Enerpac Tool Group Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

3 Months Ended

Nov. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Long-Lived Assets

The changes in the carrying value of goodwill for the three months ended November 30, 2016 are as follows (in thousands):



	Industrial			Energy			Engineered Solutions			Total
Balance as of August 31, 2016	$	101,739		$	187,321		$	230,216		$	519,276
Purchase accounting adjustments	—			2,286			—			2,286
Impact of changes in foreign currency rates	(1,798		)	(4,450		)	(5,836		)	(12,084		)
Balance as of November 30, 2016	$	99,941		$	185,157		$	224,380		$	509,478

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



		November 30, 2016						August 31, 2016
	Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value
Amortizable intangible assets:
Customer relationships	15	$	287,156	$	167,320	$	119,836	$	292,671	$	166,252	$	126,419
Patents	11	29,987		22,634		7,353		30,296		22,233		8,063
Trademarks and tradenames	18	21,027		8,113		12,914		21,283		7,936		13,347
Other intangibles	3	6,498		5,864		634		6,627		5,890		737
Indefinite lived intangible assets:
Tradenames	N/A	89,795		—		89,795		90,909		—		90,909
		$	434,463	$	203,931	$	230,532	$	441,786	$	202,311	$	239,475

The Company estimates that amortization expense will be $14.7 million for the remaining nine months of fiscal 2017. Amortization expense for future years is estimated to be: $19.4 million in fiscal 2018, $19.2 million in 2019, $18.6 million in fiscal 2020, $17.5 million in fiscal 2021, $15.8 million in fiscal 2022 and $35.5 million thereafter. The future amortization expense amounts represent estimates and may be impacted by future acquisitions, divestitures or changes in foreign currency exchange rates.

- 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.

+ References + Details