Goodwill and Other Intangible Assets

10 Months Ended

Jan. 01, 2011

Goodwill and Other Intangible Assets [Abstract]

F. GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:


(Millions of Dollars)	CDIY		Industrial		Security			Total
Balance January 2, 2010	$	206.6	$	367.8	$	1,244.0		$	1,818.4
Addition from Merger		2,706.2		637.2		485.6			3,829.0
Addition from other acquisitions		—		224.9		54.1			279.0
Foreign currency translation and other		11.2		4.7		(0.4	)		15.5

Balance January 1, 2011	$	2,924.0	$	1,234.6	$	1,783.3		$	5,941.9

The Company has changed its reporting of segment information to reflect the current management of certain industrial end customers from its CDIY to Industrial segments. The goodwill balances presented above reflect this change.

OTHER INTANGIBLE ASSETS Other intangible assets at January 1, 2011 and January 2, 2010 were as follows:


	2010					2009
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
(Millions of Dollars)	Amount		Amortization			Amount		Amortization
Amortized Intangible Assets — Definite lives
Patents and copyrights	$	56.2	$	(40.3	)	$	53.1	$	(38.7	)
Trade names		236.9		(49.6	)		61.6		(35.1	)
Customer relationships		1,259.7		(369.9	)		680.5		(267.1	)
Other intangible assets		187.2		(60.1	)		58.0		(40.5	)

Total	$	1,740.0	$	(519.9	)	$	853.2	$	(381.4	)

Total indefinite-lived trade names are $1,652.1 million at January 1, 2011 and $304.6 million at January 2, 2010. The increase is primarily attributable to the Merger.

Aggregate other intangible assets amortization expense by segment was as follows:


(Millions of Dollars)	2010		2009		2008
CDIY	$	27.9	$	2.9	$	2.9
Security		95.1		96.8		79.6
Industrial		22.3		4.9		8.0

Consolidated	$	145.3	$	104.6	$	90.5

Future amortization expense in each of the next five years amounts to $172.8 million for 2011, $160.0 million for 2012, $145.2 million for 2013, $129.6 million for 2014, $112.6 million for 2015 and $499.9 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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