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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The following table reflects the changes in carrying amounts of goodwill by segment for the nine months ended September 30, 2018:



(In thousands)	Harsco Metals & Minerals Segment				Harsco Industrial Segment		Harsco Rail Segment		Consolidated Totals
Balance at December 31, 2017	$	381,893			$	6,839	$	13,026	$	401,758
Changes to goodwill	26,737			(a)	—		—		26,737
Foreign currency translation	(8,144		)		—		—		(8,144		)
Balance at September 30, 2018	$	400,486			$	6,839	$	13,026	$	420,351

(a) Changes to goodwill in the Harsco Metals & Minerals Segment relate to the acquisition of Altek. The purchase price allocation is not yet final for this acquisition. See Note 3, Acquisitions.

The Company tests for goodwill impairment annually or more frequently if indicators of impairment exist, or if a decision is made to dispose of a business. The Company performs the annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. The Company determined that, as of September 30, 2018, no interim goodwill impairment testing was necessary.

Intangible assets included in the caption, Intangible assets, net, on the Condensed Consolidated Balance Sheets consist of the following:



	September 30, 2018				December 31, 2017
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer related (b)	$	137,498	$	98,834	$	153,014	$	121,385
Patents	2,590		2,495		5,825		5,700
Technology related (b)	36,666		1,851		26,131		26,131
Trade names (b)	9,311		1,754		8,317		4,845
Other	5,856		3,389		8,875		5,850
Total	$	191,921	$	108,323	$	202,162	$	163,911

(b) The increase in net Customer related, Technology related and Trade names intangible assets is related to the acquisition of Altek. The purchase price allocation is not yet final for this acquisition. See Note 3, Acquisitions.

Amortization expense for intangible assets was as follows:



	Three Months Ended				Nine Months Ended
	September 30				September 30
(In thousands)	2018		2017		2018		2017
Amortization expense for intangible assets	$	2,395	$	1,269	$	5,326	$	3,868

The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows:



(In thousands)	2018		2019		2020		2021		2022
Estimated amortization expense (c)	$	7,900	$	9,750	$	9,250	$	8,800	$	8,500

(c) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations and are subject to change pending finalization of the purchase price allocation for Altek.

- 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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