Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

4. GOODWILL AND OTHER INTANGIBLE ASSETS


					Other
					Adjustments
Goodwill	December 31,				Including Currency			June 30,
($ in millions)	2010		Impairment		Translations			2011
Environmental Solutions	$	120.4	$	—	$	—		$	120.4
Fire Rescue		33.9		—		1.8			35.7
Safety and Security Systems		118.2		—		3.2			121.4
Federal Signal Technologies		37.9		1.6		(0.7	)		38.8

Total	$	310.4	$	1.6	$	4.3		$	316.3


					Other
					Adjustments
Trade names	December 31,				Including Currency		June 30,
($ in millions)	2010		Impairment		Translations		2011
Federal Signal Technologies	$	15.3	$	—	$	0.4	$	15.7

Total	$	15.3	$	—	$	0.4	$	15.7

The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets:


			June 30, 2011							December 31, 2010
	Average		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
($ in millions)	(Years)		Value		Amortization			Value		Value		Amortization			Value
Amortizable Intangible Assets:
Developed software		6	$	23.9	$	(18.4	)	$	5.5	$	23.0	$	(17.5	)	$	5.5
Patents		10		3.9		(1.0	)		2.9		2.3		(0.6	)		1.7
Customer relationships		15		45.7		(9.3	)		36.4		45.0		(7.3	)		37.7
Technology		11		23.9		(4.3	)		19.6		23.7		(3.1	)		20.6
Other		5		5.6		(2.6	)		3.0		5.7		(2.1	)		3.6

Total		12		103.0		(35.6	)		67.4		99.7		(30.6	)		69.1

Indefinite-lived Intangible Assets:
Trade names				15.7		—			15.7		15.3		—			15.3

Total			$	118.7	$	(35.6	)	$	83.1	$	115.0	$	(30.6	)	$	84.4

Amortization expense for the three and six month period ended June 30, 2011 totaled $2.5 million and $4.9 million, respectively, and for the three and six month period ended June 30, 2010 totaled $2.2 million and $3.8 million, respectively. The Company estimates that the total amortization expense will be $9.3 million in 2011, $8.1 million in 2012, $7.3 million in 2013, $7.2 million in 2014, $6.6 million in 2015, $6.3 million in 2016, and $27.5 million thereafter.

The Company accounts for goodwill and identifiable intangible assets in accordance with ASC 360 “Intangibles — Goodwill and Other.” Under this standard, the Company assesses the impairment of goodwill and indefinite-lived intangible assets at least annually, on October 31, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

During the fourth quarter of 2010, the Company performed its annual assessment and determined that the goodwill and certain trade names within the Federal Signal Technologies Group reporting unit were impaired and recorded impairment charges of $67.1 million and $11.8 million, respectively. The impairment charges resulted from decreased sales and cash flow estimated in our Federal Signal Technologies Group. Upon completion of a detailed second step impairment analysis in the first quarter of 2011, the Company recorded an adjustment of $1.6 million which reduced a portion of the original goodwill impairment recognized during the fourth quarter of 2010.

- 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.

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