Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price paid over the fair value of the net assets of acquired businesses. Goodwill is not amortized, but we perform an annual goodwill impairment test on December 31 and more frequently if events and circumstances indicate that the asset might be impaired. The change in carrying value of goodwill allocated to our reportable segments during the three months ended March 31, 2023 was as follows:

	Pressure Control		Spoolable Technologies		Total
Balance at December 31, 2022	$	7,824	$	—	$	7,824
FlexSteel acquisition	—		193,478		193,478
Balance at March 31, 2023	$	7,824	$	193,478	$	201,302

The following table presents the detail of acquired intangible assets other than goodwill as of March 31, 2023:

	Gross Cost		Accumulated Amortization		Net Cost
Customer relationships	$	100,300	$	(557)	$	99,743
Developed technology	77,000		(642)		76,358
Tradename	16,000		(134)		15,866
Backlog	7,000		(2,333)		4,667
Total	$	200,300	$	(3,666)	$	196,634

All intangible assets are amortized over their estimated useful lives. The weighted average amortization period for identifiable intangible assets acquired is 12 years. Amortization expense recognized during the three months ended March 31, 2023 was $3.7 million and was recorded in SG&A expenses in the statements of income. Estimated future amortization expense is as follows:

Remainder of 2023	$	16,657
2024	15,987
2025	15,987
2026	15,987
2027	15,987
2028	15,987
Thereafter	100,042
Total	$	196,634