XML 54 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

4. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Our recorded goodwill by reporting segment was as follows at September 30, 2012 and December 31, 2011 (in millions):

	2012		2011
Energy and Mining	$	78.2	$	77.4
North American Water and Wastewater		101.9		101.8
European Water and Wastewater		21.8		21.8
Asia-Pacific Water and Wastewater		5.8		5.7
Commercial and Structural		66.8		43.2
Total goodwill	$	274.5	$	249.9

The following table presents a reconciliation of the beginning and ending balances of the Company’s goodwill at September 30, 2012 (in millions):

	2012
Beginning balance at January 1, 2012	$	249.9
Additions to goodwill through acquisitions(1)		23.4
Foreign currency translation		1.2
Goodwill at end of period(2)	$	274.5

(1)

During the first nine months of 2012, the Company initially recorded goodwill of $1.7 million and $19.3 million related to the acquisitions of Fyfe LA and Fyfe Asia, respectively. Additionally, the Company recorded decreases of $1.5 million and $0.2 million in goodwill related to the 2011 acquisitions of Hockway and Fyfe NA, respectively, and increases of $1.6 million, $0.8 million and $1.8 million in goodwill related to the CRTS, Fyfe LA and Fyfe Asia acquisitions, respectively.

(2)

The Company does not have any accumulated impairment charges.

Intangible Assets

Intangible assets at September 30, 2012 and December 31, 2011 were as follows (in thousands):

	As of September 30, 2012 (1)									As of December 31, 2011
	Weighted Average Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
License agreements		8	$	3,926	$	(2,781	)	$	1,145	$	3,922	$	(2,654	)	$	1,268
Backlog		0		4,657		(4,657	)		—		4,651		(3,705	)		946
Leases		14		2,067		(295	)		1,772		2,067		(183	)		1,884
Trademarks		18		21,477		(2,914	)		18,563		21,396		(2,141	)		19,255
Non-competes		0		740		(740	)		—		740		(729	)		11
Customer relationships		15		117,725		(15,910	)		101,815		102,963		(10,970	)		91,993
Patents and acquired technology		18		55,587		(20,803	)		34,784		53,906		(19,608	)		34,298
			$	206,179	$	(48,100	)	$	158,079	$	189,645	$	(39,990	)	$	149,655

(1)

During the nine months ended September 30, 2012, the Company recorded $1.4 million in patents and acquired technology to be amortized over a weighted average life of twenty years and $14.5 million in customer relationships to be amortized over a weighted average life of fifteen years related to the acquisitions discussed in Note 1 of this report.

Amortization expense was $2.6 million and $2.3 million for the quarters ended September 30, 2012 and 2011, respectively. Amortization expense was $8.3 million and $4.7 million for the nine-month periods ended September 30, 2012 and 2011, respectively. Estimated amortization expense by year is as follows (in thousands):

2012	$	10,831
2013		10,130
2014		10,130
2015		10,128
2016		10,111

- 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.

+ References+ Details