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3. GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

The Company’s accounting policy is to perform an annual impairment test in the fourth quarter or more frequently whenever events or circumstances indicate that the carrying value of intangible assets may not be recoverable. On a quarterly basis, we monitor the key drivers of fair value to detect the existence of indicators or changes that would warrant an interim impairment test for our intangible assets. Goodwill was fully impaired in the second quarter of 2014 with a non-cash charge of $5.8 million. The Company performed an assessment of its proprietary chemical formulas in the quarter ended June 30, 2015 because of initiatives throughout the organization to reduce the number of active stock keeping units. Upon completion of the assessment and impairment testing, it was determined that the fair value of formulas was lower than the net book value, resulting in an impairment charge of $0.2 million for the quarter ended June 30, 2015.

 

As described above, on October 15, 2015 at the Company's Annual Meeting of Stockholders, the sale of  the stock of the Company's wholly owned U.S. subsidiary Swisher International, Inc. and other assets relating to its U.S. operations, which comprise all of the Company’s remaining operating interests, to Ecolab was approved, and the Sale Transaction was completed on November 2, 2015, with an effective date of November 1, 2015. As a result of the Sale Transaction, the Company performed an impairment analysis of its long-lived assets in accordance with ASC 360-10, Impairment or Disposal of Long-Lived Assets, and ASC 350, Intangible-Goodwill and Other, as of August 31, 2015. Based on the analysis performed, it was determined that an impairment of the Company’s intangible assets had occurred, resulting in an impairment charge of $10.0 million.

 

Amortization expense on finite lived intangible assets for the three months ended September 30, 2015 and 2014 was $1.6 and $1.9 million, respectively, and for the nine months ended September 30, 2015 and 2014 was $4.9 million and $5.0 million, respectively.