Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [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, 2014 and December 31, 2014 (in millions):



	Infrastructure Solutions			Corrosion Protection			Energy Services			Total
Beginning balance at January 1, 2014	$	195,570		$	75,862		$	77,248		$	348,680
Adjustments to goodwill ⁽¹⁾⁽²⁾	1,098			—			(1,000		)	98
Impairments ⁽³⁾	(16,069		)	(35,443		)	—			(51,512		)
Foreign currency translation	(3,324		)	(919		)	—			(4,243		)
Goodwill at December 31, 2014	$	177,275		$	39,500		$	76,248		$	293,023

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⁽¹⁾	During the second quarter of 2014, the Company recorded goodwill of $1.1 million related to the 2012 acquisition of Fyfe Asia (see Note 1).


⁽²⁾	During the fourth quarter of 2014, the Company decreased goodwill by $1.0 million related to the 2013 acquisition of Brinderson (see Note 1).


⁽³⁾	During the fourth quarter of 2014, the Company recorded a goodwill impairment to its Fyfe reporting unit of $16.1 million, which is included in the Infrastructure Solutions reportable segment, and goodwill impairments to its Bayou and CRTS reporting units of $29.7 million and $5.7 million, respectively, which are included in the Corrosion Protection reportable segment (see Note 2).

Intangible Assets

Intangible assets at December 31, 2014 and 2013 were as follows (in thousands):



	December 31, 2014								December 31, 2013
	Weighted Average Useful Lives (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
License agreements	5	$	3,908	$	(3,131	)	$	777	$	3,917	$	(2,977	)	$	940
Backlog	0	4,731		(4,731		)	—		4,745		(4,745		)	—
Leases	12	2,067		(623		)	1,444		2,067		(477		)	1,590
Trademarks	16	21,722		(5,199		)	16,523		21,394		(4,167		)	17,227
Non-competes	4	1,140		(839		)	301		1,140		(753		)	387
Customer relationships ⁽¹⁾⁽²⁾	13	163,386		(32,196		)	131,190		182,703		(28,287		)	154,416
Patents and acquired technology ⁽³⁾	16	54,090		(22,052		)	32,038		57,419		(22,696		)	34,723
		$	251,044	$	(68,771	)	$	182,273	$	273,385	$	(64,102	)	$	209,283

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⁽¹⁾	During the third quarter of 2014, the Company recorded an intangible asset impairment of $10.9 million related to realignment efforts at Bayou (see Note 2).


⁽²⁾	During the fourth quarter of 2014, the Company recorded an intangible asset impairment of $1.4 million related to Fyfe (see Note 2).


⁽³⁾	During the fourth quarter of 2014, the Company wrote off approximately $2.7 million in patents primarily related to Europe and in connection with the 2014 Restructuring Plan (see Note 3).

Amortization expense was $14.1 million, $12.2 million and $10.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Estimated amortization expense by year is as follows (in thousands):



2015	$	13,443
2016	13,454
2017	13,399
2018	13,320
2019	13,149

- 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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