GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS.

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 8—GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is evaluated for impairment on at least an annual basis, or more frequently if indicators of impairment exist. The annual impairment tests are based on Level 3 inputs (see Note 12). During the first quarter of 2020, the Company had triggering events in connection with the resulting significant adverse change to the demand for the Company’s services in connection with a significant decline in the price of oil and the related global economic impacts resulting from the OPEC+ disputes with increasing oil supply as well as the COVID-19 pandemic. This included uncertainty regarding oil prices and the length of the recovery following the significant market disruption in the oil and gas industry. As a result, the Company performed quantitative tests for reporting units in both the Water Services and Water Infrastructure segments using the income and market approaches, resulting in a full impairment to goodwill in both segments. The changes in the carrying amounts of goodwill by reportable segment as of June 30, 2020 and December 31, 2019 are as follows:

	Water		Water
	Services		Infrastructure		Total
Balance as of December 31, 2019		186,468		80,466		266,934
Impairment		(186,468)		(80,466)		(266,934)
Balance as of June 30, 2020	$	—	$	—	$	—

The components of other intangible assets, net as of June 30, 2020 and December 31, 2019 are as follows:

	As of June 30, 2020								As of December 31, 2019
	Gross				Accumulated		Net		Gross		Accumulated		Net
	Value		Impairment		Amortization		Value		Value		Amortization		Value
	(in thousands)								(in thousands)
Definite-lived
Customer relationships	$	116,554	$	—	$	(24,768)	$	91,786	$	116,554	$	(20,233)	$	96,321
Patents		9,741		—		(2,679)		7,062		10,110		(2,420)		7,690
Other		7,234		—		(5,712)		1,522		7,234		(4,766)		2,468
Total definite-lived		133,529		—		(33,159)		100,370		133,898		(27,419)		106,479
Indefinite-lived
Water rights		7,031		—		—		7,031		7,031		—		7,031
Trademarks		23,442		(9,082)		—		14,360		23,442		—		23,442
Total indefinite-lived		30,473		(9,082)		—		21,391		30,473		—		30,473
Total other intangible assets, net	$	164,002	$	(9,082)	$	(33,159)	$	121,761	$	164,371	$	(27,419)	$	136,952

Due to the triggering events discussed above, the Company tested all intangible assets for impairment during the first quarter of 2020. This resulted in $9.1 million of impairment to trademarks using the relief from royalty method, which was recorded in the Oilfield Chemicals segment.

The weighted average amortization period for customer relationships, patents, and other definite lived assets was 10.2 years, 7.3 years, and 2.3 years, respectively, as of June 30, 2020. See Note 7 for the amortization expense during the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. The indefinite lived water rights and trademarks are generally subject to renewal every five to ten years at immaterial renewal costs. Annual amortization of intangible assets for the next five years and beyond is as follows:

	Amount
	(in thousands)
Remainder of 2020	$	5,681
Year ending December 31, 2021		10,466
Year ending December 31, 2022		10,252
Year ending December 31, 2023		10,180
Year ending December 31, 2024		10,111
Thereafter		53,680
Total	$	100,370