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Goodwill and intangible assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill The changes in the carrying amount of goodwill from January 1, 2015 to December 31, 2016, were as follows (in thousands):
| Drilling & Subsea | Completions | Production & Infrastructure | Total
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
Goodwill Balance at January 1, net | $ | 334,595 |  | $ | 472,891 |  | $ | 316,914 |  | $ | 307,448 |  | $ | 17,527 |  | $ | 18,142 |  | $ | 669,036 |  | $ | 798,481 |
Acquisitions, net of dispositions | — |  | — |  | — |  | 13,977 |  | — |  | — |  | — |  | 13,977 |
Impairment | — |  | (123,200 | ) | — |  | — |  | — |  | — |  | — |  | (123,200 | )
Impact of non-U.S. local currency translation | (17,189 | ) | (15,096 | ) | 779 |  | (4,511 | ) | 117 |  | (615 | ) | (16,293 | ) | (20,222 | )
Goodwill Balance at December 31, net | $ | 317,406 |  | $ | 334,595 |  | $ | 317,693 |  | $ | 316,914 |  | $ | 17,644 |  | $ | 17,527 |  | $ | 652,743 |  | $ | 669,036 |
Goodwill and intangible assets with indefinite lives are assessed for impairment annually or whenever an event indicating impairment may have occurred. During the year ended December 31, 2015, the Company elected to change the date of the Company's annual assessments of goodwill and indefinite lived intangible assets impairment from December 31 to October 1. This was a change in method of applying an accounting principle, which management believed was a preferable alternative as it better aligned the timing of the assessment with our planning and forecasting process and alleviated constraints on accounting resources during our annual reporting process. The change in the assessment date did not delay, accelerate, or avoid a potential impairment charge. At October 1, 2016, the Company performed its annual impairment test on each of the reporting units and concluded that there had been no impairment because the estimated fair values of each of those reporting units exceeded its carrying value. Relevant events and circumstances which could have a negative impact on goodwill include: macroeconomic conditions; industry and market conditions, such as commodity prices; operating cost factors; overall financial performance; the impact of dispositions and acquisitions; and other entity-specific events. Further declines in commodity prices or sustained lower valuation for the Company's common stock could indicate a reduction in the estimate of reporting unit fair value which, in turn, could lead to an impairment of reporting unit goodwill. After October 1, 2015, the Company continued to monitor events and circumstances which could have a negative impact on estimates of reporting unit fair value. Commodity prices had remained at low levels and the active rig count had continued to decline resulting in a significant decline in the Company’s market capitalization. While the Company incorporated a downturn into its forecasts in this October 1 annual test, several factors occurred late in the fourth quarter of 2015 that indicated an occurrence of further declines in market activity. These factors included: 1) the OPEC confirmed that its members would not reduce production even in the face of low commodity prices and excess global oil supply; 2) oil prices declined further; 3) a consensus expectation developed that oil prices would stay lower for longer than previously expected; 4) exploration and production companies significantly decreased their budgets as the demand for oil and natural gas was lower and production was significantly less economical for them; and 5) macroeconomic concerns developed regarding a slowdown in the global economy. Due to this further deterioration of market conditions for our products, the Company performed an impairment test on all six reporting units. The Company identified and recorded an impairment charge of $123.2 million for its Subsea reporting unit for the year ended December 31, 2015. Following the impairment charge, at December 31, 2015, our Subsea reporting unit had a remaining balance of $73 million in goodwill. The fair values were determined using the net present value of the expected future cash flows for each reporting unit. During the Company’s goodwill impairment analysis, the Company determines the fair value of each of its reporting units as a whole using a discounted cash flow analysis, which requires significant assumptions and estimates about the future operations of each reporting unit. The assumptions about future cash flows and growth rates are based on our current budget for 2017 and for future periods, as well as our strategic plans and management’s beliefs about future activity levels. The discount rate we used for future periods could change substantially if the cost of debt or equity were to significantly increase or decrease, or if we were to choose different comparable companies in determining the appropriate discount rate for our reporting units. Forecasted cash flows in future periods were estimated using a terminal value calculation, which considered long-term earnings growth rates. Accumulated impairment losses on goodwill were $168.8 million, $168.8 million and $45.6 million as of December 31, 2016, 2015, and 2014, respectively. There was no impairment of goodwill during the year ended December 31, 2016 and 2014, respectively. Intangible assets At December 31, 2016 and 2015, intangible assets consisted of the following, respectively (in thousands):
| December 31, 2016
| Gross carrying amount |  | Accumulated amortization |  | Net amortizable intangibles |  | Amortization period (in years)
Customer relationships | $ | 270,586 |  |  | $ | (115,381 | ) |  | $ | 155,205 |  |  | 4-15
Patents and technology | 33,936 |  |  | (12,225 | ) |  | 21,711 |  |  | 5-17
Non-compete agreements | 6,230 |  |  | (5,594 | ) |  | 636 |  |  | 3-6
Trade names | 44,494 |  |  | (17,944 | ) |  | 26,550 |  |  | 10-15
Distributor relationships | 22,160 |  |  | (15,074 | ) |  | 7,086 |  |  | 8-15
Trademark | 5,230 |  |  | — |  |  | 5,230 |  |  | Indefinite
Intangible Assets Total | $ | 382,636 |  |  | $ | (166,218 | ) |  | $ | 216,418 |  |  |
| December 31, 2015
| Gross carrying amount |  | Accumulated amortization |  | Net amortizable intangibles |  | Amortization period (in years)
Customer relationships | $ | 280,297 |  |  | $ | (101,636 | ) |  | $ | 178,661 |  |  | 4-15
Patents and technology | 34,140 |  |  | (10,264 | ) |  | 23,876 |  |  | 5-17
Non-compete agreements | 7,269 |  |  | (6,292 | ) |  | 977 |  |  | 3-6
Trade names | 45,446 |  |  | (15,890 | ) |  | 29,556 |  |  | 10-15
Distributor relationships | 22,160 |  |  | (13,810 | ) |  | 8,350 |  |  | 8-15
Trademark | 5,230 |  |  | — |  |  | 5,230 |  |  | Indefinite
Intangible Assets Total | $ | 394,542 |  |  | $ | (147,892 | ) |  | $ | 246,650 |  |  |
Intangible assets with definite lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. During the year ended December 31, 2015, an impairment loss of $1.9 million was recorded on certain intangible assets within the Drilling and Subsea segment. The impaired intangible assets included trade names that were no longer in use and is recorded under "Impairment of intangible assets and goodwill" in the consolidated statement of comprehensive income (loss). No indicators of intangible asset impairment occurred during the years ended December 31, 2016 and 2014. Amortization expense was $26.1 million, $27.3 million and $27.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. The total weighted average amortization period is 14 years and the estimated future amortization expense for the next five years is as follows (in thousands):
Year ending December 31, |  |
2017 |  | $ | 26,647 |
2018 |  | 26,556 |
2019 |  | 26,207 |
2020 |  | 24,295 |
2021 |  | 23,730 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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