Goodwill and Other Intangible Assets, Net

12 Months Ended

Jun. 30, 2013

Goodwill and Other Intangible Assets, Net

Goodwill and Other Intangible Assets, Net

7. Goodwill and Other Intangible Assets, Net

Goodwill

The Company conducted its annual impairment review as of February 28, 2013 for the Latrobe reporting units and June 30, 2013 and 2012 for all other reporting units. As a result of the impairment review, the Company has determined that there was no goodwill impairment. Based on the impairment testing performed as of June 30, 2013, one of the Company’s reporting units, Carpenter Powder Products, a component of the PEP segment, excess of fair value over carrying value amounted to 4 percent. The goodwill associated with the Carpenter Powder Products reporting unit was $3.4 million as of June 30, 2013. In addition, based on the goodwill impairment testing performed as of February 28, 2013 for the Latrobe segment, the excess of fair value over carrying value amounted to approximately 8 percent reflecting that there has been no significant change in the fair value of the Latrobe business since acquisition on February 29, 2012. For all other reporting units with goodwill as of June 30, 2013, the fair value exceeded the carrying value by over 15 percent.

The changes in the carrying amount of goodwill by reportable segment for fiscal year 2013 and 2012 were as follows:

($ in millions)	June 30, 2011			Acquisitions		Other		June 30, 2012			Other			June 30, 2013

Goodwill	$	79.6		$	215.2	$	0.4	$	295.2		$	(2.8	)	$	292.4
Accumulated impairment losses	(34.7		)	—		—		(34.7		)	—			(34.7		)
Total goodwill	$	44.9		$	215.2	$	0.4	$	260.5		$	(2.8	)	$	257.7

Performance Engineered Products	$	44.9		$	0.7	$	0.4	$	46.0		$	—		$	46.0
Latrobe	—			214.5		—		214.5			(2.8		)	211.7
Total goodwill	$	44.9		$	215.2	$	0.4	$	260.5		$	(2.8	)	$	257.7

The amounts included in “other” in the above table represent amounts recorded in goodwill associated with the fiscal year 2011 Oilfield Alloys acquisition for which the purchase price allocation was completed during fiscal year 2012 and the fiscal year 2012 Latrobe acquisition for which the purchase price allocation was completed during fiscal year 2013.

Other Intangible Assets, Net

		2013							2012
($ in millions)	Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Trademarks and trade names	2.5 - 30	$	42.0	$	(22.1	)	$	19.9	$	42.0	$	(17.3	)	$	24.7
Customer relationships	5 - 15	78.2		(9.4		)	68.8		78.2		(3.4		)	74.8
Non-compete agreements	6.5	5.4		(2.1		)	3.3		5.4		(1.2		)	4.2
Contracts	2.9	3.7		(0.7		)	3.0		6.4		(0.2		)	6.2
Total		$	129.3	$	(34.3	)	$	95.0	$	132.0	$	(22.1	)	$	109.9

Carpenter recorded $12.2 million of amortization expense related to intangible assets during fiscal year 2013, $6.2 million during fiscal year 2012, and $2.0 million during fiscal year 2011. The estimated annual amortization expense related to intangible assets for each of the succeeding five fiscal years is $12.4 million in fiscal year 2014, $9.0 million in fiscal year 2015, $7.6 million in fiscal year 2016, $6.7 million in fiscal year 2017 and $5.9 million in fiscal year 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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