Goodwill and Intangible Assets

6 Months Ended

Jan. 31, 2013

Changes in the carrying amount of goodwill for the six months ended January 31, 2013, are as follows:



	Americas			EMEA		Asia-Pacific		Total
Balance as of July 31, 2012	$	417,886		$	174,868	$	84,037	$	676,791
Current year acquisitions	189,942			—		—		189,942
Current year divestitures	(2,882		)	—		—		(2,882		)
Translation adjustments	728			12,635		758		14,121
Balance as of January 31, 2013	$	605,674		$	187,503	$	84,795	$	877,972

Goodwill increased $201,181 during the six months ended January 31, 2013. Of the $201,181 increase, $189,942 was due to the acquisition of Precision Dynamics Corporation ("PDC"), and $14,121 was due to the positive effects of foreign currency translation. These increases were partially offset by the divestitures of the Precision Converting, LLC (“Brady Medical”) and the Varitronics businesses during the first quarter of fiscal 2013, which decreased goodwill by $863 and $2,019, respectively. Refer to Note K, “Acquisitions and Divestitures” for further discussion. The goodwill balance as of January 31, 2013, includes an accumulated impairment charge of $115,688 recognized during fiscal 2012 on the Company’s former North/South Asia reporting unit.

Other intangible assets include patents, trademarks, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The net book value of these assets was as follows:



	January 31, 2013								July 31, 2012
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Amortized other intangible assets:
Patents	5	$	10,679	$	(9,352	)	$	1,327	5	$	10,418	$	(9,058	)	$	1,360
Trademarks and other	5	15,815		(7,196		)	8,619		7	8,945		(7,094		)	1,851
Customer relationships	8	267,905		(138,227		)	129,678		7	164,392		(128,805		)	35,587
Non-compete agreements and other	4	15,714		(15,271		)	443		4	15,988		(15,417		)	571
Unamortized other intangible assets:
Trademarks	N/A	45,428		—			45,428		N/A	44,750		—			44,750
Total		$	355,541	$	(170,046	)	$	185,495		$	244,493	$	(160,374	)	$	84,119

The value of goodwill and other intangible assets in the condensed consolidated balance sheets at January 31, 2013, differs from the value assigned to them in the original allocation of purchase price due to the effect of fluctuations in the exchange rates used to translate the financial statements into the United States Dollar between the date of acquisition and January 31, 2013. The acquisition of PDC increased customer relationships and amortized trademarks by $101,500 and $6,800, respectively.

Amortization expense on intangible assets was $5,015 and $4,075 for the three-month periods ended January 31, 2013 and 2012, respectively, and $9,162 and $8,155 for the six-month periods ended January 31, 2013 and 2012, respectively. The amortization over each of the next five fiscal years is projected to be $19,995, $19,173, $16,955, $13,584 and 12,173 for the fiscal years ending July 31, 2014, 2015, 2016, 2017 and 2018, 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.

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