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Goodwill and Intangible Assets
 9 Months Ended
Sep. 26, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):
 
 
December 31,
2019
 
Purchase accounting adjustments
 
Business acquisitions
 
Business divestitures
 
Impairments
 
Currency translation adjustments
 
September 26,
2020
CSCA
 
$
1,899.1

 
$
(10.4
)
 
$
14.1

 
$
—

 
$
—

 
$
(4.0
)
 
$
1,898.8

CSCI(1)
 
1,203.7

 
12.0

 
1.8

 
(115.6
)
 
—

 
27.5

 
1,129.4

RX(2)
 
1,013.9

 
—

 
—

 
—

 
(202.4
)
 
(0.4
)
 
811.1

Total goodwill
 
$
4,116.7

 
$
1.6

 
$
15.9

 
$
(115.6
)
 
$
(202.4
)
 
$
23.1

 
$
3,839.3



(1) We had accumulated goodwill impairments of $868.4 million as of each of December 31, 2019 and September 26, 2020.
(2) We had accumulated goodwill impairments of $109.2 million and $311.6 million as of December 31, 2019 and September 26, 2020, respectively.

RX U.S. Reporting Unit Goodwill

During the three months ended September 26, 2020, our RX U.S. reporting unit had an indication of potential impairment driven primarily by the stoppage of production and distribution of albuterol sulfate inhalation aerosol and voluntary U.S. nationwide recall to the retail level, after we learned that some units may not dispense due to clogging, combined with a decline in market multiples. We prepared an impairment test as of September 26, 2020 and determined the carrying value of the RX U.S. reporting unit exceeded its estimated fair value. We recognized a goodwill impairment of $202.4 million, leaving $811.1 million of goodwill in this reporting unit after the impairment. The change in fair value from previous estimates was driven by the financial impact of the recall in the current period and related changes in estimates of future cash flows (refer to Note 6).
    
Other Reporting Unit Goodwill

During the three months ended June 27, 2020, our Branded Consumer Self-care ("BCS") reporting unit included in the CSCI segment had an indication of potential impairment which was driven by a decrease in forecasted cash flows in the second half of 2020 related to impacts from the COVID-19 pandemic. We prepared an impairment test as of June 27, 2020 and determined that the fair value of the BCS reporting unit exceeded net book value by less than 10%, consistent with our last annual impairment test as of October 1, 2019. While no impairment was recorded as of June 27, 2020, future developments such as deterioration in business performance or market multiples could reduce the fair value of this reporting unit and lead to impairment in a future period. There was no indication of impairment during the three months ended September 26, 2020. Goodwill remaining in this reporting unit was $995.5 million as of September 26, 2020.

Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):
 
September 26, 2020
 
December 31, 2019
 
Gross
 
Accumulated
Amortization
 
Gross
 
Accumulated
Amortization
Indefinite-lived intangibles:
 
 
 
 
 
 
 
Trademarks, trade names, and brands
$
4.0

 
$
—

 
$
18.8

 
$
—

In-process research and development
10.8

 
—

 
50.0

 
—

Total indefinite-lived intangibles
$
14.8

 
$
—

 
$
68.8

 
$
—

Definite-lived intangibles:
 
 
 
 
 
 
 
Distribution and license agreements and supply agreements
$
134.7

 
$
83.8

 
$
126.7

 
$
81.1

Developed product technology, formulations, and product rights
1,335.7

 
731.8

 
1,392.8

 
755.3

Customer relationships and distribution networks
1,866.8

 
776.0

 
1,805.6

 
671.4

Trademarks, trade names, and brands
1,462.7

 
313.1

 
1,353.5

 
250.1

Non-compete agreements
5.2

 
5.0

 
6.5

 
6.0

Total definite-lived intangibles
$
4,805.1

 
$
1,909.7

 
$
4,685.1

 
$
1,763.9

Total intangible assets
$
4,819.9

 
$
1,909.7

 
$
4,753.9

 
$
1,763.9



We recorded amortization expense of $73.9 million and $219.3 million for the three and nine months ended September 26, 2020, respectively, and $78.7 million and $227.7 million for the three and nine months ended September 28, 2019, respectively.

Evamist Branded Product

During the three months ended September 28, 2019, we identified impairment indicators related to our Evamist branded product, which is a definite-lived intangible asset in our RX segment. The indicators related to a decline in sales volume and a corresponding reduction in our long-range revenue forecast. We recorded an asset impairment of $10.8 million.

Generic Product

During the three months ended June 29, 2019, we identified impairment indicators for a certain definite-lived intangible asset related to changes in pricing and competition in the market, which lowered the projected cash flows we expect to generate from the asset. We recorded an asset impairment of $27.8 million in our RX segment.

In-process R&D

We recorded impairment charges of $4.3 million on certain IPR&D assets in the CSCA and RX segments during the nine months ended September 28, 2019, due to changes in projected development and regulatory timelines.