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Goodwill, Long-Lived and Intangible Assets, Net
9 Months Ended
Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill, Long-Lived and Intangible Assets, Net

Note 6 Goodwill, Long-Lived and Intangible Assets, Net

Goodwill and Indefinite-Lived Intangible Assets

Goodwill represents the excess of purchase price over the fair value of net assets acquired. Trademarks and trade names are accounted for as indefinite-lived intangible assets and, accordingly, are not subject to amortization. We review goodwill on a reporting unit basis and indefinite-lived assets for impairment annually on October 1st and on an interim basis whenever events or changes in circumstances indicate the carrying value of goodwill or indefinite-lived intangible assets may be impaired.

We assessed whether events or circumstances indicate that it was more likely than not that our goodwill and indefinite-lived intangible assets were impaired as of September 30, 2021. The goodwill and indefinite-lived intangible assets assessments included consideration of key factors such as macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity-and reporting unit-specific events. We concluded that it is more likely than not that the fair value of our reporting units and indefinite-lived intangible assets exceeded their carrying values at September 30, 2021.

The following table shows our goodwill balances by operating segment that are aggregated into one reportable segment:

 

 

 

North America

 

 

Europe

 

 

Total

 

Balance at December 31, 2020

 

$

338.8

 

 

$

119.6

 

 

$

458.4

 

Currency translation

 

 

-

 

 

 

(6.3

)

 

 

(6.3

)

Balance at September 30, 2021

 

$

338.8

 

 

$

113.3

 

 

$

452.1

 

 

Finite-Lived Intangible Assets, net

Finite-lived or amortizable intangible assets consist of patented and unpatented technology, customer/distributor relationships, and other intellectual property.

Impairment of Long-lived Assets

We review our long-lived assets, including amortizable intangible assets and property, plant and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. For long-lived assets, an impairment loss is indicated when the undiscounted cash flows estimated to be generated by the asset group are not sufficient to recover the unamortized balance of the asset group. If indicators exist, the loss is measured as the excess of carrying value over the asset group’s fair value, as determined based on discounted future cash flows, asset appraisal and market values of similar assets. As of September 30, 2021, there were no indicators of impairment present for property, plant and equipment or amortizable intangible assets that required us to test for recoverability.

The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

Customer/distributor relationships

 

$

202.9

 

 

$

(31.7

)

 

$

171.2

 

 

$

209.2

 

 

$

(22.2

)

 

$

187.0

 

Patented/unpatented technology

 

 

170.0

 

 

 

(35.4

)

 

 

134.6

 

 

 

169.2

 

 

 

(23.7

)

 

 

145.5

 

Intellectual property

 

 

0.5

 

 

 

(0.1

)

 

 

0.4

 

 

 

0.4

 

 

 

-

 

 

 

0.4

 

In-process research and development

 

 

1.6

 

 

 

-

 

 

 

1.6

 

 

 

1.6

 

 

 

-

 

 

 

1.6

 

Total definite-lived intangible assets

 

 

375.0

 

 

 

(67.2

)

 

 

307.8

 

 

 

380.4

 

 

 

(45.9

)

 

 

334.5

 

Trademarks/tradenames with indefinite lives

 

 

106.1

 

 

 

-

 

 

 

106.1

 

 

 

106.1

 

 

 

-

 

 

 

106.1

 

Identifiable intangible assets, net

 

$

481.1

 

 

$

(67.2

)

 

$

413.9

 

 

$

486.5

 

 

$

(45.9

)

 

$

440.6

 

 

The following table shows the remaining estimated amortization expense for our definite-lived intangible assets at September 30, 2021:

 

Year

 

Amount

 

2021

 

$

7.3

 

2022

 

 

29.2

 

2023

 

 

29.2

 

2024

 

 

29.1

 

2025

 

 

28.6

 

Thereafter

 

 

182.8

 

 

 

$

306.2

 

 

Amortization expense was $7.3 million and $7.1 million in the third quarter of 2021 and 2020, respectively. Amortization expense was $22.0 million and $21.3 million in the nine months ended September 30, 2021 and 2020, respectively.

The following table shows the remaining weighted-average useful life of our definite lived intangible assets as of September 30, 2021:

 

 

 

Remaining Weighted-Average Useful Life

 

 

September 30, 2021

 

December 31, 2020

Customer/distributor relationships

 

13 years

 

13 years

Patented/unpatented technology

 

9 years

 

10 years

Intellectual property

 

7 years

 

6 years

Total identifiable assets, net with definite lives

 

11 years

 

12 years