Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Identifiable Intangible Assets [Abstract]

Goodwill and Identifiable Intangible Assets

Note 7  Goodwill and Identifiable Intangible Assets

Goodwill

The following table shows our goodwill balances by our segment reporting structure.

	Carrying Value at December 31, 2010		Goodwill Acquired		Impact of Foreign Currency Translation			Carrying Value at December 31, 2011
Food Packaging	$	382.9	$	8.7	$	0.1		$	391.7
Food Solutions		147.9		—		—			147.9
Protective Packaging		1,259.6		—		0.4			1,260.0
Diversey		—		2,282.6		(19.0	)		2,263.6
Other category		155.5		1.8		—			157.3
Total	$	1,945.9	$	2,293.1	$	(18.5	)	$	4,220.5

2011 Annual Goodwill Impairment Test

We test goodwill for impairment on a reporting unit basis annually during the fourth quarter of each year and at other times if events or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. During 2011, we determined that there were no events or changes in circumstances that had occurred that would indicate that the fair value of any of our reporting units may be below its carrying value.

In the fourth quarter of 2011, we completed step one of our annual impairment test and fair value analysis for goodwill, and there were no impairments present and no impairment charge was recorded. We had the estimated fair values updated for all of our reporting units, except for the New Ventures reporting unit because this reporting unit does not have any goodwill included in its net asset value.

SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The excess of estimated fair values over carrying value, including goodwill, for each of our reporting units as of the 2011 annual test date were the following:

Reporting Unit	% By Which Estimated Fair Value Exceeds Carrying Value
Food Packaging		226	%
Food Solutions		216
Protective Packaging		18
Shrink Packaging		70
Specialty Materials		27
Medical Applications		93

Although we determined that there was no goodwill impairment in 2011, the future occurrence of a potential indicator of impairment, such as a decrease in expected net earnings, adverse equity market conditions, a decline in current market multiples, a decline in our common stock price, a significant adverse change in legal factors or business climates, an adverse action or assessment by a regulator, unanticipated competition, strategic decisions made in response to economic or competitive conditions, or a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or disposed of, could require an interim assessment for some or all of the reporting units before the next required annual assessment. In the event of significant adverse changes of the nature described above, we might have to recognize a non-cash impairment of goodwill, which could have a material adverse effect on our consolidated financial condition and results of operations.

Identifiable Intangible Assets

The following tables summarize our identifiable intangible assets with definite and indefinite useful lives.

	December 31,
	2011			2010
Gross carrying value	$	2,181.4		$	113.2
Accumulated amortization		(78.2	)		(35.2	)
Total	$	2,103.2		$	78.0

These intangible assets include $909 million of intangible assets that we have determined to have indefinite useful lives, which primarily includes intangible assets acquired in connection with the acquisition of Diversey. See Note 3, “Acquisition of Diversey Holdings, Inc.,” for more details.

Below is the amortization expense of our intangible assets for the three years ended December 31, 2011.

	December 31,
	2011		2010		2009
Amortization expense of intangible assets acquired	$	41.3	$	11.2	$	11.7

The following table shows the remaining estimated future amortization expense at December 31, 2011.

2012	$	134.2
2013		132.7
2014		131.0
2015		99.1
2016		98.1
Thereafter		598.9
Total	$	1,194.0

SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)