(3) Reduction in Value of Assets and Other Charges

During 2016 and 2015, the Company recorded $500.4 million and $1,738.9 million in expense related to reduction in value of assets, respectively. The components of reduction in value of assets are as follows (in thousands):


	Years ended December 31,
	2016		2015
Reduction in value of goodwill	$	330,500	$	1,326,701
Reduction in value of long-lived assets		143,803		330,194
Retirements of long-lived assets		26,102		42,545
Reduction in value of assets related to sale of a business		-		39,447
Total reduction in value of assets	$	500,405	$	1,738,887

Reduction in Value of Goodwill

During 2016, the Company recorded $330.5 million reduction in value of goodwill relating to its Onshore Completion and Workover Services and Production Services segments. The Company determined that the implied fair value of its goodwill for the Onshore Completion and Workover Services segment was less than its carrying value and recorded a $140.0 million impairment of the Onshore Completion and Workover Services segment’s goodwill. In addition, the Company determined that the implied fair value of its goodwill for the Production Services segment was less than its carrying value and recorded a $190.5 million impairment of the Production Services segment’s goodwill. The reduction in value of goodwill in the Onshore Completion and Workover Services and Production Services segments was primarily driven by further deterioration of market conditions during 2016 and the Company’s forecast did not indicate a timely recovery sufficient to support the carrying values of the goodwill.

During 2015, the Company recorded $1,326.7 million reduction in value of goodwill relating to its Onshore Completion and Workover Services and Production Services segments. The Company determined that the implied fair value of its goodwill for the Onshore Completion and Workover Services segment was less than its carrying value and recorded a $740.0 million impairment of the Onshore Completion and Workover Services segment’s goodwill. In addition, the Company determined that the implied fair value of its goodwill for the Production Services segment was less than its carrying value and recorded a $586.7 million impairment of the Production Services segment’s goodwill. The reduction in value of goodwill in the Onshore Completion and Workover Services and Production Services segments was primarily driven by deteriorated market conditions during the year and the Company’s forecast did not indicate a timely recovery sufficient to support the carrying values of the goodwill.

Reduction in Value of Long-Lived Assets

During 2016, the Company recorded $143.8 million in connection with the reduction in value of its long-lived assets. The reduction in value of assets was comprised of $4.9 million related to equipment and $45.9 million related to intangibles in the fluid management business in the Onshore Completion and Workover Services segment and $21.4 million related to equipment and $21.0 million related to intangibles, primarily relating to the cementing business in the Production Services segment. Also, the Company recorded $25.0 million related to the reduction in carrying values of certain accommodation units included in the Drilling Products and Services segment. In addition, the Company recorded $25.6 million related to the reduction in carrying values of the marine vessels and equipment in the conventional decommissioning division in its Technical Solutions segment. The reduction in value of assets recorded during 2016 was primarily driven by the decline in demand for these services.

During 2015, the Company recorded $330.2 million in connection with the reduction in value of its long-lived assets. The reduction in value of assets was comprised of $89.7 million related to equipment and $59.5 million related to intangibles in the coiled tubing business and pressure control tools businesses within the Production Services segment. The reduction in value of assets also included $68.9 million related to the reduction in carrying values of the marine vessels and equipment and $56.0 million related to impairment of the Gulf of Mexico oil and gas property which is included in the Technical Solutions segment. In addition, the reduction in value of assets included a $40.2 million charge, primarily related to reduction in carrying values of certain domestic and international accommodation units and premium drill pipe included in the Drilling Products and Services segment and a $15.9 million charge related to mechanical drilling rigs included in the Onshore Completion and Workover Services segment. The reduction in value of assets recorded during 2015 was primarily driven by the decline in demand for these services.

Retirements of Long-Lived Assets

During 2016, the Company recorded $26.1 million, primarily in the Drilling Products and Services segment for retirement and abandonment of excess and inoperable and/or functionally obsolete long-lived assets that would require a significant cost to refurbish.

During 2015, the Company recorded $42.5 million for retirement and abandonment of inoperable and/or functionally obsolete long-lived assets that would require a significant cost to refurbish. The total amount recorded includes $27.3 million for the Onshore Completion and Workover Services segment and $15.2 million for the Production Services segment.

Reduction in Value of Assets Related to Sale of Coiled Tubing Business in Mexico

During 2015, the Company sold its Mexico based coiled tubing business and related assets. The Company received proceeds in the form of cash and a note receivable. The Company recorded a full valuation allowance on the note receivable in the amount of $16.8 million because its collectability was not reasonably assured. In connection with the sale, the Company recorded a $39.4 million reduction in value of assets, primarily related to property, plant and equipment and intangible assets.

Other Charges

During 2016, the Company recorded $39.2 million primarily relating to severance and facility closures. At December 31, 2016, the accrued lease termination liability balances were $4.9 million and $7.8 million, included in accrued expenses and other long-term liabilities, respectively, on the consolidated balance sheet.

During 2015, in connection with the reorganization of several of its businesses, the Company recorded $46.8 million relating to severance expense and reorganization costs. Included in the total reorganization costs is $20.2 million relating to the impairment of certain real estate operating leases included in the Onshore Completion and Workover Services segment. At December 31, 2015, the accrued lease termination liability balances were $7.2 million and $11.1 million, included in accrued expenses and other long-term liabilities, respectively, on the consolidated balance sheet.