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10-K
KEY ENERGY SERVICES INC filed this Form 10-K on 02/28/2018
Entire Document
 
Key Energy Services, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)



NOTE 11.    GOODWILL AND OTHER INTANGIBLE ASSETS
The components of our other intangible assets as of December 31, 2017 and 2016 are as follows (in thousands):
 
December 31,
 
2017
 
2016
Gross carrying value
$
520

 
$
520

Accumulated amortization
(58
)
 

Net carrying value
$
462

 
$
520

 
Amortization expense for our intangible assets with determinable lives was as follows (in thousands):
 
Successor
 
 
Predecessor
Year Ended December 31, 2017
 
Period from December 16, 2016 through December 31, 2016
 
 
Period from January 1, 2016 through December 15, 2016
 
Year Ended December 31, 2015
Noncompete agreements
$

 
$

 
 
$
179

 
$
278

Patents and trademarks
58

 

 
 
40

 
40

Customer relationships and contracts

 

 
 
1,239

 
3,430

Developed technology

 

 
 
340

 
370

Total intangible asset amortization expense
$
58

 
$

 
 
$
1,798

 
$
4,118

The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows (in thousands):
 
Weighted
average remaining
amortization
period (years)
 
Expected Amortization Expense
2018
 
2019
 
2020
 
2021
 
2022
Trademarks
8.0
 
$
58

 
$
58

 
$
58

 
$
58

 
$
58

Total expected intangible asset amortization expense
 
 
$
58

 
$
58

 
$
58

 
$
58

 
$
58

As a result of the sale of our Enhanced Oilfield Technology business unit assets, we will no longer be using a certain developed technology patent. As a result, we fully impaired the $3.4 million patent in 2015. In addition, we will no longer use our Edge tradename. As a result, we fully impaired the $1.5 million tradename in 2015. Both the Edge tradename and Enhanced Oilfield Technology developed technology patent were part of our Fishing and Rental Services segment.
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 third quarter of 2015 as well as the persistent low oil prices and the affect that low oil prices have on our industry were also determined to be triggering events making it necessary to perform testing for possible goodwill impairment for our U.S. Rig Services, Coiled Tubing Services, Fishing and Rental Services, Fluid Management Services and International segments. Our analysis concluded that the remaining $561.0 million of goodwill of these segments was fully impaired. Also, during our goodwill analysis, there was an indication of impairment of fixed assets in our Coiled Tubing Services segment. See “Note 10. Property and Equipment,” for further discussion.

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