Goodwill and Intangible Assets

9 Months Ended

May 31, 2011

Goodwill and Intangible Assets [Abstract]

7. Goodwill and Intangible Assets

Through multiple acquisitions, the Company acquired intangible assets consisting primarily of trademarks associated with specific products with finite lives, definite-lived distribution networks, patented technology, non-compete agreements, and customer relationships, which are amortized over their estimated useful lives. Indefinite lived intangible assets consist of trade names that are expected to generate cash flows indefinitely.

Summarized information for the Company’s acquired intangible assets is as follows:


	May 31, 2011					August 31, 2010
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Amortized intangible assets:
Patents and patented technology	$	36.0	$	(13.9	)	$	36.4	$	(11.4	)
Trademarks		16.9		(5.1	)		13.0		(4.8	)
Distribution network		65.8		(22.7	)		61.8		(20.4	)
Customer relationships		41.2		(5.5	)		28.1		(3.3	)
Other		5.9		(2.2	)		5.8		(1.8	)

Total	$	165.8	$	(49.4	)	$	145.1	$	(41.7	)

Unamortized trade names	$	96.1				$	96.1

The current year increases in the gross carrying amounts for the acquired intangible assets were due to the acquisitions of Winona Lighting, Sunoptics, and Healthcare Lighting (refer to the Acquisitions footnote). With regards to the recent acquisitions, the weighted average useful life of the intangible assets with finite lives acquired by the Company was estimated at 14.7 years, which consisted primarily of intangible assets related to trademarks and customer relationships. The weighted average useful lives of the trademarks and customer relationships with finite lives acquired by the Company in the current fiscal year were estimated at 20 and 13 years, respectively. The provisional amounts for the acquired intangible assets are deemed incomplete until disclosed otherwise as the Company continues to gather information related to the business combinations.

The Company recorded amortization expense of $3.0 and $1.7 related to intangible assets with finite lives during the three months ended May 31, 2011 and 2010, respectively. The Company recorded amortization expense of $7.7 and $5.3 related to intangible assets with finite lives during the nine months ended May 31, 2011 and 2010, respectively. Amortization expense is expected to be approximately $10.8 in fiscal 2011, $11.3 in fiscal 2012, $10.7 in fiscal 2013, $10.7 in fiscal 2014, and $9.9 in fiscal 2015.

The changes in the carrying amount of goodwill during the year are summarized as follows:


Goodwill:
Balance as of September 1, 2010	$	515.6
Acquisitions		57.7
Adjustments		(0.6	)
Currency translation adjustments		2.7

Balance as of May 31, 2011	$	575.4

The increase in goodwill was attributable to completed business combinations during fiscal 2011. Additionally, $9.5 related to preliminary deferred tax liabilities was recorded to goodwill as part of the recent acquisitions, with approximately $6.2 recorded during the current fiscal year. These amounts will not be final until completion of the identification and valuation of all intangible assets acquired.

Further discussion of the Company’s goodwill and other intangible assets are included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within the Company’s Form 10-K.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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