Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.19.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Note 4 - Goodwill and Intangible Assets
We perform our annual goodwill impairment review during the fourth quarter, as of October 1, and more frequently if negative conditions or other triggering events arise that indicate that the fair value of the reporting unit has decreased below its carrying value. As a result of our 2018 annual goodwill impairment analysis, we determined that the carrying value of the 2MTek reporting unit exceeded its fair value and, therefore, the entire goodwill balance was impaired and written off. The impairment resulted due to the transfer of 2MTek reporting unit from International Rental Tools segment to the U.S. Rental Tools segment. Goodwill impairment is recorded in the loss on impairment line item in the consolidated statement of operations for the year ended December 31, 2018.
All of the Company’s goodwill and intangible assets are allocated to the U.S. Rental Tools segment.
Goodwill
The change in the carrying amount of goodwill for the year ended December 31, 2018 is as follows:
Dollars in thousands
Goodwill
Balance at December 31, 2017
$
6,708

Goodwill impairment
(6,708
)
Balance at December 31, 2018
$
—


Of the total amount of goodwill recognized, zero is expected to be deductible for income tax purposes.
Intangible Assets
Intangible Assets consist of the following:
 
 
 
Balance at December 31, 2018
Dollars in thousands
Estimated Useful Life (Years)
 
Gross Carrying Amount
 
Write-off Due to Sale
 
Accumulated Amortization
 
Net Carrying Amount
Developed technology
6
 
$
11,630

 
$
—

 
$
(7,269
)
 
$
4,361

Trade Names
5
 
4,940

 
(332
)
 
(4,148
)
 
460

Total intangible assets
 
 
$
16,570

 
$
(332
)
 
$
(11,417
)
 
$
4,821

Amortization expense was $2.3 million, $2.8 million, and $3.5 million for the year ended December 31, 2018, 2017, and 2016 respectively.
Our remaining intangibles amortization expense for the next five years is presented below:
Dollars in thousands
Expected future intangible amortization expense
2019
$
2,306

2020
$
2,030

2021
$
485

2022
$
—

Beyond 2022
$
—