INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Oct. 01, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amounts of the Company’s intangible assets are as follows:



(In millions)	October 1, 2011					January 1, 2011
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Amortized intangibles:
Patents	$	7.9	$	(5.2	)	$	7.9	$	(4.8	)
Supply agreements	4.4		(4.4		)	4.4		(3.9		)
Technology	7.5		(2.6		)	7.5		(2.2		)
Customer relationships	79.8		(16.3		)	70.7		(13.1		)
Other	1.2		(1.1		)	1.1		(1.1		)
Total	$	100.8	$	(29.6	)	$	91.6	$	(25.1	)
Unamortized intangibles:
Trade names	24.8		—			22.5		—
Total intangibles	$	125.6	$	(29.6	)	$	114.1	$	(25.1	)

Amortization expense related to intangible assets for the third quarter ended October 1, 2011 and October 2, 2010 was $1.6 million and $1.3 million, respectively, and for the nine months ended October 1, 2011 and October 2, 2010, was $4.5 million and $3.8 million, respectively.

Amortization expense is projected as follows:



(In millions)	2011		2012		2013		2014		2015
	$	5.6	$	5.6	$	5.4	$	5.3	$	5.3

The change in the carrying amount of goodwill by reporting segment for the nine months ended October 1, 2011, is as follows:



(In millions)	Water Systems			Fueling Systems		Consolidated
Balance as of January 1, 2011	$	107.0		$	58.2	$	165.2
Acquisitions	5.9			—		5.9
Adjustments to prior year acquisitions	—			0.7		0.7
Foreign currency translation	(1.3		)	0.1		(1.2		)
Balance as of October 1, 2011	$	111.6		$	59.0	$	170.6

The 2006 purchase agreement for Healy Systems, Inc. provides for additional payments of 5 percent of certain Healy Systems, Inc. product sales through August 31, 2011. Adjustments to prior year acquisitions primarily include those contingency commitments to the former owners of Healy Systems, Inc.

- 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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