Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The table below presents changes in the carrying amount of goodwill and our accumulated impairment losses (in thousands):



Goodwill (gross) at December 31, 2013	$	181,240
Acquired goodwill	3,907
Foreign currency translation adjustments	(1,957		)
Goodwill (gross) at December 31, 2014	183,190

Accumulated impairment losses at December 31, 2013	(9,266		)
Goodwill impairment	—
Accumulated impairment losses at December 31, 2014	(9,266		)

Goodwill (net) at December 31, 2014	$	173,924

Goodwill (gross) at December 31, 2014	$	183,190
Acquired goodwill	1,149
Foreign currency translation adjustments	(2,312		)
Goodwill (gross) at December 31, 2015	182,027

Accumulated impairment losses at December 31, 2014	(9,266		)
Goodwill impairment	—
Accumulated impairment losses at December 31, 2015	(9,266		)

Goodwill (net) at December 31, 2015	$	172,761

In October 2015 and October 2014, we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level. As of October 1, 2015, we had 216 reporting units with allocated goodwill balances. The highest goodwill balance was $5.7 million and the average goodwill balance was $0.8 million.

Other intangible assets consisted of the following (in thousands):



	December 31,
	2015			2014
Horizon tradename (indefinite life)	$	8,400		$	8,400
Pool Systems tradename and trademarks (indefinite lives)	1,040			1,162
National Pool Tile (NPT) tradename (20 year life)	1,500			1,500
Non-compete agreements (5 year weighted average useful life)	1,953			2,599
Patents (16 year weighted average useful life)	492			549
Other intangible assets	13,385			14,210
Less: Accumulated amortization	(1,540		)	(2,215		)
Other intangible assets, net	$	11,845		$	11,995

The Horizon and Pool Systems tradenames and trademarks have indefinite useful lives and are not subject to amortization. However, we evaluate the useful lives of these intangible assets and test for impairment annually. The NPT tradename, our non-compete agreements and our patents have finite useful lives and we amortize the estimated fair value of these agreements using the straight-line method over their respective useful lives. We have not identified any indicators of impairment related to these assets. The useful lives for our non-compete agreements are based on their contractual terms, and the useful lives for our patents are based on statutory terms. We recognize expenses related to patent renewal costs as incurred.

Other intangible amortization expense was $0.4 million in 2015, $0.8 million in 2014 and $0.8 million in 2013.

The table below presents estimated amortization expense for other intangible assets for the next five years (in thousands):



2016	$	434
2017	407
2018	405
2019	268
2020	222

- 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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