Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

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		Total Company
January 1, 2017	$	602,650		$	30,786	$	633,436
Acquisition-related	3,330			—		3,330
Foreign currency translation	53,457			—		53,457
December 31, 2017	659,437			30,786		690,223
Acquisition-related	285,355			—		285,355
Foreign currency translation	(20,054		)	—		(20,054		)
December 31, 2018	$	924,738		$	30,786	$	955,524

Of the $955,524 of goodwill at December 31, 2018, $43,860 represents the original tax deductible basis.

The changes recorded at Industrial include $285,355 of goodwill in 2018 resulting from the acquisitions of Gimatic and IGS in October and July 2018, respectively, both of which are included in the Industrial segment. See Note 2 to the Consolidated Financial Statements. The amounts allocated to goodwill reflect the benefits that the Company expects to realize from future enhancements to technology, an increase in global market access and Gimatic's and IGS's assembled workforce. The Company is permitted to make an election with Italian tax authorities that allows for an income tax deduction on a portion of Gimatic goodwill. The Company plans to complete its analysis that determines this deduction in 2019. None of the recognized goodwill recognized at IGS is expected to be deductible for income tax purposes. The purchase price for the Gimatic acquisition is subject to post-closing adjustments, therefore goodwill may require adjustment accordingly.

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



		2018						2017
	Range of Life-Years	Gross Amount			Accumulated Amortization			Gross Amount			Accumulated Amortization
Amortized intangible assets:
Revenue Sharing Programs	Up to 30	$	299,500		$	(121,957	)	$	293,700		$	(108,075	)
Component Repair Programs	Up to 30	111,839			(21,895		)	111,839			(16,508		)
Customer relationships	10-16	338,366			(79,439		)	215,966			(65,385		)
Patents and technology	4-14	125,852			(59,205		)	87,052			(48,083		)
Trademarks/trade names	10-30	11,950			(10,731		)	11,950			(10,349		)
Other	Up to 15	7,296			(3,551		)	7,296			(3,159		)
		894,803			(296,778		)	727,803			(251,559		)
Unamortized intangible asset:
Trade names		55,670			—			42,770			—

Foreign currency translation		(17,157		)	—			(11,972		)	—
Other intangible assets		$	933,316		$	(296,778	)	$	758,601		$	(251,559	)

The Company has entered into a number of aftermarket RSP and CRP agreements each of which is with our customer, General Electric ("GE"). See Note 1 of the Consolidated Financial Statements for a further discussion of these Revenue Sharing and Component Repair Programs. As of December 31, 2018, the Company has made all required payments under the aftermarket RSP and CRP agreements. In the second quarter of 2018, management executed an aftermarket agreement with GE. This agreement involved a participation fee related to extending the scope of the existing Revenue Sharing Programs (“RSPs”) between the Company and GE and entitling the Company to manufacture and supply existing RSP parts on a sole source basis that have a dual end-use, meaning usage in engines that have both a civil and military end use. The Company paid $5,800 as consideration for such rights and recorded a long-lived intangible asset, which will be amortized as a reduction to sales over the life of the programs, consistent with the treatment of similar arrangements that were executed in the past.

In connection with the acquisition of Gimatic in October 2018, the Company recorded intangible assets of $158,800, which includes $107,900 of customer relationships, $38,800 of patents and technology and $12,100 of an indefinite-life trade name. The weighted-average useful lives of the customer relationships and the patents and technology were 16 and 11 years, respectively.

In connection with the acquisition of IGS in July 2018, the Company recorded intangible assets of $15,300, which includes $14,500 of customer relationships and $800 of an indefinite-life trade name. The weighted-average useful life of the customer relationship is 16 years.

Amortization of intangible assets for the years ended December 31, 2018, 2017 and 2016 was $45,220, $41,216 and $36,753, respectively. Estimated amortization of intangible assets for future periods is as follows: 2019 - $53,000; 2020- $50,000; 2021 - $49,000; 2022 - $49,000 and 2023 - $48,000.

- 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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