Goodwill and Other Identifiable Intangible Assets

6 Months Ended

Jul. 02, 2011

Goodwill and Other Identifiable Intangible Assets

8. Goodwill and Other Identifiable Intangible Assets

The changes in the carrying amount of goodwill by segment were as follows:


In thousands	December 31, 2010		Acquisitions/ Divestitures		Foreign Currency Translation/Other			July 2, 2011
Water Group	$	1,784,100	$	466,182	$	35,686		$	2,285,968
Technical Products Group		281,944		—		5,518			287,462

Consolidated Total	$	2,066,044	$	466,182	$	41,204		$	2,573,430


In thousands	December 31, 2009		Acquisitions/ Divestitures		Foreign Currency Translation/Other			July 3, 2010
Water Group	$	1,802,913	$	—	$	(46,050	)	$	1,756,863
Technical Products Group		285,884		—		(9,683	)		276,201

Consolidated Total	$	2,088,797	$	—	$	(55,733	)	$	2,033,064

The detail of acquired intangible assets consisted of the following:


	July 2, 2011							December 31, 2010							July 3, 2010
In thousands	Gross carrying amount		Accumulated amortization			Net		Gross carrying amount		Accumulated amortization			Net		Gross carrying amount		Accumulated amortization			Net
Finite-life intangibles
Patents	$	15,485	$	(13,306	)	$	2,179	$	15,469	$	(12,695	)	$	2,774	$	15,434	$	(12,081	)	$	3,353
Proprietary technology		136,737		(34,423	)		102,314		74,176		(29,862	)		44,314		72,163		(26,426	)		45,737
Customer relationships		380,263		(97,232	)		283,031		282,479		(82,901	)		199,578		274,077		(71,807	)		202,270
Trade names		1,569		(467	)		1,102		1,532		(383	)		1,149		1,494		(299	)		1,195

Total finite-life intangibles	$	534,054	$	(145,428	)	$	388,626	$	373,656	$	(125,841	)	$	247,815	$	363,168	$	(110,613	)	$	252,555

Indefinite-life intangibles
Trade names		266,282		—			266,282		205,755		—			205,755		199,251		—			199,251

Total intangibles, net	$	800,336	$	(145,428	)	$	654,908	$	579,411	$	(125,841	)	$	453,570	$	562,419	$	(110,613	)	$	451,806

Intangible asset amortization expense was approximately $10.8 million and $6.3 million for the three months ended July 2, 2011 and July 3, 2010, respectively, and was approximately $17.2 million and $11.8 million for the six months ended July 2, 2011 and July 3, 2010, respectively.

The estimated future amortization expense for identifiable intangible assets during the remainder of 2011 and the next five years is as follows:


In thousands	2011 Q3-Q4		2012		2013		2014		2015		2016
Estimated amortization expense	$	25,583	$	40,725	$	40,226	$	39,902	$	39,603	$	38,539

- 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