XML 11 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Impairment of Fixed and Long-lived Assets | 3 Months Ended
--- | ---
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Impairment of fixed and long-lived assets | Impairment of Fixed and Long-lived Assets During the first quarter 2020, the price of crude oil declined by over 50%, trading below $25 per barrel, causing a significant disruption across the industry, which began to negatively impact the Company’s results of operations. These declines of results of operations were driven by an oversupply of oil, insufficient storage, and demand destruction resulting from the reaction to COVID-19. Based on these factors, the Company concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020. As of March 31, 2020, the Company had one single reporting unit, ECT (“Asset Group”), which has historically been identified for purposes of long-lived asset impairment assessments. The Company identified the patents and technology as the primary asset within the Asset Group. Management considered the existing formulation/intellectual property portfolio to be the primary cash generating long-lived asset being amortized, given the specialty nature of their use and applications for the oil and gas industry. The formulations are designed to maximize recovery in both new and mature fields. Management believes the formulations are the primary reason for maintaining existing customer relationships, as well as establishing new customers. The first step in the impairment test is to determine whether the Asset Group is recoverable. Using the income approach, the fair value of the Asset Group was determined based on the present value of future cash flows. The Company utilized internal forecast trends and potential growth rates to estimate future cash flows of the Asset Group. Based on the results of the quantitative assessment, the Company concluded the carrying value of the Asset Group exceeded its fair value as of March 31, 2020 and an impairment loss of $57.5 million was recorded as a result of the adverse effect of the COVID-19 pandemic and the related impact on oil and natural gas prices on projections of future cash flows. The Company recorded impairment charges during the three months ended March 31, 2020 as follows (in thousands):
Property and equipment, net | $ | 30,178 |
Operating lease right-of-use assets | 7,434 |
Other Intangibles: |
Patents | 9,902 |
Customer Lists | 9,165 |
Intangibles assets in progress | 596 |
Trademarks and brand names | 179 |
Total Other Intangibles | 19,842 |
Total Long-lived Assets | $ | 57,454 |

X
- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
Name: | us-gaap_AssetImpairmentChargesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration