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Goodwill and Other Intangible Assets
9 Months Ended
Sep. 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 nine months ended September 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

 

(2,237

)

411

 

 

(1,826

)

Balance at September 30, 2011

 

$

416,039

 

$

263,510

 

$

9,310

 

$

688,859

 

 

The Company’s 2010 annual impairment testing did not result in any impairment of the Company’s goodwill.  However, the fair value of the Harsco Infrastructure Segment exceeded its carrying value by approximately 4%.  The Company tests for goodwill impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred.  The Company performs its annual goodwill impairment test as of October 1 and monitors for interim triggering events on an ongoing basis.  The Company determined that as of September 30, 2011, no interim goodwill impairment testing was necessary.  There can be no assurance that the Company’s annual goodwill impairment testing will not result in a charge to earnings.  Should the Company’s analysis indicate a further degradation in the overall markets served by the Harsco Infrastructure Segment, impairment losses for assets associated with this Segment could be required.  Any impairment could result in the write down of the carrying value of goodwill to its implied fair value.

 

 

 

September 30, 2011

 

December 31, 2010

 

Intangible Assets by Category
(In thousands)

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Customer related

 

$

185,102

 

$

114,567

 

$

184,864

 

$

98,104

 

Non-compete agreements

 

1,364

 

1,306

 

1,386

 

1,317

 

Patents

 

6,937

 

5,098

 

6,976

 

4,868

 

Technology related

 

29,562

 

13,926

 

29,821

 

11,863

 

Trade names

 

18,450

 

7,537

 

18,635

 

5,188

 

Other

 

9,944

 

7,889

 

8,095

 

7,478

 

Total

 

$

251,359

 

$

150,323

 

$

249,777

 

$

128,818

 

 

Amortization expense for intangible assets was as follows:

 

 

 

Three Months Ended
September 30

 

Nine Months Ended
September 30

 

(In thousands)

 

2011

 

2010

 

2011

 

2010

 

Amortization expense for intangible assets

 

$

7,898

 

$

8,262

 

$

23,690

 

$

24,823

 

 

The estimated amortization expense for the next five fiscal years based on current intangible assets and excluding the potential effect of future foreign currency exchange rate fluctuations is as follows:

 

(In thousands)

 

2011

 

2012

 

2013

 

2014

 

2015

 

Estimated amortization expense

 

$

31,000

 

$

17,500

 

$

16,000

 

$

13,500

 

$

8,500