Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

During 2014, HBB acquired Weston Brands for a preliminary purchase price of $25.4 million. Of the preliminary purchase price, $10.1 million was allocated to identifiable intangible assets, including customer relationships of $5.8 million, trademarks of $3.1 million and other intangibles of $1.2 million. Preliminary goodwill is $6.3 million. See Note 21 for further discussion of the Weston Brands acquisition.

Intangible assets other than goodwill, which are subject to amortization, consist of the following:



	Gross Carrying Amount		Accumulated Amortization			Net Balance
Balance at December 31, 2014
NACoal:
Coal supply agreements	$	84,200	$	(33,421	)	$	50,779
Other intangibles	—		—			—
	$	84,200	$	(33,421	)	$	50,779

HBB:
Customer relationships	$	5,760	$	(40	)	$	5,720
Trademarks	3,100		(8		)	3,092
Other intangibles	1,240		(10		)	1,230
	$	10,100	$	(58	)	$	10,042

Balance at December 31, 2013
NACoal:
Coal supply agreements	$	91,480	$	(32,492	)	$	58,988
Other intangibles	950		(253		)	697
	$	92,430	$	(32,745	)	$	59,685

Amortization expense for intangible assets was $3.3 million, $3.7 million and $2.8 million in 2014, 2013 and 2012, respectively.

NACoal's long-lived asset evaluation during 2014 resulted in the Company recording a non-cash, impairment charge with respect to its Reed Minerals mining operations asset group of $105.1 million recorded on the line Reed Minerals long-lived asset impairment charge in the Consolidated Statements of Operations, of which $5.7 million was for intangible assets. The fair value of the intangible assets was calculated using an income approach and reduced the carrying value of the Reed Minerals' intangible assets to zero. See Note 10 for further discussion of this nonrecurring fair value measurement.

Expected annual amortization expense of NACoal's coal supply agreement for the next five years is as follows: $2.7 million in 2015 and 2016, $2.8 million in 2017, 2018 and 2019, respectively. The coal supply agreement is amortized based on units of production over the term of the agreement, which is estimated to be 30 years.

Expected annual amortization expense of HBB's intangible assets for the next five years is $1.4 million in 2015, 2016, 2017, 2018 and 2019. The weighted average amortization period for HBB's intangible assets is approximately 9 years.

- 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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