XML 37 R23.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process, unless there are impairment indicators based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that. We evaluate the recoverability of goodwill for each of our reporting units by comparing the fair value of each reporting unit with its carrying value. The fair values of our reporting units are determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. We apply our best judgment when assessing the reasonableness of the financial projections used to determine the fair value of each reporting unit. We evaluate the recoverability of indefinite-lived intangible assets using a discounted cash flow analysis based on projected financial information. This evaluation is sensitive to changes in market interest rates and other external factors. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. During the three months ended September 30, 2016, we reorganized our operating structure in a manner that changed the composition of our reporting units. The Industrial and WIDIA reporting units in fiscal 2017 were formed from the fiscal 2016 Industrial reporting unit. In connection with this reporting unit realignment, during the three months ended September 30, 2016 we updated our goodwill impairment assessment based on a quantitative analysis. We evaluated the goodwill of our reporting units immediately prior to and after the realignment and concluded in both cases that there was no impairment. We allocated our goodwill from the former Industrial segment to the current Industrial and WIDIA segments using a relative fair value approach. The restated Industrial reporting unit passed the goodwill impairment test with fair value substantially exceeded the carrying value. The new WIDIA reporting unit's fair value approximates its carrying value. See Note 18 for further discussion regarding the Company's segments. We are currently exploring strategic alternatives for one of our non-core Infrastructure businesses. The estimated net book value of the business is approximately $30 million as of September 30, 2016. As the strategic direction has not yet been determined for this business, the Company cannot determine if additional impairment charges will be incurred. A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows:
(in thousands) | Industrial |  | WIDIA |  | Infrastructure |  | Total
Gross goodwill | $ | 408,705 |  |  | $ | 40,624 |  |  | $ | 633,211 |  |  | $ | 1,082,540 |
Accumulated impairment losses | (137,204 | ) |  | (13,638 | ) |  | (633,211 | ) |  | (784,053 | )
Balance as of June 30, 2016 | $ | 271,501 |  |  | $ | 26,986 |  |  | $ | — |  |  | $ | 298,487 |
Activity for the three months ended September 30, 2016: |  |  |  |  |  |  |
Change in gross goodwill due to translation | 210 |  |  | 21 |  |  | — |  |  | 231 |
Gross goodwill | 408,915 |  |  | 40,645 |  |  | 633,211 |  |  | 1,082,771 |
Accumulated impairment losses | (137,204 | ) |  | (13,638 | ) |  | (633,211 | ) |  | (784,053 | )
Balance as of September 30, 2016 | $ | 271,711 |  |  | $ | 27,007 |  |  | $ | — |  |  | $ | 298,718 |
The components of our other intangible assets were as follows:
| Estimated Useful Life (in years) |  | September 30, 2016 | June 30, 2016
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |
Contract-based | 3 to 15 |  | $ | 7,063 |  |  | $ | (6,948 | ) |  |  | $ | 7,152 |  |  | $ | (6,886 | )
Technology-based and other | 4 to 20 |  | 46,506 |  |  | (27,253 | ) |  |  | 47,323 |  |  | (27,011 | )
Customer-related | 10 to 21 |  | 205,377 |  |  | (70,120 | ) |  |  | 205,471 |  |  | (66,938 | )
Unpatented technology | 10 to 30 |  | 31,820 |  |  | (4,867 | ) |  |  | 31,837 |  |  | (4,614 | )
Trademarks | 5 to 20 |  | 12,357 |  |  | (7,998 | ) |  |  | 12,668 |  |  | (8,644 | )
Trademarks | Indefinite |  | 16,934 |  |  | — |  |  |  | 16,850 |  |  | — |
Total |  |  | $ | 320,057 |  |  | $ | (117,186 | ) |  |  | $ | 321,301 |  |  | $ | (114,093 | )
During the three months ended September 30, 2016 and 2015, we recorded amortization expense of $4.3 million and $6.2 million, respectively, related to our other intangible assets.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 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=66006027&loc=d3e16265-109275 Reference 3: 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=66006027&loc=d3e16323-109275 Reference 4: 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=35741047&loc=d3e13816-109267 Reference 5: 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=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration