XML 29 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Intangible Assets
 9 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
9.
INTANGIBLE ASSETS
The table below provides details of acquired intangible assets:
 
30 June 2017
 
30 September 2016
 
Gross

Accumulated
Amortization/
Impairment

Net

 
Gross

Accumulated
Amortization/
Impairment

Net

Customer relationships
$
412.8

$
(134.3
)
$
278.5

 
$
400.6

$
(118.2
)
$
282.4

Patents and technology
13.6

(10.5
)
3.1

 
13.6

(10.1
)
3.5

Other
72.5

(35.6
)
36.9

 
73.0

(33.7
)
39.3

Total finite-lived intangible assets
498.9

(180.4
)
318.5

 
487.2

(162.0
)
325.2

Trade names and trademarks, indefinite-lived
65.6

(20.3
)
45.3

 
66.2

(3.5
)
62.7

Total Intangible Assets
$
564.5

$
(200.7
)
$
363.8

 
$
553.4

$
(165.5
)
$
387.9


Indefinite-lived intangible assets are subject to impairment testing at least annually or more frequently if events or changes in circumstances indicate that potential impairment exists. The impairment test for indefinite-lived intangible assets involves calculating the fair value of the indefinite-lived intangible assets and comparing the fair value to their carrying value. If the fair value is less than the carrying value, the difference is recorded as an impairment loss.
As discussed in Note 8, Goodwill, in response to weak Latin America economic conditions and expectations for continued volume weakness in the Latin American countries and markets in which we operate, we lowered our long-term growth projections for the region. An interim impairment test of indefinite-lived intangibles associated with LASA was conducted as of 30 June 2017 utilizing the royalty savings method, a form of the income approach. We determined that the carrying value of trade names and trademarks was in excess of fair value, and as a result, we recorded a noncash impairment charge of $16.8 to reduce these indefinite-lived intangible assets to their fair value. This charge is reflected within “Goodwill and intangible asset impairment charge” on our consolidated income statements. These trade names and trademarks are included in our Industrial Gases – Americas segment. This charge has been excluded from segment operating income.
We tested the recoverability of LASA long-lived assets, including finite-lived intangible assets subject to amortization, and concluded that they were recoverable from expected future undiscounted cash flows.