Goodwill and Intangible Assets
The Company's annual impairment tests performed in 2013, 2012, and 2011 resulted in no impairment loss being recognized.
The changes in the carrying amount of goodwill are as follows:
|
| | | | | | | | | | | | | | | |
| Industrial Segment | | Aerospace Segment | | Climate & Industrial Controls Segment | | Total |
Balance June 30, 2011 | $ | 2,595,989 |
| | $ | 98,914 |
| | $ | 314,213 |
| | $ | 3,009,116 |
|
Acquisitions | 65,480 |
| | (193 | ) | | — |
| | 65,287 |
|
Foreign currency translation and other | (143,348 | ) | | (47 | ) | | (5,152 | ) | | (148,547 | ) |
Balance June 30, 2012 | $ | 2,518,121 |
| | $ | 98,674 |
| | $ | 309,061 |
| | $ | 2,925,856 |
|
Acquisitions | 316,857 |
| | — |
| | — |
| | 316,857 |
|
Divestitures | (61 | ) | | — |
| | (20,044 | ) | | (20,105 | ) |
Foreign currency translation and other | (1,588 | ) | | (334 | ) | | 2,829 |
| | 907 |
|
Balance June 30, 2013 | $ | 2,833,329 |
| | $ | 98,340 |
| | $ | 291,846 |
| | $ | 3,223,515 |
|
Acquisitions represent the original goodwill allocation, purchase price adjustments, and final adjustments to the purchase price allocation for the acquisitions during the measurement period subsequent to the applicable acquisition dates. The Company's previously reported results of operations and financial position would not be materially different had the goodwill adjustments recorded during 2013 and 2012 been reflected in the same reporting period that the initial purchase price allocations for those acquisitions were made.
Divestitures represent goodwill associated with businesses divested during 2013 as more fully discussed in Note 2.
Intangible assets are amortized on a straight-line method over their legal or estimated useful life. The gross carrying value and accumulated amortization for each major category of intangible asset at June 30 are as follows:
|
| | | | | | | | | | | | | | | |
| 2013 | | 2012 |
| Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
Patents | $ | 141,160 |
| | $ | 75,175 |
| | $ | 118,034 |
| | $ | 66,303 |
|
Trademarks | 386,619 |
| | 148,319 |
| | 321,019 |
| | 129,081 |
|
Customer lists and other | 1,468,243 |
| | 482,029 |
| | 1,247,820 |
| | 396,271 |
|
Total | $ | 1,996,022 |
| | $ | 705,523 |
| | $ | 1,686,873 |
| | $ | 591,655 |
|
During 2013, the Company acquired intangible assets with an initial purchase price allocation and weighted-average life as follows:
|
| | | | | |
| Purchase Price Allocation | | Weighted-Average Life |
Patents | $ | 21,616 |
| | 16 years |
Trademarks | 65,280 |
| | 17 years |
Customer lists and other | 204,461 |
| | 13 years |
Total | $ | 291,357 |
| | 14 years |
Total intangible amortization expense in 2013, 2012 and 2011 was $118,516, $107,086 and $107,701, respectively. Estimated intangible amortization expense for the five years ending June 30, 2014 through 2018 is $117,556, $113,034, $110,292, $105,602 and $101,876, respectively.
