Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The Company has no reporting units which have a goodwill balance at December 31, 2018.

Goodwill is tested for impairment annually in the fourth quarter, or more frequently if circumstances indicate a potential impairment. During the fourth quarter of 2017, the Company adopted ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. If the carrying amount exceeds the reporting unit’s fair value, the Company will recognize an impairment charge for the excess amount.

During the second quarter of 2018, the Company recognized a goodwill impairment charge of $37.2 million in the Energy Chemistry Technologies (“ECT”) reporting unit, which resulted from sustained under-performance and lower expectations related to the reporting unit. As a result of these factors, a qualitative analysis, and additional risks associated with the business, the Company concluded that sufficient indicators existed to require an interim quantitative assessment of goodwill for that reporting unit as of June 30, 2018. The fair value of the reporting unit was estimated based on an

analysis of the present value of future discounted cash flows. The significant estimates used in the discounted cash flows model included the Company’s weighted average cost of capital, projected cash flows and the long-term rate of growth. The assumptions were based on the actual historical performance of the reporting unit and took into account a recent weakening of operating results in an improving market environment. The excess of the reporting unit’s carrying value over the estimated fair value was recorded as the goodwill impairment charge during the three months ended June 30, 2018 and represented all of the ECT reporting unit’s goodwill.

During annual goodwill impairment testing for the year ended December 31, 2017, the Company first assessed the qualitative factors and was unable to conclude that it was not more likely than not that fair value of the ECT reporting unit exceeded the carrying amount of the reporting unit. Therefore, the Company performed the quantitative impairment test. The result of this testing indicated that the fair value of the ECT reporting unit exceeded the carrying amount, including goodwill, of the reporting unit.

During annual goodwill impairment testing for the year ended December 31, 2016, 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 2016, and therefore, further testing was not required.

No impairments of goodwill were recognized during the years ended December 31, 2017 and 2016.

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



Balance at December 31, 2016:
Goodwill	$	37,180
Accumulated impairment losses	—
Goodwill balance, net	37,180
Activity during the year 2017:
Goodwill impairment recognized	—
Acquisition goodwill recognized	—
Balance at December 31, 2017:
Goodwill	37,180
Accumulated impairment losses	—
Goodwill balance, net	37,180
Activity during the year 2018:
Goodwill impairment recognized	(37,180		)
Acquisition goodwill recognized	—
Balance at December 31, 2018:
Goodwill	37,180
Accumulated impairment losses	(37,180		)
Goodwill balance, net	$	—