Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets Goodwill and Intangible Assets (Notes)

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Goodwill and Intangible Assets Goodwill and Intangible Assets (Notes)
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill and Intangible Assets
We account for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining noncontrolling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, plus the value of any noncontrolling interests, is recognized as goodwill.
As part of the 2M-Tek Acquisition we recognized $6.7 million of goodwill and acquired definite-lived intangible assets with an acquisition date fair value of $13.5 million. As part of the ITS Acquisition, we acquired definite-lived intangible assets with an acquisition date fair value of $8.5 million. All of the Company's goodwill and intangible assets are allocated to the Rental Tools segment.
Goodwill
The change in the carrying amount of goodwill for the period ended September 30, 2015 is as follows:
Dollars in thousands
Goodwill
Balance at December 31, 2014
$

Acquisition
6,708

Balance at September 30, 2015
$
6,708

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:
 
 
As of September 30, 2015
Dollars in thousands
Estimated Useful Life (Years)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Amortized intangible assets:
 
 
 
 
 
 
Developed Technology
6
$
11,630

 
$
(969
)
 
$
10,661

Customer Relationships
3
5,400

 
(4,394
)
 
1,006

Trademarks and trade names
5
4,940

 
(1,866
)
 
3,074

Total Amortized intangible assets
 
$
21,970

 
$
(7,229
)
 
$
14,741

Amortization expense was $1.2 million and $0.6 million for the three months ended September 30, 2015 and 2014, and $3.1 million and $1.9 million for the nine months ended September 30, 2015 and 2014, respectively.
Our remaining intangibles amortization expense for the next five years is presented below:
Dollars in thousands
Expected future intangible amortization expense
2015
$
1,204

2016
$
3,549

2017
$
2,860

2018
$
2,306

2019
$
2,306

Beyond 2019
$
2,516