Graco 2012 Annual Report Download - page 75

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69
flows for these reporting units. The decline in anticipated future cash flows adversely affected the estimated fair value of the
reporting units calculated using the discounted cash flow approach and resulted in the estimated fair value of the Baby & Parenting
and the Hardware reporting units being less than their net assets (including goodwill). In addition to $370.2 million of goodwill
impairments, the Company recorded $12.4 million of non-cash impairment charges relating to impairments of trade names and
other assets. See Footnote 18 for further details.
Other intangible assets, net consisted of the following as of December 31, (in millions):
2012 2011
Gross
Carrying
Amount Accumulated
Amortization Net Book
Value
Gross
Carrying
Amount Accumulated
Amortization Net Book
Value
Trade names — indefinite life $ 311.1 $ — $ 311.1 $ 311.3 $ — $ 311.3
Trade names — other 42.1 (28.0) 14.1 42.3 (25.1) 17.2
Capitalized software 429.9 (160.7) 269.2 387.1 (125.8) 261.3
Patents 92.2 (68.2) 24.0 88.4 (59.2) 29.2
Customer lists 113.5 (77.9) 35.6 114.6 (67.6) 47.0
Other 3.1 (3.0) 0.1 3.1 (3.0) 0.1
$ 991.9 $ (337.8) $ 654.1 $ 946.8 $ (280.7) $ 666.1
The table below summarizes the Company’s amortization periods using the straight-line method for other intangible assets,
including capitalized software, as of December 31, 2012:
Weighted-Average Amortization
Period (in years) Amortization Periods (in
years)
Trade names — indefinite life N/A N/A
Trade names — other 10 3 – 20 years
Capitalized software 10 3 – 12 years
Patents 7 3 – 14 years
Customer lists 8 3 – 10 years
Other 5 3 – 5 years
9
Amortization expense for intangible assets, including capitalized software, was $57.0 million, $51.0 million and $54.3 million in
2012, 2011 and 2010, respectively.
As of December 31, 2012, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows
(in millions):
2013 2014 2015 2016 2017
$51.2 $49.5 $43.5 $39.0 $36.7
Actual amortization expense to be reported in future periods could differ materially from these estimates as a result of acquisitions,
changes in useful lives and other relevant factors.