Goodwill and Other Identifiable Intangible Assets

3 Months Ended

Mar. 31, 2017

Goodwill and Other Identifiable Intangible Assets

The changes in the carrying amount of goodwill by segment were as follows:



In millions	December 31, 2016		Acquisitions/divestitures		Foreign currency translation/other		March 31, 2017
Water	$	1,994.6	$	45.3	$	24.7	$	2,064.6
Electrical	2,222.8		5.3		2.6		2,230.7
Total goodwill	$	4,217.4	$	50.6	$	27.3	$	4,295.3

In January 2017, we completed acquisitions with purchase prices totaling $56.7 million in cash, net of cash acquired. The pro-forma impact of these acquisitions was not material.

Identifiable intangible assets consisted of the following:



	March 31, 2017							December 31, 2016
In millions	Cost		Accumulated amortization			Net		Cost		Accumulated amortization			Net
Finite-life intangibles
Customer relationships	$	1,482.4	$	(366.8	)	$	1,115.6	$	1,478.0	$	(346.7	)	$	1,131.3
Trade names	1.9		(1.5		)	0.4		1.8		(1.4		)	0.4
Proprietary technology and patents	139.8		(95.5		)	44.3		141.3		(100.3		)	41.0
Total finite-life intangibles	1,624.1		(463.8		)	1,160.3		1,621.1		(448.4		)	1,172.7
Indefinite-life intangibles
Trade names	462.2		—			462.2		459.1		—			459.1
Total intangibles, net	$	2,086.3	$	(463.8	)	$	1,622.5	$	2,080.2	$	(448.4	)	$	1,631.8

Intangible asset amortization expense was $24.0 million and $24.2 million for the three months ended March 31, 2017 and 2016.

Estimated future amortization expense for identifiable intangible assets during the remainder of 2017 and the next five years is as follows:



	Q2-Q4
In millions	2017		2018		2019		2020		2021		2022
Estimated amortization expense	$	72.4	$	95.4	$	92.9	$	86.1	$	81.1	$	74.9

- 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.

+ References + Details