GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

NOTE 10. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets as of December 31, 2014, were the result of our acquisitions of EQ in 2014, Dynecol in 2012 and Stablex in 2010. $152.1 million of the goodwill has been assigned to reporting units in our Environmental Services segment and $65.1 million of the goodwill has been assigned to reporting units in our Field & Industrial Services segment. Changes in goodwill for the years ended December 31, 2014 and 2013 were as follows:

$s in thousands	2014			2013
Balance, beginning of year	$	21,693		$	23,105
EQ acquisition		197,163			—
Foreign currency translation		(1,684	)		(1,412	)

Balance, end of year	$	217,172		$	21,693

Intangible assets as of December 31, 2014 and 2013 consisted of the following:

	2014							2013
$s in thousands	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizing intangible assets:
Permits, licenses and lease	$	113,693	$	(4,427	)	$	109,266	$	26,264	$	(2,536	)	$	23,728
Customer relationships		103,086		(4,488	)		98,598		5,005		(731	)		4,274
Technology—formulae and processes		7,844		(1,009	)		6,835		8,551		(826	)		7,725
Customer backlog		4,600		(246	)		4,354		—		—			—
Tradename		5,481		(979	)		4,502		—		—			—
Developed software		3,745		(428	)		3,317		329		(185	)		144
Non-compete agreements		920		(462	)		458		20		(20	)		—
Internet domain and website		869		(24	)		845		—		—			—
Database		667		(72	)		595		94		(43	)		51

Total amortizing intangible assets		240,905		(12,135	)		228,770		40,263		(4,341	)		35,922
Nonamortizing intangible assets:
Permits and licenses		49,750		—			49,750		750		—			750
Tradename		147		—			147		160		—			160

Total intangible assets	$	290,802	$	(12,135	)	$	278,667	$	41,173	$	(4,341	)	$	36,832

At December 31, 2014, the net carrying amounts of goodwill and intangible assets include preliminary estimates of $197.2 million and $252.9 million, respectively, as a result of our acquisition of EQ.

Amortization expense of amortizing intangible assets was $8.2 million, $1.5 million and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Future amortization expense of amortizing intangible assets is expected to be as follows:

$s in thousands	Expected Amortization
2015	$	13,226
2016		12,545
2017		11,562
2018		10,689
2019		10,689
Thereafter		170,059

	$	228,770

- 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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