Goodwill And Other Intangible Assets

12 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

NOTE B Goodwill and Other Intangible Assets

The Company has allocated goodwill to its Engine Products and Industrial Products segments. During Fiscal 2015 the Company acquired Northern Technical L.L.C. (Northern Technical) as of September 30, 2014, and IFIL USA L.L.C. (IFIL), as of June 30, 2015. There were no acquisitions during Fiscal 2014. There was no disposition activity during Fiscal 2015 or 2014. The Company completed its annual impairment assessments in the third quarters of Fiscal 2015 and 2014. The results of this assessment showed that the estimated fair values of the reporting units to which goodwill is assigned continued to exceed the corresponding carrying values of the respective reporting units, resulting in no goodwill impairment.

Following is a reconciliation of goodwill for the years ended July 31, 2015 and 2014:

	Engine Products			Industrial Products			Total Goodwill
	(thousands of dollars)
Balance as of July 31, 2013	$	72,321		$	93,247		$	165,568
Foreign exchange translation		52			786			838
Balance as of July 31, 2014	$	72,373		$	94,033		$	166,406
Goodwill acquired					66,814			66,814
Foreign exchange translation		(1,401	)		(8,087	)		(9,488	)
Balance as of July 31, 2015	$	70,972		$	152,760		$	223,732

Intangible assets are comprised of patents, trademarks, and Customer relationships and lists. Following is a reconciliation of intangible assets for the years ended July 31, 2015 and 2014:

	Gross Carrying Amount			Accumulated Amortization			Net Intangible Assets
	(thousands of dollars)
Balance as of July 31, 2013	$	81,882		$	(40,575	)	$	41,307
Amortization expense		—			(5,154	)		(5,154	)
Retirements		(775	)		600			(175	)
Foreign exchange translation		176			(109	)		67
Balance as of July 31, 2014	$	81,283		$	(45,238	)	$	36,045
Intangible acquired - Northern Technical		6,200			—			6,200
Intangible acquired – IFIL		3,800			—			3,800
Amortization expense		—			(6,778	)		(6,778	)
Foreign exchange translation		(4,193	)		2,796			(1,397	)
Balance as of July 31, 2015	$	87,090		$	(49,220	)	$	37,870

Net intangible assets consist of patents, trademarks, and trade names of $8.8 million and $11.5 million as of July 31, 2015 and 2014, respectively, and Customer related intangibles of $29.1 million and $24.5 million as of July 31, 2015 and 2014, respectively. As of July 31, 2015, patents, trademarks, and trade names had a weighted average remaining life of 7.0 years and Customer related intangibles had a weighted average remaining life of 9.9 years. Expected amortization expense relating to existing intangible assets is as follows (in thousands):

Fiscal Year
2016	$	5,711
2017	$	5,573
2018	$	4,360
2019	$	3,809
2020	$	3,721
Thereafter	$	12,813