XML 36 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
The following table summarizes the carrying amount of goodwill by reportable segment as of the dates presented, as well as the changes to goodwill during the years ended December 31, 2019 and 2018 (in millions):
 
Office
Segment
 
Lifestyle Segment
 
Total
Balance as of December 31, 2017
$
39.7

 
$
102.4

 
$
142.1

Foreign currency translation adjustment
(0.6
)
 
(15.3
)
 
(15.9
)
Goodwill recognized in connection with the Muuto acquisition
—

 
194.6

 
194.6

Balance as of December 31, 2018 
39.1

 
281.7

 
320.8

Foreign currency translation adjustment
0.3

 
(3.9
)
 
(3.6
)
Goodwill recognized in connection with the Fully acquisition
14.9

 
—

 
14.9

Balance as of December 31, 2019
$
54.3

 
$
277.8

 
$
332.1


The Company did not record any goodwill impairment charges in 2019, 2018 or 2017.
Intangible Assets
Information regarding the Company's other intangible assets is as follows (in millions):
 
December 31, 2019
 
December 31, 2018
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Tradenames
$
277.6

 
$
—

 
$
277.6

 
$
285.5

 
$
—

 
$
285.5

Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
78.9

 
(25.0
)
 
53.9

 
78.4

 
(18.4
)
 
60.0

Various
30.9

 
(14.2
)
 
16.7

 
20.5

 
(12.1
)
 
8.4

Total
$
387.4


$
(39.2
)

$
348.2

 
$
384.4


$
(30.5
)

$
353.9


Based on the result of the annual impairment test of indefinite-lived intangible assets as of October 1, 2019, the Company determined that the Edelman Leather tradename was impaired, as the estimated fair value of the Edelman Leather tradename was less than its respective carrying amount. The decline in the fair value of the Edelman tradename was primarily the result of weaker than expected revenue performance in late 2019, a corresponding reduction of future revenue expectations and a reduction of the royalty rate used for valuation purposes. The revenue reductions were primarily a result of lower sales of luxury products, an aging of Edelman showrooms, and the inability to replace private aviation customers with a comparable revenue stream. The Edelman Leather tradename was estimated to be fully impaired, resulting in a non-cash pre-tax impairment charge of $6.5 million during the fourth quarter of 2019. This fair value measurement fell within Level 3 of the fair value hierarchy as described in Note 2. Edelman Leather is included within the Company's Lifestyle Segment. There were no impairments of indefinite-lived intangible assets during 2018 or 2017.
Amortization expense related to finite-lived intangible assets was $8.9 million, $8.9 million, and $3.3 million for the years ended December 31, 2019, 2018, and 2017, respectively. The estimated future amortization expense of finite-lived intangible assets as of December 31, 2019 is as follows (in millions):
Year
Amount
2020
$
9.6

2021
9.1

2022
8.8

2023
8.7

2024
7.1