Goodwill and Acquired Intangible Assets

12 Months Ended

Nov. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The following table reconciles the activity for goodwill by segment for fiscal years 2013 and 2012. All goodwill is stated on a gross basis, as the Company has not recorded any impairment charges against goodwill.



	Engine/Mobile Filtration		Industrial/ Environmental Filtration			Packaging		Total
November 30, 2011	$	21,087	$	214,443		$	—	$	235,530
Acquisitions	—		5,596			—		5,596
Currency translation adjustments	506		292			—		798
November 30, 2012	$	21,593	$	220,331		$	—	$	241,924
Acquisitions	—		—			—		—
Currency translation adjustments	275		(900		)	—		(625		)
November 30, 2013	$	21,868	$	219,431		$	—	$	241,299

The Company completed an annual impairment review at each fiscal year-end and concluded there was no impairment of goodwill. In performing the impairment reviews, the Company estimated the fair values of the reporting units using a present value method that discounted future cash flows. Such valuations are sensitive to assumptions associated with cash flow growth, discount rates, terminal value and the aggregation of reporting unit components. The Company further assessed the reasonableness of these estimates by considering relevant market multiples.

The following table summarizes acquired intangible assets by segment. Other acquired intangible assets include parts manufacturer regulatory approvals, proprietary technology, patents and noncompete agreements.



	Engine/Mobile Filtration			Industrial/ Environmental Filtration			Packaging		Total
November 30, 2013
Indefinite Lived Intangibles:
Trademarks - indefinite lived	$	603		$	42,058		$	—	$	42,661

Finite Lived Intangibles:
Trademarks - finite lived, gross	307			488			—		795
Accumulated amortization	(104		)	(329		)	—		(433		)
Trademarks - finite lived, net	$	203		$	159		$	—	$	362

Customer relationships, gross	$	4,309		$	45,244		$	—	$	49,553
Accumulated amortization	(1,870		)	(20,161		)	—		(22,031		)
Customer relationships, net	$	2,439		$	25,083		$	—	$	27,522

Other acquired intangibles, gross	$	243		$	39,894		$	—	$	40,137
Accumulated amortization	(243		)	(20,558		)	—		(20,801		)
Other acquired intangibles, net	$	—		$	19,336		$	—	$	19,336

Total finite lived intangible assets, net	$	2,642		$	44,578		$	—	$	47,220
Acquired intangible assets, less accumulated amortization	$	3,245		$	86,636		$	—	$	89,881



	Engine/Mobile Filtration			Industrial/ Environmental Filtration			Packaging		Total
November 30, 2012
Indefinite Lived Intangibles:
Trademarks - indefinite lived	$	603		$	41,729		$	—	$	42,332

Finite Lived Intangibles:
Trademarks - finite lived, gross	300			488			—		788
Accumulated amortization	(89		)	(316		)	—		(405		)
Trademarks - finite lived, net	$	211		$	172		$	—	$	383

Customer relationships, gross	$	4,278		$	45,517		$	—	$	49,795
Accumulated amortization	(1,701		)	(16,813		)	—		(18,514		)
Customer relationships, net	$	2,577		$	28,704		$	—	$	31,281

Other acquired intangibles, gross	$	243		$	39,885		$	—	$	40,128
Accumulated amortization	(243		)	(18,200		)	—		(18,443		)
Other acquired intangibles, net	$	—		$	21,685		$	—	$	21,685

Total finite lived intangible assets, net	$	2,788		$	50,561		$	—	$	53,349
Acquired intangible assets, less accumulated amortization	$	3,391		$	92,290		$	—	$	95,681

The Company performed annual impairment tests on its indefinite-lived intangible assets at each fiscal year-end using the relief-from-royalty method to determine the fair value of its trademarks and trade names. There was no impairment as the fair value was greater than the carrying value for these indefinite-lived intangible assets as of these dates. In addition, the Company reassessed the useful lives and classification of identifiable finite-lived intangible assets at each year-end and determined that they continue to be appropriate.

Because of a decline in the net sales of our TransWeb business, in the third quarter of 2013 we also performed an impairment review of the related indefinite-lived intangible assets ($900 carrying value at August 31, 2013) and definite-lived intangible assets ($9,332 carrying value at August 31, 2013) and determined that the estimated future cash flows of the relevant asset group were sufficient to cover the carrying value and no impairment existed. We also performed an impairment review of goodwill at the related reporting unit, and determined that the estimated fair value of the reporting unit exceeded its carrying value and no impairment existed.

The following tables summarize actual amortization expense for the past three fiscal years and estimated amortization expense for the next five fiscal years.



Amortization expense for the years ended:
2013	$	5,904
2012	5,890
2011	5,609



Estimated amortization expense for the next five years:
2014	$	5,685
2015	5,623
2016	5,448
2017	5,253
2018	4,589

- 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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