Goodwill And Other Intangible Assets

12 Months Ended

Jul. 31, 2012

Goodwill And Other Intangible Assets [Abstract]

NOTE C Goodwill and Other Intangible Assets

The Company has allocated goodwill to its Industrial Products and Engine Products segments. There was no acquisition or disposition activity during Fiscal 2012. Disposition of goodwill during Fiscal 2011 relates to the sale of the Company's Ultracool chiller business, based in Terrassa, Spain, for $3.6 million, which resulted in a gain on sale of $0.4 million. The Ultracool chiller business manufactured industrial circulation chillers and was part of the Company's Industrial Products segment. As of Fiscal 2011, as a result of an internal reorganization, the Company transferred Industrial Hydraulics, a component of its Industrial Filtration Solutions Products within the Industrial Products segment to Aftermarkets Products within the Engine Products segment, along with the goodwill associated with this component. The Company completed its annual impairment assessments in the third quarters of Fiscal 2012 and 2011. The results of this assessment showed that the fair values of the reporting units to which goodwill is assigned continue to exceed the book values of the respective reporting units, resulting in no goodwill impairment.

Following is a reconciliation of goodwill for the years ended July 31, 2012 and 2011:


	Engine Products			Industrial Products			Total Goodwill
	(thousands of dollars)
Balance as of July 31, 2010	$	60,914		$	104,401		$	165,315
Goodwill transferred		11,258			(11,258	)		—
Disposition activity		—			(325	)		(325	)
Foreign exchange translation		794			5,957			6,751
Balance as of July 31, 2011	$	72,966		$	98,775		$	171,741
Foreign exchange translation		(1,219	)		(7,573	)		(8,792	)
Balance as of July 31, 2012	$	71,747		$	91,202		$	162,949

Intangible assets are comprised of patents, trademarks, and Customer relationships and lists. Following is a reconciliation of intangible assets for the years ended July 31, 2012 and 2011:


	Gross Carrying Amount			Accumulated Amortization			Net Intangible Assets
	(thousands of dollars)
Balance as of July 31, 2010	$	83,487		$	(25,195	)	$	58,292
Amortization expense		—			(5,917	)		(5,917	)
Foreign exchange translation		1,952			(831	)		1,121
Balance as of July 31, 2011	$	85,439		$	(31,943	)	$	53,496
Amortization expense		—			(5,778	)		(5,778	)
Retirements		(1,530	)		1,530			—
Foreign exchange translation		(3,834	)		2,316			(1,518	)
Balance as of July 31, 2012	$	80,075		$	(33,875	)	$	46,200

Net intangible assets consist of patents, trademarks and trade names of $16.1 million and $20.0 million as of July 31, 2012 and 2011, respectively, and Customer related intangibles of $30.1 million and $33.5 million as of July 31, 2012 and 2011, respectively. As of July 31, 2012, patents, trademarks and trade names had a weighted average remaining life of 9.76 years and Customer related intangibles had a weighted average remaining life of 12.67 years. Expected amortization expense relating to existing intangible assets is as follows (in thousands):


Fiscal Year
2013	$	5,418
2014	$	5,045
2015	$	4,950
2016	$	4,948
2017	$	4,530

- 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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