Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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 evaluate at least annually whether it is impaired. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds its estimated fair value. We conduct our annual assessment of the recoverability of goodwill as of December 31 of each year and more frequently if events and circumstances indicate that goodwill might be impaired. The change in carrying value of goodwill allocated to our reportable segments during the nine months ended September 30, 2023 was as follows:


	Pressure Control		Spoolable Technologies		Total
Balance at December 31, 2022	$	7,824	$	—	$	7,824
FlexSteel acquisition	—		192,899		192,899

Balance at September 30, 2023	$	7,824	$	192,899	$	200,723

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


	Gross Cost		Accumulated Amortization		Net Cost
Customer relationships	$	100,300	$	(3,901)	$	96,399
Developed technology	77,000		(4,492)		72,508
Tradename	16,000		(933)		15,067
Backlog	7,000		(7,000)		—
Total	$	200,300	$	(16,326)	$	183,974

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 nine months ended September 30, 2023 was $4.0 million and $16.3 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	$	3,997
2024	15,987
2025	15,987
2026	15,987
2027	15,987
2028	15,987
Thereafter	100,042
Total	$	183,974