Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by Segment

The following table reflects the changes in carrying amounts of goodwill by segment (there is no goodwill associated with the Harsco Infrastructure or Harsco Industrial Segment) for the years ended December 31, 2013 and 2012:



(In thousands)	Harsco Metals & Minerals Segment		Harsco Infrastructure Segment			Harsco Rail Segment		Consolidated Totals
Balance at December 31, 2011	$	411,876	$	259,715		$	9,310	$	680,901
Changes to goodwill (a)	—		(2,295		)	—		(2,295		)
Goodwill impairment	—		(265,038		)	—		(265,038		)
Foreign currency translation	8,012		7,618			—		15,630
Balance at December 31, 2012	419,888		—			9,310		429,198
Foreign currency translation	2,067		—			—		2,067
Balance at December 31, 2013	$	421,955	$	—		$	9,310	$	431,265


(a)	Changes to goodwill relate principally to the allocation of goodwill, in accordance with U.S. GAAP, to components of the Harsco Infrastructure Segment that were disposed of as part of the 2011/2012 Restructuring Program.

The Company's methodology for determining reporting unit fair value is described in Note 1, Summary of Significant Accounting Policies. Performance of the Company's 2013 annual impairment test did not result in impairment of any of the Company's reporting units. The first step of the October 1, 2012 annual goodwill impairment test indicated that the net book value of the Harsco Infrastructure reporting unit exceeded its current fair value, requiring the Company to perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. In performing the second step of the goodwill impairment test, the Company compared the implied fair value of goodwill for the Harsco Infrastructure reporting unit to its carrying value. This analysis resulted in a non-cash, goodwill impairment charge of $265.0 million, which was recognized during the fourth quarter of 2012. This charge had no impact on the Company's cash flows or compliance with debt covenants. As a result of this goodwill impairment charge, there is no remaining goodwill associated with the Harsco Infrastructure Segment.

Intangible Assets

Intangible assets totaled $53.3 million, net of accumulated amortization of $143.4 million at December 31, 2013 and $77.7 million, net of accumulated amortization of $172.6 million at December 31, 2012. The following table reflects these intangible assets by major category:



	December 31, 2013				December 31, 2012
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer related	$	150,307	$	110,889	$	183,862	$	129,904
Non-compete agreements	1,126		1,024		1,347		1,310
Patents	6,211		5,273		6,909		5,503
Technology related	27,185		18,931		29,588		17,551
Trade names	4,113		2,969		18,685		11,688
Other	7,753		4,348		9,947		6,656
Total	$	196,695	$	143,434	$	250,338	$	172,612

Amortization expense for intangible assets was $13.8 million, $17.6 million and $31.5 million for 2013, 2012 and 2011, respectively. The following table shows the estimated amortization expense for the next five fiscal years based on current intangible assets.



(In thousands)	2014		2015		2016		2017		2018
Estimated amortization expense (a)	$	8,500	$	7,250	$	6,750	$	3,750	$	3,500


(a)	These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange rate fluctuations.

The decreases in Intangible assets and estimated amortization expense for the next five fiscal years since December 31, 2012, primarily relates to the consummation of the Infrastructure transaction. See Note 3, Acquisitions and Dispositions, for additional information related to the Infrastructure transaction.

- 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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