Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Other Intangible Assets [Abstract]

4. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table represents the goodwill balance by reportable segment:



		Rail Products and Services		Construction Products		Tubular and Energy Services		Total
Balance at December 31, 2014	$	38,956	$	5,147	$	38,846	$	82,949
Acquisitions		9,079		-		123,412		132,491
Foreign currency translation impact		(310)		-		-		(310)
Balance at March 31, 2015	$	47,725	$	5,147	$	162,258	$	215,130

The Company performs goodwill impairment tests annually unless it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying amount. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform interim goodwill impairment test. No goodwill impairment test was required in connection with these evaluations for the three months ended March 31, 2015. The Company performs its annual evaluation of the carrying value of its goodwill during the fourth quarter.

The following table represents the gross intangible assets balance by reportable segment:


		2015		2014
Rail Products and Services	$	58,417	$	44,781
Construction Products		3,178		3,178
Tubular and Energy Services		47,812		47,812
	$	109,407	$	95,771

The components of the Company’s intangible assets are as follows:



	March 31, 2015
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount

Non-compete agreements	5	$	4,786	$	(941)	$	3,845
Patents	10		523		(163)		360
Customer relationships	17		54,247		(5,579)		48,668
Supplier relationships	5		350		(285)		65
Trademarks and trade names	14		11,616		(2,093)		9,523
Technology	14		37,885		(6,700)		31,185
		$	109,407	$	(15,761)	$	93,646



	December 31, 2014
	Weighted Average		Gross				Net
	Amortization Period		Carrying		Accumulated		Carrying
	In Years		Value		Amortization		Amount

Non-compete agreements	5	$	4,143	$	(705)	$	3,438
Patents	10		564		(189)		375
Customer relationships	19		44,450		(4,679)		39,771
Supplier relationships	5		350		(268)		82
Trademarks and trade names	14		10,765		(1,855)		8,910
Technology	14		35,499		(5,941)		29,558
		$	95,771	$	(13,637)	$	82,134

Intangible assets are amortized over their useful lives ranging from 5 to 25 years, with a total weighted average amortization period of approximately 15 years. Amortization expense from operations for the three-month periods ended March 31, 2015 and 2014 was $2,157 and $1,141, respectively.

Estimated amortization expense for the remainder of 2015 and the years 2016 and thereafter is as follows:



		Amortization Expense
2015	$	6,325
2016		8,441
2017		8,410
2018		8,305
2019		7,584
2020 and thereafter		54,581
	$	93,646

- 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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