Enerpac Tool Group Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. Goodwill is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Impairment tests are performed by the Company annually in the fourth quarter of each fiscal year. The changes in the carrying amount of goodwill for the years ended August 31, 2014 and 2013 are as follows (in thousands):



	Industrial		Energy			Electrical			Engineered Solutions			Total
Balance as of August 31, 2012	$	81,404	$	259,521		$	213,870		$	311,617		$	866,412
Business acquired (Viking)	—		87,734			—			—			87,734
Purchase accounting adjustments	—		117			—			(100		)	17
Impairment charge	—		—			(137,804		)	—			(137,804		)
Reclassification of discontinued operations	—		—			(76,877		)	—			(76,877		)
Divestiture of Nielsen Sessions business	—		—			—			(2,556		)	(2,556		)
Impact of changes in foreign currency rates	1,207		(5,469		)	811			1,477			(1,974		)
Balance as of August 31, 2013	82,611		341,903			—			310,438			734,952
Business acquired (Hayes)	17,536		—			—			—			17,536
Purchase accounting adjustments	—		(835		)	—			—			(835		)
Divestiture of RV business	—		—			—			(17,843		)	(17,843		)
Impact of changes in foreign currency rates	119		9,559			—			(718		)	8,960
Balance as of August 31, 2014	$	100,266	$	350,627		$	—		$	291,877		$	742,770

The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands):



	Weighted Average Amortization Period (Years)	August 31, 2014						August 31, 2013
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortizable intangible assets:
Customer relationships	15	$	325,164	$	117,706	$	207,458	$	318,143	$	95,215	$	222,928
Patents	10	31,678		17,494		14,184		30,564		18,747		11,817
Trademarks and tradenames	17	23,241		6,201		17,040		24,088		7,356		16,732
Non-compete agreements and other	4	7,373		6,783		590		7,034		6,458		576
Indefinite lived intangible assets:
Tradenames	N/A	125,905		—		125,905		124,639		—		124,639
		$	513,361	$	148,184	$	365,177	$	504,468	$	127,776	$	376,692

Changes in the gross carrying value of intangible assets result from foreign currency exchange rate changes, business acquisitions, divestitures and impairment charges. Amortization expense for future years is estimated to be: $25.6 million in each of fiscal years 2015 and 2016, $24.9 million in fiscal 2017, $24.1 million in fiscal 2018, $23.9 million in fiscal 2019 and $115.2 million in aggregate thereafter. The future amortization expense amounts represent estimates, which may change based on future acquisitions, foreign currency exchange rates and other factors.

- 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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