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Note 15 - Goodwill

12 Months Ended

Dec. 31, 2021

15. Goodwill

Our reporting units are either our operating segments or components of our operating segments depending on the level at which segment management oversees the business. Prior to the Merger, Legacy Expro's reporting units included Europe and the Commonwealth of Independent States, Sub-Saharan Africa, MENA, Asia, North America and Latin America. During 2021, due to the Merger we changed our internal organization and reporting structure and as a result, our operating segments, NLA, ESSA, MENA and APAC, are also our reporting units. The allocation of goodwill by operating segment was as follows (in thousands):

	*December 31,*
	*2021*		*2020*
NLA	$	93,608	$	-
ESSA		66,283		14,504
MENA		3,331		-
APAC		16,681		11,000
Total	$	179,903	$	25,504

The following table provides the gross carrying amount and cumulative impairment expense of goodwill for each operating segment as of December 31, 2021 and 2020 (in thousands):

	*2021*									*2020*
	*Cost*		*Acquired in Merger*		*Accumulated impairment*			*Net Book Value*		*Cost*		*Additions*		*Accumulated impairment*			*Net Book Value*
NLA	$	37,341	$	93,608	$	(37,341	)	$	93,608	$	37,341	$	-	$	(37,341	)	$	-
ESSA		28,982		51,779		(14,478	)		66,283		28,982		-		(14,478	)		14,504
MENA		126,383		3,331		(126,383	)		3,331		126,383		-		(126,383	)		-
APAC		51,113		5,681		(40,113	)		16,681		51,113		-		(40,113	)		11,000
Total	$	243,819	$	154,399	$	(218,315	)	$	179,903	$	243,819	$	-	$	(218,315	)	$	25,504

No goodwill impairment expense was recognized during the year ended December 31, 2021. We recorded goodwill impairment expense of $191.9 million and $26.4 million for the years ended December 31, 2020 and 2019, respectively. Refer to Note 4 “Fair value measurements” for further details.

The following table summarizes our goodwill impairment expense by operating segment for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	*Year Ended December 31,*
	*2021*		*2020*		*2019*
NLA	$	-	$	25,397	$	11,944
ESSA		-		-		14,478
MENA		-		126,383		-
APAC		-		40,113		-
Total	$	-	$	191,893	$	26,422