Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Identifiable Intangible Assets

The changes in the carrying amount of goodwill for the year ended December 31, 2012 and December 31, 2011 by reportable segment were as follows:



In thousands	December 31, 2011		Acquisitions		Foreign currency translation/other		December 31, 2012
Water & Fluid Solutions	$	1,994,781	$	429,506	$	13,420	$	2,437,707
Valves & Controls	—		1,511,616		—		1,511,616
Technical Solutions	279,137		881,568		924		1,161,629
Total goodwill	$	2,273,918	$	2,822,690	$	14,344	$	5,110,952



In thousands	December 31, 2010		Acquisitions		Foreign currency translation/other			December 31, 2011
Water & Fluid Solutions	$	1,784,100	$	466,182	$	(255,501	)	$	1,994,781
Valves & Controls	—		—		—			—
Technical Solutions	281,944		—		(2,807		)	279,137
Total goodwill	$	2,066,044	$	466,182	$	(258,308	)	$	2,273,918

In 2011, we recorded an impairment charge of $200.5 million in Water & Fluid Solutions which is included in “Foreign currency translation/other” above. Accumulated goodwill impairment losses were $200.5 million as of December 31, 2012 and December 31, 2011.

Identifiable intangible assets consisted of the following at December 31:



	2012							2011
In thousands	Cost		Accumulated amortization			Net		Cost		Accumulated amortization			Net
Finite-life intangibles
Customer relationships	$	1,291,507	$	(152,769	)	$	1,138,738	$	358,410	$	(109,887	)	$	248,523
Trade names	1,525		(686		)	839		1,515		(530		)	985
Proprietary technology	263,647		(57,711		)	205,936		134,737		(43,994		)	90,743
Backlog	43,740		(18,278		)	25,462		—		—			—
Total finite-life intangibles	1,600,419		(229,444		)	1,370,975		494,662		(154,411		)	340,251
Indefinite-life intangibles
Trade names	555,895		—			555,895		252,034		—			252,034
Total intangibles, net	$	2,156,314	$	(229,444	)	$	1,926,870	$	746,696	$	(154,411	)	$	592,285

Identifiable intangible asset amortization expense in 2012, 2011 and 2010 was $76.0 million, $41.9 million and $24.5 million, respectively.

In 2012 we recorded an impairment charge for trade name intangible assets of $49.1 million and $11.6 million in Water & Fluid Solutions and Technical Solutions, respectively.

Estimated future amortization expense for identifiable intangible assets during the next five years is as follows:



In thousands	2013		2014		2015		2016		2017
Estimated amortization expense	$	138,656	$	115,975	$	115,453	$	114,508	$	112,961

- 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