Goodwill and Intangible Assets

3 Months Ended

Apr. 02, 2022

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, 2021		Purchase accounting adjustments		Impairments		Currency translation adjustments		April 2, 2022
CSCA(1)	$	1,902.4	$	—	$	—	$	(0.4)	$	1,902.0
CSCI(2)	1,097.0		—		—		(28.3)		1,068.7
Total goodwill	$	2,999.4	$	—	$	—	$	(28.7)	$	2,970.7

(1) We had no accumulated goodwill impairments as of April 2, 2022 and $6.1 million as of December 31, 2021.

(2) We had accumulated goodwill impairments of $878.4 million as of April 2, 2022 and as of December 31, 2021.

CSCA Reporting Unit Goodwill

On May 18, 2021, we announced a definitive agreement to sell our Latin America businesses within our CSCA segment, to Advent International. As a result, we prepared a goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment of $6.1 million within our CSCA segment during the three months ended July 3, 2021.

Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):

	April 2, 2022				December 31, 2021
	Gross		Accumulated Amortization		Gross		Accumulated Amortization
Indefinite-lived intangibles:
Trademarks, trade names, and brands	$	3.5	$	—	$	3.5	$	—
In-process research and development	1.7		—		1.8		—
Total indefinite-lived intangibles	$	5.2	$	—	$	5.3	$	—
Definite-lived intangibles:
Distribution and license agreements and supply agreements	$	82.3	$	56.6	$	73.2	$	56.9
Developed product technology, formulations, and product rights	298.7		194.4		300.2		191.4
Customer relationships and distribution networks	1,777.0		891.2		1,820.7		887.8
Trademarks, trade names, and brands	1,438.3		400.4		1,482.3		394.2
Non-compete agreements	2.1		2.1		2.1		2.1
Total definite-lived intangibles	$	3,598.4	$	1,544.7	$	3,678.5	$	1,532.4
Total intangible assets	$	3,603.6	$	1,544.7	$	3,683.8	$	1,532.4

We recorded amortization expense of $48.5 million for the three months ended April 2, 2022, and $53.2 million for the three months ended April 3, 2021.

On March 17, 2022, we announced that we received final approval from the U.S. Food and Drug Administration for the over-the-counter use of Nasonex® 24HR Allergy (mometasone furoate monohydrate 50mcg). The approval triggered a $10.0 million milestone payment to the licensor. We accrued the milestone payment and capitalized it as a definite-lived intangible asset, and will make the milestone payment subsequent to April 2, 2022.