XML 32 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Identifiable Intangibles
12 Months Ended
Dec. 31, 2018
Goodwill and Identifiable Intangibles [Abstract]  
Goodwill and Identifiable Intangibles

Note 7.  Goodwill and Identifiable Intangibles



Changes in the carrying amount of goodwill is as follows (in thousands):







 

 

 



 

 

 

At December 31, 2016

 

$

122,077 

Acquisitions

 

 

55,409 

Currency translation adjustment

 

 

6,992 

At December 31, 2017

 

$

184,478 

Purchase price allocation adjustment

 

 

54 

Impairments

 

 

(154,003)

Currency translation adjustment

 

 

(7,417)

At December 31, 2018

 

$

23,112 



An assessment for goodwill impairment is performed annually or when there is an indication an impairment may have occurred. On December 31, 2018, we performed our annual impairment test for goodwill on each of our three reporting units and as a result of unfavorable oil and gas industry market conditions in late 2018 that have continued to persist into early 2019 and the related impact on expected customer activity levels, particularly in Canada, as well as a decline in the quoted price of our common stock, we concluded that there had been an impairment because the carrying value exceeded the estimated fair values for two reporting units. The total impairment charge of $154.0 million included the following reporting units, fracturing systems and well construction of $122.1 million and our tracer diagnostic services of $31.9 million. As a result of the impairment loss, we have no remaining goodwill for our fracturing systems and well construction business unit and our goodwill was $7.9 million for our tracer diagnostic services at December 31, 2018. In completing our annual evaluation, we also determined that Repeat Precision, which has goodwill of $15.2 million, did not have a fair value below its net carrying value, and therefore, no impairment was required. No impairments were recorded in 2017 or 2016.



All goodwill impairment charges are included in “Impairments” in the consolidated statements of operations. See “Note 2. Summary of Significant Accounting Policies” for additional information. 





Identifiable intangibles by major asset class consist of the following (in thousands):







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

December 31, 2018



 

Estimated

 

Gross

 

 

 

 

 

 



 

Useful

 

Carrying

 

Accumulated

 

Net



 

Lives (Years)

 

Amount

 

Amortization

 

Balance

Technology

 

8 - 18

 

$

17,289 

 

$

(516)

 

$

16,773 

Trademarks

 

5 - 10

 

 

1,600 

 

 

(213)

 

 

1,387 

Customer relationships

 

10 - 21

 

 

28,544 

 

 

(2,339)

 

 

26,205 

Internally developed software

 

5

 

 

4,620 

 

 

 -

 

 

4,620 

Total identifiable intangibles

 

 

 

$

52,053 

 

$

(3,068)

 

$

48,985 







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

December 31, 2017



 

Estimated

 

Gross

 

 

 

 

 

 



 

Useful

 

Carrying

 

Accumulated

 

Net



 

Lives (Years)

 

Amount

 

Amortization

 

Balance

Technology

 

14 - 16

 

$

151,433 

 

$

(52,730)

 

$

98,703 

Trademarks

 

5 - 10

 

 

2,588 

 

 

(1,042)

 

 

1,546 

Customer relationships

 

10 - 21

 

 

41,058 

 

 

(4,895)

 

 

36,163 

Total identifiable intangibles

 

 

 

$

195,079 

 

$

(58,667)

 

$

136,412 



Identifiable intangibles with definite lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. As a result of unfavorable oil and gas industry market conditions in late 2018 that have continued to persist into early 2019 and the related impact on expected customer activity levels, particularly in Canada, as well as a decline in the quoted price of our common stock, we determined that the carrying values of certain intangible assets were no longer recoverable, which resulted in an impairment charge of $73.5 million in our asset group that includes fracturing systems and well construction, which we recorded in the fourth quarter of 2018. No finite-lived intangible impairments were recorded in 2017 or 2016. Impairment charges related to identifiable intangibles with definite lives are included in “Impairments” in the consolidated statements of operations. See “Note 2. Summary of Significant Accounting Policies” for additional information.



Total amortization expense for the years ended December 31, 2018,  2017 and 2016 was $13.1 million, $24.5 million and $23.8 million, respectively.



The total weighted average amortization period is 15 years and estimated future amortization expense is as follows (in thousands):







 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

$

4,468 

2020

 

 

 

 

 

 

 

4,458 

2021

 

 

 

 

 

 

 

4,458 

2022

 

 

 

 

 

 

 

4,458 

2023

 

 

 

 

 

 

 

4,458 

Thereafter

 

 

 

 

 

 

 

26,685 

Total

 

 

 

 

 

 

$

48,985