Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Other Identifiable Intangible Assets

Goodwill and Other Identifiable Intangible Assets

5. Goodwill and 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, 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 amount of goodwill by segment for the years ended December 31, 2013 and 2012 are as follows:

	Activated
	Carbon and			Equipment			Consumer
(Dollars in thousands)	Service Segment			Segment			Segment		Total
Balance as of January 1, 2012	$	20,167		$	6,612		$	60	$	26,839
Foreign currency translation	143			48			—		191
Balance as of December 31, 2012	20,310			6,660			60		27,030
Restructuring (Note 2)	(419		)	—			—		(419		)
Foreign currency translation	70			(129		)	—		(59		)
Balance as of December 31, 2013	$	19,961		$	6,531		$	60	$	26,552

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

December 31, 2013

Weighted

Average

Gross

Net

Amortization

Carrying

Foreign

Accumulated

Carrying

(Dollars in thousands)

Period

Amount

Exchange

Amortization

Amount

Amortized intangible assets:

Patents

20.0Years

676

—

(592

)

Customer Relationships

15.9 Years

10,450

(209

)

(8,777

)

1,464

Product Certification

5.4 Years

7,905

(34

)

(5,237

)

2,634

Unpatented Technology

18.4 Years

3,183

—

(2,457

)

726

Licenses

20.0 Years

964

(43

)

(227

)

694

Total

12.9 Years

23,178

(286

)

(17,290

)

5,602

	December 31, 2012
	Weighted
	Average	Gross								Net
	Amortization	Carrying		Foreign			Accumulated			Carrying
(Dollars in thousands)	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 years ended December 31, 2013, 2012 and 2011, the Company recognized $2.1 million, $2.0 million, and $1.8 million respectively, of amortization expense related to intangible assets. The Company estimates amortization expense to be recognized during the next five years as follows:

For the year ending December 31:	(Dollars in thousands)
2014	$	2,026
2015	1,360
2016	1,132
2017	333
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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