XML 96 R15.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Other Intangible Assets [Abstract]  
Goodwill and Other Intangible Assets

Note 8:  Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill attributable to each reportable segment for the years ended December 31, 2019 and 2018 are as follows.


  
Industrials
    
Energy
    
Medical
    
Total
  
Balance as of December 31, 2017
  
$
561.6
    
$
460.2
    
$
205.8
    
$
1,227.6
  
Acquisitions
    
89.2
      
8.7
      
—
      
97.9
  
Foreign currency translation and other(1)
    
(18.1
)
    
(15.3
)
    
(2.6
)
    
(36.0
)
Balance as of December 31, 2018
    
632.7
      
453.6
      
203.2
      
1,289.5
  
Acquisitions
    
6.3
      
—
      
2.0
      
8.3
  
Foreign currency translation and other(1)
    
(2.9
)
    
(5.2
)
    
(2.0
)
    
(10.1
)
Balance as of December 31, 2019
  
$
636.1
    
$
448.4
    
$
203.2
    
$
1,287.7
  

(1)
During the years ended December 31, 2018 and 2019, the Company recorded immaterial measurement period adjustments.

The Company acquired two businesses during the year ended December 31, 2019.  The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The allocation of the purchase price was preliminary for these acquisitions and is subject to refinement based on final fair values of the identified assets acquired and liabilities assumed. The goodwill attributable to the two businesses is as follows. 

2019 Acquisitions
Date of Acquisition
  
Industrials
    
Energy
    
Medical
    
Total
  
Oina
July 3, 2019
  
$
—
    
$
—
    
$
2.0
    
$
2.0
  
ACBN
August 19, 2019
    
6.3
      
—
      
—
      
6.3
  
      
$
6.3
    
$
—
    
$
2.0
    
$
8.3
  

The Company acquired four businesses during the year ended December 31, 2018.  The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The goodwill attributable to the four businesses is as follows. 

2018 Acquisitions
Date of Acquisition
  
Industrials
    
Energy
    
Medical
    
Total
  
Runtech
February 8, 2018
  
$
63.6
    
$
—
    
$
—
    
$
63.6
  
PMI Pumps
May 29, 2018
    
—
      
8.7
      
—
      
8.7
  
DV Systems
November 2, 2018
    
4.7
      
—
      
—
      
4.7
  
MP Pumps
December 12, 2018
    
20.9
      
—
      
—
      
20.9
  
      
$
89.2
    
$
8.7
    
$
—
    
$
97.9
  

For the years ended December 31, 2019, 2018 and 2017, each reporting unit’s fair value was in excess of its net carrying value, and therefore, no goodwill impairment was recorded.

As of December 31, 2019 and 2018, goodwill included a total of $563.9 million of accumulated impairment losses within the Energy segment since the date of the KKR Transaction.

Other Intangible Assets

Other intangible assets as of December 31, 2019 and 2018 consisted of the following.


  
2019
    
2018
  
   
  
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Gross
Carrying
Amount
    
Accumulated
Amortization
  
Amortized intangible assets:
                        
Customer lists and relationships
  
$
1,238.7
    
$
(673.9
)
  
$
1,245.5
    
$
(567.8
)
Technology
    
30.2
      
(6.0
)
    
21.7
      
(4.8
)
Trademarks
    
40.4
      
(11.9
)
    
44.9
      
(13.0
)
Backlog
    
—
      
—
      
68.8
      
(68.6
)
Other
    
64.0
      
(40.8
)
    
62.3
      
(31.9
)
Unamortized intangible assets:
                                
Trademarks
    
614.3
      
—
      
611.3
      
—
  
Total other intangible assets
  
$
1,987.6
    
$
(732.6
)
  
$
2,054.5
    
$
(686.1
)

Amortization of intangible assets was $124.3 million, $125.8 million and $118.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization of intangible assets is anticipated to be approximately $112.5 million annually in 2020 through 2024 based upon currency exchange rates as of December 31, 2019.

The Company tests indefinite-lived intangible assets for impairment annually in the fourth quarter of each year using data as of October 1 of that year. The Company determines fair values for each of the indefinite-lived intangible assets using a relief from royalty methodology.

The Company did not record an impairment charge for the years ended December 31, 2019 and 2018, related to indefinite-lived intangible assets as a result of the annual impairment test.

In the fourth quarter of 2017, as a result of the annual impairment test of indefinite-lived intangible assets, the Company recorded an impairment charge of $1.6 million related to indefinite-lived trademarks, including $1.3 million related to two trademarks in the Industrials segment and $0.3 million related to an indefinite-lived trademark in the Energy segment. The impairments were included in “Impairments of other intangible assets” in the Consolidated Statements of Operations.