Goodwill and Other Intangible Assets

9 Months Ended

Jun. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

5. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the nine months ended June 30, 2011 are (in millions):


			Control
	Architecture &		Products &
	Software		Solutions		Total

Balance as of September 30, 2010	$	385.5	$	527.0	$	912.5
Acquisition of businesses		—		34.0		34.0
Translation and other		4.3		17.8		22.1


Balance as of June 30, 2011	$	389.8	$	578.8	$	968.6

Other intangible assets consist of (in millions):


	June 30, 2011
	Carrying		Accumulated
	Amount		Amortization		Net
Amortized intangible assets:
Computer software products	$	175.2	$	120.1	$	55.1
Customer relationships		73.7		20.9		52.8
Technology		85.7		42.8		42.9
Trademarks		31.9		8.1		23.8
Other		22.1		15.6		6.5

Total amortized intangible assets		388.6		207.5		181.1
Intangible assets not subject to amortization		43.7		—		43.7


Total	$	432.3	$	207.5	$	224.8


	September 30, 2010
	Carrying		Accumulated
	Amount		Amortization		Net
Amortized intangible assets:
Computer software products	$	160.1	$	107.3	$	52.8
Customer relationships		59.6		16.6		43.0
Technology		83.8		38.0		45.8
Trademarks		32.5		7.6		24.9
Other		23.6		16.5		7.1

Total amortized intangible assets		359.6		186.0		173.6
Intangible assets not subject to amortization		43.7		—		43.7


Total	$	403.3	$	186.0	$	217.3

The Allen-Bradley^® trademark has an indefinite life, and therefore is not subject to amortization.

Estimated amortization expense is $35.6 million in 2011, $33.9 million in 2012, $27.3 million in 2013, $22.1 million in 2014 and $17.4 million in 2015.

We performed the annual evaluation of our goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP during the second quarter of 2011 and concluded these assets are not impaired. We did not identify any impairment indicators during the third quarter of 2011 that would require further impairment analysis.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details