Goodwill and Other Intangible Assets

6 Months Ended

Jul. 01, 2011

Goodwill and Other Intangible Assets

7.	Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are reviewed at least annually for impairment. If the carrying amount of goodwill or an intangible asset with an indefinite life exceeds its fair value, an impairment loss would be recognized in the amount equal to the excess. Intangible assets that are not deemed to have indefinite lives are amortized over their useful lives.

The amounts of goodwill and indefinite-lived intangible assets were as follows in millions of dollars:


	Goodwill											Indefinite-lived assets – Trade names
	North America		Europe and Mediterranean			ROW			Total			North America		Europe and Mediterranean		ROW			Total
Balance at December 31, 2010	$	2.3	$	6.8		$	165.8		$	174.9		$	2.4	$	0.5	$	136.0		$	138.9
Acquisitions		-		-			-			-			-		-		-			-
Currency translation and other adjustments		-		(1.4	)		(0.4	)		(1.8	)		-		-		(0.1	)		(0.1	)

Balance at July 1, 2011	$	2.3	$	5.4		$	165.4		$	173.1		$	2.4	$	0.5	$	135.9		$	138.8

The amounts of other intangible assets - customer relationships were as follows in millions of dollars:


	July 1, 2011			December 31, 2010
Amortized intangible assets:
Customer relationships	$	107.0		$	107.0
Accumulated amortization		(55.6	)		(49.4	)
Foreign currency translation adjustment		2.6			3.1

Amortized intangible assets, net	$	54.0		$	60.7

Amortized intangible assets are stated at cost less accumulated amortization as of July 1, 2011 and December 31, 2010. Customer relationships have been determined to have a useful life in the range of 3.5 to 10 years and the Company has accelerated the amortization expense to align with the historical customer attrition rates. The amortization of intangible assets for the first six fiscal months of 2011 and 2010 was $6.2 million and $7.3 million, respectively. The estimated amortization expense during the twelve month periods beginning July 1, 2011 through June 30, 2016, based on exchange rates as of July 1, 2011, are $10.7 million, $9.9 million, $9.1 million, $8.3 million, $7.4 million and $8.6 million thereafter.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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