Goodwill

The Company had five reporting units, Energy Chemical Technologies, Consumer and Industrial Chemical Technologies, Drilling Tools, Teledrift^®, and Production Technologies, of which only three had an existing goodwill balance at December 31, 2014. For segment reporting purposes, Downhole Tools and the Teledrift^® reporting units are included 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. During the year ended December 31, 2014, the Company recorded a final adjustment related to the acquisition of Florida Chemical that reduced goodwill by $1.2 million (see Note 3). The net 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 during the years ended December 31, 2014, 2013 and 2012, 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^®			Production Technologies			Total
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
Activity during the year 2014:
Goodwill impairment recognized	—		—			—			—			—			—
Acquisition goodwill recognized	6,022		(1,162		)	—			—			—			4,860
Balance at December 31, 2014:
Goodwill	36,318		19,480			43,009			46,396			5,861			151,064
Accumulated impairment losses	—		—			(43,009		)	(31,063		)	(5,861		)	(79,933		)
Goodwill balance, net	$	36,318	$	19,480		$	—		$	15,333		$	—		$	71,131