Goodwill and Other Intangibles

Goodwill

The carrying amounts for goodwill and changes in the carrying value were as follows:



(in thousands)	For the Year Ended December 31,
							2015			2014
	2017			2016			(Restated)			(Restated)
Balance at beginning of year, net	$	29,835		$	29,835		$	23,414		$	—
Acquisitions	—			—			18,054			23,414
Impairment losses	—			—			(11,633		)	—
Balance at end of year, net	$	29,835		$	29,835		$	29,835		$	23,414
Accumulated impairment losses	$	(11,633	)	$	(11,633	)	$	—		$	—

During 2015, the Company’s 3PI reporting unit was impacted by depressed oil and gas prices and lower demand from existing customers, which contributed to continued sales and profitability reductions over historic experience and prior forecasts. In the fourth quarter of 2015, the Company performed its annual impairment assessment, utilizing the income approach, based on discounted cash flows derived from internal forecasts and the Company's specific risk premium. It was determined that the carrying value of the 3PI reporting unit, including goodwill, exceeded its fair value. As a result, the Company compared the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill, which resulted in the recognition of an impairment charge of $11.6 million. See Note 2. Restatement of Previously Issued Consolidated Financial Statements for additional information.

Other Intangible Assets

Components of intangible assets are as follows:



(in thousands, except weighted-average useful life)		As of December 31, 2017
	Weighted-Average Useful Life (in years)		Gross Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	10.0		$	34,940	$	(14,915	)	$	20,025
Developed technology	4.2		1,000		(434		)	566
Trade names and trademarks	6.1		1,700		(800		)	900
Total			$	37,640	$	(16,149	)	$	21,491



(in thousands, except weighted-average useful life)		As of December 31, 2016
	Weighted-Average Useful Life (in years)		Gross Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	10.8		$	34,940	$	(10,430	)	$	24,510
Developed technology	8.3		700		(287		)	413
Trade names and trademarks	6.8		1,700		(594		)	1,106
Total			$	37,340	$	(11,311	)	$	26,029



(in thousands, except weighted-average useful life)	As of December 31, 2015
	Weighted-Average Useful Life (in years)	Gross Carrying Value		Accumulated Amortization			Net Book Value
		(Restated)		(Restated)			(Restated)
Backlog		$	1,800	$	(1,800	)	$	—
Customer relationships	11.5	34,940		(5,129		)	29,811
Developed technology	8.2	700		(113		)	587
Trade names and trademarks	7.5	1,700		(353		)	1,347
Total		$	39,140	$	(7,395	)	$	31,745



(in thousands, except weighted-average useful life)	As of December 31, 2014
	Weighted-Average Useful Life (in years)	Gross Carrying Value		Accumulated Amortization			Net Book Value
		(Restated)		(Restated)			(Restated)
Backlog	1.0	$	1,200	$	(1,095	)	$	105
Customer relationships	21.0	20,400		(926		)	19,474
Trade names and trademarks	8.3	1,700		(87		)	1,613
Total		$	23,300	$	(2,108	)	$	21,192

Amortization expense was classified as follows in the Consolidated Statements of Operations:



(in thousands)	For the Year Ended December 31,
					2015		2014
	2017		2016		(Restated)		(Restated)
Cost of sales	$	—	$	—	$	705	$	1,095
Operating expenses	4,838		5,716		4,582		1,013
Total	$	4,838	$	5,716	$	5,287	$	2,108

Estimated future amortization expense for intangible assets as of December 31, 2017 is as follows:



(in thousands)
Year Ending December 31,	Estimated Amortization
2018	$	4,227
2019	3,698
2020	3,113
2021	2,594
2022	2,184
2023 and beyond	5,675
Total	$	21,491