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Other Intangible Assets, net
6 Months Ended
Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Other Intangible Assets, net

6. Other Intangible Assets, net

The components of other intangible assets, net, at June 30, 2020 and December 31, 2019 were as follows:

 

 

 

 

 

 

 

June 30, 2020 (unaudited)

 

 

December 31, 2019

 

(millions)

 

Weighted

Average

Life (Years)

 

 

Acquired

Intangible

Assets,

Gross

 

 

Accumulated

Amortization

 

 

Acquired

Intangible

Assets,

Net

 

 

Acquired

Intangible

Assets,

Gross

 

 

Accumulated

Amortization

 

 

Acquired

Intangible

Assets,

Net

 

Covenant not to compete

 

 

2.5

 

 

$

2.9

 

 

$

(0.8

)

 

$

2.1

 

 

$

2.9

 

 

$

(0.3

)

 

$

2.6

 

Trade names and trademarks

 

 

3.4

 

 

 

5.6

 

 

 

(1.8

)

 

 

3.8

 

 

 

5.6

 

 

 

(1.2

)

 

 

4.4

 

Proprietary know how

 

 

4.2

 

 

 

6.7

 

 

 

(2.8

)

 

 

3.9

 

 

 

10.4

 

 

 

(2.0

)

 

 

8.4

 

Management contract rights

 

 

8.6

 

 

 

81.0

 

 

 

(40.0

)

 

 

41.0

 

 

 

81.0

 

 

 

(37.4

)

 

 

43.6

 

Customer relationships

 

 

13.4

 

 

 

100.4

 

 

 

(10.5

)

 

 

89.9

 

 

 

100.4

 

 

 

(7.2

)

 

 

93.2

 

Acquired intangible assets, net (1)

 

 

11.1

 

 

$

196.6

 

 

$

(55.9

)

 

$

140.7

 

 

$

200.3

 

 

$

(48.1

)

 

$

152.2

 

 

(1)  Intangible assets have estimated remaining lives between one and fourteen years.

The table below shows the amortization expense related to intangible assets for the three and six months ended June 30, 2020 and 2019, respectively, and is included in Depreciation and amortization within the Condensed Consolidated Statements of Income:

 

 

 

Three Months Ended

 

Six Months Ended

 

(millions) (unaudited)

 

June 30, 2020

 

 

June 30, 2019

 

June 30, 2020

 

 

June 30, 2019

 

Amortization expense

 

$

3.9

 

 

$

3.8

 

$

7.8

 

 

$

7.6

 

 

See Note 1. Significant Accounting Policies and Practices for additional detail on the Company's policy for assessing Other Intangible Assets, net, for impairment.

 

 

As discussed in Note 1. Significant Accounting Policies and Practices, due to the impact of COVID-19 on the Company's expected future operating cash flows, the Company determined certain impairment testing triggers had occurred for certain intangible assets as of June 30, 2020. Accordingly, the Company analyzed undiscounted cash flows for these intangible assets as of June 30, 2020 and determined the carrying value for the Proprietary know how assets was higher than their projected undiscounted cash flows. The fair value of the Proprietary know how intangible assets which is classified as Level 3 in the fair value hierarchy, was determined based on estimates of future discounted cash flows using the relief from royalty approach. Proprietary know how with a carrying amount of $7.6 million were determined to have a fair value of $3.9 million, resulting in an impairment charge of $3.7 million in the Aviation segment during the three and six months ended June 30, 2020, respectively.

 

No impairment charges were recorded during the three and six months ended June 30, 2019.