Goodwill and Other Intangible Assets

12 Months Ended

Dec. 26, 2015

Goodwill and Other Intangible Assets [Abstract]

Note 6 – Goodwill and Other Intangible Assets

Goodwill

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

(In thousands)	Plumbing & Refrigeration Segment			OEM Segment			Total

Goodwill	$	131,462			12,300			143,762
Accumulated impairment charges		(39,434	)		(9,971	)		(49,405	)

Balance at December 28, 2013:		92,028			2,329			94,357

Additions(1)		9,123			—			9,123
Currency translation		(571	)		—			(571	)

Balance at December 27, 2014:		100,580			2,329			102,909

Additions		19,087			2,088			21,175
Disposition		(2,418	)		—			(2,418	)
Currency translation		(1,414	)		—			(1,414	)
Balance at December 26, 2015:
Goodwill		155,269			14,388			169,657
Accumulated impairment charges		(39,434	)		(9,971	)		(49,405	)

Goodwill, net	$	115,835		$	4,417		$	120,252

(1) Includes finalization of the purchase price allocation adjustment for Howell of $1.0 million

Reporting units with recorded goodwill include SPD, Great Lakes, European Operations, Westermeyer (reported in the EPD operating segment), and Turbotec (reported in the EPD operating segment). Several factors give rise to goodwill in the Company's acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired businesses. There were no impairment charges resulting from the 2015, 2014, or 2013 annual impairment tests as the estimated fair value of each of the reporting units exceeded its carrying value.

Other Intangible Assets

The gross and net book value of other intangible assets included in other assets at December 26, 2015 was as follows:

(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Customer relationships	$	30,882	$	(1,488	)	$	29,394
Non-compete agreements		6,534		(2,838	)		3,696
Patents and technology		9,798		(5,323	)		4,475
Trade names and licenses		4,160		(574	)		3,586
Other		213		(728	)		(515	)

Other intangible assets	$	51,587	$	(10,951	)	$	40,636

The carrying amount of intangible assets at December 27, 2014 was as follows:

(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Customer relationships	$	11,852	$	(526	)	$	11,326
Non-compete agreements		4,495		(1,307	)		3,188
Patents and technology		6,852		(4,744	)		2,108
Trade names and licenses		1,670		(252	)		1,418
Other		877		(453	)		424

Other intangible assets	$	25,746	$	(7,282	)	$	18,464

Amortization expense for intangible assets was $4.1 million in 2015, $3.5 million in 2014, and $1.4 million in 2013. Future amortization expense is estimated as follows:

(In thousands)	Amount

2016	$	4,296
2017		3,014
2018		2,709
2019		2,647
2020		2,480
Thereafter		25,490

Expected amortization expense	$	40,636

- 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