Goodwill and other intangible assets, net

6 Months Ended

Jun. 30, 2013

Goodwill and other intangible assets, net

Note 7 — Goodwill and other intangible assets, net

The following table provides information relating to changes in the carrying amount of goodwill, by reportable segment, for the six months ended June 30, 2013:


	Americas Segment			EMEA Segment			Asia Segment			OEM Segment		Total
	(Dollars in thousands)
Balance as of December 31, 2012
Goodwill	$	1,086,707		$	353,282		$	141,595		$	—	$	1,581,584
Accumulated impairment losses		(332,128	)		—			—			—		(332,128	)

		754,579			353,282			141,595			—		1,249,456
Goodwill related to acquisitions		5,278			5,370			—			—		10,648
Purchase accounting adjustment		(1,733	)		—			—			—		(1,733	)
Translation adjustment		(1,052	)		(8,784	)		(7,943	)		—		(17,779	)
Balance as of June 30, 2013
Goodwill		1,089,200			349,868			133,652			—		1,572,720
Accumulated impairment losses		(332,128	)		—			—			—		(332,128	)

	$	757,072		$	349,868		$	133,652		$	—	$	1,240,592

The following table provides information, as of June 30, 2013 and December 31, 2012, regarding the gross carrying amount of, and accumulated amortization relating to, intangible assets, net:


	Gross Carrying Amount				Accumulated Amortization
	June 30, 2013		December 31, 2012		June 30, 2013			December 31, 2012
	(Dollars in thousands)
Customer relationships	$	584,064	$	580,151	$	(154,456	)	$	(141,520	)
In-process research and development (“IPR&D”)		68,376		53,157		—			—
Intellectual property		277,155		276,458		(103,639	)		(95,967	)
Distribution rights		16,532		16,567		(14,093	)		(13,880	)
Trade names		381,367		384,131		(2,461	)		(305	)

	$	1,327,494	$	1,310,464	$	(274,649	)	$	(251,672	)

During the first quarter of 2013, the Company recorded a $4.5 million IPR&D charge. See Note 4, “Restructuring and other impairment charges” for additional information.

At the beginning of 2013, due to a Company rebranding strategy, the Company reassessed the useful life of its Taut tradename, which had a carrying value of $4.5 million at January 1, 2013, and reclassified it from an indefinite lived intangible asset to a finite lived intangible asset with a useful life of eight years.

Amortization expense related to intangible assets was $12.1 million and $10.7 million for the three months ended June 30, 2013 and July 1, 2012, respectively, and $24.6 million and $21.2 million for the six months ended June 30, 2013 and July 1, 2012, respectively. Estimated annual amortization expense for the remainder of 2013 and the next four succeeding years is as follows (dollars in thousands):


2013	$	25,200
2014		46,700
2015		44,400
2016		44,100
2017		43,700

- 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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