XML 104 R15.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Goodwill | 12 Months Ended
--- | ---
Dec. 31, 2013
Goodwill | Note 8—Goodwill: Changes in the carrying amount of goodwill during the past three years by operating segment are presented in the table below. Goodwill acquired in 2011 relates to discontinued operations, see Note 3.
| Operating segment |  |  |  |
| Chemicals |  |  | Component Products |  |  | EWI |  |  | Total |
| (In millions) |
Balance at December 31, 2010 | $ | 352.6 |  |  | $ | 38.4 |  |  | $ | 6.4 |  |  | $ | 397.4 |
Changes in foreign exchange rates |  | — |  |  |  | (.4 | ) |  |  | — |  |  |  | (.4 | )
Goodwill acquired |  | — |  |  |  | 3.1 |  |  |  | — |  |  |  | 3.1 |
Balance at December 31, 2011 |  | 352.6 |  |  |  | 41.1 |  |  |  | 6.4 |  |  |  | 400.1 |
Sale of discontinued operations |  | — |  |  |  | (14.3 | ) |  |  | — |  |  |  | (14.3 | )
Goodwill impairment |  | — |  |  |  | — |  |  |  | (6.4 | ) |  |  | (6.4 | )
Changes in foreign exchange rates |  | — |  |  |  | .3 |  |  |  | — |  |  |  | .3 |
Balance at December 31, 2012 and 2013 | $ | 352.6 |  |  | $ | 27.1 |  |  | $ | — |  |  | $ | 379.7 |
We have assigned goodwill to each of our reporting units (as that term is defined in ASC Topic 350-20-20, Goodwill) which corresponds to our operating segments. All of our goodwill related to our Chemicals Segment was generated prior to 2011 from our various step acquisitions of NL and Kronos, as goodwill was determined prior to the adoption of the equity transaction framework provisions of ASC Topic 810. Substantially all of the net goodwill related to the Component Products Segment was generated from CompX’s acquisitions of certain business units and the step acquisitions of CompX. The Component Products Segment goodwill is assigned to the two reporting units within that operating segment: security products and furniture components. Prior to December 31, 2012, we also had approximately $6.4 million of goodwill which resulted from NL’s acquisition of EWI Re, Inc., an insurance brokerage subsidiary. EWI brokers certain insurance policies for Contran and certain of its affiliates, including us and our subsidiaries, as well as for certain third parties. See Note 16. We test for goodwill impairment at the reporting unit level. In determining the estimated fair value of the reporting units, we use appropriate valuation techniques, such as discounted cash flows and, with respect to our Chemicals Segment, we consider quoted market prices, a Level 1 input, while discounted cash flows are a Level 3 input. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recorded. We review goodwill for each of our reporting units for impairment during the third quarter of each year or when circumstances arise that indicate an impairment might be present. If the fair value of an evaluated asset is less than its book value, the asset is written down to fair value. Prior to 2013, we used a quantitative assessment in determining the estimated fair value of our Component Products security products reporting unit, using appropriate valuation techniques such as discounted cash flows. Such discounted cash flows are a Level 3 input as defined by ASC 820-10-35. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recorded. In 2013 we adopted the guidance in ASU No. 2011-08 for testing goodwill for impairment by assessing qualitative factors solely as it relates to our security products reporting unit, to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. We performed our annual goodwill impairment test in the third quarter of 2013 for each of our reporting units and concluded there was no impairment of the goodwill for those reporting units. Such impairment test as it relates to our security products reporting unit was based on our qualitative assessment, and as a result a quantitative assessment was not required for such reporting unit for 2013. We also tested our goodwill for impairment in connection with our annual goodwill impairment test during the third quarter of 2011 and 2012. No impairment was indicated as part of such 2011, 2012 or 2013 annual review of goodwill. However, as a result of the December 2012 disposition of CompX’s furniture components reporting unit and the December 2012 sale of all common stock of TIMET owned by Contran Corporation and its affiliates (including us and our subsidiaries), a significant portion of EWI’s insurance brokerage business was lost (including TIMET). Consequently, we reevaluated goodwill associated with EWI due to the triggering event caused by significant impact these dispositions had on EWI’s business in December 2012, and concluded that all of our goodwill related to EWI was impaired. Accordingly, we recognized a $6.4 million goodwill impairment in December 2012. In addition, we had goodwill of approximately $14.3 million attributable to the disposed CompX furniture components operations, see Note 3. Prior to 2011, we recorded a $10.1 million goodwill impairment in our Component Products Segment. Our consolidated gross goodwill at December 31, 2013 is $396.2 million.

X
- Definition The entire disclosure for goodwill. + References No definition available. + Details
Name: | us-gaap_GoodwillDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration