Goodwill and Intangible Assets
|3 Months Ended
Mar. 31, 2018
|Goodwill and Intangible Assets Disclosure [Abstract]
|Goodwill and Intangible Assets
Note 2 - 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. 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.
The change in the carrying amount of goodwill for the period ended March 31, 2018 is as follows:
Of the total amount of goodwill recognized, zero is expected to be deductible for income tax purposes.
Intangible Assets consist of the following:
Amortization expense was $0.6 million and $0.7 million for the three months ended March 31, 2018 and 2017, respectively.
Our remaining intangibles amortization expense for the next five years is presented below: