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GOODWILL AND OTHER INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS.  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 8—GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is evaluated for impairment on at least an annual basis, or more frequently if indicators of impairment exist. The annual impairment tests are based on Level 3 inputs (see Note 12). During the first quarter of 2019, the Affirm goodwill was reduced to zero from the crane divestiture and impairment. The $4.4 million of goodwill impairment was based on the expected proceeds from selling and winding down the rest of the Affirm business. Also, in connection with the Company’s segment realignment, the Company reallocated goodwill from reporting units in the 2018 Water Solutions segment to reporting units in the 2019 Water Services and Water Infrastructure segments. The changes in the carrying amounts of goodwill by reportable segment as of June 30, 2019 and December 31, 2018 are as follows:

Oilfield

Water

Wellsite

Water

Water

Chemicals

Solutions

Services

Services

Infrastructure

Other

Total

(in thousands)

Balance as of December 31, 2017

$

15,637

$

245,542

$

12,242

$

$

$

$

273,421

Additions

982

982

Impairment

(12,652)

(5,242)

(17,894)

Measurement period adjustments

 

(2,985)

 

20,277

 

 

 

 

 

17,292

Balance as of December 31, 2018

266,801

7,000

273,801

Resegmentation

 

 

(266,801)

 

(7,000)

 

186,335

 

80,466

 

7,000

 

Measurement period adjustments(1)

133

133

Affirm crane business divestiture

 

 

 

 

(2,604)

 

(2,604)

Affirm impairment

(4,396)

(4,396)

Balance as of June 30, 2019

$

$

$

$

186,468

$

80,466

$

$

266,934

(1)2019 measurement period adjustment related to the Pro Well working capital settlement. See Note 3.

The components of other intangible assets, net as of June 30, 2019 and December 31, 2018 are as follows:

As of June 30, 2019

As of December 31, 2018

    

Gross

    

Accumulated

    

Net

    

Gross

    

Accumulated

    

Net

Value

Amortization

Value

Value

Amortization

Value

(in thousands)

(in thousands)

Definite-lived

Customer relationships

    

$

116,078

    

$

15,723

    

$

100,355

    

$

171,245

    

$

66,402

    

$

104,843

Patents

10,110

1,918

8,192

10,110

1,417

8,693

Other

7,516

4,098

3,418

 

7,234

 

2,866

 

4,368

Total definite-lived

133,704

21,739

111,965

188,589

70,685

117,904

Indefinite-lived

Water rights

7,031

7,031

7,031

7,031

Trademarks

23,442

23,442

23,442

23,442

Total indefinite-lived

30,473

30,473

30,473

30,473

Total other intangible assets, net

$

164,177

$

21,739

$

142,438

$

219,062

$

70,685

$

148,377

Amortization expense was $2.9 million, $3.3 million, $5.9 million and $7.2 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. Annual amortization of intangible assets for the next five years and beyond is as follows:

    

Amount

(in thousands)

Remainder of 2019

$

5,927

2020

 

11,561

2021

 

10,378

2022

 

10,163

2023

 

10,092

Thereafter

63,844

$

111,965