GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

NOTE 8.GOODWILL AND INTANGIBLE ASSETS

Changes in goodwill for the six months ended June 30, 2015 consisted of the following:

$s in thousands	Environmental Services			Field & Industrial Services			Total
Balance at December 31, 2014 (1)	$	152,396		$	65,213		$	217,609
Impairment charges (2)	—			(6,700		)	(6,700		)
Foreign currency translation	(1,243		)	—			(1,243		)


Balance at June 30, 2015	$	151,153		$	58,513		$	209,666

(1)	Balances have been revised to reflect purchase accounting measurement period adjustments related to the acquisition of EQ as disclosed in Note 2.

(2)	As disclosed in Note 16, on August 4, 2015, we entered into a definitive agreement to sell our Allstate Power Vac., Inc. (“Allstate”) subsidiary to a private investor group for approximately $58.0 million cash, subject to adjustments for working capital and capital expenditures. Allstate represents the majority of the industrial services business we acquired with the acquisition of EQ. As a result of this agreement and management’s strategic review, we evaluated the recoverability of the assets associated with our industrial services business. Based on this analysis, we recorded a non-cash goodwill impairment charge of $6.7 million, or $0.31 per diluted share, in the second quarter of 2015. We calculated the estimated fair value of the industrial services business using a combination of quoted market prices and discounted cash flows.

Intangible assets, net consisted of the following:

	June 30, 2015							December 31, 2014
$s in thousands	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizing intangible assets:
Permits, licenses and lease	$	112,090	$	(5,688	)	$	106,402	$	113,693	$	(4,427	)	$	109,266
Customer relationships	102,852		(7,840		)	95,012		103,086		(4,488		)	98,598
Technology - formulae and processes	7,322		(1,059		)	6,263		7,844		(1,009		)	6,835
Customer backlog	4,600		(476		)	4,124		4,600		(246		)	4,354
Tradename	5,485		(1,892		)	3,593		5,481		(979		)	4,502
Developed software	3,725		(629		)	3,096		3,745		(428		)	3,317
Non-compete agreements	920		(671		)	249		920		(462		)	458
Internet domain and website	869		(47		)	822		869		(24		)	845
Database	661		(94		)	567		667		(72		)	595


Total amortizing intangible assets	238,524		(18,396		)	220,128		240,905		(12,135		)	228,770

Nonamortizing intangible assets:
Permits and licenses	49,750		—			49,750		49,750		—			49,750
Tradename	133		—			133		147		—			147


Total intangible assets, net	$	288,407	$	(18,396	)	$	270,011	$	290,802	$	(12,135	)	$	278,667

Amortization expense for the three months ended June 30, 2015 and 2014 was $3.3 million and $862,000, respectively. Amortization expense for the six months ended June 30, 2015 and 2014 was $6.6 million and $1.2 million, respectively. Foreign intangible asset carrying amounts are affected by foreign currency translation.

- 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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