Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles:

Goodwill and other intangibles consist principally of goodwill, customer lists, trade names, patents and other intangibles.

The following table summarizes the changes in goodwill by operating segment for the years ended December 31, 2014 and 2013 (in thousands):



	Performance Chemicals			Catalyst Solutions			Total
Balance at December 31, 2012	$	43,519		$	233,447		$	276,966
Foreign currency translation adjustments	84			7,153			7,237
Balance at December 31, 2013	43,603			240,600			284,203
Divestitures^(a)	—			(15,088		)	(15,088		)
Foreign currency translation adjustments	(1,321		)	(24,532		)	(25,853		)
Balance at December 31, 2014	$	42,282		$	200,980		$	243,262


(a)	In 2014 we reduced Catalyst Solutions segment goodwill by $15.1 million in connection with the sale of our antioxidant, ibuprofen and propofol businesses and assets which closed on September 1, 2014. See Note 2 “Discontinued Operations” for additional information about this transaction.

Other intangibles consist of the following at December 31, 2014 and 2013 (in thousands):



	Customer Lists and Relationships			Trade Names ^(a)			Patents and Technology			Land Use Rights			Manufacturing Contracts and Supply/Service Agreements			Other			Total
Gross Asset Value
Balance at December 31, 2012	$	85,167		$	26,943		$	47,876		$	6,203		$	8,523		$	23,412		$	198,124
Foreign currency translation adjustments and other	1,259			(36		)	867			173			(185		)	216			2,294
Balance at December 31, 2013	86,426			26,907			48,743			6,376			8,338			23,628			200,418
Acquisitions (b)	—			—			5,228			—			—			—			5,228
Divestitures (c)	(34,892		)	(8,171		)	(11,316		)	(4,929		)	(4,474		)	(4,758		)	(68,540		)
Foreign currency translation adjustments and other	(3,055		)	(1,181		)	(2,257		)	(40		)	—			(700		)	(7,233		)
Balance at December 31, 2014	$	48,479		$	17,555		$	40,398		$	1,407		$	3,864		$	18,170		$	129,873
Accumulated Amortization
Balance at December 31, 2012	$	(31,484	)	$	(8,486	)	$	(38,778	)	$	(1,079	)	$	(6,512	)	$	(17,321	)	$	(103,660	)
Amortization	(4,332		)	(995		)	(797		)	(166		)	(647		)	(1,129		)	(8,066		)
Foreign currency translation adjustments and other	(172		)	511			(779		)	(23		)	185			(211		)	(489		)
Balance at December 31, 2013	(35,988		)	(8,970		)	(40,354		)	(1,268		)	(6,974		)	(18,661		)	(112,215		)
Amortization	(2,839		)	(824		)	(388		)	(42		)	(368		)	(1,276		)	(5,737		)
Divestitures (c)	14,487			1,539			5,738			(100		)	4,164			1,756			27,584
Foreign currency translation adjustments and other	1,409			343			2,173			3			—			692			4,620
Balance at December 31, 2014	$	(22,931	)	$	(7,912	)	$	(32,831	)	$	(1,407	)	$	(3,178	)	$	(17,489	)	$	(85,748	)
Net Book Value at December 31, 2013	$	50,438		$	17,937		$	8,389		$	5,108		$	1,364		$	4,967		$	88,203
Net Book Value at December 31, 2014	$	25,548		$	9,643		$	7,567		$	—		$	686		$	681		$	44,125


(a)	Trade names include a gross carrying amount of $9.2 million for an indefinite-lived intangible asset.


(b)	Increase in Patents and Technology relates to a purchase accounting adjustment in connection with our acquisition of Cambridge Chemical Company, Ltd.


(c)	In 2014 we reduced intangible assets by $68.5 million and related accumulated amortization by $27.6 million in connection with the sale of our antioxidant, ibuprofen and propofol businesses and assets which closed on September 1, 2014. See Note 2 “Discontinued Operations” for additional information about this transaction.

Useful lives range from 15 – 25 years for customer lists and relationships; 11 years for trade names; 17 – 20 years for patents and technology; 6 years for manufacturing contracts and supply/service agreements; and 5 – 15 years for other.

Amortization of other intangibles amounted to $5.7 million, $8.1 million and $10.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Amortization of other intangibles related to discontinued operations was $0.9 million, $3.5 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Total estimated amortization expense of other intangibles for the next five fiscal years is as follows (in thousands):



	Estimated Amortization Expense
2015	$	3,482
2016	$	3,050
2017	$	2,858
2018	$	2,682
2019	$	2,567

- 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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