Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7 - Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2017 were as follows:



	Mobile Industries		Process Industries			Total
Beginning balance	$	97.2	$	260.3		$	357.5
Acquisitions	15.1		(1.1		)	14.0
Foreign currency translation adjustments	0.4		1.5			1.9
Ending balance	$	112.7	$	260.7		$	373.4

The PT Tech and Torsion Control Products acquisitions in the second quarter resulted in $15.1 million of additional goodwill for the Mobile Industries segment. The Company paid a net purchase price adjustment of $0.6 million in January 2017 in connection with the acquisition of EDT, which resulted in an increase to goodwill. The Company also adjusted its purchase price allocation for the Lovejoy acquisition in 2017, which resulted in a $1.7 million reduction to goodwill. Both EDT and Lovejoy are reported in the Process Industries segment.

The following table displays intangible assets as of June 30, 2017 and December 31, 2016:



	As of June 30, 2017						As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	230.9	$	92.2	$	138.7	$	211.4	$	84.4	$	127.0
Know-how	49.2		9.7		39.5		40.3		8.5		31.8
Industrial license agreements	0.1		0.1		—		0.1		0.1		—
Land-use rights	8.6		4.8		3.8		7.8		4.6		3.2
Patents	2.1		2.1		—		2.1		2.1		—
Technology use	55.0		18.5		36.5		54.9		16.9		38.0
Trademarks	7.8		4.0		3.8		6.5		3.8		2.7
Non-compete agreements	1.1		0.7		0.4		0.9		0.7		0.2
Favorable Leases	0.1		—		0.1		0.1		—		0.1
Capitalized Software	256.8		219.5		37.3		251.7		211.8		39.9
	$	611.7	$	351.6	$	260.1	$	575.8	$	332.9	$	242.9
Intangible assets not subject to amortization:
Tradenames	$	19.5	$	—	$	19.5	$	19.4	$	—	$	19.4
FAA air agency certificates	8.7		—		8.7		8.7		—		8.7
	$	28.2			$	28.2	$	28.1			$	28.1
Total intangible assets	$	639.9	$	351.6	$	288.3	$	603.9	$	332.9	$	271.0

Amortization expense for intangible assets was $18.2 million and $18.1 million for the six months ended June 30, 2017 and 2016, respectively. Amortization expense for intangible assets is estimated to be $36.1 million in 2017; $30.3 million in 2018; $26.0 million in 2019; $21.4 million in 2020; and $17.8 million in 2021.

- 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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