Nucor 2013 Annual Report Download - page 57

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56
9. GOODWILL AND OTHER INTANGIBLE ASSETS
The change in the net carrying amount of goodwill for the years ended December 31, 2013 and 2012 by segment is as follows:
(in thousands)
Steel Mills
Steel
Products
Raw
Materials All Other Total
Balance, December 31, 2011 $268,466 $790,441 $682,902 $88,852 $1,830,661
Acquisitions and dispositions 138,579 (3,489) 20,323 — 155,413
Translation — 18,464 — — 18,464
Balance, December 31, 2012 407,045 805,416 703,225 88,852 2,004,538
Reclassifications 88,852 — — (88,852) —
Translation — (26,067) — — (26,067)
Other — (4,863) — — (4,863)
Balance, December 31, 2013 $495,897 $774,486 $703,225 $ — $1,973,608
The majority of goodwill is not tax deductible.
Previously, Nucor’s steel trading businesses and rebar distribution businesses were reported in the “All other” category.
Beginning in the first quarter of 2013, these businesses were reclassified to the steel mills segment as part of a realignment
of Nucor’s reportable segments to better reflect the way in which they are managed (see Note 1).
Intangible assets with estimated lives of 5 to 22 years are amortized on a straight-line or accelerated basis and are comprised of
the following:
(in thousands)
December 31, 2013 2012
Gross
Amount
Accumulated
Amortization
Gross
Amount
Accumulated
Amortization
Customer relationships $1,147,786 $391,254 $1,156,979 $325,819
Trademarks and trade names 151,332 40,397 152,869 32,653
Other 21,869 15,182 28,610 20,746
$1,320,987 $446,833 $1,338,458 $379,218
Intangible asset amortization expense was $74.4 million in 2013 ($73.0 million in 2012 and $67.8 million in 2011). Annual
amortization expense is estimated to be $70.0 million in 2014; $68.2 million in 2015; $66.5 million in 2016; $64.8 million in 2017;
and $61.1 million in 2018.
The Company completed its annual goodwill impairment testing as of the first days of the fourth quarters of 2013, 2012 and 2011 and
concluded that as of such dates there was no impairment of goodwill for any of its reporting units. We do not believe there are currently
any reporting units at risk of goodwill impairment in the near term. However, assumptions in estimating reporting unit fair values are
subject to a high degree of judgment and complexity. Changes in assumptions and estimates may affect the estimated reporting unit
fair values and could result in impairment charges in future periods.