Note 4 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table presents a reconciliation of the beginning and ending balances of the Company’s goodwill at January 1, 2013 and September 30, 2013 (in millions):



	Energy and Mining ⁽¹⁾⁽²⁾			North American Water and Wastewater		International Water and Wastewater			Commercial and Structural ⁽³⁾			Total
Beginning balance at January 1, 2013	$	76.7		$	101.9	$	28.1		$	65.6		$	272.3
Additions to goodwill through acquisitions	62.7			—		—			0.2			62.9
Foreign currency translation	(0.4		)	0.9		(1.0		)	(0.3		)	(0.8		)
Goodwill at end of period ⁽⁴⁾	$	139.0		$	102.8	$	27.1		$	65.5		$	334.4

__________________________

⁽¹⁾

During the second quarter of 2013, the Company approved a plan of liquidation with respect to BWW and, in connection therewith, recorded a write-down of the $1.4 million of goodwill associated with BWW, which operation now is reported as discontinued. Consequently, the goodwill associated with BWW is no longer included in this table. Additionally, all prior year balances have been retrospectively adjusted. For further information, see Note 9 contained within this report.


⁽²⁾	During 2013, the Company recorded an increase of goodwill of $62.7 million related to the Brinderson acquisition.


⁽³⁾	During 2013, the Company recorded an increase of goodwill of $0.2 million related to the Fyfe Asia acquisition.


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

Intangible Assets

Intangible assets at September 30, 2013 and December 31, 2012 were as follows (in thousands):



	As of September 30, 2013 ⁽¹⁾⁽²⁾								As of December 31, 2012
	Weighted Average Useful Lives (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
License agreements	7	$	3,921	$	(2,945	)	$	976	$	3,925	$	(2,821	)	$	1,104
Backlog	0	4,749		(4,749		)	—		4,756		(4,756		)	—
Leases	13	2,073		(436		)	1,637		2,067		(331		)	1,736
Trademarks	17	21,362		(4,091		)	17,271		21,290		(3,317		)	17,972
Non-competes	5	1,140		(731		)	409		710		(710		)	—
Customer relationships	14	182,774		(25,133		)	157,641		123,301		(18,912		)	104,389
Patents and acquired technology	18	59,890		(25,318		)	34,572		55,672		(21,244		)	34,428
		$	275,909	$	(63,403	)	$	212,506	$	211,721	$	(52,091	)	$	159,629

__________________________

(1)

During the second quarter of 2013, the Company approved a plan of liquidation with respect to BWW and, in connection therewith, recorded a write-down of the $2.5 million of intangible assets associated with BWW, which operation now is reported as discontinued. Consequently, the intangible assets and accumulated amortization associated with BWW are no longer included in this table. Additionally, all prior year balances have been retrospectively adjusted. For further information, see Note 9 contained within this report.


(2)	During the third quarter of 2013, the Company recorded $59.8 million in customer relationships to be amortized over a weighted average life of 15 years and $0.4 million in non-compete agreements to be amortized over a weighted average life of 5 years related to the acquisition of Brinderson, as discussion in Note 1 of this report.

Amortization expense was $3.6 million and $2.6 million for each of the quarters ended September 30, 2013 and 2012, respectively, and $8.8 million and $8.1 million for the nine-month periods ended September 30, 2013 and 2012, respectively. Estimated amortization expense by year is as follows (in thousands):



2013	$	12,476
2014	14,583
2015	14,590
2016	14,564
2017	14,543

- 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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