Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

During the years 2016 and 2015, as a result of the Company’s assessment of goodwill, we impaired all existing goodwill. During the quarter ended September 30, 2016 the Company recognized $646,000 of goodwill as a result of finalizing the 2015 acquisitions of Aerion and Harbor, which was impaired in the same quarter. The Company also recognized a bargain purchase gain of $662,000 upon finalizing the acquisition of Grey Rock, (see Note 3. Acquisitions to these consolidated financial statements). After the impairment of $646,000, the Company had no additions to goodwill during the nine months ended September 30, 2016.

Basic’s intangible assets were as follows (in thousands):



	September 30, 2016		December 31, 2015
Customer relationships	$	91,719	$	92,660
Non-compete agreements	8,940		13,057
Trade names	1,939		1,939
Other intangible assets	2,096		2,086
	104,694		109,742
Less accumulated amortization	45,462		42,997
Intangible assets subject to amortization, net	$	59,232	$	66,745

Amortization expense for the three months ended September 30, 2016 and 2015 was approximately $2.0 million and $2.2 million, respectively. Amortization expense for the nine months ended September 30, 2016 and 2015 was approximately $6.5 million and $6.7 million, respectively.

Intangible assets, net of accumulated amortization allocated to reporting units as of September 30, 2016, were as follows (in thousands):



	Completion
	And Remedial						Contract
	Services		Well Servicing		Fluid Services		Drilling		Total
Intangible assets subject to amortization, net	$	44,648	$	4,922	$	7,050	$	2,612	$	59,232

Customer relationships are amortized over a 15-year life, non-compete agreements are amortized over a five-year life, and other intangible assets are amortized over a 15-year life.

- 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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