Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill: The following table sets forth the change in the carrying amount of goodwill for each reportable segment and the Company:



	Industrial			Aerospace		Other			Total Company
January 1, 2013	$	414,244		$	30,786	$	134,875		$	579,905
Goodwill acquired	189,486			—		—			189,486
Divestiture	—			—		(134,704		)	(134,704		)
Purchase accounting adjustment	2,627			—		—			2,627
Foreign currency translation	12,554			—		(171		)	12,383
December 31, 2013	618,911			30,786		—			649,697
Foreign currency translation	(54,748		)	—		—			(54,748		)
December 31, 2014	$	564,163		$	30,786	$	—		$	594,949

Of the $594,949 of goodwill at December 31, 2014, $43,860 represents the original tax deductible basis.

In 2013, the changes recorded at Industrial include $2,627 of final purchase accounting adjustments from the acquisition of Synventive and $189,486 of goodwill resulting from the acquisition of the Männer Business. The amount allocated to goodwill reflects the benefits that the Company expects to realize from increased global market access and the assembled workforce of the Männer Business. None of the recognized goodwill from the Männer Business is expected to be deductible for income tax purposes.

In the first quarter of 2013, the Company realigned its reportable business segments by transferring the Associated Spring Raymond business ("Raymond"), its remaining business within the former Distribution segment, to the Industrial segment. The goodwill related to BDNA ("BDNA goodwill"), also a business within the former Distribution segment, was $134,875 at December 31, 2012. BDNA was sold on April 22, 2013. See Note 2.

Other Intangible Assets: Other intangible assets at December 31 consisted of:



		2014						2013
	Range of Life-Years	Gross Amount			Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized intangible assets:
Revenue Sharing Programs	Up to 30	$	293,700		$	(72,958	)	$	293,700	$	(64,220	)
Component Repair Program	Up to 15	106,639			(1,941		)	26,639		—
Customer lists/relationships	10-16	183,406			(30,731		)	183,406		(18,293		)
Patents and technology	7-14	62,972			(22,356		)	62,972		(14,210		)
Trademarks/trade names	5-30	11,950			(8,552		)	11,950		(7,628		)
Other	Up to 15	19,292			(14,806		)	19,292		(9,868		)
		677,959			(151,344		)	597,959		(114,219		)
Unamortized intangible asset
Trade names		36,900			—			36,900		—

Foreign currency translation		(8,821		)	—			13,653		—
Other intangible assets		$	706,038		$	(151,344	)	$	648,512	$	(114,219	)

The Company entered into Component Repair Programs ("CRPs") with General Electric during the fourth quarter of 2013 ("CRP 1") and the second quarter of 2014 ("CRP 2"). The CRPs provide for, among other items, the right to sell certain aftermarket component repair services for CFM56, CF6 and LM engines directly to other customers as one of a few GE

licensed suppliers. In addition, the CRPs extend certain existing contracts under which the Company currently provides these services directly to GE.

The Company agreed to pay $26,639 as consideration for the rights related to CRP 1. Of this balance, the Company paid $16,639 in the fourth quarter of 2013 and $9,100 in the fourth quarter of 2014. The remaining payment of $900 has been included within accrued liabilities in the Consolidated Financial Statements. The Company agreed to pay $80,000 as consideration for the rights related to CRP 2. The Company paid $41,000 in the second quarter of 2014, $20,000 in the fourth quarter of 2014 and the remaining payment of $19,000, also included within accrued liabilities, will be paid in the second quarter of 2015. The Company recorded the CRP payments as an intangible asset which is recognized as a reduction of sales over the remaining useful life of these engine programs.

In connection with the acquisition of the Männer Business in October 2013, the Company recorded intangible assets of $146,600, which includes $92,100 of customer relationships, $21,000 of patents and technology, $6,600 of customer backlog and $26,900 of an indefinite life Männer Business trade name. The weighted-average useful lives of the acquired assets were 16 years, 10 years, and less than one year, respectively.

Amortization of intangible assets for the years ended December 31, 2014, 2013 and 2012 was $37,125, $27,973 and $18,605, respectively. Estimated amortization of intangible assets for future periods is as follows: 2015 - $38,000; 2016 - $35,000; 2017 - $35,000; 2018 - $36,000 and 2019 - $34,000.

The Company has entered into a number of aftermarket RSP agreements each of which is with General Electric. See Note 1 of the Consolidated Financial Statements for a further discussion of these Revenue Sharing Programs. As of December 31, 2014, the Company has made all required participation fee payments under the aftermarket RSP agreements.

- 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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