Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets

Note 8—Goodwill and Other Intangible Assets

The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 (in millions):


Balance at December 31, 2010	$	98.3
Acquisitions		4.7
Dispositions		(0.1	)
Current period adjustments		(2.0	)
Foreign currency impact		(0.7	)

Balance at December 31, 2011		100.2
Acquisitions		10.5
Impairment of assets		(1.4	)
Current period adjustments		6.1
Foreign currency impact		0.5

Balance at December 31, 2012	$	115.9

At December 31, 2012 and 2011, all goodwill was allocated to the Scientific Instruments segment. The goodwill acquired in 2012 primarily relates to the acquisition of the SkyScan business. The goodwill acquired in 2011 relates to the acquisition of the tribology business and the HPLC business.

At December 31, 2012, the Company performed its annual impairment evaluation and concluded all reporting units' fair values exceeded their carrying values, with the exception of the CAM division, which is part of the Scientific Instruments segment, as a result of experiencing increased deterioration in its financial performance. The Company, therefore, performed step two of the impairment test to measure potential impairment and concluded an impairment charge of $1.4 million was required. This amount represents all the goodwill allocated to the CAM division and is recorded within "Impairment of assets" in the accompanying statements of income and comprehensive income for the year ended December 31, 2012. There are no indefinite-lived intangible assets associated with the CAM division nor any impairment of indefinite-lived intangible assets during year ended December 31, 2012.

No impairment losses were recorded on goodwill during the years ended December 31, 2011 and 2010.

The following is a summary of intangible assets at December 31, (in millions):

	2012							2011

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Existing technology and related patents	$	151.5	$	(47.6	)	$	103.9	$	141.4	$	(29.9	)	$	111.5
Customer relationships		15.3		(7.9	)		7.4		22.0		(5.1	)		16.9
Trade names		0.2		(0.2	)		—		0.2		(0.2	)		—

Intangible assets subject to amortization		167.0		(55.7	)		111.3		163.6		(35.2	)		128.4
In-process research and development		5.7		—			5.7		8.0		—			8.0

Intangible assets	$	172.7	$	(55.7	)	$	117.0	$	171.6	$	(35.2	)	$	136.4

The Company determined the increased deterioration in financial performance of the CAM division discussed above was an indicator requiring the evaluation of the definite-lived intangible assets within that reporting unit for recoverability. The Company performed a valuation at December 31, 2012 and determined that the definite-lived intangible assets within the CAM division were impaired. The Company recorded an impairment charge in the amount of $16.4 million for the year ended December 31, 2012 to reduce the carrying value of those assets to their estimated fair values. This impairment charge is included within "Impairment of assets" in the accompanying statement of income and comprehensive income. No impairment losses were recorded related to definite-lived intangible assets during the years ended December 31, 2011 and 2010.

For the years ended December 31, 2012, 2011 and 2010, the Company recorded amortization expense of approximately $22.0 million, $18.1 million and $5.8 million, respectively, in the consolidated statements of income and comprehensive income.

The estimated future amortization expense related to amortizable intangible assets at December 31, 2012 is as follows (in millions):


2013	$	20.4
2014		19.8
2015		19.6
2016		19.1
2017		18.7
Thereafter		13.7

Total	$	111.3

- 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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