NOTE 4 – GOODWILL

The following table summarizes goodwill at the balance sheet dates:


(in millions)	December 31, 2016			Movement in the period			March 31, 2017

Gross cost ⁽¹⁾	$	611.3		$	(39.4	)	$	571.9
Accumulated impairment losses		(236.5	)		0.0			(236.5	)

Net book amount	$	374.8		$	(39.4	)	$	335.4

⁽¹⁾	Gross cost for 2017 and 2016 is net of $298.5 million of historical accumulated amortization.

Acquisition of Huntsman European Differentiated Surfactants Business

On December 30, 2016 the Company acquired the European Differentiated Surfactants business (“Huntsman”) from Huntsman Investments (Netherlands) B.V.. We purchased the business for total consideration of $199.2 million subject to working capital adjustments.

The measurement period for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition dates become available but does not exceed twelve months. During the three months ended March 31, 2017, we have reviewed the fair values of assets acquired and liabilities assumed in the acquisition of Huntsman, resulting in a $39.3 million increase in assets acquired and a corresponding decrease in goodwill. The following table summarizes the calculations of the total purchase price and the estimated allocation of the purchase price to assets and liabilities assumed for the business:


(in millions)	Huntsman
Goodwill	$	68.1
Other intangible assets		33.5
Fixed assets		92.7
Other net assets acquired		4.9

Purchase price, net of cash acquired	$	199.2

The Company has provisionally allocated $33.5 million of the purchase price to other intangible assets which we are amortizing on a straight-line basis to the income statement over an estimated expected life of 10 years. These intangible assets principally relate to customer relationships and an amortization expense of $0.9 million was recognized in selling, general and administrative expenses for the three months ended March 31, 2017 (three months ended March 31, 2016 - $0.0 million).

The Company has recorded measurement period adjustments to increase the fair value of the acquired tangible fixed assets of $16.2 million, a deferred tax liability of $10.3 million related to the fair valuations of intangible and tangible fixed assets and adjustments to other net assets totalling $0.1 million. The final purchase price, including net working capital adjustments, and fair value review of assets and liabilities acquired has not been finalized as at March 31, 2017.

Huntsman, and the associated goodwill and other intangible assets, are included within our Performance Chemicals segment for management and reporting purposes. There is currently no goodwill amortizable for tax purposes.