Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3 — GOODWILL AND INTANGIBLE ASSETS

The total purchase price associated with acquisitions is allocated to the fair value of assets acquired and liabilities assumed based on their fair values at the acquisition date, with excess amounts recorded as goodwill.

Goodwill as of December 31, 2016 and 2015, and changes in the carrying amount of goodwill by segment were as follows:



(In millions)	Specialty Engineered Materials			Color, Additives and Inks			Designed Structures and Solutions		Performance Products and Solutions			PolyOne Distribution		Total
Goodwill, gross at January 1, 2015	$	111.6		$	349.8		$	144.7	$	186.2		$	1.6	$	793.9
Accumulated impairment losses	(12.2		)	(16.1		)	—		(175.0		)	—		(203.3		)
Goodwill, net at January 1, 2015	99.4			333.7			144.7		11.2			1.6		590.6
Acquisitions of businesses	—			8.6			—		—			—		8.6
Currency translation	(1.4		)	(0.1		)	—		—			—		(1.5		)
Balance at December 31, 2015	98.0			342.2			144.7		11.2			1.6		597.7
Acquisitions of businesses	74.9			4.5			—		—			—		79.4
Currency translation	0.6			(0.3		)	—		—			—		0.3
Balance at December 31, 2016	$	173.5		$	346.4		$	144.7	$	11.2		$	1.6	$	677.4

At December 31, 2016, PolyOne had $100.3 million of indefinite-lived intangible assets that are not subject to amortization, consisting of a trade name of $33.2 million acquired as part of the acquisition of GLS Corporation (GLS), trade names of $63.1 million acquired as part of the acquisition of ColorMatrix Group, Inc. (ColorMatrix) and a trade name of $4.0 million acquired as part of the acquisition of Gordon Composites.

Indefinite and finite-lived intangible assets consisted of the following:



	As of December 31, 2016
(In millions)	Acquisition Cost		Accumulated Amortization			Currency Translation			Net
Customer relationships	$	217.1	$	(52.2	)	$	(0.3	)	$	164.6
Patents, technology and other	156.6		(57.6		)	(0.4		)	98.6
Indefinite-lived trade names	100.3		—			—			100.3
Total	$	474.0	$	(109.8	)	$	(0.7	)	$	363.5



	As of December 31, 2015
(In millions)	Acquisition Cost		Accumulated Amortization			Currency Translation			Net
Customer relationships	$	199.4	$	(42.1	)	$	—		$	157.3
Patents, technology and other	137.0		(45.7		)	(0.3		)	91.0
Indefinite-lived trade names	96.3		—			—			96.3
Total	$	432.7	$	(87.8	)	$	(0.3	)	$	344.6

Amortization of finite-lived intangible assets for the years ended December 31, 2016, 2015 and 2014 was $22.0 million, $19.9 million and $19.2 million, respectively.

We expect finite-lived intangibles amortization expense for the next five years as follows:



	2017	2018	2019	2020	2021
Expected amortization expense	$22.9	$22.9	$22.9	$19.5	$18.5

- 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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