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GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended
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Sep. 29, 2012
GOODWILL AND OTHER INTANGIBLE ASSETS |
GOODWILL AND OTHER INTANGIBLE ASSETS |
(7) GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by reportable segment and other operating segments, were as follows:
|  |  |  | Goodwill |  |  |  | Foreign |  |  |
|  |  |  | resulting from |  |  |  | Currency |  |  |
|  | December 31, |  | business |  |  |  | Translation |  | September 29, |
|  | 2011 |  | combinations |  | Impairments |  | and other (1) |  | 2012 |
Flow Technology reportable segment |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  | $ | 1,019.9 |  | $ | 24.9 |  | $ | — |  | $ | 39.1 |  | $ | 1,083.9 |
Accumulated Impairments |  | — |  | — |  | — |  | — |  | — |
Goodwill |  | 1,019.9 |  | 24.9 |  | — |  | 39.1 |  | 1,083.9 |
Thermal Equipment and Services reportable segment |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  | 597.8 |  | — |  | — |  | (27.6 | ) | 570.2 |
Accumulated Impairments |  | (134.9 | ) | — |  | — |  | — |  | (134.9 | )
Goodwill |  | 462.9 |  | — |  | — |  | (27.6 | ) | 435.3 |
Industrial Products and Services |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  | 450.6 |  | — |  | — |  | 2.6 |  | 453.2 |
Accumulated Impairments |  | (159.7 | ) | — |  | — |  | (2.0 | ) | (161.7 | )
Goodwill |  | 290.9 |  | — |  | — |  | 0.6 |  | 291.5 |
Total |  |  |  |  |  |  |  |  |  |  |
Gross Goodwill |  | 2,068.3 |  | 24.9 |  | — |  | 14.1 |  | 2,107.3 |
Accumulated Impairments |  | (294.6 | ) | — |  | — |  | (2.0 | ) | (296.6 | )
Goodwill |  | $ | 1,773.7 |  | $ | 24.9 |  | $ | — |  | $ | 12.1 |  | $ | 1,810.7 |
(1) Includes adjustments resulting from revisions to estimates of fair value of certain assets and liabilities associated with Clyde Union and other acquisitions of $56.7, partially offset by the allocation of goodwill of $24.3 related to the deconsolidation of our dry cooling products business in China (see Note 3) and reductions in goodwill associated with foreign currency translation adjustments of $20.3. Other Intangibles Identifiable intangible assets comprise the following:
|  | September 29, 2012 |  | December 31, 2011 |
|  | Gross |  |  |  | Net |  | Gross |  |  |  | Net |
|  | Carrying |  | Accumulated |  | Carrying |  | Carrying |  | Accumulated |  | Carrying |
|  | Value |  | Amortization |  | Value |  | Value |  | Amortization |  | Value |
Intangible assets with determinable lives: |  |  |  |  |  |  |  |  |  |  |  |  |
Patents |  | $ | 8.5 |  | $ | (7.9 | ) | $ | 0.6 |  | $ | 8.5 |  | $ | (7.6 | ) | $ | 0.9 |
Technology |  | 188.4 |  | (38.3 | ) | 150.1 |  | 182.2 |  | (30.5 | ) | 151.7 |
Customer relationships |  | 416.0 |  | (58.5 | ) | 357.5 |  | 400.4 |  | (44.7 | ) | 355.7 |
Other |  | 33.4 |  | (16.3 | ) | 17.1 |  | 38.7 |  | (11.0 | ) | 27.7 |
|  | 646.3 |  | (121.0 | ) | 525.3 |  | 629.8 |  | (93.8 | ) | 536.0 |
Trademarks with indefinite lives |  | 441.8 |  | — |  | 441.8 |  | 436.4 |  | — |  | 436.4 |
Total |  | $ | 1,088.1 |  | $ | (121.0 | ) | $ | 967.1 |  | $ | 1,066.2 |  | $ | (93.8 | ) | $ | 972.4 |
Estimated annual amortization expense related to these intangible assets is $9.2 for the remainder of 2012, $35.0 in 2013, $30.6 in 2014, $30.1 in 2015, and $29.9 in 2016. At September 29, 2012, the net carrying value of intangible assets with determinable lives consisted of $461.3 in the Flow Technology reportable segment, $53.6 in the Thermal Equipment and Services reportable segment, and $10.4 in Industrial Products and Services. Trademarks with indefinite lives consisted of $287.5 in the Flow Technology reportable segment, $130.2 in the Thermal Equipment and Services reportable segment, and $24.1 in Industrial Products and Services. We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process. In addition, we test goodwill for impairment on a more frequent basis if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. A significant amount of judgment is involved in determining if an indication of impairment has occurred between annual testing dates. Such indications may include: a significant decline in expected future cash flows; a significant adverse change in legal factors or the business climate; unanticipated competition; and a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit. Based on our annual impairment testing during the fourth quarter of 2010, our SPX Heat Transfer Inc. reporting unit had an estimated fair value that was comparable to the carrying value of its net assets. In the second quarter of 2011, SPX Heat Transfer Inc. experienced an additional decline in its revenues and profitability, furthering a trend which began late in the first quarter of 2011, in comparison to (i) recent historical results and (ii) expected results for the period, due to the challenging conditions within the U.S. power market. As such, during the second quarter of 2011, we updated the projection of future discounted cash flows for SPX Heat Transfer Inc., which indicated the reporting unit’s fair value was less than the carrying value of its net assets. Accordingly, we recorded an impairment charge of $24.7 during the second quarter of 2011 associated with SPX Heat Transfer Inc.’s goodwill ($17.2) and indefinite-lived intangible assets ($7.5).

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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 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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