Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Other Intangible Assets

The changes in the carrying value of goodwill by reportable operating segments were as follows:



	Engineered Systems			Fluids			Refrigeration & Food Equipment		Energy		Total
Balance at December 31, 2016	$	1,567,216		$	1,413,508		$	536,179	$	1,045,774	$	4,562,677
Acquisitions	24,649			—			—		—		24,649
Purchase price adjustments	6,826			(40,985		)	—		—		(34,159		)
Disposition of business	(27,793		)	—			—		—		(27,793		)
Foreign currency translation	60,241			41,191			811		6,132		108,375
Balance at September 30, 2017	$	1,631,139		$	1,413,714		$	536,990	$	1,051,906	$	4,633,749

During the nine months ended September 30, 2017, the Company recognized additions of $24,649 to goodwill as a result of the Caldera acquisition as discussed in Note 2 — Acquisitions. The Company recorded $34,159 in adjustments for goodwill related to purchase price adjustments principally for deferred tax liabilities and working capital adjustments for the 2016 acquisitions.

As noted in Note 3 — Disposed Operations, the Company completed the sale of PMI during the nine months ended September 30, 2017. As a result of this sale, the Engineered Systems segment goodwill balance was reduced by $27,793.

The Company tests goodwill for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate an impairment may have occurred. In the first quarter of 2017, the Company re-aligned its reporting units after acquiring four companies in the retail fueling market in 2016, increasing its reporting units from nine to ten. The Company performed the goodwill impairment test for the three reporting units within the Fluids segment impacted by the change, concluding that the fair values of the reporting units were in excess of their carrying values. Additionally, the Company has considered the economic environments in which its businesses operate, particularly those reporting units exposed to the oil and gas markets, and the long-term outlook for those businesses. The Company has determined that a triggering event has not occurred which would require impairment testing at this time.

The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows:



	September 30, 2017						December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Customer intangibles	$	2,019,947	$	843,825	$	1,176,122	$	1,942,974	$	718,135	$	1,224,839
Trademarks	254,217		71,640		182,577		246,619		56,455		190,164
Patents	161,904		129,174		32,730		157,491		119,828		37,663
Unpatented technologies	163,034		77,561		85,473		155,752		64,648		91,104
Distributor relationships	124,215		51,918		72,297		113,463		44,914		68,549
Drawings & manuals	35,967		22,202		13,765		37,744		23,114		14,630
Other	34,803		22,455		12,348		31,632		21,184		10,448
Total	2,794,087		1,218,775		1,575,312		2,685,675		1,048,278		1,637,397
Unamortized intangible assets:
Trademarks	165,818		—		165,818		165,526		—		165,526
Total intangible assets, net	$	2,959,905	$	1,218,775	$	1,741,130	$	2,851,201	$	1,048,278	$	1,802,923

Amortization expense was $50,878 and $43,937 for the three months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, amortization expense was $152,851 and $131,105, respectively.

- 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.

+ References + Details