XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The following table reflects the changes in carrying amounts of goodwill by segment for the nine months ended September 30, 2020:
(In thousands)Harsco Environmental SegmentHarsco
Clean Earth Segment
Harsco Rail
Segment
Consolidated
Totals
Balance at December 31, 2019$395,113 $330,230 $13,026 $738,369 
Changes to goodwill (a)
1,480 144,283 — 145,763 
Foreign currency translation(2,221)— — (2,221)
Balance at September 30, 2020$394,372 $474,513 $13,026 $881,911 
(a) The changes to goodwill primarily relate to the acquisition of ESOL in the Harsco Clean Earth Segment. See Note 3, Acquisitions and Dispositions, and immaterial acquisitions in the Harsco Environmental Segment.
The Company tests for goodwill impairment annually, or more frequently if indicators of impairment exist, or if a decision is made to dispose of a business.  The Company performs its annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis.  The Company determined that, as of September 30, 2020, no interim goodwill impairment testing was necessary. 
The Company has concluded that no triggering event occurred during the three months ended September 30, 2020. However, a prolonged economic downturn resulting from COVID-19 could impact the Company's future projected cash flows used to estimate fair value, and/or result in a sustained decrease in the Company’s share price, which could indicate an impairment.

Intangible assets, net, on the Company's Condensed Consolidated Balance Sheets consist of the following:
 September 30, 2020December 31, 2019
(In thousands)Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Customer related (b)$106,247 $43,572 $143,996 $99,327 
Permits308,559 14,992 170,322 4,694 
Technology related37,992 8,187 36,467 5,635 
Trade names31,698 4,133 31,719 2,182 
Air rights26,139 827 26,139 411 
Patents177 126 249 168 
Non-compete Agreement2,500 312 — — 
Other3,747 1,228 3,765 1,158 
Total$517,059 $73,377 $412,657 $113,575 
(b)     In the quarter ended September 30, 2020 fully amortized intangible assets were removed from the gross carrying and accumulated amortization amounts.

Amortization expense for intangible assets was as follows:
Three Months EndedNine Months Ended
 September 30September 30
(In thousands)2020201920202019
Amortization expense for intangible assets$8,272 $5,668 $22,542 $9,508 

The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows:
(In thousands)20202021202220232024
Estimated amortization expense (c)
$31,200 $32,300 $31,600 $31,600 $31,100 
(c)     These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations.