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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2011
Goodwill and Other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill and trade names for the years ended December 31, 2011 and 2010, by operating segment, were as follows ($ in millions):

 

                                         
Goodwill                              
($ in millions)   Environmental
Solutions
    Fire
Rescue
    Safety
& Security
    Federal  Signal
Technologies
    Total  

December 31, 2009

  $ 120.4     $ 34.7     $ 120.9     $ 43.6     $ 319.6  

Acquisitions

    -       -       -       62.2       62.2  

Translation/Adjustments

    -       (0.8     (2.7     (0.8     (4.3

Impairment

    -       -       -       (67.1     (67.1
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2010

    120.4       33.9       118.2       37.9       310.4  

Acquisitions

    -       -       -       -       -  

Translation/Adjustments

    -       (0.7     (1.2     (1.2     (3.1

Impairment

    -       -       -       (13.2     (13.2
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2011

  $ 120.4     $ 33.2     $ 117.0     $ 23.5     $ 294.1  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

                                         
Trade names                              
($ in millions)   Environmental
Solutions
    Fire
Rescue
    Safety
& Security
    Federal  Signal
Technologies
    Total  

December 31, 2009

    $    -           $     -         $     -         $ 24.4     $ 24.4  

Acquisitions

    -       -       -       5.4       5.4  

Translation/Adjustments

    -       -       -       (2.7     (2.7

Impairment

    -       -       -       (11.8     (11.8
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2010

    -       -       -       15.3       15.3  

Acquisitions

    -       -       -       -           -      

Translation/Adjustments

    -       -       -       (0.1     (0.1

Impairment

    -       -       -       (7.4     (7.4
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2011

  $     -           $ -         $ -          $ 7.8     $ 7.8  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

                                                         
    Weighted
Average
Useful
Life
(Years)
   

 

   

 

 
      December 31, 2011     December 31, 2010  
($ in millions)     Gross
Carrying
Value
    Accumulated
Amortization
    Net
Carrying
Value
    Gross
Carrying
Value
    Accumulated
Amortization
    Net
Carrying
Value
 

Amortizable Intangible Assets:

                                                       

Developed software

    6     $ 24.4     $ (19.3   $ 5.1     $ 23.0     $ (17.5   $ 5.5  

Patents

    10       3.7       (1.1     2.6       2.3       (0.6     1.7  

Customer relationships

    15       45.1       (10.8     34.3       45.0       (7.3     37.7  

Technology

    11       23.7       (5.3     18.4       23.7       (3.1     20.6  

Other

    5       5.6       (3.1     2.5       5.7       (2.1     3.6  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    11       102.5       (39.6     62.9       99.7       (30.6     69.1  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indefinite-lived Intangible Assets:

                                                       

Trade names

            7.8       -       7.8       15.3       -       15.3  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

          $ 110.3     $ (39.6   $ 70.7     $ 115.0     $ (30.6   $ 84.4  
           

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Amortization expense for the years ended December 31, 2011, 2010, and 2009 totaled $9.4 million, $8.2 million, and $5.2 million, respectively. The Company estimates that the aggregate amortization expenses will be $8.5 million in 2012, $7.3 million in 2013, $7.2 million in 2014, $6.5 million in 2015, $6.4 million in 2016, and $27.0 million thereafter. Actual amounts of amortization may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency rates, impairment of intangible assets, and other events.

The Company accounts for goodwill and indefinite-lived intangible assets in accordance with ASC 360, Intangibles — Goodwill and Other, as indicated in Note 1.

During the fourth quarter of 2011, the Company performed the annual assessment, determined that the goodwill and certain trade names within the FSTech Group reporting unit were impaired, and recorded impairment charges of $14.8 million and $7.4 million, respectively. The impairment charges resulted from decreased sales and cash flow estimated in our FSTech Group. As of December 31, 2011, the goodwill impairment charge is an estimate and may be adjusted during the first quarter of 2012 upon completion of a detailed second step impairment analysis.

During the fourth quarter of 2010, the Company performed the annual assessment, determined that the goodwill and certain trade names within the FSTech Group reporting unit were impaired, and recorded impairment charges of $67.1 million and $11.8 million, respectively. As of December 31, 2010, the goodwill impairment charge was an estimate. Upon completion of the 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.