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Goodwill | 6 Months Ended
--- | ---
Jun. 30, 2014
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill | NOTE 4 – GOODWILL The following table summarizes the goodwill movement year on year:
|  | Six Months Ended June 30 |
(in millions) |  | 2014 |  |  | 2013 |
At January 1: |  |  |  |  |  |  |  |
Gross cost (1) |  | $ | 424.4 |  |  | $ | 384.2 |
Accumulated impairment losses |  |  | (236.5 | ) |  |  | (235.2 | )
Net book amount |  | $ | 187.9 |  |  | $ | 149.0 |
Exchange effect |  |  | (0.1 | ) |  |  | (0.1 | )
Adjustments to purchase price allocation |  |  | 0.3 |  |  |  | 0.4 |
Impairment losses |  |  | 0.0 |  |  |  | (0.6 | )
At June 30: |  |  |  |  |  |  |  |
Gross cost (1) |  | $ | 424.6 |  |  | $ | 384.5 |
Accumulated impairment losses |  |  | (236.5 | ) |  |  | (235.8 | )
Net book amount |  | $ | 188.1 |  |  | $ | 148.7 |
(1) | Gross cost for 2014 and 2013 is net of $298.5 million of historical accumulated amortization.
The Bachman Group Companies Acquisition On November 4, 2013, the Company acquired 100% of the voting equity interests in Bachman Services, Inc., Specialty Intermediates, Inc., Bachman Production Specialties, Inc. and Bachman Drilling & Production Specialties, Inc. (collectively “Bachman”). Bachman provide chemicals and services to the oil and gas industry and are based in Oklahoma City, Oklahoma. We purchased Bachman for a cash consideration of $45.8 million and by the issuance of 319,953 shares of unregistered Innospec Inc. common stock to the previous owners with a fair value of approximately $15 million, based on the Innospec share price on the closing date. We acquired the businesses in order to move us towards critical mass, and bring both good technology and market positioning in the oilfield specialties sector which forms part of our Fuel Specialties segment. The following table summarizes the calculations of the total purchase price and the allocation of the purchase price to the assets acquired and liabilities assumed for Bachman:
(in millions) |  | Bachman |
Other intangible assets |  | $ | 25.9 |
Goodwill |  |  | 23.2 |
Deferred tax on intangibles |  |  | (7.6 | )
Other net assets acquired, excluding cash of $2.0 million |  |  | 17.0 |
Purchase price, net of cash acquired |  | $ | 58.5 |
In the second quarter of 2014, a $0.3 million reduction in the purchase price was agreed with the previous owners of Bachman in respect of post-closing working capital adjustments, resulting in a corresponding reduction in other net assets acquired. In addition we have now finalized the calculations of the fair values of assets acquired and liabilities assumed in the acquisition of Bachman, resulting in a further $0.3 million reduction in other net assets and a corresponding increase in goodwill. Bachman, and the associated goodwill, are included within our Fuel Specialties segment for management and reporting purposes.

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