Goodwill and Intangible Assets

9 Months Ended

Apr. 30, 2013

Changes in the carrying amount of goodwill for the nine months ended April 30, 2013, were as follows:



	Americas			EMEA		Asia-Pacific			Total
Balance as of July 31, 2012	$	417,886		$	174,868	$	84,037		$	676,791
Current year acquisitions	189,187			—		—			189,187
Current year divestitures	(2,882		)	—		—			(2,882		)
Reclassification to assets held for sale	—			—		(29,673		)	(29,673		)
Translation adjustments	408			6,848		770			8,026
Balance as of April 30, 2013	$	604,599		$	181,716	$	55,134		$	841,449

Goodwill increased $164,658 during the nine months ended April 30, 2013. Of the $164,658 increase, $189,187 was due to the acquisition of Precision Dynamics Corporation ("PDC"), and $8,026 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. In addition, the assets and liabilities of the Die-Cut Asia business are classified as held for sale as of April 30, 2013, which resulted in a decrease of $29,673 for the goodwill balance associated with the disposal group. Refer to Note K, “Acquisitions and Divestitures” and Note N, "Discontinued Operations" for further discussion.

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:



	April 30, 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	$	10,818	$	(9,481	)	$	1,337	5	$	10,418	$	(9,058	)	$	1,360
Trademarks and other	5	15,283		(7,765		)	7,518		7	8,945		(7,094		)	1,851
Customer relationships	8	264,501		(141,102		)	123,399		7	164,392		(128,805		)	35,587
Non-compete agreements and other	4	15,681		(15,285		)	396		4	15,988		(15,417		)	571
Unamortized other intangible assets:
Trademarks	N/A	41,933		—			41,933		N/A	44,750		—			44,750
Total		$	348,216	$	(173,633	)	$	174,583		$	244,493	$	(160,374	)	$	84,119

The value of goodwill and other intangible assets in the condensed consolidated balance sheets at April 30, 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 April 30, 2013. The acquisition of PDC increased customer relationships and amortized trademarks by $102,500 and $6,800, respectively.

Amortization expense on intangible assets was $6,597 and $3,944 for the three months ended April 30, 2013 and 2012, respectively, and $15,759 and $12,102 for the nine months ended April 30, 2013 and 2012, respectively. The amortization over each of the next five fiscal years is projected to be $19,934, $19,134, $16,934, $13,608 and 12,241 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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