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Note 7 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

7.	GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table presents a reconciliation of the beginning and ending balances of goodwill (in thousands):

	*Infrastructure Solutions*			*Corrosion Protection*			*Energy Services*			*Total*
Balance, December 31, 2019
Goodwill, gross	$	240,160		$	76,946		$	81,504		$	398,610
Accumulated impairment losses		(62,848	)		(45,400	)		(33,527	)		(141,775	)
Goodwill, net		177,312			31,546			47,977			256,835
2020 Activity:
Impairments ⁽¹⁾⁽²⁾		—			—			(40,688	)		(40,688	)
Foreign currency translation		434			(241	)		—			193
Balance, September 30, 2020
Goodwill, gross		240,594			76,705			81,504			398,803
Accumulated impairment losses		(62,848	)		(45,400	)		(74,215	)		(182,463	)
Goodwill, net	$	177,746		$	31,305		$	7,289		$	216,340

	⁽¹⁾	During the second quarter of 2020, the Company recorded a $1.3 million goodwill impairment related to restructuring activities within Energy Services (see Note 4).
	⁽²⁾	During the third quarter of 2020, the Company recorded a $39.4 million goodwill impairment within Energy Services (see Note 2).

Intangible Assets

Intangible assets consisted of the following (in thousands):

	*September 30, 2020*									*December 31, 2019*
	*Weighted Average Useful Lives (Years)*	*Gross Carrying Amount*		*Accumulated Amortization*			*Net Carrying Amount*			*Gross Carrying Amount*		*Accumulated Amortization*			*Net Carrying Amount*
License agreements	0.0	$	3,894	$	(3,894	)	$	(0	)	$	3,894	$	(3,824	)	$	70
Leases	0.3		864		(842	)		22			864		(777	)		87
Trademarks (1)	5.6		15,466		(7,462	)		8,004			15,699		(6,911	)		8,788
Non-competes	0.5		2,051		(1,448	)		604			2,301		(1,354	)		947
Customer relationships (1)	6.3		156,897		(84,574	)		72,323			157,576		(76,832	)		80,744
Patents and acquired technology	5.9		39,167		(26,174	)		12,993			39,289		(25,097	)		14,192
Total intangible assets	—	$	218,339	$	(124,394	)	$	93,945		$	219,623	$	(114,795	)	$	104,828

⁽¹⁾

During the second quarter of 2020, the Company recorded intangible asset impairments related to restructuring activities within Energy Services of $0.3 million for trademarks and $0.7 million for customer relationships (see Note 4).

Amortization expense was $3.4 million and $3.4 million for the quarters ended September 30, 2020 and 2019, respectively, and $10.2 million and $10.3 million for the nine months ended September 30, 2020 and 2019, respectively. Estimated amortization expense for the years ended December 31, 2020, 2021, 2022, 2023 and 2024 is $13.0 million, $12.9 million, $12.9 million, $12.9 million and $12.1 million, respectively.