Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, and the Company does not aggregate reporting units for purposes of impairment testing. The following table shows changes to our goodwill balances by segment from December 31, 2016, to March 25, 2017: (Thousands) Oil Business Environmental Services Total Goodwill at January 2, 2016 Gross carrying amount $ 3,952 $ 30,325 $ 34,277 Accumulated impairment loss (3,952 ) — (3,952 ) Net book value at January 2, 2016 $ — $ 30,325 $ 30,325 Acquisitions — 1,158 1,158 Goodwill at December 31, 2016 Gross carrying amount 3,952 31,483 35,435 Accumulated impairment loss (3,952 ) — (3,952 ) Net book value at December 31, 2016 $ — $ 31,483 $ 31,483 Measurement period adjustments — 90 — Goodwill at March 25, 2017 Gross carrying amount 3,952 31,573 35,525 Accumulated impairment loss (3,952 ) — (3,952 ) Net book value at March 25, 2017 $ — $ 31,573 $ 31,573 Following is a summary of software and other intangible assets: March 25, 2017 December 31, 2016 (Thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 23,046 $ 7,222 $ 15,824 $ 23,045 $ 6,682 $ 16,363 Software 4,604 3,713 891 4,573 3,655 918 Non-compete agreements 2,935 2,280 655 2,934 2,180 754 Patents, formulae, and licenses 1,769 591 1,178 1,769 576 1,193 Other 1,348 800 548 1,348 755 593 Total software and intangible assets $ 33,702 $ 14,606 $ 19,096 $ 33,669 $ 13,848 $ 19,821 Amortization expense was $0.8 million for the first quarter ended March 25, 2017 and $0.8 million for first quarter ended March 26, 2016 . The weighted average useful lives of software; customer & supplier relationships; patents, formulae, and licenses; non-compete agreements, and other intangibles were 9 years, 10 years, 15 years, 5 years, and 6 years, respectively. The expected amortization expense for the remainder of fiscal 2017 and for fiscal years 2018, 2019, 2020, and 2021 is $2.5 million , $3.0 million , $2.6 million , $2.5 million , and $2.4 million , respectively. The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, disposal of intangible assets, accelerated amortization of intangible assets, and other events. |