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Goodwill and Identifiable Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of Goodwill Balances by Segment Reporting Structure

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Carrying Value at

 

 

Accumulated

 

 

Carrying Value at

 

 

Year Ended

 

 

Gross Carrying Value at

 

 

Accumulated

 

 

Carrying Value at

 

(In millions)

 

December 31, 2013

 

 

Impairment

 

 

December 31, 2013

 

 

December 31, 2014

 

 

December 31, 2014

 

 

Impairment

 

 

December 31, 2014

 

Food Care

 

$

833.7

 

 

$

(208.0

)

 

$

625.7

 

 

$

(14.0

)

 

$

819.7

 

 

$

(208.0

)

 

$

611.7

 

Diversey Care

 

 

1,994.1

 

 

 

(883.0

)

 

 

1,111.1

 

 

 

(93.3

)

 

 

1,900.8

 

 

 

(883.0

)

 

 

1,017.8

 

Product Care

 

 

1,372.8

 

 

 

 

 

 

1,372.8

 

 

 

(1.6

)

 

 

1,371.2

 

 

 

 

 

 

1,371.2

 

Other

 

 

5.0

 

 

 

 

 

 

5.0

 

 

 

(0.2

)

 

 

4.8

 

 

 

 

 

 

4.8

 

Total

 

$

4,205.6

 

 

$

(1,091.0

)

 

$

3,114.6

 

 

$

(109.1

)

 

$

4,096.5

 

 

$

(1,091.0

)

 

$

3,005.5

 

 

Summary of Percentage by Which Estimated Fair Value Exceeds Carrying Value

The excess of estimated fair values over carrying value, including goodwill for each of our reporting units that had goodwill as of the 2014 annual impairment test were the following:

 

 

 

 

 

 

 

 

% by Which Estimated Fair value

 

Reporting Unit

 

exceeds Carrying Value

 

Food Care — Packaging Solutions

 

 

243

%

Food Care — Hygiene Solutions

 

 

282

%

Diversey Care

 

 

44

%

Product Care

 

 

92

%

Medical Applications

 

 

788

%

 

Summarize of Identifiable Intangible Assets with Definite and Indefinite Useful Lives

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

 

 

 

December 31, 2014

 

 

December 31, 2013

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Accumulated

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Accumulated

 

 

 

 

 

(In millions)

 

Value

 

 

Amortization

 

 

Impairment (1)(2)

 

 

Net

 

 

Value

 

 

Amortization

 

 

Impairment (1)(2)

 

 

Net

 

Customer relationships

 

$

890.8

 

 

$

(210.8

)

 

$

(148.9

)

 

$

531.1

 

 

$

961.3

 

 

$

(171.2

)

 

$

(148.9

)

 

$

641.2

 

Trademarks and trade names

 

 

1.3

 

 

 

(0.2

)

 

 

 

 

 

1.1

 

 

 

0.20

 

 

 

(0.10

)

 

 

-

 

 

 

0.1

 

Technology

 

 

266.4

 

 

 

(167.0

)

 

 

(22.2

)

 

 

77.2

 

 

 

252.6

 

 

 

(128.0

)

 

 

(22.2

)

 

 

102.4

 

Contracts

 

 

40.6

 

 

 

(28.9

)

 

 

 

 

 

11.7

 

 

 

44.0

 

 

 

(21.9

)

 

 

 

 

 

22.1

 

Total intangible assets with definite lives

 

$

1,199.1

 

 

$

(406.9

)

 

$

(171.1

)

 

$

621.1

 

 

$

1,258.1

 

 

$

(321.2

)

 

$

(171.1

)

 

$

765.8

 

Trademarks and trade names with indefinite lives

 

 

881.3

 

 

 

 

 

 

(630.2

)

 

 

251.1

 

 

 

881.3

 

 

 

 

 

 

(630.2

)

 

 

251.1

 

Total

 

$

2,080.4

 

 

$

(406.9

)

 

$

(801.3

)

 

$

872.2

 

 

$

2,139.4

 

 

$

(321.2

)

 

$

(801.3

)

 

$

1,016.9

 

 

 

(1) 

During the third quarter of 2012, we determined that sufficient indicators existed to require an interim impairment review of our Diversey trade name. Based on our analysis, the fair value of this intangible was lower than the carrying value, which resulted in a pre-tax impairment charge of $189 million. In addition, during the fourth quarter of 2012, we completed our annual impairment test for indefinite lived trademarks and trade names, and we performed an interim impairment review of our customer relationships.  As a result, we recorded a pre-tax impairment charge of $149 million of customer relationships, and a pre-tax impairment charge of $441 million of trademarks and trade names.

(2) 

During the fourth quarter of 2012, we made a decision to suspend certain development efforts and abandon future product development work on a project included in our Other Category for segment reporting. As a result, we recorded an impairment of $22 million ($14 million, net of taxes), which is included in impairment of goodwill and other intangible assets on the consolidated statements of operations in the year ended December 31, 2012.

Remaining Estimated Future Amortization Expense

The following table shows the remaining estimated future amortization expense at December 31, 2014.

 

Year

 

Amount

(in millions)

 

2015

 

$

86.5

 

2016

 

 

84.4

 

2017

 

 

77.6

 

2018

 

 

65.5

 

Thereafter

 

 

307.1

 

Total

 

$

621.1

 

 

Remaining Weighted Average Useful Life of Definite Intangible Assets

The following table shows the remaining weighted average useful life of our definite intangible assets as of December 31, 2014.

 

 

 

Remaining weighted average useful lives

 

Customer relationships

 

 

9.8

 

Trademarks and trade names

 

 

4.8

 

Technology

 

 

4.1

 

Contracts

 

 

2.8

 

Total intangible assets with definite lives

 

 

8.9