Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Other Intangible Assets

Note 10—Goodwill and Other Intangible Assets

The changes in the carrying amount of Goodwill, net for the six months ended June 30, 2015 were as follows:

	Construction			Interconnect		Fluid		Brake and		FoodService
(in millions)	Materials			Technologies		Technologies		Friction		Products		Total
Gross balance at January 1, 2015	$	123.3		$	554.3	$	—	$	226.6	$	60.3	$	964.5
Goodwill acquired during year (1)	—			—		175.7		—		—		175.7
Measurement period adjustments	—			0.3		—		—		—		0.3
Currency translation	(3.4		)	—		2.6		—		—		(0.8		)

Net balance at June 30, 2015	$	119.9		$	554.6	$	178.3	$	226.6	$	60.3	$	1,139.7

(1)

See Note 4 for further information on goodwill resulting from recent acquisitions.

The Company’s Other intangible assets, net at June 30, 2015, were as follows:

	Acquired		Accumulated			Net Book
(in millions)	Cost		Amortization			Value
Assets subject to amortization:
Intellectual property	$	174.7	$	(44.2	)	$	130.5
Customer relationships	680.0		(139.9		)	540.1
Other	20.7		(12.9		)	7.8
Assets not subject to amortization:
Trade names	246.1		—			246.1

Other intangible assets, net	$	1,121.5	$	(197.0	)	$	924.5

The Company’s Other intangible assets, net at December 31, 2014, were as follows:

	Acquired		Accumulated			Net Book
(in millions)	Cost		Amortization			Value
Assets subject to amortization:
Intellectual property	$	146.6	$	(37.8	)	$	108.8
Customer relationships	494.6		(122.3		)	372.3
Other	20.6		(12.1		)	8.5
Assets not subject to amortization:
Trade names	122.1		—			122.1

Other intangible assets, net	$	783.9	$	(172.2	)	$	611.7

Estimated amortization expense for the remainder of 2015 and the next four years is as follows: $29.9 million remaining in 2015, $58.8 million in 2016, $58.0 million in 2017, $58.0 million in 2018, and $57.9 million in 2019.

The net carrying values of the Company’s Other intangible assets by reportable segment were as follows:

	June 30,		December 31,
(in millions)	2015		2014

Carlisle Construction Materials	$	64.8	$	72.3
Carlisle Interconnect Technologies	372.2		386.6
Carlisle Fluid Technologies	338.9		—
Carlisle Brake & Friction	120.4		123.5
Carlisle FoodService Products	28.2		29.3

Total	$	924.5	$	611.7

The CBF reporting unit’s goodwill as of June 30, 2015 and December 31, 2014 was $226.6 million. The most recent annual goodwill impairment test was performed for all reporting units as of October 1, 2014. The Company also performs Step 1 of the goodwill impairment test on an interim basis upon the occurrence of events or substantive changes in circumstances that indicate that a reporting unit’s carrying value may be less than its fair value.

The Company determined through ongoing monitoring that due to various factors it was appropriate to perform Step 1 of the goodwill impairment test as of June 30, 2015. Consistent with the policy described in the 2014 10-K, the Company performed Step 1 of the goodwill impairment test using a discounted cash flow analysis to estimate the fair value of the CBF reporting unit and concluded that its fair value continues to exceed its carrying value.

The Company also evaluated the indefinite-lived intangible assets, primarily trademarks and trade names with a carrying value of $53.5 million, associated with the CBF reporting unit for impairment as of June 30, 2015. The analysis did not result in an impairment of CBF’s trade names as their estimated fair value exceeded their carrying value.

As noted above, the Company believes that the facts and circumstances as of June 30, 2015, indicate that no impairment exists with respect to CBF’s goodwill and other indefinite-lived intangible assets. If the estimates of recovery in CBF’s end markets do not materialize as expected and the U.S. Dollar continues to strengthen and therefore results continue to be lower than anticipated, the Company may have to perform additional interim goodwill impairment analyses in future periods which may lead to a goodwill impairment loss. Similarly, an impairment loss may result if our expectations do not materialize with respect to indefinite-lived intangibles. An impairment loss could result in non-cash impairment charges that are material to the company’s results of operation.

- 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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