Goodwill and Intangible Assets
|9 Months Ended|
Sep. 30, 2022
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Goodwill and Intangible Assets||Goodwill and Intangible Assets
Changes in the net carrying amount of goodwill by reporting segment (see Note 19) for the nine months ended September 30, 2022 and year ended December 31, 2021 are presented below (in thousands):
The Company performed the qualitative assessment described above during the fourth quarter of 2021. Based on this assessment, the Company concluded that it was more likely than not that the fair value of the Stingray Pressure Pumping, Silverback and Aviation reporting units was greater than their carrying value. Accordingly, no further testing was required on these units. Additionally, the Company concluded that the carrying value for its infrastructure reporting unit was greater than its fair value. To determine fair value of the infrastructure reporting unit at December 31, 2021, the Company used the income approach. The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital. As a result, the Company impaired goodwill associated with 5 Star and Higher Power, resulting in a $0.9 million impairment charge for 2021. The Company did not recognize any goodwill impairment during the three and nine months ended September 30, 2022.
The Company had the following definite lived intangible assets recorded (in thousands):
Amortization expense for intangible assets was $0.2 million, and $0.6 million for the three and nine months ended September 30, 2022, respectively, and $0.2 million and $0.8 million for the three and nine months ended September 30, 2021, respectively. The original life of trade names ranges from 10 to 20 years as of September 30, 2022 with a remaining average useful life of 3.4 years.
Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef