Goodwill and Identified Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identified Intangible Assets

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

The following table presents a reconciliation of the beginning and ending balances of the Company’s goodwill at January 1, 2016 and June 30, 2016 (in thousands):



	Infrastructure Solutions			Corrosion Protection			Energy Services			Total
Balance, January 1, 2016
Goodwill, gross	$	190,525		$	73,345		$	80,246		$	344,116
Accumulated impairment losses	(16,069		)	(45,400		)	(33,527		)	(94,996		)
Goodwill, net	174,456			27,945			46,719			249,120
Acquisitions ⁽¹⁾	46,978			—			—			46,978
Foreign currency translation	347			778			—			1,125
Balance, June 30, 2016
Goodwill, gross	237,850			74,123			80,246			392,219
Accumulated impairment losses	(16,069		)	(45,400		)	(33,527		)	(94,996		)
Goodwill, net	$	221,781		$	28,723		$	46,719		$	297,223

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⁽¹⁾	During the first six months of 2016, the Company recorded goodwill of $43.8 million, $2.4 million and $0.7 million related to the acquisitions of Underground Solutions, Fyfe Europe and LMJ, respectively (see Note 1).

Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):



(in thousands)		June 30, 2016							December 31, 2015
	Weighted Average Useful Lives (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
License agreements ⁽¹⁾	9.5	$	4,451	$	(3,361	)	$	1,090	$	3,893	$	(3,275	)	$	618
Leases	11.1	2,065		(838		)	1,227		2,065		(764		)	1,301
Trademarks ⁽²⁾	14.1	24,124		(7,055		)	17,069		22,519		(6,262		)	16,257
Non-competes ⁽³⁾	2.1	1,316		(999		)	317		1,210		(945		)	265
Customer relationships ⁽⁴⁾	11.9	185,363		(47,798		)	137,565		164,779		(41,967		)	122,812
Patents and acquired technology ⁽⁵⁾	9.9	67,928		(23,123		)	44,805		55,260		(22,395		)	32,865
		$	285,247	$	(83,174	)	$	202,073	$	249,726	$	(75,608	)	$	174,118

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⁽¹⁾	During the first six months of 2016, the Company recorded license agreements of $0.6 million related to the acquisition of LMJ’s CIPP business (see Note 1).


⁽²⁾	During the first six months of 2016, the Company recorded trademarks of $1.5 million and $0.1 million related to the acquisitions of Underground Solutions and Fyfe Europe, respectively (see Note 1).


⁽³⁾	During the first six months of 2016, the Company recorded non-compete agreements of $0.1 million related to the acquisition of Fyfe Europe (see Note 1).


⁽⁴⁾	During the first six months of 2016, the Company recorded customer relationships of $19.7 million, $0.3 million and $0.2 million related to the acquisitions of Underground Solutions, Fyfe Europe and LMJ’s CIPP business, respectively (see Note 1).


⁽⁵⁾	During the first six months of 2016, the Company recorded acquired technology of $12.5 million related to the acquisition of Underground Solutions (see Note 1).

Amortization expense was $4.2 million and $3.2 million for the quarters ended June 30, 2016 and 2015, respectively. and $8.0 million and $6.4 million for the six months ended June 30, 2016 and 2015, respectively. Estimated amortization expense by year is as follows (in thousands):



2016	$	16,518
2017	17,112
2018	17,004
2019	16,776
2020	16,741

- 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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