XML 20 R12.htm IDEA: XBRL DOCUMENT v2.3.0.15
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2011
Goodwill and Other Intangible Assets [Abstract] 
GOODWILL AND OTHER INTANGIBLE ASSETS

4. GOODWILL AND OTHER INTANGIBLE ASSETS

 

                                 

Goodwill

 

($ in millions)

  December 31,
2010
    Impairment     Other
Adjustments
Including Currency
Translations
    September 30,
2011
 

Environmental Solutions

  $ 120.4     $ —       $ —       $ 120.4  

Fire Rescue

    33.9       —         (0.3     33.6  

Safety and Security Systems

    118.2       —         0.1       118.3  

Federal Signal Technologies

    37.9       1.6       (1.1     38.4  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 310.4     $ 1.6     $ (1.3   $ 310.7  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

                                 

Trade names

 

($ in millions)

  December 31,
2010
    Impairment     Other
Adjustments
Including Currency
Translations
    September 30,
2011
 

Federal Signal Technologies

  $ 15.3     $ —       $ 0.1     $ 15.4  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 15.3     $ —       $ 0.1     $ 15.4  
   

 

 

   

 

 

   

 

 

   

 

 

 

The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets:

 

                                                         
          September 30, 2011     December 31, 2010  
($ in millions)   Average
Useful Life
(Years)
    Gross
Carrying
Value
    Accumulated
Amortization
    Net
Carrying
Value
    Gross
Carrying
Value
    Accumulated
Amortization
    Net
Carrying
Value
 

Amortizable Intangible Assets:

                                                       

Developed software

    6     $ 24.2     $ (18.8   $ 5.4     $ 23.0     $ (17.5   $ 5.5  

Patents

    10       3.8       (1.1     2.7       2.3       (0.6     1.7  

Customer relationships

    15       45.2       (9.9     35.3       45.0       (7.3     37.7  

Technology

    11       23.7       (4.8     18.9       23.7       (3.1     20.6  

Other

    5       5.6       (2.9     2.7       5.7       (2.1     3.6  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    12       102.5       (37.5     65.0       99.7       (30.6     69.1  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indefinite-lived Intangible Assets:

                                                       

Trade names

            15.4       —         15.4       15.3       —         15.3  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

          $ 117.9     $ (37.5   $ 80.4     $ 115.0     $ (30.6   $ 84.4  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization expense for the three and nine months ended September 30, 2011 totaled $2.3 million and $7.2 million, respectively, and for the three and nine months ended September 30, 2010 totaled $2.7 million and $6.5 million, respectively. The Company estimates that the total aggregate amortization expense will be $9.5 million in 2011, $8.5 million in 2012, $7.3 million in 2013, $7.2 million in 2014, $6.5 million in 2015, $6.3 million in 2016, and $26.9 million thereafter.

The Company accounts for goodwill and identifiable intangible assets in accordance with ASC 360 “Intangibles – Goodwill and Other.” Under this standard, the Company assesses the impairment of goodwill and indefinite-lived intangible assets at least annually, on October 31, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

During the fourth quarter of 2010, the Company performed its annual assessment and determined that the goodwill and certain trade names within the Federal Signal Technologies Group reporting unit were impaired and recorded impairment charges of $67.1 million and $11.8 million, respectively. The impairment charges resulted from decreased sales and cash flow estimated in our Federal Signal Technologies Group. Upon completion of a detailed second step impairment analysis in the first quarter of 2011, the Company recorded an adjustment of $1.6 million, which reduced a portion of the original goodwill impairment recognized during the fourth quarter of 2010.