Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill: The following table sets forth the change in the carrying amount of goodwill for each reportable segment and the Company:



	Industrial		Aerospace		Other			Total Company
January 1, 2012	$	200,636	$	30,786	$	134,682		$	366,104
Goodwill acquired	201,029		—		—			201,029
Foreign currency translation	12,579		—		193			12,772
December 31, 2012	414,244		30,786		134,875			579,905
Goodwill acquired	189,486		—		—			189,486
Divestiture	—		—		(134,704		)	(134,704		)
Purchase accounting adjustment	2,627		—		—			2,627
Foreign currency translation	12,554		—		(171		)	12,383
December 31, 2013	$	618,911	$	30,786	$	—		$	649,697

Of the $649,697 of goodwill at December 31, 2013, $43,860 represents the original tax deductible basis.

In 2013, the changes recorded at Industrial include $2,627 of final purchase accounting adjustments from the acquisition of Synventive and $189,486 of goodwill resulting from the acquisition of the Männer Business. The amount allocated to goodwill reflects the benefits that the Company expects to realize from increased global market access and the assembled workforce of the Männer Business. None of the recognized goodwill from the Männer Business is expected to be deductible for income tax purposes.

In the first quarter of 2013, the Company realigned its reportable business segments by transferring the Associated Spring Raymond business ("Raymond"), its remaining business within the former Distribution segment, to the Industrial segment. The goodwill related to BDNA ("BDNA goodwill"), also a business within the former Distribution segment, was $134,875 at December 31, 2012. BDNA was sold on April 22, 2013. See Note 2.

In 2012, the changes recorded at Industrial include $201,029 of initially recognized goodwill resulting from the acquisition of Synventive. The amount allocated to Goodwill is reflective of the benefits the Company expects to realize from the entrance into a new business platform, increased global market access and Synventive's assembled workforce. None of the recognized goodwill is expected to be deductible for income tax purposes.

Other Intangible Assets: Other intangible assets at December 31 consisted of:



		2013					2012
	Range of Life-Years	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized intangible assets:
Revenue Sharing Programs	Up to 30	$	293,700	$	(64,220	)	$	293,700	$	(54,638	)
Component Repair Program	Up to 15	26,639		—			—		—
Customer lists/relationships	10-16	183,406		(18,293		)	102,806		(21,727		)
Patents and technology	7-14	62,972		(14,210		)	41,972		(7,758		)
Trademarks/trade names	5-30	11,950		(7,628		)	12,750		(7,497		)
Other	Up to 15	19,292		(9,868		)	12,692		(6,927		)
		597,959		(114,219		)	463,920		(98,547		)
Unamortized intangible asset
Trade names		36,900		—			10,000		—

Foreign currency translation		$	13,653	$	—		$	8,599	$	—
Other intangible assets		648,512		(114,219		)	482,519		(98,547		)

On December 30, 2013, the Company entered into the CRP with its customer, General Electric. The CRP provides for, among other items, the extension of contracts under which the Company currently provides certain aftermarket component repair services for the CF6 and LM engine programs and the right to sell these services directly to other customers as one of a few General Electric licensed suppliers. As consideration for these rights, the Company agreed to pay $26,639. The Company has paid $16,639 in the fourth quarter of 2013 and $10,000 is expected to be paid in 2014. The amortization of the CRP will be recognized as a reduction to sales over the remaining life of the applicable engine programs.

In connection with the acquisition of the Männer Business in October 2013, the Company recorded intangible assets of $146,600, which includes $92,100 of customer relationships, $21,000 of patents and technology, $6,600 of customer backlog and $26,900 of an indefinite life Männer Business trade name. The weighted-average useful lives of the acquired assets were 16 years, 10 years, and less than one year, respectively.

In connection with the acquisition of Synventive in August 2012, the Company recorded intangible assets of $126,600 which includes $79,300 of customer relationships, $35,400 of patents and technology, $10,700 of trade names ($10,000 of which relates to the Synventive trade name and has an indefinite life) and $1,200 of customer backlog. The weighted-average useful lives of the acquired assets were 15 years, 7 years, 10 years and less than one year, respectively.

Gross amounts of $11,500 and $800 (accumulated amortization of $11,387 and $800) that were included within customer lists and trademarks, respectively, at December 31, 2012, were related to BDNA.

Amortization of intangible assets for the years ended December 31, 2013, 2012 and 2011 was $27,973, $18,605 and $16,907, respectively. Estimated amortization of intangible assets for future periods is as follows: 2014 - $39,000; 2015 - $34,000; 2016 - $34,000; 2017 - $34,000 and 2018 - $35,000.

The Company has entered into a number of aftermarket RSP agreements each of which is with General Electric. See Note 1 of the Consolidated Financial Statements for a further discussion of these Revenue Sharing Programs. As of December 31, 2013, the Company has made all required participation fee payments under the aftermarket RSP agreements.

- 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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