Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets Goodwill and Intangible Assets (Notes)

v3.5.0.2
Goodwill and Intangible Assets Goodwill and Intangible Assets (Notes)
6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill and Intangible Assets    
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 2013 acquisition of International Tubular Services Limited (ITS) and related assets (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
During the 2016 second quarter, circumstances indicated that the fair value of the reporting unit may not be in excess of the carrying value of the goodwill. Therefore we performed a goodwill impairment review and determined that the fair value of the reporting unit exceeded its carrying value and therefore, no goodwill impairment was identified. Should current market conditions worsen or persist for an extended period of time, an impairment of the carrying value of our goodwill could occur.
The change in the carrying amount of goodwill for the period ended June 30, 2016 is as follows:
Dollars in thousands
Goodwill
Balance at December 31, 2015
$
6,708

Additions

Balance at June 30, 2016
$
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:
 
 
Balance at June 30, 2016
Dollars in thousands
Estimated Useful Life (Years)
Gross Carrying Amount
 
Write-off Due to Sale in 2015 (1)
 
Accumulated Amortization
 
Net Carrying Amount
Amortized intangible assets:
 
 
 
 
 
 
 
 
Developed Technology
6
$
11,630

 

 
$
(2,423
)
 
$
9,207

Customer Relationships
3
5,400

 
(264
)
 
(5,136
)
 

Trade Names
5
4,940

 
(332
)
 
(2,423
)
 
2,185

Total Amortized intangible assets
 
$
21,970

 
$
(596
)
 
$
(9,982
)
 
$
11,392

(1) During the 2015 fourth quarter, we sold our controlling interest in a joint venture in Egypt resulting in the write-off of $0.6 million of intangible assets related to customer relationships and trade name acquired as part of the ITS Acquisition.
Amortization expense was $2.0 million and $1.8 million for the six months ended June 30, 2016 and 2015, respectively.
Our remaining intangibles amortization expense for the next five years is presented below:
Dollars in thousands
Expected future intangible amortization expense
2016
$
1,463

2017
$
2,801

2018
$
2,306

2019
$
2,306

2020
$
2,030

Beyond 2020
$
486