Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Other Intangible Assets [Abstract]

Note 5. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill attributable to each reportable segment for the six month period ended June 30, 2017 are presented in the table below:

	Industrials		Energy		Medical		Total
Balance as of December 31, 2016	$	515.8	$	439.9	$	199.0	$	1,154.7
Acquisition		7.9		-		-		7.9
Foreign currency translation and other ⁽¹⁾		23.5		9.8		4.2		37.5
Balance as of June 30, 2017	$	547.2	$	449.7	$	203.2	$	1,200.1

⁽¹⁾

During the six months ended June 30, 2017, the Company recorded an increase in goodwill of $0.4 million as a result of measurement period adjustments in the Medical segment.

On June 5, 2017, the Company acquired LeROI Compressors which is included in the Industrials segment. The excess of the purchase price over the estimated fair values of tangible assets, identifiable assets, and assumed liabilities was recorded as goodwill. As of June 30, 2017, the preliminary purchase price allocation resulted in a total of $7.9 million of goodwill. The allocation of the purchase price is preliminary and subject to adjustment based on final fair values of the identified assets acquired and liabilities assumed.

At June 30, 2017, goodwill included $563.9 million of accumulated impairment losses within the Energy segment. There were no goodwill impairment charges recorded during the three month or six month periods ended June 30, 2017.

Other intangible assets at June 30, 2017 and December 31, 2016 consist of the following:

	June 30, 2017					December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists and relationships	$	1,200.6	$	(410.0	)	$	1,160.5	$	(345.5	)
Acquired technology		7.7		(2.6	)		7.1		(2.2	)
Trademarks		29.8		(8.8	)		27.4		(6.9	)
Backlog		63.3		(63.3	)		60.3		(60.3	)
Other		43.5		(19.3	)		36.4		(16.4	)
Unamortized intangible assets:
Trademarks		618.9		-			609.5		-
Total other intangible assets	$	1,963.8	$	(504.0	)	$	1,901.2	$	(431.3	)

Amortization of intangible assets for the three and six month periods ended June 30, 2017 and 2016 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016

Intangible asset amortization expense	$	30.5	$	30.5	$	58.1	$	60.1

Amortization of intangible assets is anticipated to be approximately $115.5 million annually in 2018 through 2022 based upon exchange rates as of June 30, 2017.

- 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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