Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the net carrying amount of goodwill by reporting segment (see Note 19) for the nine months ended September 30, 2020 and year ended December 31, 2019 are presented below (in thousands):


	Infrastructure		Pressure Pumping		Sand		Other		Total
Balance as of January 1, 2019
Goodwill	$	3,828	$	86,043	$	2,684	$	11,893	$	104,448
Accumulated impairment losses	—		—		—		(3,203)		(3,203)
	3,828		86,043		2,684		8,690		101,245
Acquisitions	—		—		—		—		—
Impairment losses	(434)		(23,423)		(2,684)		(7,123)		(33,664)
Balance as of December 31, 2019
Goodwill	3,828		86,043		2,684		11,893		104,448
Accumulated impairment losses	(434)		(23,423)		(2,684)		(10,326)		(36,867)
	3,394		62,620		—		1,567		67,581
Acquisitions	—		—		—		—		—
Impairment losses	—		(53,406)		—		(1,567)		(54,973)
Balance as of September 30, 2020
Goodwill	3,828		86,043		2,684		11,893		104,448
Accumulated impairment losses	(434)		(76,829)		(2,684)		(11,893)		(91,840)
	$	3,394	$	9,214	$	—	$	—	$	12,608

Oil prices declined significantly in March 2020 as a result of geopolitical events that increased the supply of oil in the market as well as effects of the COVID-19 pandemic. As a result, the Company determined that it was more likely than not that the fair value of certain of its reporting units were less than their carrying value. Therefore, the Company performed an interim goodwill impairment test. The Company impaired goodwill associated with Stingray Pressure Pumping, Silverback Energy and WTL Oil LLC, resulting in a $55.0 million impairment charge during the first quarter of 2020. To determine fair value, the Company used a combination of the income and market approaches. The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital. The market approach estimates the fair value using comparative multiples, which involves significant judgment in the selection of the appropriate peer group companies and valuation multiples.

Due to market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in the third quarter of 2019. As a result, the Company recognized impairment of goodwill totaling $3.2 million during the three months ended September 30, 2019

Intangible Assets

The Company had the following definite lived intangible assets recorded (in thousands):


	September 30,		December 31,
	2020		2019
Customer relationships	$	1,050	$	1,050
Trade names	9,063		9,063
Less: accumulated amortization - customer relationships	(598)		(467)
Less: accumulated amortization - trade names	(4,487)		(3,858)
Intangible assets, net	$	5,028	$	5,788

Amortization expense for intangible assets was $0.8 million for each of the nine months ended September 30, 2020 and 2019, respectively. The original life of customer relationships is 6 years as of September 30, 2020 with a remaining average useful life of 2.6 years. The original life of trade names ranges from 10 to 20 years as of September 30, 2020 with a remaining average useful life of 7.8 years.

Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):


Remainder of 2020	$	253
2021	1,015
2022	1,015
2023	898
2024	771
Thereafter	1,076
	$	5,028

Due to market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in the third quarter of 2019. As a result, the Company recognized impairment of non-contractual customer relationships totaling $0.1 million, which is included in impairment of other long-lived assets on the unaudited condensed consolidated statements of comprehensive income (loss).