Goodwill & Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill & Other Intangible Assets [Abstract]

(7)

GOODWILL & OTHER INTANGIBLE ASSETS:

As discussed in Note 2, goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired less assumed liabilities and non-controlling interests. Management assesses the goodwill of each of its reporting units for impairment at least annually at the beginning of the fourth quarter and as "triggering" events occur. As of December 31, 2011, the Company had twenty eight reporting units for goodwill impairment testing. The carrying value of the goodwill included in each individual reporting unit ranges from approximately $7 million to approximately $3.7 billion. The Company's annual impairment test was performed as of the first day of the Company's fiscal fourth quarters of 2011, 2010 and 2009 and no impairment was identified. Reporting units resulting from recent acquisitions generally present the highest risk of impairment. Management believes the impairment risk associated with these reporting units typically decreases as such businesses are integrated into the Company and positioned for improved future earnings growth. In measuring the fair value of its reporting units, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. The factors used by management in its impairment analysis are inherently subject to uncertainty. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of its reporting units, if actual results are not consistent with management's estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings.

The following table shows the rollforward of goodwill reflected in the financial statements resulting from the Company's activities during 2011 and 2010 ($ in millions).


	Test & Measurement		Environmental			Life Sciences & Diagnostics			Dental			Industrial Technologies			Businesses Contributed to Apex Joint Venture			Total
Balance January 1, 2010	$	2,687.9	$	1,329.6		$	1,512.2		$	2,043.2		$	1,705.8		$	173.8		$	9,452.5
Attributable to 2010 acquisitions		308.5		52.6			599.8			131.4			65.5			—			1,157.8
Goodwill of businesses contributed to Apex joint venture		—		—			—			—			—			(173.8	)		(173.8	)
Adjustments due to finalization of purchase price allocations		4.8		4.2			—			(8.4	)		4.3			—			4.9
Effect of foreign currency translation		0.4		(2.8	)		10.4			(51.7	)		(4.0	)		—			(47.7	)

Balance December 31, 2010		3,001.6		1,383.6			2,122.4			2,114.5			1,771.6			—			10,393.7
Attributable to 2011 acquisitions		35.4		90.6			3,758.3			2.8			277.6			—			4,164.7
Adjustments due to finalization of purchase price allocations		0.4		(3.9	)		(5.7	)		26.8			—			—			17.6
Effect of foreign currency translation		0.6		(21.1	)		(33.0	)		(22.0	)		(26.2	)		—			(101.7	)

Balance December 31, 2011	$	3,038.0	$	1,449.2		$	5,842.0		$	2,122.1		$	2,023.0		$	—		$	14,474.3

Finite-lived intangible assets are amortized over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions):


	December 31, 2011					December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite – Lived Intangibles:
Patents & technology	$	1,180.0	$	(384.8	)	$	761.6	$	(295.9	)
Customer relationships and other intangibles		3,009.0		(633.2	)		1,857.6		(453.2	)

Total finite – lived intangibles		4,189.0		(1,018.0	)		2,619.2		(749.1	)

Indefinite – Lived Intangibles:
Trademarks & trade names		2,669.2		—			1,437.6		—

Total intangibles	$	6,858.2	$	(1,018.0	)	$	4,056.8	$	(749.1	)

During 2011, the Company acquired finite-lived intangible assets, consisting primarily of customer relationships and patents, with a weighted-average life of 15 years. Refer to Note 2 for additional information on the intangible assets acquired.

Total intangible amortization expense in 2011, 2010 and 2009 was $284 million, $199 million and $156 million, respectively. Based on the intangible assets recorded as of December 31, 2011, amortization expense is estimated to be $324 million during 2012, $290 million during 2013, $261 million during 2014, $235 million during 2015 and $211 million during 2016.

- 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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