Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6 - Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows:



	Mobile Industries		Process Industries		Aerospace		Steel		Total
Beginning balance	$	17.7	$	146.4	$	162.2	$	12.6	$	338.9
Acquisitions	4.3		14.6		—		—		18.9
Other	0.3		1.5		0.1		—		1.9
Ending balance	$	22.3	$	162.5	$	162.3	$	12.6	$	359.7

The change related to acquisitions primarily reflects the preliminary purchase price allocation for the acquisitions of Interlube completed on March 11, 2013, Smith Services completed on April 11, 2013 and Standard Machine completed on May 13, 2013. “Other” primarily includes foreign currency translation adjustments. The goodwill acquired from Smith Services of $0.9 million is tax-deductible and will be amortized over 15 years. See Note 3 - Acquisitions for additional information on the acquisitions listed above.

The following table displays intangible assets as of September 30, 2013 and December 31, 2012:



	As of September 30, 2013						As of December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	165.1	$	48.1	$	117.0	$	159.6	$	38.1	$	121.5
Know-how	31.9		4.0		27.9		26.1		2.8		23.3
Industrial license agreements	0.2		0.1		0.1		0.2		0.1		0.1
Land-use rights	8.8		4.4		4.4		8.6		4.1		4.5
Patents	2.3		1.8		0.5		2.5		1.8		0.7
Technology use	46.3		12.9		33.4		47.0		11.5		35.5
Trademarks	4.3		2.5		1.8		4.2		3.4		0.8
PMA licenses	8.8		3.9		4.9		8.8		3.6		5.2
Non-compete agreements	4.2		3.7		0.5		4.4		3.3		1.1
Unpatented technology	7.2		7.2		—		7.2		6.7		0.5
	$	279.1	$	88.6	$	190.5	$	268.6	$	75.4	$	193.2
Intangible assets not subject to amortization:
Tradename	$	17.3	$	—	$	17.3	$	17.3	$	—	$	17.3
FAA air agency certificates	14.2		—		14.2		14.2		—		14.2
	$	31.5	$	—	$	31.5	$	31.5	$	—	$	31.5
Total intangible assets	$	310.6	$	88.6	$	222.0	$	300.1	$	75.4	$	224.7

Amortization expense for intangible assets was $13.7 million and $14.3 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. Amortization expense for intangible assets is estimated to be $18.9 million for 2013; $18.7 million in 2014; $18.6 million in 2015; $18.3 million in 2016; and $17.9 million in 2017.

- 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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