Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Note 4. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 were as follows:


	U.S. Print and Related Services			International			Total
Net book value at January 1, 2011
Goodwill	$	3,141.7		$	1,298.5		$	4,440.2
Accumulated impairment losses		(939.2	)		(974.2	)		(1,913.4	)

Total		2,202.5			324.3			2,526.8

Acquisitions		118.3			—			118.3
Foreign exchange and other adjustments		(17.4	)		(13.3	)		(30.7	)
Impairment charges		(270.3	)		(122.0	)		(392.3	)

Net book value at December 31, 2011
Goodwill		3,242.6			1,278.4			4,521.0
Accumulated impairment losses		(1,209.5	)		(1,089.4	)		(2,298.9	)

Total		2,033.1			189.0			2,222.1

Acquisitions		57.9			—			57.9
Foreign exchange and other adjustments		(1.3	)		6.1			4.8
Impairment charges		(780.4	)		(68.0	)		(848.4	)

Net book value at December 31, 2012
Goodwill		3,299.2			1,321.5			4,620.7
Accumulated impairment losses		(1,989.9	)		(1,194.4	)		(3,184.3	)

Total	$	1,309.3		$	127.1		$	1,436.4

In the fourth quarters of 2012 and 2011, the Company recorded non-cash charges of $848.4 million and $392.3 million, respectively, to reflect impairment of goodwill. See Note 3 for further discussion regarding these impairment charges.

The components of other intangible assets at December 31, 2012 and 2011 were as follows:


	December 31, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationships	$	731.1	$	(388.0	)	$	343.1	$	1,164.4	$	(613.6	)	$	550.8
Patents		98.3		(98.1	)		0.2		98.3		(95.8	)		2.5
Trademarks, licenses and agreements		31.7		(26.1	)		5.6		28.7		(24.4	)		4.3
Trade names		27.1		(11.2	)		15.9		23.9		(9.3	)		14.6

Total amortizable other intangible assets		888.2		(523.4	)		364.8		1,315.3		(743.1	)		572.2
Indefinite-lived trade names		18.1		—			18.1		18.1		—			18.1

Total other intangible assets	$	906.3	$	(523.4	)	$	382.9	$	1,333.4	$	(743.1	)	$	590.3

The gross carrying amount and accumulated amortization for customer relationships were adjusted as of December 31, 2012 to reflect the impairment of certain customer relationships recognized in periods prior to December 31, 2011. This adjustment had no impact on the net book value of other intangible assets as reported on the Company’s Consolidated Balance Sheet.

In the fourth quarter of 2012, the Company recorded non-cash charges of $152.3 million and $5.7 million to reflect the impairment of acquired customer relationships within the U.S. Print and Related Services and International segments, respectively. In the fourth quarter of 2011, the Company recorded non-cash charges of $90.7 million to reflect the impairment of acquired customer relationships and other intangible assets within the U.S. Print and Related Services segment. See Note 3 for further discussion regarding these impairment charges.

During the years ended December 31, 2012 and 2011, the Company recorded additions to other intangible assets of $36.4 million and $19.9 million, respectively. The components of other intangible assets added during 2012 and 2011 were as follows:


	December 31, 2012				December 31, 2011
	Amount		Weighted Average Amortization Period		Amount		Weighted Average Amortization Period
Customer relationships	$	29.9		6.1	$	14.7		13.9
Trade names		3.5		1.7		1.1		3.5
Trademarks, licenses and agreements		3.0		4.3		4.1		4.5

Total additions	$	36.4			$	19.9

Amortization expense for other intangible assets was $87.6 million, $112.2 million and $99.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. The following table outlines the estimated future amortization expense related to other intangible assets as of December 31, 2012:


	Amount
2013	$	64.5
2014		63.6
2015		57.9
2016		39.4
2017		32.9
2018 and thereafter		106.5

Total	$	364.8

- 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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