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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 5: Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2017, are as follows:
(Amounts in millions) |  | Commercial & Industrial Group |  |  | Snap-on Tools Group |  |  | Repair Systems & Information Group |  |  | Total |
Balance as of December 31, 2016 |  | $ | 242.4 |  |  | $ | 12.5 |  |  | $ | 640.6 |  |  | $ | 895.5 |
Currency translation |  |  | 29.1 |  |  |  | – |  |  |  | 16.5 |  |  |  | 45.6 |
Acquisitions and related adjustments |  |  | 25.7 |  |  |  | – |  |  |  | (42.8) |  |  |  | (17.1) |
Balance as of September 30, 2017 |  | $ | 297.2 |  |  | $ | 12.5 |  |  | $ | 614.3 |  |  | $ | 924.0 |
Goodwill of $924.0 million as of September 30, 2017, includes (i) $77.7 million, on a preliminary basis, from the acquisition of Car-O-Liner, (ii) $23.7 million, on a preliminary basis, from the acquisition of Norbar, (iii) $5.9 million from the acquisition of BTC, (iv) $5.0 million from the acquisition of Sturtevant Richmont, and (v) $1.9 million, on a preliminary basis, from the acquisition of TCS. The goodwill from the Car-O-Liner acquisition is distributed as follows: $76.9 million in the Repair Systems & Information Group and $0.8 million in the Commercial & Industrial Group. The goodwill from the Norbar, Sturtevant Richmont and TCS acquisitions is included in the Commercial & Industrial Group and the goodwill from the BTC acquisition is included in the Repair Systems & Information Group. See Note 2 for additional information on acquisitions. Since the purchase accounting for deferred taxes for the acquired net assets of Car-O-Liner, Norbar and TCS were not complete as of September 30, 2017, the allocation of the respective purchase prices and resulting goodwill has been prepared on a preliminary basis and changes to the allocations will occur as the deferred taxes are determined. The company anticipates completing the purchase accounting for these acquisitions in the fourth quarter of 2017. Additional disclosures related to other intangible assets are as follows:
|  | September 30, 2017 |  |  | December 31, 2016 |
(Amounts in millions) |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Amortized other intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 175.5 |  |  | $ | (95.6) |  |  | $ | 142.6 |  |  | $ | (86.0) |
Developed technology |  |  | 18.9 |  |  |  | (18.4) |  |  |  | 17.7 |  |  |  | (17.7) |
Internally developed software |  |  | 174.5 |  |  |  | (129.7) |  |  |  | 165.7 |  |  |  | (118.3) |
Patents |  |  | 33.7 |  |  |  | (22.5) |  |  |  | 31.9 |  |  |  | (21.5) |
Trademarks |  |  | 2.9 |  |  |  | (1.9) |  |  |  | 2.8 |  |  |  | (1.8) |
Other |  |  | 7.7 |  |  |  | (2.6) |  |  |  | 7.2 |  |  |  | (2.2) |
Total |  |  | 413.2 |  |  |  | (270.7) |  |  |  | 367.9 |  |  |  | (247.5) |
Non-amortized trademarks |  |  | 115.8 |  |  |  | – |  |  |  | 64.2 |  |  |  | – |
Total other intangible assets |  | $ | 529.0 |  |  | $ | (270.7) |  |  | $ | 432.1 |  |  | $ | (247.5) |
As of September 30, 2017, the $175.5 million gross carrying value of customer relationships includes $29.1 million related to the Car-O-Liner acquisition, $1.2 million related to the BTC acquisition and $1.1 million related to the Norbar acquisition. The $115.8 million gross carrying value of non-amortized trademarks as of September 30, 2017, includes $30.2 million related to the Car-O-Liner acquisition, $16.9 million related to the Norbar acquisition and $2.1 million related to the BTC acquisition. Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2017, the results of which did not result in any impairment. Significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit, could require a provision for impairment of goodwill and/or other intangible assets in a future period. As of September 30, 2017, the company had no accumulated impairment losses. The weighted-average amortization periods related to other intangible assets are as follows:
|  | In Years
Customer relationships |  |  |  | 15 |
Internally developed software |  |  |  | 3 |
Patents |  |  |  | 8 |
Trademarks |  |  |  | 6 |
Other |  |  |  | 39 |
Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15-year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 11 years. The company’s customer relationships generally have contractual terms of three to five years and are typically renewed without significant cost to the company. The weighted-average 15-year life for customer relationships is based on the company’s historical renewal experience. Intangible asset renewal costs are expensed as incurred. The aggregate amortization expense was $7.1 million and $20.7 million for the respective three and nine months ended September 30, 2017, and $5.9 million and $18.2 million for the respective three and nine months ended October 1, 2016. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $27.6 million in 2017, $26.3 million in 2018, $22.7 million in 2019, $18.0 million in 2020, $14.7 million in 2021, and $9.9 million in 2022.

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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