Goodwill & Other Identifiable Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill & Other Identifiable Intangible Assets

Goodwill & Other Identifiable Intangible Assets

9. Goodwill & Other Identifiable Intangible Assets

The Company has elected to perform the annual impairment test of its goodwill, as required, on December 31 of each year. For purposes of the test, the Company has identified reporting units, as defined within ASC 350, “Intangibles — Goodwill and Other,” at a regional level for the Activated Carbon and Service segment and at the technology level for the Equipment segment and has allocated goodwill to these reporting units accordingly. The goodwill associated with the Consumer segment is not material and has not been allocated below the segment level. The changes in the carrying amounts of goodwill by segment for the three months ended March 31, 2013 are as follows:

	Activated
	Carbon &
	Service			Equipment			Consumer
	Segment			Segment			Segment		Total
Balance as of December 31, 2012	$	20,310		$	6,660		$	60	$	27,030
Restructuring (Note 1)	(419		)	—			—		(419		)
Foreign exchange	(221		)	(36		)	—		(257		)

Balance as of March 31, 2013	$	19,670		$	6,624		$	60	$	26,354

The following is a summary of the Company’s identifiable intangible assets as of March 31, 2013 and December 31, 2012, respectively.

		March 31, 2013
	Weighted Average	Gross Carrying		Foreign			Accumulated			Net Carrying
	Amortization Period	Amount		Exchange			Amortization			Amount
Amortized Intangible Assets:
Patents	20.0 Years	$	676	$	—		$	(559	)	$	117
Customer Relationships	15.9 Years	10,450		(253		)	(8,430		)	1,767
Product Certification	5.4 Years	7,603		(11		)	(4,224		)	3,368
Unpatented Technology	18.4 Years	3,183		—			(2,258		)	925
Licenses	20.0 Years	964		41			(192		)	813
Total	13.0 Years	$	22,876	$	(223	)	$	(15,663	)	$	6,990

		December 31, 2012
	Weighted Average	Gross Carrying		Foreign			Accumulated			Net Carrying
	Amortization Period	Amount		Exchange			Amortization			Amount
Amortized Intangible Assets:
Patents	20.0 Years	$	676	$	—		$	(548	)	$	128
Customer Relationships	15.9 Years	10,450		(223		)	(8,311		)	1,916
Product Certification	5.4 Years	7,369		(3		)	(3,917		)	3,449
Unpatented Technology	18.4 Years	3,183		—			(2,191		)	992
Licenses	20.0 Years	964		119			(180		)	903
Total	13.1 Years	$	22,642	$	(107	)	$	(15,147	)	$	7,388

For the three months ended March 31, 2013 and 2012, the Company recognized $0.5 million and $0.4 million of amortization expense related to intangible assets, respectively. As of March 31, 2013, estimated future amortization expense of identifiable intangible assets is $1.5 million for the remaining nine months of 2013. The Company estimates amortization expense to be recognized during the next five years as follows:

For the year ending December 31:
2014	$	1,948
2015	1,318
2016	1,072
2017	301
2018	141

- 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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