Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill for the period ending June 30, 2017, by segment, were as follows:



(Dollars in thousands)	Advanced Connectivity Solutions		Elastomeric Material Solutions		Power Electronics Solutions		Other		Total
December 31, 2016	$	51,693	$	91,531	$	62,983	$	2,224	$	208,431
Foreign currency translation adjustment	—		786		5,121		—		5,907
Purchase accounting adjustment	—		116		—		—		116
DSP acquisition	—		17,793		—		—		17,793
June 30, 2017	$	51,693	$	110,226	$	68,104	$	2,224	$	232,247

Intangible Assets



	June 30, 2017						December 31, 2016
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks and patents	$	10,161	$	1,637	$	8,524	$	6,825	$	1,156	$	5,669
Technology	72,826		29,037		43,789		68,880		24,365		44,515
Covenant not to compete	1,729		1,004		725		1,419		932		487
Customer relationships	127,887		18,205		109,682		96,148		14,311		81,837
Total definite lived intangible assets	212,603		49,883		162,720		173,272		40,764		132,508
Indefinite lived intangible assets	4,506		—		4,506		4,168		—		4,168
Total intangible assets	$	217,109	$	49,883	$	167,226	$	177,440	$	40,764	$	136,676

Gross and net carrying amounts and accumulated amortization may differ from prior periods due to foreign exchange rate fluctuations.

Amortization expense for the three and six months ended June 30, 2017 was approximately $3.8 million and $7.1 million, respectively. Amortization expense for the three and six months ended June 30, 2016 was approximately $2.7 million and $5.3 million, respectively. The estimated future amortization expense is $7.6 million for the remainder of 2017 and $15.3 million, $15.1 million, $11.8 million and $11.0 million for 2018, 2019, 2020 and 2021, respectively.

On November 23, 2016, we acquired DeWAL, and on January 6, 2017, we acquired the principal operating assets of DSP. For further detail on the goodwill and intangible assets recorded in connection with the acquisitions, see Note 5 - Acquisitions.

The indefinite-lived trademark intangible assets were acquired as part of the acquisition of curamik^®. These assets are assessed for impairment annually or if changes in circumstances indicate that the carrying values may not be recoverable.

The definite-lived intangible assets are amortized using a fair value methodology that is based on the projected economic use of the related underlying asset. The weighted average amortization period as of June 30, 2017, by intangible asset class, is presented in the table below:



Intangible Asset Class		Weighted Average Amortization Period (Years)
Trademarks and patents		7.2
Technology		6.0
Customer relationships		10.3
Covenant not to compete		3.4
Total definite lived intangible assets		8.9

- 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