GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows:



	U.S. Rig Services		Fluid Management Services		Coiled Tubing Services			Fishing and Rental Services		International		Total
	(in thousands)
December 31, 2014	$	297,719	$	24,479	$	82,695		$	173,463	$	4,383	$	582,739
Goodwill impairment	—		—		(21,700		)	—		—		(21,700		)
June 30, 2015	$	297,719	$	24,479	$	60,995		$	173,463	$	4,383	$	561,039

The components of our other intangible assets as of June 30, 2015 and December 31, 2014 are as follows:



	June 30, 2015			December 31, 2014
	(in thousands)
Noncompete agreements:
Gross carrying value	$	2,269		$	2,269
Accumulated amortization	(1,860		)	(1,710		)
Net carrying value	409			559
Patents, trademarks and tradenames:
Gross carrying value	3,129			3,106
Accumulated amortization	(283		)	(263		)
Net carrying value	2,846			2,843
Customer relationships and contracts:
Gross carrying value	59,079			59,045
Accumulated amortization	(53,571		)	(52,303		)
Net carrying value	5,508			6,742
Developed technology:
Gross carrying value	8,494			8,494
Accumulated amortization	(4,340		)	(4,138		)
Net carrying value	4,154			4,356
Customer backlog:
Gross carrying value	779			779
Accumulated amortization	(779		)	(779		)
Net carrying value	—			—
Total:
Gross carrying value	73,750			73,693
Accumulated amortization	(60,833		)	(59,193		)
Net carrying value	$	12,917		$	14,500

Of our intangible assets at June 30, 2015, $2.7 million are indefinite-lived tradenames and patents which are not subject to amortization. The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows:



	Weighted average remaining amortization period (years)	Expected Amortization Expense
	Weighted average remaining amortization period (years)	Remainder of 2015		2016		2017		2018		2019		2020
		(in thousands)
Noncompete agreements	1.3	$	149	$	260	$	—	$	—	$	—	$	—
Trademarks	2.9	20		40		40		17		—		—
Customer relationships and contracts	3.6	1,237		1,876		1,392		431		341		231
Developed technology	15.5	199		398		398		398		324		221
Total expected intangible asset amortization expense		$	1,605	$	2,574	$	1,830	$	846	$	665	$	452

Certain of our other intangible assets are denominated in Russian Rubles and, as such, the values of these assets are subject to fluctuations associated with changes in exchange rates. Amortization expense for our intangible assets was $0.8 million and $2.6 million for the three months ended June 30, 2015 and 2014, respectively, and $1.6 million and $5.2 million for the six months ended June 30, 2015 and 2014, respectively.

We perform an analysis of goodwill impairment on an annual basis unless an event occurs that triggers additional interim testing. The decline in market value of our stock during the fourth quarter of 2014 was determined to be a triggering event making it necessary to perform the first step of the goodwill impairment test for our U.S. Rig Services, Coiled Tubing Services, Fishing and Rental Services and Fluid Management Services segments. Based on the results of our step one analysis, the fair value of our U.S. Rig Services, Fluid Management Services and Fishing and Rental Services segments exceeded their carrying values, but the analysis indicated potential impairment in our Coiled Tubing Services segment. Step two of the goodwill impairment testing for the Coiled Tubing Services segment was performed preliminarily during the fourth quarter of 2014 and our analysis concluded that $19.1 million of goodwill was impaired. During the first quarter of 2015, we engaged outside consultants to assist us in finalizing our step two testing. Based on the additional analysis performed, we concluded that there was an additional $21.7 million of goodwill that was impaired.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details