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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2012
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] |
Goodwill and Other Intangible Assets | NOTE 4 GOODWILL AND OTHER INTANGIBLE ASSETS The following summarizes changes in the carrying amount of goodwill by reporting segments. The $840,000 recorded in 2011 resulted from an earn-out amount that we were required to pay in connection with the acquisition of our PFNWR facility in 2007 (See Note 13 – "Commitments and Contingencies – Earn-Out Amount – Perma-Fix Northwest, Inc. ("PFNW") and Perma-Fix Northwest Richland, Inc. ("PFNWR")) for information regarding this earn-out amount). We recorded $13,016,000 in goodwill within our Services Segment resulting from the acquisition of SEC on October 31, 2011. As a result of the acquisition of SEC on October 31, 2011, during the fourth quarter of 2011, the Company made structural and reporting changes to its internal organization and changes to its operating segments, resulting in changes to its reporting units. As a result of these changes, we reassigned approximately $3,637,000 of the $14,840,000 goodwill from our treatment operations reporting unit (in our Treatment Segment) to our CHPRC reporting unit (in our Services Segment) using a relative fair value approach in accordance with ASC 350, "Intangibles – Goodwill and Other". During the third quarter 2012, we reassigned approximately $2,488,000 of the $3,637,000 goodwill from the CHPRC reporting unit back to the Treatment reporting unit to correct our initial calculation completed during the fourth quarter of 2011. We did not amend our filings as this correction had no impact on our Consolidated Balance Sheet, Consolidated Statement of Operations or our cash flows (see Note 2 – "Summary of Significant Accounting Policies – Goodwill and Other Intangible Assets" for further information regarding this reassignment).
Goodwill (amounts in thousands)(1) |  | Treatment |  |  | Services |  |  | Total |
Balance as of December 31, 2010 |  | $ | 14,000 |  |  | $ | 1,330 |  |  | $ | 15,330 |
Goodwill recorded in connection with PFNWR Earn-Out |  |  | 840 |  |  |  | ¾ |  |  |  | 840 |
Goodwill recorded in connection with SEC Acqusition |  |  | ¾ |  |  |  | 13,016 |  |  |  | 13,016 |
Reassignment of goodwill from change in reporting unit |  |  | (1,149 | ) |  |  | 1,149 |  |  |  | ¾ |
Balance as of December 31, 2011 |  |  | 13,691 |  |  |  | 15,495 |  |  |  | 29,186 |
Balance as of December 31, 2012 |  | $ | 13,691 |  |  | $ | 15,495 |  |  | $ | 29,186 |
(1) No impairment losses have been recorded. The following table summarizes changes in the carrying amount of permits. No permit exists at our Services Segment. The Company currently has only one definite-lived permit, which is at our DSSI facility. This permit of approximately $545,000 was 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 PCBs. This permit is being amortized over a ten year period in accordance with its estimated useful life.
Permit (amount in thousands) |  | Treatment |
Balance as of December 31, 2010 |  | $ | 16,863 |
PCB permit amortized |  |  | (55 | )
Permits in progress |  |  | 46 |
Balance as of December 31, 2011 |  |  | 16,854 |
PCB permit amortized |  |  | (55 | )
Balance as of December 31, 2012 |  | $ | 16,799 |
The following table summarizes information relating to the Company's other intangible assets:
|  |  |  |  | December 31, 2012 |  |  | December 31, 2011 |
|  | 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 |  |  | $ | 453 |  |  | $ | (105 | ) |  | $ | 348 |  |  | $ | 402 |  |  | $ | (77 | ) |  | $ | 325 |
Software |  |  | 3 |  |  |  | 380 |  |  |  | (145 | ) |  |  | 235 |  |  |  | 158 |  |  |  | (66 | ) |  |  | 92 |
Non-compete agreement |  |  | 5 |  |  |  | 265 |  |  |  | (62 | ) |  |  | 203 |  |  |  | 265 |  |  |  | (9 | ) |  |  | 256 |
Customer contracts |  |  | 0.5 |  |  |  | 565 |  |  |  | (565 | ) |  |  | ¾ |  |  |  | 790 |  |  |  | (230 | ) |  |  | 560 |
Customer relationships |  |  | 12 |  |  |  | 3,370 |  |  |  | (546 | ) |  |  | 2,824 |  |  |  | 3,370 |  |  |  | (86 | ) |  |  | 3,284 |
Total |  |  |  |  |  | $ | 5,033 |  |  | $ | (1,423 | ) |  | $ | 3,610 |  |  | $ | 4,985 |  |  | $ | (468 | ) |  | $ | 4,517 |
Intangible assets recorded as a result of the acquisition of SEC on October 31, 2011 included a non-compete agreement, customer relationships, customer contracts, and software which were recorded at fair market value of approximately $4,429,000 (see Note 3 – "Business Acquisition" for the purchase price allocation of SEC). The intangible assets acquired 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 noted above and also includes the only one definite-lived permit, which is at our DSSI facility:
|  | Amount |
Year |  | (In thousands) |
2013 |  | $ | 645 |
2014 |  |  | 602 |
2015 |  |  | 506 |
2016 |  |  | 429 |
2017 |  |  | 354 |
|  | $ | 2,536 |
Amortization expense relating to intangible assets for the Company was $675,000, $241,000, and $79,000 for the years ended December 31, 2012, 2011, and 2010, respectively. The increase in amortization expense for the twelve months ended December 31, 2012 was attributed primarily to amortization of intangible assets acquired from the SEC acquisition.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 44, 45, 46 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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