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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2015, were as follows:
 
December 31,
2014
 
Goodwill
Resulting
from Business
Combinations
 
Impairments
 
Foreign
Currency
Translation
 
December 31,
2015
HVAC segment
 
 
 
 
 
 
 
 
 
Gross goodwill
$
267.5

 
$
—

 
$
—

 
$
(6.2
)
 
$
261.3

Accumulated impairments
(147.9
)
 
—

 
—

 
2.7

 
(145.2
)
Goodwill
119.6

 
—

 
—

 
(3.5
)
 
116.1

Detection and Measurement segment
 
 
 
 
 
 
 
 
 
Gross goodwill
220.2

 
—

 
—

 
(1.1
)
 
219.1

Accumulated impairments
(139.1
)
 
—

 
—

 
1.1

 
(138.0
)
Goodwill
81.1

 
—

 
—

 
—

 
81.1

Power segment
 
 
 
 
 
 
 
 
 
Gross goodwill
417.2

 
—

 
—

 
(11.9
)
 
405.3

Accumulated impairments
(243.5
)
 
—

 
(13.7
)
 
8.2

 
(249.0
)
Goodwill(1)
173.7

 
—

 
(13.7
)
 
(3.7
)
 
156.3

Total
 
 
 
 
 
 
 
 
 
Gross goodwill
904.9

 
—

 
—

 
(19.2
)
 
885.7

Accumulated impairments
(530.5
)
 
—

 
(13.7
)
 
12.0

 
(532.2
)
Goodwill(1)
$
374.4

 
$
—

 
$
(13.7
)
 
$
(7.2
)
 
$
353.5

(1) 
The balance at December 31, 2015 includes $10.7 related to our dry cooling business. As previously noted, the assets and liabilities of the dry cooling business have been classified as "held for sale" in the accompanying consolidated balance sheet as of December 31, 2015. See Note 4 for information on the assets and liabilities of the dry cooling business as of December 31, 2015.
The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2014, were as follows:
 
December 31,
2013
 
Goodwill
Resulting
from Business
Combinations
 
Impairments
 
Foreign
Currency
Translation
 
December 31,
2014
HVAC segment
 
 
 
 
 
 
 
 
 
Gross goodwill
$
275.2

 
$
—

 
$
—

 
$
(7.7
)
 
$
267.5

Accumulated impairments
(150.6
)
 
—

 
—

 
2.7

 
(147.9
)
Goodwill
124.6

 
—

 
—

 
(5.0
)
 
119.6

Detection and Measurement segment
 
 
 
 
 
 
 
 
 
Gross goodwill
222.7

 
—

 
—

 
(2.5
)
 
220.2

Accumulated impairments
(140.5
)
 
—

 
—

 
1.4

 
(139.1
)
Goodwill
82.2

 
—

 
—

 
(1.1
)
 
81.1

Power segment
 
 
 
 
 
 
 
 
 
Gross goodwill
426.2

 
—

 
—

 
(9.0
)
 
417.2

Accumulated impairments
(248.9
)
 
—

 
—

 
5.4

 
(243.5
)
Goodwill
177.3

 
—

 
—

 
(3.6
)
 
173.7

Total
 
 
 
 
 
 
 
 
 
Gross goodwill
924.1

 
—

 
—

 
(19.2
)
 
904.9

Accumulated impairments
(540.0
)
 
—

 
—

 
9.5

 
(530.5
)
Goodwill
$
384.1

 
$
—

 
$
—

 
$
(9.7
)
 
$
374.4


Identifiable intangible assets were as follows:
 
December 31, 2015
 
December 31, 2014
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
Intangible assets with determinable lives:
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
25.4

 
$
(9.5
)
 
$
15.9

 
$
25.4

 
$
(8.2
)
 
$
17.2

Technology(1)
40.7

 
(25.2
)
 
15.5

 
42.1

 
(23.7
)
 
18.4

Patents
4.6

 
(4.6
)
 
—

 
4.6

 
(4.6
)
 
—

Other
14.2

 
(8.1
)
 
6.1

 
14.2

 
(7.5
)
 
6.7

 
84.9

 
(47.4
)
 
37.5

 
86.3

 
(44.0
)
 
42.3

Trademarks with indefinite lives(1)
125.0

 
—

 
125.0

 
126.9

 
—

 
126.9

Total
$
209.9

 
$
(47.4
)
 
$
162.5

 
$
213.2

 
$
(44.0
)
 
$
169.2

(1) 
The balance at December 31, 2015 includes $2.4 and $5.9, respectively, related to our dry cooling business. As previously noted, the assets and liabilities of the dry cooling business have been classified as "held for sale" in the accompanying consolidated balance sheet as of December 31, 2015. See Note 4 for information on the assets and liabilities of the dry cooling business as of December 31, 2015.
Amortization expense was $5.2, $5.7 and $5.8 for the years ended December 31, 2015, 2014 and 2013, respectively. Estimated amortization expense related to these intangible assets is $4.9 in 2016, $4.2 in 2017, $4.2 in 2018, $2.8 in 2019, and $2.8 in 2020.
At December 31, 2015, the net carrying value of intangible assets with determinable lives consisted of $6.0 in the HVAC segment, $0.3 in the Detection and Measurement segment, and $31.2 in the Power segment. Trademarks with indefinite lives consisted of $89.2 in the HVAC segment, $11.3 in the Detection and Measurement segment, and $24.5 in Power segment.
Consistent with the requirements of the Intangible — Goodwill and Other Topic of the Codification, the fair values of our reporting units generally are estimated using discounted cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about carrying values of the reported net assets of our reporting units. Other considerations are also incorporated, including comparable industry price multiples. Many of our reporting units closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition such as volume, price, service, product performance and technical innovations and estimates associated with cost improvement initiatives, capacity utilization and assumptions for inflation and foreign currency changes. Any significant change in market conditions and estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known.
As indicated in Note 1, in connection with the change in reportable segments, we reallocated goodwill among certain of our reporting units based on the respective fair values of such reporting units.
We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. Based on our annual goodwill impairment testing in 2015, we recorded an impairment charge of $13.7 relating to the Balcke Duerr reporting unit within our Power reportable segment, which represented all of Balcke Duerr's goodwill. Additionally, the estimated fair value of one reporting unit within our Power reportable segment exceeded the carrying value of its net assets by less than 10%, with the amount of goodwill for this reporting unit totaling $25.2 at December 31, 2015. The estimated fair value of such reporting unit was based in part on the expected proceeds from the sale of our dry cooling business (see Note 1). The estimated fair value of each of our other reporting units exceeds the carrying value of their respective net assets by at least 10%.
We perform our annual trademarks impairment testing during the fourth quarter, or on a more frequent basis if there are indications of potential impairment. The fair values of our trademarks are determined by applying estimated royalty rates to projected revenues, with the resulting cash flows discounted at a rate of return that reflects current market conditions. The basis for these projected revenues is the annual operating plan for each of the related businesses, which is prepared in the fourth quarter of each year.
As indicated in Note 1, we understated a fourth quarter 2014 impairment charge relating to certain trademarks within our Power reportable segment by $2.5. We have corrected this misstatement in the accompanying consolidated financial statements by (i) increasing the impairment charge for the year ended December 31, 2014 to $10.9 (from the $8.4 originally reported) and (ii) reducing “Intangibles, net” and Retained earnings” as of December 31, 2014 by $2.5.
In addition to the aforementioned charge of $10.9, we recorded an impairment charge during the fourth quarter of 2014 of $18.0 related to our Cooling Power reporting unit's investment in the Shanghai Electric joint venture. Other changes in the gross values of trademarks and other identifiable intangible assets related primarily to foreign currency translation.