Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets:

Goodwill

The changes in the carrying amount of goodwill in 2016 and 2015, in total and by segment, are summarized in the table below (in millions):



Segment:	Balance at December 31, 2014 ⁽²⁾		Impairment			Other⁽¹⁾			Balance at December 31, 2015		Impairment		Other⁽¹⁾			Balance at December 31, 2016
Residential Heating & Cooling	$	26.1	$	—		$	—		$	26.1	$	—	$	—		$	26.1
Commercial Heating & Cooling	62.3		—			(1.7		)	60.6		—		(0.5		)	60.1
Refrigeration	121.0		(5.5		)	(7.1		)	108.4		—		0.5			108.9
	$	209.4	$	(5.5	)	$	(8.8	)	$	195.1	$	—	$	—		$	195.1

⁽¹⁾ Other consists of changes in foreign currency translation rates.

⁽²⁾ The goodwill balances in the table above are presented net of accumulated impairment charges of $15.7 million, all of which relate to impairments in periods prior to 2014.

We reviewed our reporting unit structure as part of our annual goodwill impairment testing. We identified several components one level below our operating segments which were determined to be reporting units. We then performed our analysis to determine the proper aggregation of our reporting units, which considered similar economic and other characteristics, including product types, gross profits, production processes, customer types, distribution processes, and regulatory environments. Our analysis incorporated qualitative and quantitative measures to evaluate economic similarity and concluded that our reporting units continue to be equivalent to our operating segments except that we began evaluating our North America supermarket display cases and systems business separately beginning in 2015.

A qualitative review of impairment indicators was performed in 2016 for the Residential Heating & Cooling, the Commercial Heating & Cooling segments, and the Refrigeration segments we determined that it was not more likely than not the fair values of our reporting units, individually or collectively, were less than their carrying values. Accordingly, a quantitative impairment analysis was not performed for these segments. During the fourth quarter of 2015 we performed a quantitative impairment analysis of our North American supermarket display cases and systems business. Based on the results of the quantitative impairment test, we recorded impairment of $5.5 million in "Goodwill impairment" in the Consolidated Statement of Operations. No indicators of goodwill impairment were identified during the current year. Also, we did not record any goodwill impairments related to continuing operations in 2014.

Intangible Assets

As of December 31, 2016 and 2015, there were $4.3 million and $4.3 million, respectively, of indefinite-lived intangible assets recorded in Other assets, net in the accompanying Consolidated Balance Sheets. These intangible assets consisted primarily of trademarks and are not subject to amortization.

Identifiable intangible and other assets subject to amortization were recorded in Other assets, net in the accompanying Consolidated Balance Sheets and were comprised of the following (in millions):



	As of December 31,
	2016							2015
	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer relationships ⁽¹⁾	15.9		(14.9		)	1.0		15.9		(14.6		)	1.3
Patents and others	12.7		(6.4		)	6.3		11.2		(6.3		)	4.9
Total	$	28.6	$	(21.3	)	$	7.3	$	27.1	$	(20.9	)	$	6.2

⁽¹⁾ The impairment related to customer relationships has been removed from the gross amount as well as the accumulated amortization, but is included in amortization expense for the previous year.

Amortization expense related to these intangible and other assets was as follows (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Amortization expense ⁽¹⁾	$	0.4	$	2.7	$	2.9

Estimated amortization expense for the next five years and thereafter is as follows (in millions):



Estimated Future Amortization Expense:
2017	$	0.4
2018	0.4
2019	0.4
2020	0.4
2021	0.2
Thereafter	5.5

Deferred financing costs were reclassified out of intangible assets and removed from the tables above and are included as offsets against our debt balances as disclosed in Note 11.

During the fourth quarter of 2015, we completed a strategic review of our North American supermarket display cases and systems business. As a result, we performed an impairment analysis using a market approach and determined that intangible assets relating to the North American supermarket display case business trade name and its customer relationships were impaired and we recorded a charge of $21.2 million in "Asset impairment" in the Consolidated Statement of Operations. We did not have any impairments of intangible assets related to continuing operations in 2016 or 2014.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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