Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE I—GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill (in thousands) by business segment consisted of the following:



	Oil & Gas Proppants Segment			Industrial & Specialty Products Segment			Totals
Balance at December, 2019	$	86,100		$	187,424		$	273,524
Impairment loss	(86,100		)	—			(86,100		)
EPM acquisition adjustment⁽¹⁾	—			(1,775		)	(1,775		)
Balance at March 31, 2020	$	—		$	185,649		$	185,649

⁽¹⁾ Adjustment was made in accordance with ASC 250 to correct an immaterial error to acquisition accounting. We reclassified $1.8 million between goodwill and deferred tax liabilities. There was no impact to the Condensed Consolidated Statements of Operations.

Goodwill and trade names are evaluated for impairment annually as of October 31, or more frequently when indicators of impairment exist. We evaluated events and circumstances since the date of our last qualitative assessment, including macroeconomic conditions, industry and market conditions, and our overall financial performance.

During the first quarter of 2020, there was an unprecedented drop in global demand combined with the breakdown of the OPEC+ agreement to restrict oil production that led to one of the largest annual crude oil inventory builds in history. This led to sharp reductions in global crude oil prices. Containment measures and other economic, travel, and business disruptions caused by COVID-19 also affected refinery activity and future demand for crude oil, and consequently, the services and products of our Oil & Gas Proppants Segment. As a result of these triggering events, we performed a quantitative analysis and determined that the goodwill of our Oil & Gas reporting unit was impaired. We recognized goodwill impairment charges of $86.1 million, which were recorded in "Goodwill and other asset impairments" in the Condensed Consolidated Statements of Operations.

The changes in the carrying amount of intangible assets (in thousands) consisted of the following:



	March 31, 2020									December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Impairments		Net		Gross Carrying Amount		Accumulated Amortization			Impairments			Net

Technology and intellectual property	$	86,676	$	(18,591	)	$	—	$	68,085	$	86,183	$	(17,080	)	$	—		$	69,103
Customer relationships	66,999		(19,577		)	—		47,422		68,599		(18,737		)	(1,240		)	48,622
Total definite-lived intangible assets:	$	153,675	$	(38,168	)	$	—	$	115,507	$	154,782	$	(35,817	)	$	(1,240	)	$	117,725
Trade names	65,390		—			—		65,390		65,390		—			—			65,390
Other	700		—			—		700		700		—			—			700
Total intangible assets:	$	219,765	$	(38,168	)	$	—	$	181,597	$	220,872	$	(35,817	)	$	(1,240	)	$	183,815

Estimated useful life of technology and intellectual property is 15 years. Estimated useful life of customer relationships is a range of 13 - 15 years.

Amortization expense was $2.7 million and $2.7 million for the three months ended March 31, 2020 and 2019, respectively.

The estimated amortization expense related to definite-lived intangible assets (in thousands) for the five succeeding years is as follows:



2020 (remaining nine months)	$	8,138
2021	10,848
2022	10,833
2023	10,828
2024	10,830