Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.8.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets
We account for 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. 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. As a result of our 2017 analysis, we 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.
All of the Company’s goodwill and intangible assets are allocated to the International Rental Tools segment.
Goodwill
The change in the carrying amount of goodwill for the year ended December 31, 2017 is as follows:
Dollars in thousands
Goodwill
Balance at December 31, 2016
$
6,708

Additions

Balance at December 31, 2017
$
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 December 31, 2017
Dollars in thousands
Estimated Useful Life (Years)
Gross Carrying Amount
 
Write-off Due to Sale (1)
 
Accumulated Amortization
 
Net Carrying Amount
Amortized intangible assets:
 
 
 
 
 
 
 
 
Developed Technology
6
$
11,630

 
$

 
$
(5,330
)
 
$
6,300

Customer Relationships
3
5,400

 
(264
)
 
(5,136
)
 

Trade Names
5
4,940

 
(332
)
 
(3,780
)
 
828

Total Amortized intangible assets
 
$
21,970

 
$
(596
)
 
$
(14,246
)
 
$
7,128

(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.
Amortization expense was $2.8 million, $3.5 million, and $4.3 million for the year ended December 31, 2017, 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
2018
$
2,306

2019
$
2,306

2020
$
2,030

2021
$
486

Beyond 2021
$