Mammoth Energy Services, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The Company had the following definite lived intangible assets recorded as of the dates presented below (in thousands):



	December 31,
	2018			2017
Customer relationships	$	2,255		$	35,795
Trade names	9,063			8,793
Less: accumulated amortization - customer relationships	(544		)	(26,172		)
Less: accumulated amortization - trade names	(3,018		)	(2,277		)
Intangible assets, net	$	7,756		$	16,139

Amortization expense for intangible assets was $8.7 million, $9.3 million and $9.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. The original lives of customer relationships range from 6 to 10 years with a remaining average useful life of 6.87 years. The original lives of trade names range from 10 to 20 years useful life and as of December 31, 2018 the remaining useful life was 8.97 years.

Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):



Year ended December 31:	Amount
2019	$	1,135
2020	1,135
2021	1,129
2022	1,108
2023	991
Thereafter	2,258
	$	7,756

Goodwill was $101.2 million and $99.8 million at December 31, 2018 and 2017, respectively. Changes in goodwill for the years ended December 31, 2018 and 2017 are set forth below (in thousands):



Balance, January 1, 2017	$	88,727
Additions:
2017 Stingray Acquisition	10,193
Higher Power Acquisition	643
5 Star Acquisition	248
Balance, December 31, 2017	99,811
Additions:
WTL Acquisition	1,567
RTS Acquisition	133
ARS Acquisition	694
Brim Equipment Assets Acquisition	2,243
Impairment	(3,203		)
Balance, December 31, 2018	$	101,245

During the year ended December 31, 2018, the Company moved Cementing's equipment from the Utica shale to the Permian basin. As a result, during the year ended December 31, 2018, the Company recognized impairment on Cementing's intangible assets, including goodwill, non-contractual customer relationships and trade name of $3.2 million, $1.0 million and $0.2 million, respectively. Additionally, the Company recognized impairment of trade name totaling $0.2 million related to the name change of Stingray Logistics to Silverback Energy.