Goodwill

Prior to the acquisition of Florida Chemical, the Company had four reporting units, Energy Chemical Technologies, Drilling Tools, Teledrift, and Artificial Lift Technologies, of which only two, Energy Chemical Technologies and Teledrift, had an existing goodwill balance. For segment reporting purposes, the Teledrift reporting unit is consolidated within the Drilling Technologies segment.

During May 2013, as a result of the Florida Chemical acquisition, the Company recognized $39.3 million of goodwill. During the fair value assessment process, the Company identified two separate reporting units, one of which was consolidated within the Energy Chemical Technologies segment and the other was identified as the Consumer and Industrial Chemical Technologies reporting unit and segment. The Company recognized $18.7 million of additional goodwill within the Energy Chemical Technologies reporting unit and $20.6 million of goodwill within the Consumer and Industrial Chemical Technologies reporting unit. This addition to goodwill will not be deductible for income tax purposes.

Goodwill is tested for impairment annually in the fourth quarter, or more frequently if circumstances indicate a potential impairment. During annual goodwill impairment testing in 2013, 2012 and 2011, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step goodwill impairment test that the Company has historically used. The Company concluded that it was not more-likely-than-not that goodwill was impaired as of the fourth quarter of each year, and therefore, further testing was not required.

Changes in the carrying value of goodwill for each reporting unit are as follows (in thousands):



	Energy Chemical Technologies		Consumer and Industrial Chemical Technologies		Downhole Tools			Teledrift^TM			Artificial Lift Technologies			Total
Balance at December 31, 2011:
Goodwill	$	11,610	$	—	$	43,009		$	46,396		$	5,861		$	106,876
Accumulated impairment losses	—		—		(43,009		)	(31,063		)	(5,861		)	(79,933		)
Goodwill balance, net	11,610		—		—			15,333			—			26,943
Activity during the year 2012:
Goodwill impairment recognized	—		—		—			—			—			—
Balance at December 31, 2012:
Goodwill	11,610		—		43,009			46,396			5,861			106,876
Accumulated impairment losses	—		—		(43,009		)	(31,063		)	(5,861		)	(79,933		)
Goodwill balance, net	11,610		—		—			15,333			—			26,943
Activity during the year 2013:
Goodwill impairment recognized	—		—		—			—			—			—
Acquisition goodwill recognized	18,686		20,642		—			—			—			39,328
Balance at December 31, 2013:
Goodwill	30,296		20,642		43,009			46,396			5,861			146,204
Accumulated impairment losses	—		—		(43,009		)	(31,063		)	(5,861		)	(79,933		)
Goodwill balance, net	$	30,296	$	20,642	$	—		$	15,333		$	—		$	66,271