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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2011
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

6.     Goodwill and Other Intangible Assets

 

The following table reflects the changes in carrying amounts of goodwill by segment (there is no goodwill associated with the Harsco Industrial Segment) for the six months ended June 30, 2011:

 

Goodwill by Segment

 

(In thousands)

 

Harsco
Metals &
Minerals
Segment

 

Harsco
Infrastructure
Segment

 

Harsco
Rail
Segment

 

Consolidated
Totals

 

Balance at December 31, 2010

 

$

418,276

 

$

263,212

 

$

9,299

 

$

690,787

 

Changes to Goodwill

 

 

(113

)

11

 

(102

)

Foreign currency translation

 

10,703

 

10,484

 

 

21,187

 

Balance at June 30, 2011

 

$

428,979

 

$

273,583

 

$

9,310

 

$

711,872

 

 

The Company determined that as of June 30, 2011, no interim goodwill impairment testing was necessary.  The Company’s annual goodwill impairment testing will be completed during the fourth quarter of 2011.  There can be no assurance that goodwill impairment testing will not result in a charge to earnings.  Should the Company experience a further degradation in the overall markets served by the Harsco Infrastructure Segment, impairment losses for assets associated with this segment may be required.  Any necessary impairment could result in the write down of the carrying value of goodwill to its implied fair value.

 

Intangible Assets by Category

 

 

 

June 30, 2011

 

December 31, 2010

 

(In thousands)

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Customer related

 

$

188,452

 

$

112,046

 

$

184,864

 

$

98,104

 

Non-compete agreements

 

1,402

 

1,335

 

1,386

 

1,317

 

Patents

 

7,099

 

5,096

 

6,976

 

4,868

 

Technology related

 

30,229

 

13,512

 

29,821

 

11,863

 

Trade names

 

19,086

 

6,973

 

18,635

 

5,188

 

Other

 

8,198

 

7,938

 

8,095

 

7,478

 

Total

 

$

254,466

 

$

146,900

 

$

249,777

 

$

128,818

 

 

Amortization expense for intangible assets was $7.9 million and $15.8 million for the three and six months ended June 30, 2011, respectively.  Amortization expense for intangible assets was $8.2 million and $16.6 million for the three and six months ended June 30, 2010, respectively.  The following table shows the estimated amortization expense for the next five fiscal years based on current intangible assets.  These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange rate fluctuations.

 

(In thousands)

 

2011

 

2012

 

2013

 

2014

 

2015

 

Estimated amortization expense

 

$

31,000

 

$

17,000

 

$

15,000

 

$

13,000

 

$

8,000