XML 33 R21.htm IDEA: XBRL DOCUMENT v3.19.3
Intangible Assets
12 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets   INTANGIBLE ASSETS
The table below summarizes the major classes of our intangible assets:
 
 
30 September 2019
 
30 September 2018
 
 
Gross

 
Accumulated
Amortization/
Impairment

 
Net

 
Gross

 
Accumulated
Amortization/
Impairment

 
Net

Customer relationships
 

$487.9

 

($179.8
)
 

$308.1

 

$491.9

 

($165.5
)
 

$326.4

Patents and technology
 
39.0

 
(13.3
)
 
25.7

 
34.0

 
(11.9
)
 
22.1

Other
 
75.0

 
(33.4
)
 
41.6

 
72.6

 
(33.8
)
 
38.8

Total finite-lived intangibles
 
601.9

 
(226.5
)
 
375.4

 
598.5

 
(211.2
)
 
387.3

Trade names and trademarks, indefinite-lived
 
56.2

 
(12.1
)
 
44.1

 
64.8

 
(13.6
)
 
51.2

Total Intangible Assets
 

$658.1

 

($238.6
)
 

$419.5

 

$663.3

 

($224.8
)
 

$438.5


The decrease in net intangible assets in fiscal year 2019 was primarily attributable to amortization and the impact of currency translation, partially offset by intangible assets acquired through an exchange of equity affiliate investments. For additional information on the exchange, refer to Note 7, Acquisitions.
Amortization expense for intangible assets was $33.1, $30.0, and $22.6 in fiscal years 2019, 2018, and 2017, respectively. Refer to Note 1, Major Accounting Policies, for the amortization periods for each major class of intangible assets. The table below details projected annual amortization expense for intangible assets as of 30 September 2019:
2020

$35.3

2021
33.5

2022
30.8

2023
29.6

2024
28.6

Thereafter
217.6

Total

$375.4


Indefinite-lived intangible assets are subject to impairment testing at least annually or more frequently if events or changes in circumstances indicate that potential impairment exists. The impairment test for indefinite-lived intangible assets involves calculating the fair value of the indefinite-lived intangible assets and comparing the fair value to their carrying value. If the fair value is less than the carrying value, the difference is recorded as an impairment loss. During the fourth quarter of fiscal year 2019, we conducted our annual impairment test of indefinite-lived intangible assets and determined that the fair value of all our intangible assets exceeded their carrying value.
During the third quarter of fiscal year 2017, we conducted an interim impairment test of the indefinite-lived intangible assets associated with LASA and recorded a noncash impairment charge of $16.8 to write down the carrying value of the trade names and trademarks to their fair value. The impairment charge has been excluded from the Industrial Gases – Americas segment's operating income and is reflected on our consolidated income statements within “Goodwill and intangible asset impairment charge." As discussed in Note 11Goodwill, the reduction in value resulted from lowered long-term growth projections. We estimated the fair value of the indefinite-lived intangibles associated with LASA utilizing the royalty savings method, a form of the income approach.
In addition, we tested the recoverability of LASA long-lived assets, including finite-lived intangible assets subject to amortization, in fiscal year 2017 and concluded that they were recoverable from expected future undiscounted cash flows.