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Note 4 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets Disclosure [Text Block]

4. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Our recorded goodwill by reporting segment was as follows at June 30, 2011 and December 31, 2010 (in millions):

	June 30, 2011		December 31, 2010
Energy and Mining	$	75.9	$	57.5
North American Sewer Rehabilitation		102.0		103.3
European Sewer Rehabilitation		24.0		23.6
Asia-Pacific Sewer Rehabilitation		5.9		5.7
Total goodwill	$	207.8	$	190.1

The following table presents a reconciliation of the beginning and ending balances of the Company’s goodwill (in millions):

	June 30, 2011			December 31, 2010
Beginning balance (January 1, 2011 and 2010, respectively)(1)	$	190.1		$	188.6
Additions to goodwill through acquisitions(2)(3)		18.0			1.6
Foreign currency translation		(0.3	)		(0.1	)
Goodwill at end of period(4)	$	207.8		$	190.1

(1) During 2011, the Company revised previously reported goodwill balances related to foreign currency translation. As a result of this revision, goodwill as of January 1, 2010 was revised from the previously reported amount of $182.1 million to $188.6 million. See Note 2 for additional information.

(2) During 2010, the Company recorded goodwill of $1.6 million related to the acquisition of its licensee in Singapore.

(3) During 2011, the Company recorded goodwill of $18.0 million related to the acquisition of CRTS as discussed in Note 1.

(4) The Company does not have any accumulated impairment charges.

Intangible Assets

Intangible assets at June 30, 2011 and December 31, 2010 were as follows (in thousands):

			As of June 30, 2011							As of December 31, 2010
	Weighted Average Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

License agreements		9	$	3,928	$	(2,579	)	$	1,349	$	3,895	$	(2,465	)	$	1,430
Contract backlog		1		5,560		(3,010	)		2,550		3,010		(2,999	)		11
Leases		19		1,237		(120	)		1,117		1,237		(95	)		1,142
Trademarks and trade names		18		15,790		(1,650	)		14,140		14,400		(1,290	)		13,110
Non-compete agreements		5		2,015		(691	)		1,324		740		(589	)		151
Customer relationships		14		72,131		(8,181	)		63,950		53,307		(6,530	)		46,777
Patents and acquired technology		18		32,892		(16,493	)		16,399		25,495		(14,969	)		10,526
Total(1)			$	133,553	$	(32,724	)	$	100,829	$	102,084	$	(28,937	)	$	73,147

_____________________

(1) During 2011, the Company recorded $2.6 million in backlog to be amortized over the weighted average life of 1 year, $1.4 million in trademarks and trade names to be amortized over a weighted average life of 25 years, $1.3 million in non-compete agreements to be amortized over a weighted average life of 5 years, $18.6 million in customer relationships to be amortized over a weighted average life of 15 years and $5.5 million in patents and acquired technology to be amortized over a weighted average life of 20 years related to the acquisition of CRTS, as discussed in Note 1.

Amortization expense was $1.2 million and $1.6 million for the three months ended June 30, 2011 and 2010, respectively, and $2.4 million and $3.3 million for the six months ended June 30, 2011 and 2010, respectively.

Estimated amortization expense is as follows (in thousands):

2011	$	6,871
2012		7,626
2013		6,347
2014		6,347
2015		6,347

- 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.

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