Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Other Intangible Assets [Abstract]

(8)	Goodwill and Other Intangible Assets

During the third quarter of 2013, we committed to divest our HBS operations within our performance materials segment and performed a recoverability test for HBS’s goodwill and other intangible assets. We concluded that the fair value of goodwill and other intangible assets was lower than the respective carrying amount and recorded impairment charge of $1.8 to write-off entire goodwill and $1.1 for other intangible assets relating to trademarks and developed technology. Our asset held-for-sale line within our Consolidated Balance Sheets at December 31, 2013 includes $3.6 of other intangible assets (net of $3.8 accumulated amortization and $1.1 of impairment charges). See Note 6 for further information on impairment.

The balance of goodwill by segment and the activity occurring in the past two fiscal years is as follows:

	Performance Materials			Construction Technologies		Energy Services		Consolidated

Balance at December 31, 2011	$	17.4		$	21.1	$	31.0	$	69.5

Change in goodwill relating to:
Foreign exchange translation		0.4			0.3		-		0.7
Total changes		0.4			0.3		-		0.7

Balance at December 31, 2012		17.8			21.4		31.0		70.2

Change in goodwill relating to:
Reclassification to discontinued operations		(1.8	)		-		-		(1.8	)
Acquisition		-			-		0.4		0.4
Foreign exchange translation		(0.6	)		0.5		-		(0.1	)
Total changes		(2.4	)		0.5		0.4		(1.5	)

Balance at December 31, 2013		15.4			21.9		31.4		68.7

Intangible assets were as follows:

	December 31, 2013							December 31, 2012
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value

Intangibles subject to amortization:
Customer related assets		45.8		(24.9	)		20.9		47.1		(23.0	)		24.1
Patents		7.8		(6.6	)		1.2		6.9		(6.9	)		-
Non-compete agreements		3.4		(2.2	)		1.2		2.2		(2.2	)		-
Developed technology		-		-			-		4.0		(2.4	)		1.6
Other		4.0		(2.3	)		1.7		3.9		(1.8	)		2.1

Subtotal		61.0		(36.0	)		25.0		64.1		(36.3	)		27.8

Intangibles not subject to amortization:
Trademarks and tradenames		2.9		-			2.9		6.1		-			6.1

Total		63.9		(36.0	)		27.9		70.2		(36.3	)		33.9

Other than the impairment charges relating to our HBS’s discontinued operations, we did not recognize any impairment charge in either of the years included above with respect to goodwill and other intangible assets.

Intangible assets with finite lives are being amortized primarily on a straight-line basis over their estimated useful lives. The weighted average amortization period of our intangible assets with finite lives is 11 years. Amortization expense on intangible assets for each of the years ended December 31, 2013, 2012, and 2011 was $4.1, $4.3, and $4.8, respectively. We estimate amortization expense of intangible assets for the future years ending December 31 will approximate the following amounts:

	Amount

2014	$	3.9
2015		3.8
2016		3.8
2017		3.4
2018		3.1

- 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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