Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

5. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the years ended December 31, 2016 and 2015 are as follows:

	Couplings, Clutches & Brakes			Electromagnetic Clutches & Brakes			Gearing			Total
Net goodwill balance January 1, 2015	$	28,464		$	25,142		$	48,481		$	102,087
Impact of changes in foreign currency and other		(3,174	)		(481	)		(1,123	)		(4,778	)
Net goodwill balance December 31, 2015		25,290			24,661			47,358			97,309
Acquisition of Stromag		80,340			12,785			-			93,125
Impact of changes in foreign currency and other		(1,165	)		(285	)		(143	)		(1,593	)
Net goodwill balance December 31, 2016	$	104,465		$	37,161		$	47,215		$	188,841

The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:

	December 31, 2016						December 31, 2015
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Other intangible assets
Intangible assets not subject to amortization:
Tradenames and trademarks	$	50,416	$	—	$	50,416	$	39,625	$	—	$	39,625
Intangible assets subject to amortization:
Customer relationships		164,406		60,761	$	103,645		112,408		56,677		55,731
Product technology and patents		6,090		5,468	$	622		6,049		5,336		713
Total intangible assets	$	220,912	$	66,229	$	154,683	$	158,082	$	62,013	$	96,069

As a result of the annual indefinite-lived asset impairment review in the fourth quarter of 2016, the Company determined that the trademark at one reporting unit was impaired and therefore recorded a pre-tax charge of $6.6 million in the consolidated statement of income.

The Company recorded $8.3 million, $8.6 million, and $9.0 million of amortization for the years ended December 31, 2016, 2015 and 2014, respectively.

Customer relationships, product technology and patents are amortized over their useful lives ranging from 8 to 17 years. The weighted average estimated useful life of intangible assets subject to amortization is approximately 11 years.

The estimated amortization expense for intangible assets is approximately $9.1 million in 2017 and in each of the next four years and then $58.9 million thereafter.

- 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.

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