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Goodwill and Identifiable Intangible Assets (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Goodwill And Intangible Assets Disclosure [Abstract] |
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| Summary of Goodwill Balances by Segment Reporting Structure |
The following table shows our goodwill balances by our segment reporting structure:
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Impact of |
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Foreign Currency |
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Translation |
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Gross Carrying Value at |
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Accumulated |
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Carrying Value at |
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Year Ended |
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Gross Carrying Value at |
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Accumulated |
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Carrying Value at |
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(In millions) |
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December 31, 2013 |
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Impairment |
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December 31, 2013 |
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December 31, 2014 |
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December 31, 2014 |
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Impairment |
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December 31, 2014 |
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Food Care |
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$ |
833.7 |
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$ |
(208.0 |
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$ |
625.7 |
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$ |
(14.0 |
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$ |
819.7 |
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$ |
(208.0 |
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$ |
611.7 |
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Diversey Care |
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1,994.1 |
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(883.0 |
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1,111.1 |
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(93.3 |
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1,900.8 |
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(883.0 |
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1,017.8 |
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Product Care |
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1,372.8 |
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— |
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1,372.8 |
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(1.6 |
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1,371.2 |
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— |
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1,371.2 |
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Other |
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5.0 |
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— |
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5.0 |
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(0.2 |
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4.8 |
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— |
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4.8 |
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Total |
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$ |
4,205.6 |
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$ |
(1,091.0 |
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$ |
3,114.6 |
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$ |
(109.1 |
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$ |
4,096.5 |
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$ |
(1,091.0 |
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$ |
3,005.5 |
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| 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:
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% by Which Estimated Fair value |
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Reporting Unit |
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exceeds Carrying Value |
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Food Care — Packaging Solutions |
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243 |
% |
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Food Care — Hygiene Solutions |
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282 |
% |
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Diversey Care |
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44 |
% |
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Product Care |
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92 |
% |
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Medical Applications |
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788 |
% |
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| 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:
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December 31, 2014 |
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December 31, 2013 |
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Gross |
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Gross |
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Carrying |
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Accumulated |
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Accumulated |
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Carrying |
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Accumulated |
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Accumulated |
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(In millions) |
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Value |
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Amortization |
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Impairment (1)(2) |
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Net |
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Value |
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Amortization |
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Impairment (1)(2) |
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Net |
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Customer relationships |
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$ |
890.8 |
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$ |
(210.8 |
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$ |
(148.9 |
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$ |
531.1 |
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$ |
961.3 |
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$ |
(171.2 |
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$ |
(148.9 |
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$ |
641.2 |
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Trademarks and trade names |
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1.3 |
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(0.2 |
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— |
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1.1 |
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0.20 |
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(0.10 |
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- |
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0.1 |
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Technology |
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266.4 |
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(167.0 |
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(22.2 |
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77.2 |
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252.6 |
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(128.0 |
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(22.2 |
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102.4 |
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Contracts |
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40.6 |
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(28.9 |
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— |
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11.7 |
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44.0 |
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(21.9 |
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— |
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22.1 |
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Total intangible assets with definite lives |
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$ |
1,199.1 |
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$ |
(406.9 |
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$ |
(171.1 |
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$ |
621.1 |
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$ |
1,258.1 |
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$ |
(321.2 |
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$ |
(171.1 |
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$ |
765.8 |
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Trademarks and trade names with indefinite lives |
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881.3 |
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— |
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(630.2 |
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251.1 |
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881.3 |
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— |
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(630.2 |
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251.1 |
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Total |
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$ |
2,080.4 |
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$ |
(406.9 |
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$ |
(801.3 |
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$ |
872.2 |
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$ |
2,139.4 |
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$ |
(321.2 |
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$ |
(801.3 |
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$ |
1,016.9 |
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|
(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. |
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(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 ($14 million, net of taxes), which is included in impairment of goodwill and other intangible assets on the consolidated statements of operations in the year ended December 31, 2012. | |
| Remaining Estimated Future Amortization Expense |
The following table shows the remaining estimated future amortization expense at December 31, 2014.
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Year |
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Amount
(in millions) |
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2015 |
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$ |
86.5 |
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2016 |
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84.4 |
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2017 |
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77.6 |
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2018 |
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65.5 |
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Thereafter |
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307.1 |
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Total |
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$ |
621.1 |
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| 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.
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Remaining weighted average useful lives |
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Customer relationships |
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9.8 |
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Trademarks and trade names |
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4.8 |
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Technology |
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4.1 |
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Contracts |
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2.8 |
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Total intangible assets with definite lives |
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8.9 |
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