Goodwill and Other Intangibles, Net

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

7.	Goodwill and Other Intangibles, Net

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

	December 31, 2015								December 31, 2014
	Gross							Amortization	Gross
	Carrying		Accumulated					Period	Carrying		Accumulated
	Amount		Amortization			Net		(Years)	Amount		Amortization			Net
Amortizable intangible assets:
Trade names	$	259.5	$	(96.4	)	$	163.1	3-20	$	255.3	$	(85.2	)	$	170.1
Customer Relationships		372.4		(141.8	)		230.6	15-20		347.3		(119.9	)		227.4
Patents/Formulas		57.4		(41.9	)		15.5	4-20		48.6		(38.3	)		10.3
Non Compete Agreement		1.8		(1.5	)		0.3	5-10		1.4		(1.4	)		0.0
Total	$	691.1	$	(281.6	)	$	409.5		$	652.6	$	(244.8	)	$	407.8

Indefinite lived intangible assets - Carrying value

	December 31,		December 31,
	2015		2014
Trade names	$	860.0	$	864.6

The decrease in indefinite lived intangible assets is due to changes in foreign exchange rates. The Company recognized intangible asset impairment charges within SG&A expenses during the three year period ended December 31, 2015 as follows:

	For the Year Ended December 31,
Segments:	2015	2014	2013
Consumer Domestic	$ 0.0	$ 5.0	$ 1.9
Consumer International	0.0	0.0	4.6
Total	$ 0.0	$ 5.0	$ 6.5

In 2014, the Company recorded an impairment charge of $5.0 for an intangible asset related to the Consumer Domestic segment. This charge is included in selling, general and administrative expenses in this segment and was the result of reduced sales and profitability related to the product line. The amount of the charge was determined from estimating that future cash flows would not be sufficient to recover the carrying amount of the asset.

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 was approximately $35.7 as of December 31, 2013 and is being amortized over 15 years.

The Company determined that the carrying value of all trade names as of December 31, 2015 and 2014, was recoverable based upon the forecasted cash flows and profitability of the brands. In 2014, the results of the Company’s annual impairment test for indefinite lived trade names resulted in a personal care trade name whose fair value exceeded its carrying value by 11%. In 2015, the fair value of this asset exceeded its carrying value by approximately 20%, based on improved and forecasted performance. This trade name’s carrying value is approximately $37.0 and is considered an important asset to the Company. The Company continues to monitor performance and should there be any significant change in forecasted assumptions or estimates, including sales, profitability and discount rate, the Company may be required to recognize an impairment charge.

Intangible amortization expense amounted to $39.9 for 2015, $31.7 for 2014 and $28.9 for 2013, respectively. The Company estimates that intangible amortization expense will be approximately $38.4 in 2016 and approximately $38.0 in each of the next five years.

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows:

	Consumer		Consumer		Specialty
	Domestic		International		Products		Total
Balance at December 31, 2013	$	1,154.8	$	47.2	$	20.2	$	1,222.2
Lil' Drug Store Brands acquired goodwill		87.4		15.4		0.0		102.8
Balance at December 31, 2014	$	1,242.2	$	62.6	$	20.2	$	1,325.0
VI-COR acquired goodwill		0.0		0.0		29.9		29.9
Balance at December 31, 2015	$	1,242.2	$	62.6	$	50.1	$	1,354.9

The increase in goodwill and amortizable assets in 2015 is due to the VI-COR Acquisition and the increase in 2014 is due to the Lil’ Drug Store Brands Acquisition. These assets are deductible for U.S. tax purposes.

The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2015, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. 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. The Company has never incurred a goodwill impairment charge.

- 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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