Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Note 5. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 were as follows:

	Variable Print			Strategic Services			International			Total
Net book value as of January 1, 2016
Goodwill		1,794.5			343.9			1,098.0			3,236.4
Accumulated impairment losses		(1,022.9	)		(148.7	)		(979.1	)		(2,150.7	)
Total	$	771.6		$	195.2		$	118.9		$	1,085.7
Acquisitions		21.2			21.3			—			42.5
Foreign exchange and other adjustments		7.5			—			(5.9	)		1.6
Impairment charges		(527.8	)		—			—			(527.8	)
Net book value as of December 31, 2016
Goodwill		1,823.0			365.2			1,017.9			3,206.1
Accumulated impairment losses		(1,550.5	)		(148.7	)		(904.9	)		(2,604.1	)
Total	$	272.5		$	216.5		$	113.0		$	602.0
Foreign exchange and other adjustments		—			—			7.8			7.8
Impairment charges		—			(21.3	)		—			(21.3	)
Net book value as of December 31, 2017
Goodwill		1,823.9			365.2			1,090.2			3,279.3
Accumulated impairment losses		(1,551.4	)		(170.0	)		(969.4	)		(2,690.8	)
Total	$	272.5		$	195.2		$	120.8		$	588.5

During the year ended December 31, 2017, the Company recorded non-cash charges of $21.3 million to reflect the impairment of goodwill in the digital and creative solutions reporting unit. During the fourth quarter of December 31, 2016, the Company recorded non-cash charges of $416.2 million and $111.6 million to reflect the impairment of goodwill for the commercial and digital print and statement printing reporting units within the Variable Print segment. See Note 4, Restructuring, Impairment and Other Charges, for further discussion regarding these impairment charges.

The components of other intangible assets at December 31, 2017 and 2016 were as follows:

	December 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Client relationships	$	534.1	$	(412.4	)	$	121.7	$	517.9	$	(370.7	)	$	147.2
Patents		2.0		(2.0	)		—		2.0		(2.0	)		—
Trademarks, licenses and agreements		26.2		(25.2	)		1.0		26.2		(24.4	)		1.8
Trade names		36.8		(16.2	)		20.6		36.8		(13.9	)		22.9
Total other intangible assets	$	599.1	$	(455.8	)	$	143.3	$	582.9	$	(411.0	)	$	171.9

During the year ended December 31, 2017, the Company recorded non-cash charges of $0.2 million primarily for the impairment of acquired trade name intangible assets in the commercial and digital print reporting unit within the Variable Print segment. During the year ended December 31, 2016, the Company recorded non-cash charges of $29.7 million primarily for the impairment of certain acquired client relationship intangible assets in the commercial and digital print reporting unit within the Variable Print segment. During the year ended December 31, 2015, the Company recorded non-cash charges of $11.9 million for the impairment of intangible assets. See Note 6, Fair Value Measurement, for further discussion.

During the year ended December 31, 2016, the Company recorded additions to other intangible assets of $14.1 million for acquisitions during the year, the components of which were as follows:

	December 31, 2016
	Amount		Weighted Average Amortization Period
Client relationships	$	11.0		10.5
Trade names (amortizable)		1.4		4.7
Non-compete agreements		1.7		3.3
Total additions	$	14.1

Amortization expense for other intangible assets was $28.6 million, $33.7 million and $46.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following table outlines the estimated annual amortization expense related to other intangible assets as of December 31, 2017:

	Amount
2018	$	27.8
2019		24.1
2020		20.3
2021		20.0
2022		19.3
2023 and thereafter		31.8
Total	$	143.3

- 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.

+ References + Details