverage packaging markets, for an aggregate amount of approximately $44.7 million, net of cash acquired. With manufacturing locations in both Italy and Slovakia, Taplast serves markets in Europe and North America and historically generated approximately $32 million in annual revenue. Taplast is reported in the Company's Packaging segment.
In January 2019, the Company acquired Plastic Srl, a manufacturer of single-bodied and assembled polymeric caps and closures for use in home care products, for an aggregate amount of approximately $22.4 million, net of cash acquired. Located in Italy, Plastic Srl serves the home care market throughout Italy and other European countries and historically generated approximately $12 million in annual revenue. Plastic Srl is reported in the Company's Packaging segment.
In connection with the acquisitions, the Company recorded approximately $1.2 million of non-cash purchase accounting-related expenses during the nine months ended September 30, 2019, of which approximately $0.9 million was recognized within selling, general and administrative expenses, primarily related to the write-off of the Plastic Srl trade name acquired that will not be used. In addition, approximately $0.3 million was recognized during the nine months ended September 30, 2019, within cost of sales related to the step-up in value and subsequent sale of inventory.
7. Cash and Cash Equivalents
Cash and cash equivalents consists of the following components (dollars in thousands):
 September 30,
2020
December 31,
2019
Cash and cash equivalents - unrestricted$89,200 $172,470 
Cash - restricted10,540  
Total cash and cash equivalents$99,740 $172,470 
As of September 30, 2020, the Company placed cash on deposit with a financial institution to be held as cash collateral for the Company's outstanding letters of credit. Prior to the third quarter of 2020, the Company used a portion of its credit agreement as collateral for letters of credit, which decreased availability under its revolving credit facility. See Note 11, "Long-term Debt," for further information on its credit agreement.
8. Goodwill and Other Intangible Assets
Goodwill
The Company assesses goodwill and other intangible assets for impairment on an annual basis as of October 1, and more frequently if there are changes in the business climate or as a result of a triggering event taking place. During the third quarter of 2020, as a result of a decline in its aerospace-related business' financial results, a significant reduction in its financial projections for the remainder of 2020 compared with prior projections, and uncertainty around the duration and magnitude of the impact of the COVID-19 pandemic on future financial results given their dependence on future levels of air travel and new aircraft builds, the Company determined there was a triggering event requiring an interim quantitative goodwill impairment assessment of each of its two aerospace-related reporting units: Aerospace Fasteners and Aerospace Engineered Products.
In preparing the quantitative analysis, the Company utilized both income and market-based approaches. The income-based approach was conducted using the discounted cash flow method, for which management updated its internal five-year forecast, and reflected its current best estimates of when, and at what level, a recovery of air travel, new aircraft builds, and resulting customer orders would occur and the related impact on each reporting unit's future sales, earnings and cash flows. Assumptions in estimating the future cash flows were based on Level 3 inputs under the fair value hierarchy. The Company also selected appropriate terminal growth rates as well as discount rates, which considered various factors including the level of inherent risk in achieving the forecast based on prior history and current market conditions. The market-based approach considered potentially comparable publicly traded companies and transactions within the aerospace industry and applied their trading multiples to management's forecast estimates.
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Upon completion of the quantitative goodwill impairment tests, the Company determined that the carrying values of the Aerospace Fasteners and Aerospace Engineered Products reporting units exceeded their fair values, resulting goodwill impairment charges of approximately $70.8 million in its Aerospace Fasteners reporting unit and approximately $56.0 million in its Aerospace Engineered Products reporting unit during the three and nine month periods ended September 30, 2020. Following the impairment charges, the Aerospace Fasteners reporting unit has $62.9 million of remaining goodwill, while the Aerospace Engineered Products reporting unit has no remaining goodwill. The Company notes that a 1% change in the discount rate would have impacted the total goodwill impairment charge by approximately $20 million, while a 0.5% change in the terminal growth rate would have impacted the total goodwill impairment charge by approximately $5 million. If the future financial results of the aerospace-related businesses significantly differ from the assumptions inherent in this analysis, the Company may be subject to further impairment charges.
In the first quarter of 2020, the Company began reporting its machined components operations within the Aerospace segment. These operations were previously reported in the Company's Specialty Products segment. As a result of the reporting structure change, goodwill of approximately $12.7 million was reassigned from the Specialty Products segment to the Aerospace segment.
Changes in the carrying amount of goodwill for the nine months ended September 30, 2020 are summarized as follows (dollars in thousands):
PackagingAerospaceSpecialty ProductsTotal
Balance, December 31, 2019$181,650 $133,690 $19,300 $334,640 
Goodwill from acquisitions 43,260  43,260 
Goodwill reassigned in segment realignment 12,740 (12,740) 
Impairment charge (126,840) (126,840)
Foreign currency translation and other810   810 
Balance, September 30, 2020$182,460 $62,850 $6,560 $251,870 
Other Intangible Assets
As a result of the significant forecast reduction in the Company's aerospace-related businesses, the Company also performed an interim quantitative assessment for the indefinite-lived intangible assets within the Aerospace segment, using the relief-from-royalty method. Significant management assumptions used under the relief-from-royalty method reflected the Company's current assessment of the risks and uncertainties associated with the aerospace industry. Upon completion of the quantitative impairment test, the Company determined that certain of the Company's aerospace-related trade names had carrying values that exceeded their fair values, and therefore recorded impairment charges of approximately $7.8 million during the three and nine month periods ended September 30, 2020.
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The Company amortizes its other intangible assets over periods ranging from one to 30 years. The gross carrying amounts and accumulated amortization of the Company's other intangibles are summarized below (dollars in thousands):
As of September 30, 2020As of December 31, 2019
Intangible Category by Useful LifeGross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Finite-lived intangible assets:
   Customer relationships, 5 – 12 years$100,610 $(56,810)$73,860 $(49,910)
   Customer relationships, 15 – 25 years122,270 (60,840)122,280 (56,010)
Total customer relationships222,880 (117,650)196,140 (105,920)
   Technology and other, 1 – 15 years54,110 (32,020)52,430 (29,790)
   Technology and other, 17 – 30 years43,300 (39,090)43,300 (37,620)
Total technology and other97,410 (71,110)95,730 (67,410)
Indefinite-lived intangible assets:
 Trademark/Trade names44,060 — 42,850 — 
Total other intangible assets$364,350 $(188,760)$334,720 $(173,330)
Amortization expense related to intangible assets as included in the accompanying consolidated statement of operations is summarized as follows (dollars in thousands):
Three months ended September 30,Nine months ended September 30,
2020201920202019
Technology and other, included in cost of sales$1,240 $1,190 $3,710 $3,590 
Customer relationships, included in selling, general and administrative expenses4,070 3,460 11,750 10,440 
Total amortization expense$5,310 $4,650 $15,460 $14,030 
9. Inventories
Inventories consist of the following components (dollars in thousands):
 September 30,
2020
December 31,
2019
Finished goods$74,440 $68,350 
Work in process29,640 30,560 
Raw materials38,520 33,750 
Total inventories$142,600 $132,660 
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TRIMAS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
10. Property and Equipment, Net
Property and equipment consists of the following components (dollars in thousands):
 September 30,
2020
December 31,
2019
Land and land improvements$19,800 $19,110 
Buildings87,540 84,880 
Machinery and equipment342,690 326,990 
450,030 430,980 
Less: Accumulated depreciation234,400 216,650 
Property and equipment, net$215,630 $214,330 
Depreciation expense as included in the accompanying consolidated statement of operations is as follows (dollars in thousands):
Three months ended September 30,Nine months ended September 30,
2020201920202019
Depreciation expense, included in cost of sales$6,680 $