5.	GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of purchase price over the assigned fair values of the assets and liabilities assumed in conjunction with an acquisition. As discussed in Note 1, goodwill is reviewed for impairment annually at December 31 or whenever events occur or circumstances change that indicate goodwill may be impaired.

Goodwill related to the Company’s Water Transmission Group of $5.3 million was quantitatively evaluated with consideration of the income and market approaches as applicable. Due to Water Transmission market conditions in 2015, the Company determined that its Water Transmission Group goodwill was impaired at June 30, 2015, and was completely written off in the second quarter of 2015.

Goodwill related to the Company’s Tubular Products Group of $16.1 million was quantitatively evaluated with consideration of the income and market approaches as applicable. Due to negative impacts on our Tubular Products business as a result of the worldwide turmoil in crude oil markets, which became significant in the fourth quarter of 2014, we concluded that there was no implied fair value of the Tubular Products Group goodwill and that it should be completely written off as of December 31, 2014. The Company had allocated $4.4 million of goodwill to the two OCTG plants disposed in March 2014, and recorded the related write-off of that goodwill as part of the loss on sale of business in the Company’s consolidated statement of operations.

Goodwill assigned to the Company’s Water Transmission and Tubular Products Groups is as follows (in thousands):

	Water Transmission			Tubular Products			Total

Goodwill balance, December 31, 2012	$	-		$	20,478		$	20,478
Additions		5,282			-			5,282
Goodwill balance, December 31, 2013		5,282			20,478			25,760
Adjustment for the sale of OCTG business		-			(4,412	)		(4,412	)
Impairment adjustment		-			(16,066	)		(16,066	)
Goodwill balance, December 31, 2014		5,282			-			5,282
Impairment adjustment		(5,282	)		-			(5,282	)
Goodwill balance, December 31, 2015	$	-		$	-		$	-

Intangible Assets

Intangible assets consist of the following at December 31, 2015 (in thousands):

	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net		Remaining Weighted-Average Amortization Period (in years)

Customer relationships	$	1,378	$	(275	)	$	1,103		8.0
Patents		1,162		(465	)		697		3.0
Trade names and trademarks		1,132		(151	)		981		13.0
Other (1)		295		(155	)		140		2.0
Total	$	3,967	$	(1,046	)	$	2,921		8.2

(1)

Other intangibles consist of favorable lease contracts and non-compete agreements

The Company recorded amortization expense of $0.5 million, $0.5 million and zero in 2015, 2014 and 2013, respectively. The estimated amortization expense for the next five fiscal years is as follows (in thousands):

2016	$	523
2017		495
2018		459
2019		213
2020		213
Thereafter		1,018
	$	2,921