GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 29, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

The Company uses the acquisition method of accounting for business combinations. Annual goodwill impairment testing and trade name impairment testing is performed during the fourth quarter of each year; unless events or circumstances indicate earlier impairment testing is required. No impairment loss was recognized for 2012, 2011, or 2010.

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



(In millions)	2012					2011
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangibles:
Patents	$	7.8	$	(5.7	)	$	7.8	$	(5.4	)
Supply agreements	4.4		(4.4		)	4.4		(4.4		)
Technology	7.5		(3.2		)	7.5		(2.7		)
Customer relationships	125.9		(23.1		)	78.7		(17.1		)
Software	1.7		(0.1		)	1.2		—
Other	1.2		(1.2		)	1.2		(1.1		)
Total	$	148.5	$	(37.7	)	$	100.8	$	(30.7	)
Unamortized intangibles:
Trade names	47.3		—			24.4		—
Total intangibles	$	195.8	$	(37.7	)	$	125.2	$	(30.7	)

The weighted average number of years over which each intangible class is amortized is as follows:



Class		Years
Patents		17
Supply agreements		6
Technology		15
Customer relationships		13 - 20
Software		5
Other		8

Amortization expense related to intangible assets for fiscal years 2012, 2011, and 2010, was $7.2 million, $5.9 million, and $4.6 million, respectively.

Amortization expense for each of the five succeeding years is projected as follows:



(In millions)	2013		2014		2015		2016		2017
	$	8.4	$	8.4	$	8.4	$	8.3	$	8.0

The change in the carrying amount of goodwill by reporting segment for 2012 and 2011, is as follows:



(In millions)	2012
	Water Systems		Fueling Systems		Consolidated
Balance as of December 31, 2011	$	109.9	$	58.9	$	168.8
Acquisitions	31.9		4.1		36.0
Adjustments to prior year acquisitions	3.0		—		3.0
Foreign currency translation	0.1		0.2		0.3
Balance as of December 29, 2012	$	144.9	$	63.2	$	208.1



(In millions)	2011
	Water Systems			Fueling Systems		Consolidated
Balance as of January 1, 2011	$	107.0		$	58.2	$	165.2
Acquisitions	6.2			—		6.2
Adjustments to prior year acquisitions	—			0.7		0.7
Foreign currency translation	(3.3		)	—		(3.3		)
Balance as of December 31, 2011	$	109.9		$	58.9	$	168.8

The 2012 acquired goodwill in the Water Systems segment related to the Company's acquisition of PPH and Cerus. The 2012 acquired goodwill in the Fueling Systems segment related to the Company's acquisition of Flex-ing. The 2011 acquired goodwill in the Water Systems segment related to the Company’s acquisition of Impo.

The 2006 purchase agreement for Healy Systems provided for additional payments of 5 percent of certain Healy Systems product sales through August 31, 2011. Adjustments to prior year acquisitions primarily include those contingency commitments to Healy Systems, Inc. Payments of $7.8 million were made in 2011 for accumulated earned amounts under the purchase agreement.

- 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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