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

9 Months Ended

May 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying value of goodwill for the nine months ended May 31, 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
Purchase accounting adjustments	—		117			—			608			725
Impairment charges	—		—			(137,548		)	—			(137,548		)
Discontinued operations reclassification	—		—			(76,937		)	—			(76,937		)
Sale of Nielsen Sessions	—		—			—			(2,556		)	(2,556		)
Impact of changes in foreign currency rates	750		(5,646		)	615			1,335			(2,946		)
Balance as of May 31, 2013	$	82,154	$	253,992		$	—		$	311,004		$	647,150

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



		May 31, 2013						August 31, 2012
	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	$	277,441	$	90,259	$	187,182	$	347,739	$	93,768	$	253,971
Patents	11	30,485		18,121		12,364		52,851		34,842		18,009
Trademarks and tradenames	19	24,381		7,125		17,256		43,820		8,670		35,150
Non-compete agreements and other	4	7,061		6,393		668		7,677		6,316		1,361
Indefinite lived intangible assets:
Tradenames	N/A	99,516		—		99,516		137,393		—		137,393
		$	438,884	$	121,898	$	316,986	$	589,480	$	143,596	$	445,884

Changes in the gross carrying value of intangible assets result from foreign currency exchange rate changes, impairment charges and the reclassification of Electrical segment intangible assets to assets of discontinued operations (refer to Note 3, "Discontinued Operations.") Amortization expense recorded on the intangible assets listed above was $5.5 million and $17.5 million for the three and nine months ended May 31, 2013, respectively and $5.6 million and $16.2 million for the three and nine months ended May 31, 2012, respectively. The Company estimates that amortization expense will be approximately $5.1 million for the remainder of fiscal 2013. Amortization expense for future years is estimated to be as follows: $22.0 million in fiscal 2014, $21.9 million in 2015, $21.8 million in fiscal 2016, $20.8 million in fiscal 2017, $20.4 million in fiscal 2018 and $105.5 million thereafter. These future amortization expense amounts represent estimates, which may change based on future acquisitions, changes in foreign currency exchange rates or 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.

+ References + Details