Goodwill (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by reporting unit during the nine months ended September 30, 2017 were as follows:



	Carrying Value						Carrying Value
	December 31, 2016		Acquisitions⁽¹⁾		Foreign Currency Translation Adjustment		September 30, 2017
	(In thousands)
Western Hemisphere	$	26,632	$	12,788	$	696	$	40,116
Eastern Hemisphere	7,739		—		659		8,398
Asia-Pacific	—		—		—		—
Total	$	34,371	$	12,788	$	1,355	$	48,514

(1) Primarily relates to goodwill additions as a result of the OPT acquisition.

The Company performs its annual impairment tests of goodwill as of October 1 or when there is an indication an impairment may have occurred.

In connection with our preparation and review of financial statements for the quarter ended September 30, 2017, as a result of charges related to inventory and fixed assets and our updated business outlook, the Company performed a goodwill impairment test for the Western Hemisphere reporting unit as of September 30, 2017. Based on the results of this assessment, we concluded that no goodwill impairment was required.

The fair values used in the goodwill impairment assessment were determined using the net present value of the expected future cash flows for the reporting unit. During the Company’s goodwill impairment analysis, the Company determines the fair value of the reporting unit, as a whole, using a discounted cash flow analysis, which requires significant assumptions and estimates about future operations. The assumptions about future cash flows and growth rates are based on our current budget for the remainder of the current year, 2018 and for future periods, as well as our strategic plans and management’s beliefs about future exploration and development in the industry. Changes in management's forecast commodity price assumptions may cause us to reassess our goodwill for impairment, and could result in non-cash impairment charges in the future.