Goodwill and other intangible assets

9 Months Ended

Sep. 30, 2012

Note 7 — Goodwill and other intangible assets

In the first quarter of 2012, the Company changed its reporting structure to four reportable segments, three of which are geographically-based and one of which is comprised of the Company’s OEM business. During the third quarter of 2012, due to changes in the Company’s management and internal reporting structure, the Company’s Latin America operations were moved from the AJLA Segment into the North America Segment. As a result of this change, the North America Segment is now referred to as the Americas Segment and the AJLA Segment is now referred to as the Asia Segment. All prior comparative periods have been restated to reflect this change. See Note 14, “Business segment information” for additional information on the Company’s new reporting structure.

The following table provides information relating to changes in the carrying amount of goodwill, by reportable segment, for the nine months ended September 30, 2012:


	Americas Segment			EMEA Segment			Asia Segment		OEM Segment			Total
	(Dollars in thousands)
Balance as of December 31, 2011
Goodwill	$	1,005,021		$	283,362		$	121,983	$	28,176		$	1,438,542
Accumulated impairment losses		—			—			—		—			—

		1,005,021			283,362			121,983		28,176			1,438,542
Goodwill impairment charges		(332,128	)		—			—		—			(332,128	)
Goodwill related to acquisitions		28,274			687			—		—			28,961
Goodwill related to dispositions		—			—			—		(28,176	)		(28,176	)
Translation adjustment		2,347			(1,307	)		5,701		—			6,741
Transfer of goodwill		679			(679	)		—		—			—
Balance as of September 30, 2012
Goodwill		1,036,321			282,063			127,684		—			1,446,068
Accumulated impairment losses		(332,128	)		—			—		—			(332,128	)

	$	704,193		$	282,063		$	127,684	$	—		$	1,113,940

See Note 5 for information relating to the goodwill impairment charges.

The following table provides information, as of September 30, 2012 and December 31, 2011, regarding the gross carrying amount of, and accumulated amortization relating to, intangible assets:


	Gross Carrying Amount				Accumulated Amortization
	September 30, 2012		December 31, 2011		September 30, 2012			December 31, 2011
	(Dollars in thousands)
Customer relationships	$	535,923	$	537,094	$	(134,989	)	$	(117,505	)
In-process research and development		45,494		—		—			—
Intellectual property		252,654		221,171		(90,749	)		(85,402	)
Distribution rights		16,447		16,669		(13,642	)		(13,484	)
Trade names		319,975		322,404		(197	)		(1,160	)

	$	1,170,493	$	1,097,338	$	(239,577	)	$	(217,551	)

The increase in intangible assets during the nine months ended September 30, 2012 primarily reflects the effect of the Company’s acquisitions. See Note 3 for discussion of Company’s acquisitions.

Amortization expense related to intangible assets was approximately $11.1 million and $10.7 million for the three months ended September 30, 2012 and September 25, 2011, respectively, and $32.3 million and $32.1 million for the nine months ended September 30, 2012 and September 25, 2011, respectively. Estimated annual amortization expense for the remainder of 2012 and the next four succeeding years is as follows (dollars in thousands):


2012	$	10,800
2013		44,600
2014		41,900
2015		37,500
2016		37,400

- 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.

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