Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The Company's intangible assets at December 31, 2014 and 2013, all of which are subject to amortization, consisted of the following:



	December 31, 2014							December 31, 2013
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
	(in thousands)
Energy segment:
Customer relationships	$	54,430	$	(21,938	)	$	32,492	$	54,430	$	(13,700	)	$	40,730
Trade names	4,860		(3,161		)	1,699		4,860		(2,315		)	2,545
Non-compete agreement	120		(25		)	95		120		—			120
	59,410		(25,124		)	34,286		59,410		(16,015		)	43,395

Sports segment:
Customer relationships	2,089		(678		)	1,411		1,163		(230		)	933
Trade names	122		(37		)	85		122		(12		)	110
	2,211		(715		)	1,496		1,285		(242		)	1,043

Total	$	61,621	$	(25,839	)	$	35,782	$	60,695	$	(16,257	)	$	44,438

Amortization expense was $9.6 million, $8.7 million, and $7.6 million for the years ended December 31, 2014, 2013, and 2012, respectively.

Estimated aggregate amortization expense related to the intangible assets for the next five years and thereafter is as follows:



	Amount
	(in thousands)
For the year ended December 31:
2015	$	8,211
2016	7,202
2017	5,972
2018	5,229
2019	2,814
Thereafter	6,354
	$	35,782

The changes to the Company’s carrying amount of goodwill were as follows:



	Year Ended December 31, 2014								Year Ended December 31, 2013
	Energy			Sports		Total			Energy		Sports			Total
	(in thousands)
Balance at beginning of period	$	65,359		$	2,171	$	67,530		$	52,939	$	154		$	53,093
Acquisitions	—			—		—			10,576		5,594			16,170
Adjustment to fair value	—			—		—			1,844		—			1,844
Impairments	(36,666		)	—		(36,666		)	—		(3,577		)	(3,577		)
Balance at end of period	$	28,693		$	2,171	$	30,864		$	65,359	$	2,171		$	67,530

In connection with its annual goodwill impairment test and the adverse effects of the recent developments in the oil services industry, the Company recognized an impairment charge of $36.7 million in the fourth quarter of 2014 related to the goodwill associated with its Energy segment. The impairment resulted from the adverse effects the decline in energy prices had on the oil services industry and the projected results of operations of the Energy segment. The fair values of the reporting units used in determining the goodwill impairment were based on valuations using a combination of the income approach (discounted cash flows) and the market approach (guideline public company method and guideline transaction method). The goodwill impairment charge consisted of an impairment of the goodwill at Sun Well, inclusive of the goodwill related to Eagle Well, of approximately $30.4 million and an impairment charge of the goodwill at Rogue of $6.3 million. No impairment was recognized related to the goodwill at Black Hawk. At December 31, 2014, the remaining goodwill associated with the Energy segment was $28.7 million, which consisted of $18.1 million at Sun Well and $10.6 million at Black Hawk.

The adjustment to fair value in 2013 represents an adjustment to reflect additional acquisition-date deferred income tax liabilities and non-current deferred compensation obligations related to the acquisition of Sun Well (see Note 3). During the year ended December 31, 2013, the Company recognized a goodwill impairment of $3.6 million related to the shutdown of Ruckus that is included in “Income (loss) from discontinued operations" in the consolidated statement of operations (see Note 4). The accumulated goodwill impairment was $42.2 million and $5.6 million at December 31, 2014 and 2013, respectively.

The components of goodwill at December 31, 2014 and 2013, were as follows:



	December 31, 2014			December 31, 2013
	(in thousands)
Goodwill	$	73,095		$	73,095
Accumulated impairment	(42,231		)	(5,565		)
Net goodwill	$	30,864		$	67,530

- 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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