Annual report pursuant to Section 13 and 15(d)

Note 5 - Goodwill and Other Intangible Assets

Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 5

GOODWILL AND OTHER INTANGIBLE ASSETS

The following summarizes changes in the carrying amount of goodwill by reporting segments:

Goodwill (amounts in thousands)	Treatment			Services			Total
Balance as of December 31, 2012	$	13,691		$	15,495		$	29,186
Goodwill impairment		(13,691	)		(14,165	)		(27,856	)
Balance as of December 31, 2013		—			1,330		$	1,330
Goodwill impairment		—			(380	)		(380	)
Sale of SYA subsidary		—			(950	)		(950	)
Balance as of December 31, 2014	$	—		$	—		$	—

In 2014, the Company recorded an impairment charge of $380,000 in connection with the sale of our SYA subsidiary on July 29, 2014, in accordance with ASC Topic 350 “Intangible – Goodwill and Other” (“ASC 350”). In 2013, we recorded a total goodwill impairment charge of $27,856,000, which represented the total goodwill for each of the Treatment, SEC, and CHPRC reporting units of $13,691,000 (Treatment Segment), $13,016,000 (Services Segment) and $1,149,000 (Services Segment), respectively, in accordance with ASC 350. The impairment charges recorded were non-cash in nature and did not affect our liquidity or cash flows from operating activities. Additionally, the goodwill impairment had no effect on our borrowing availability or covenants under our credit facility agreement.

The following table summarizes changes in the carrying amount of permits. No permit exists at our Services Segment.

Permit (amount in thousands)	Treatment
Balance as of December 31, 2012	$	16,799
PCB permit amortized⁽¹⁾		(55	)
Balance as of December 31, 2013		16,744
PCB permit amortized⁽¹⁾		(55	)
Permit in progress		20
Balance as of December 31, 2014	$	16,709

⁽¹⁾ Amortization for the one definite-lived permit capitalized in 2009 in connection with the authorization issued by the U.S. EPA to our DSSI facility to commercially store and dispose of radioactive Polychlorinated Biphenyles or “PCBs.” This permit is being amortized over a ten year period in accordance with its estimated useful life. Net carrying value of this permit was approximately $227,000 as of December 31, 2014.

The following table summarizes information relating to the Company’s other intangible assets:

			December 31, 2014							December 31, 2013
	Useful		Gross					Net		Gross					Net
	Lives		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(Years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Intangibles (amount in thousands)
Patent		8-18	$	512	$	(168	)	$	344	$	514	$	(155	)	$	359
Software		3		375		(319	)		56		379		(258	)		121
Non-compete agreement		1.2		265		(265	)		—		265		(174	)		91
Customer contracts		0.5		790		(790	)		—		790		(790	)		—
Customer relationships		12		3,370		(1,335	)		2,035		3,370		(961	)		2,409
Total			$	5,312	$	(2,877	)	$	2,435	$	5,318	$	(2,338	)	$	2,980

The intangible assets are amortized on a straight-line basis over their useful lives with the exception of customer relationships which are being amortized using an accelerated method.

The following table summarizes the expected amortization over the next five years for our definite-lived intangible assets (including the one definite-lived permit) discussed above:

	Amount
Year	(In thousands)

2015	$	510
2016		425
2017		391
2018		361
2019		280
	$	1,967

Amortization expense relating to intangible assets for the Company was approximately $638,000 and $745,000, for the years ended December 31, 2014 and 2013, respectively.