Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Other Identifiable Intangible Assets

Goodwill and Other Identifiable Intangible Assets

4. 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 six 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. These reporting units consist of the Activated Carbon and Service segment which is segregated into two regional reporting units, the Americas/Asia and Europe, the Equipment segment which is segregated by technology (a) carbon adsorption, (b) ultraviolet light, and (c) ion exchange, and the Consumer segment which includes the charcoal cloth reporting unit. 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, 2015 and 2014 are as follows:

	Activated
	Carbon and			Equipment			Consumer
	Service Segment			Segment			Segment		Total
Balance as of January 1, 2014	$	19,961		$	6,531		$	60	$	26,552
Foreign currency translation	(208		)	(147		)	—		(355		)

Balance as of December 31, 2014	19,753			6,384			60		26,197
Foreign currency translation	(149		)	(271		)	—		(420		)

Balance as of December 31, 2015	$	19,604		$	6,113		$	60	$	25,777

The following is a summary of the Company’s identifiable intangible assets as of December 31, 2015 and 2014, respectively:

	December 31, 2015
	Weighted
	Average	Gross								Net
	Amortization	Carrying		Foreign			Accumulated			Carrying
	Period	Amount		Exchange			Amortization			Amount
Amortized intangible assets:
Patents	20.0 Years	$	676	$	—		$	(656	)	$	20
Customer Relationships	15.9 Years	10,450		(303		)	(9,526		)	621
Product Certification	7.2 Years	10,954		(95		)	(6,259		)	4,600
Unpatented Technology	20.0 Years	3,183		—			(2,996		)	187
Licenses	20.0 Years	964		(119		)	(312		)	533

Total	13.8 Years	$	26,227	$	(517	)	$	(19,749	)	$	5,961

	December 31, 2014
	Weighted
	Average	Gross								Net
	Amortization	Carrying		Foreign			Accumulated			Carrying
	Period	Amount		Exchange			Amortization			Amount
Amortized intangible assets:
Patents	20.0 Years	$	676	$	—		$	(636	)	$	40
Customer Relationships	15.9 Years	10,450		(270		)	(9,198		)	982
Product Certification	6.0 Years	9,470		(62		)	(5,182		)	4,226
Unpatented Technology	18.4 Years	3,183		—			(2,722		)	461
Licenses	20.0 Years	964		(117		)	(275		)	572

Total	12.7 Years	$	24,743	$	(449	)	$	(18,013	)	$	6,281

For the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.7 million, $2.2 million, and $2.1 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:
2016	$	1,549
2017	901
2018	717
2019	510
2020	420

- 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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