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Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible Assets
The gross carrying amount and accumulated amortization of intangible assets as of September 30, 2021 and December 31, 2020 was as follows:
September 30, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Amortization Period
(in thousands, except weighted average amortization period information)
Customer relationships$63,270 $(43,484)$19,786 5.3
Non-compete agreements6,500 (5,666)834 2.1
Technology125,110 (26,418)98,692 11.9
In-process research and development1,000 — 1,000 Indefinite
Total$195,880 $(75,568)$120,312 
December 31, 2020
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Amortization Period
(in thousands, except weighted average amortization period information)
Customer relationships$63,270 $(38,084)$25,186 5.5
Non-compete agreements6,500 (5,366)1,134 2.8
Technology125,110 (19,906)105,204 12.7
In-process research and development1,000 — 1,000 Indefinite
Total$195,880 $(63,356)$132,524 
Amortization of intangibles expense was $4.0 million and $12.2 million for the three and nine months ended September 30, 2021, respectively. Amortization of intangibles expense was $4.1 million and $12.4 million for the three and nine months ended September 30, 2020, respectively.
Future estimated amortization of intangibles is as follows:
Year Ending December 31,(in thousands)
2021$3,904 
202213,463 
202311,516 
202411,183 
202511,183 
202611,082 
Thereafter56,981 
Total$119,312 
Q1 2020 Goodwill Impairment
With a significant reduction in exploration and production capital budgets and activity, primarily driven by sharp declines in global crude oil demand and an economic recession associated with the coronavirus pandemic, as well as sharp declines in oil and natural gas prices, the outlook for expected future cash flows associated with the Company’s reporting units decreased dramatically in the first quarter of 2020.
Based on these events, an indication of impairment associated with the Company’s reporting units occurred, triggering an interim goodwill impairment test of the Level 3 fair value of each reporting unit under Accounting Standards Codification 350, Intangibles - Goodwill and Other (“ASC 350”) at March 31, 2020.
As such, based on its Level 3 fair value determination in connection with the interim goodwill impairment test under ASC 350, the Company recorded goodwill impairment charges of $296.2 million in the first quarter of 2020 associated with its tools, cementing, and wireline reporting units. These charges represented a full write-off of goodwill and were due to the events described above, coupled with an increased weighted average cost of capital driven by a reduction in the Company’s stock price and the Level 2 fair value of its Senior Notes (as defined in Note 8 – Debt Obligations). These charges are included in the line item “Impairment of goodwill” in the Company’s Condensed Consolidated Statements of Income and Comprehensive Income (Loss) for the nine months ended September 30, 2020.