Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

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 three month period ended March 31, 2018 is presented in the table below.

	Industrials		Energy		Medical		Total
Balance as of December 31, 2017	$	561.6	$	460.2	$	205.8	$	1,227.6
Acquisition		63.6		-		-		63.6
Foreign currency translation		9.6		4.9		2.6		17.1
Balance as of March 31, 2018	$	634.8	$	465.1	$	208.4	$	1,308.3

On February 8, 2018, the Company acquired Runtech 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 March 31, 2018, the preliminary purchase price allocation resulted in a total of $63.6 million of goodwill. The allocation of the purchase price is preliminary and subject to refinement based on final fair values of the identified assets acquired and liabilities assumed.

As of March 31, 2018, goodwill included $563.9 million of accumulated impairment losses within the Energy segment since the date of the transaction in which the Company was acquired by an affiliate of Kohlberg Kravis Roberts & Co. L.P. on July 30, 2013 (the “KKR Transaction”). There were no goodwill impairment charges recorded during the three month period ended March 31, 2018.

Other intangible assets as of March 31, 2018 and December 31, 2017 consisted of the following.

	March 31, 2018					December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists and relationships	$	1,248.7	$	(507.0	)	$	1,226.8	$	(473.0	)
Technology		23.3		(4.3	)		8.1		(4.0	)
Trademarks		38.4		(11.5	)		30.3		(10.6	)
Backlog		70.5		(67.4	)		65.5		(65.5	)
Other		55.3		(25.5	)		53.6		(23.5	)
Unamortized intangible assets:
Trademarks		628.7		-			623.5		-
Total other intangible assets	$	2,064.9	$	(615.7	)	$	2,007.8	$	(576.6	)

Amortization of intangible assets was $30.9 million for the three month period ended March 31, 2018 and $27.6 million for the three month period ended March 31, 2017.

Amortization of intangible assets is anticipated to be approximately $125.1 million annually in 2019 through 2023 based upon exchange rates as of March 31, 2018.

- 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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