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Goodwill and Other Intangible Assets | 3 Months Ended
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Dec. 31, 2014
Goodwill and Other Intangible Assets [Abstract] |
Goodwill and Other Intangible Assets | Note 13. Goodwill and Other Intangible Assets Goodwill is not amortized, but is subject to periodic review for impairment. In general, when the carrying value of a reporting unit exceeds its implied fair value, an impairment loss must be recognized. For purposes of testing for impairment, the Company uses a combination of valuation techniques, including discounted cash flows. Intangible assets are amortized over their estimated useful lives, unless such lives are considered to be indefinite. The Company performs its annual impairment review of goodwill and indefinite lived trade names in the second fiscal quarter. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. The Company performed its annual impairment reviews in the second quarters of fiscal 2014 and 2013 and determined that no adjustments to the carrying values of goodwill were necessary. Recent economic conditions in Europe have unfavorably impacted the operating results of the graphics imaging business within the SGK Brand Solutions segment. For the graphics imaging reporting unit in 2014, the estimated fair value exceeded its carrying value by less than 10%, resulting in no goodwill impairment for the unit. While the graphics imaging reporting unit passed the first step of the impairment test, if its operating profits or another significant assumption were to deteriorate in the future, it could adversely affect the estimated fair value of the reporting unit. Factors that could have a negative impact on the estimated fair value of the graphics imaging reporting unit include a further delay in the recovery of the European market, continued pricing pressure, declines in expected volumes, and an increase in discount rates. If the Company is unsuccessful in its plans to recover the profitability of this business, the estimated fair value could decline and lead to a potential goodwill impairment in the future. The graphics imaging reporting unit did not include Schawk at the time of the fiscal 2014 impairment review. Schawk will be included in the graphics imaging reporting unit for the fiscal 2015 impairment review. A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows:
|  | SGK Brand Solutions |  |  | Memorialization |  |  | Industrial |  |  | Consolidated |
Goodwill |  | $ | 501,050 |  |  | $ | 278,282 |  |  | $ | 50,887 |  |  | $ | 830,219 |
Accumulated impairment losses |  |  | (5,752 | ) |  |  | (5,000 | ) |  |  | - |  |  |  | (10,752 | )
Balance at September 30, 2014 |  |  | 495,298 |  |  |  | 273,282 |  |  |  | 50,887 |  |  |  | 819,467 |
Additions during period |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Translation and other adjustments |  |  | (12,829 | ) |  |  | (1,439 | ) |  |  | (69 | ) |  |  | (14,335 | )
Goodwill |  |  | 488,223 |  |  |  | 276,843 |  |  |  | 50,818 |  |  |  | 815,884 |
Accumulated impairment losses |  |  | (5,752 | ) |  |  | (5,000 | ) |  |  | - |  |  |  | (10,752 | )
Balance at December 31, 2014 |  | $ | 482,471 |  |  | $ | 271,843 |  |  | $ | 50,818 |  |  | $ | 805,132 |
The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2014 and September 30, 2014, respectively.
|  | Carrying |  |  | Accumulated |  |  | Dispositions |  |  |  |
|  | Amount |  |  | Amortization |  |  |  |  |  | Net |
December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  | $ | 142,356 |  |  | $ | - | * |  | $ | - |  |  | $ | 142,356 |
Trade names |  |  | 2,765 |  |  |  | (2,107 | ) |  |  | - |  |  |  | 658 |
Customer relationships |  |  | 254,743 |  |  |  | (28,926 | ) |  |  | (7,715 | ) |  |  | 218,102 |
Copyrights/patents/other |  |  | 14,441 |  |  |  | (9,752 | ) |  |  | (2,890 | ) |  |  | 1,799 |
|  | $ | 414,305 |  |  | $ | (40,785 | ) |  | $ | (10,605 | ) |  | $ | 362,915 |
September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  | $ | 142,529 |  |  | $ | - | * |  | $ | - |  |  | $ | 142,529 |
Trade names |  |  | 2,854 |  |  |  | (2,121 | ) |  |  | - |  |  |  | 733 |
Customer relationships |  |  | 258,441 |  |  |  | (24,785 | ) |  |  | - |  |  |  | 233,656 |
Copyrights/patents/other |  |  | 14,528 |  |  |  | (9,584 | ) |  |  | - |  |  |  | 4,944 |
|  | $ | 418,352 |  |  | $ | (36,490 | ) |  | $ | - |  |  | $ | 381,862 |
* Not subject to amortization |  |  |  |  |  |  |  |  |  |  |  |  |
The net change in intangible assets during the three months ended December 31, 2014 included the impact of foreign currency fluctuations during the period and additional amortization. In addition, the Company completed the sale of a majority ownership in its Schawk Digital Solutions business, which was acquired in 2014 as part of the Schawk acquisition. Net proceeds from this transaction totaled approximately $10,400, and the sale primarily resulted in the disposal of working capital and intangible assets, and the recognition of a cost-basis investment in this business. No gain or loss was recognized on the sale. Amortization expense on intangible assets was $4,650 and $1,174 for the three-month periods ended December 31, 2014 and 2013, respectively. The remaining amortization expense is estimated to be $14,552 in 2015, $18,308 in 2016, $17,295 in 2017, $16,170 in 2018 and $15,298 in 2019.

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- 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 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: 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=14024403&loc=d3e13816-109267 Reference 3: 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=26713463&loc=d3e16373-109275 Reference 4: 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=26713463&loc=d3e16265-109275 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=14024403&loc=d3e13854-109267 + Details
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