Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2013

7. Goodwill and Other Intangibles

The following table provides information related to the carrying value of all intangible assets, other than goodwill:


	December 31, 2013									December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net		Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Amortizable intangible assets:
Trade names	$	166.8	$	(73.9	)	$	92.9		3-20	$	131.1	$	(67.1	)	$	64.0
Customer Relationships		333.0		(100.4	)		232.6		15-20		333.8		(81.1	)		252.7
Patents/Formulas		43.5		(31.4	)		12.1		4-20		43.0		(28.7	)		14.3
Non Compete Agreement		1.4		(1.3	)		0.1		5-10		1.4		(1.3	)		0.1

Total	$	544.7	$	(207.0	)	$	337.7			$	509.3	$	(178.2	)	$	331.1


Indefinite lived intangible assets—Carrying value
	December 31, 2013									December 31, 2012
Trade names	$	866.6								$	923.8

The Company recognized trade name impairment charges within SG&A expenses during the three year period ended December 31, 2013 as follows:


	2013		2012		2011
Segments:
Consumer Domestic	$	1.9	$	0.0	$	0.0
Consumer International		4.6		0.0		0.0

Total	$	6.5	$	0.0	$	0.0

The trade name impairment charges recorded in 2013 were a result of lower forecasted sales and profitability and increased competition. The amount of the impairment charge was determined by comparing the estimated fair value of the asset to its carrying amount. Fair value was estimated based on a “relief from royalty” or “excess earnings” discounted cash flow method, which contains numerous variables that are subject to change as business conditions change, and therefore could impact fair values in the future. Consequently, the Company determined that a Consumer Domestic and a Consumer International trade name should be re-characterized from indefinite lived to finite lived assets. The carrying value of these trade names is approximately $35.7 and will be amortized over 15 years. The Company determined that the remaining carrying value of all trade names was recoverable based upon the forecasted cash flows and profitability of the brands.

Intangible amortization expense amounted to $28.9 for 2013, $26.8 for 2012 and $25.2 for 2011. The Company estimates that intangible amortization expense will be approximately $30.2 in 2014 and approximately $30.0 in each of the next five years.

The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows:


	Consumer Domestic		Consumer International		Specialty Products		Total
Balance December 31, 2011	$	801.0	$	47.2	$	20.2	$	868.4
Avid Health acquired goodwill		345.4		0.0		0.0		345.4

Balance December 31, 2012	$	1,146.4	$	47.2	$	20.2	$	1,213.8
Avid Health purchase price allocation adjustment		8.4		0.0		0.0		8.4

Balance December 31, 2013	$	1,154.8	$	47.2	$	20.2	$	1,222.2

The Company performed its annual goodwill impairment test as of the beginning of the second quarter of 2013, and no adjustments were required.

The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future.

- 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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