Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible AssetsGoodwill 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 six months ended June 30, 2023 was as follows:

	Pressure Control		Spoolable Technologies		Total
Balance at December 31, 2022	$	7,824	$	—	$	7,824
FlexSteel acquisition	—		194,982		194,982
Balance at June 30, 2023	$	7,824	$	194,982	$	202,806

The following table presents the detail of acquired intangible assets other than goodwill as of June 30, 2023:

	Gross Cost		Accumulated Amortization		Net Cost
Customer relationships	$	100,300	$	(2,229)	$	98,071
Developed technology	77,000		(2,567)		74,433
Tradename	16,000		(533)		15,467
Backlog	7,000		(7,000)		—
Total	$	200,300	$	(12,329)	$	187,971

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 and six months ended June 30, 2023 was $8.7 million and $12.3 million, respectively, and was recorded in SG&A expenses in the consolidated statements of income. Estimated future amortization expense is as follows:

Remainder of 2023	$	7,994
2024	15,987
2025	15,987
2026	15,987
2027	15,987
2028	15,987
Thereafter	100,042
Total	$	187,971