Goodwill and Other Intangibles, Net

12 Months Ended

Dec. 31, 2017

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, 2017								December 31, 2016
	Gross							Amortization	Gross
	Carrying		Accumulated					Period	Carrying		Accumulated
	Amount		Amortization			Net		(Years)	Amount		Amortization			Net
Amortizable intangible assets:
Trade names	$	576.7	$	(145.2	)	$	431.5	3-20	$	442.6	$	(115.0	)	$	327.6
Customer Relationships		480.5		(190.2	)		290.3	15-20		384.4		(164.2	)		220.2
Patents/Formulas		165.4		(51.7	)		113.7	4-20		68.7		(45.4	)		23.3
Non Compete Agreement		0.4		(0.2	)		0.2	5-10		1.8		(1.6	)		0.2
Total	$	1,223.0	$	(387.3	)	$	835.7		$	897.5	$	(326.2	)	$	571.3

Indefinite lived intangible assets - Carrying value

	December 31,		December 31,
	2017		2016
Trade names	$	1,484.8	$	860.5

The increase in indefinite lived intangible assets is due to the Waterpik Acquisition.

The Company determined that the carrying value of all trade names as of December 31, 2017 and 2016, was recoverable based upon the forecasted cash flows and profitability of the brands. There is a personal care trade name that, based on recent performance, has experienced sales and profit declines that have eroded a significant portion of the excess between fair and carrying value which could potentially result in an impairment of the asset. In 2017, this excess has been reduced to approximately $34.0 or 12% in large part to an increased competitive market environment therefore resulting in reduced cash flow projections. 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 approximately $61.0 for 2017, $46.0 for 2016 and $39.9 for 2015, respectively. The Company estimates that intangible amortization expense will be approximately $69.0 in 2018 and approximately $58.0 to $68.0 annually over the next five years.

During the fourth quarter of 2017, the Company determined that a Consumer Domestic tradename should be re-characterized from indefinite lived to finite lived assets. This conclusion was based upon lower forecasted sales and profitability and competitive pressures. This change was made after the annual impairment test was performed in which an impairment was not indicated. The carrying value of this tradename as of December 31, 2017 was approximately $22.0 million and is being amortized over 20 years based upon the estimated cash flows.

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

	Consumer			Consumer			Specialty
	Domestic			International			Products		Total
Balance at December 31, 2015	$	1,242.2		$	62.6		$	50.1	$	1,354.9
Toppik acquired goodwill		38.7			13.6			0.0	$	52.3
Anusol acquired goodwill		0.0			37.8			0.0	$	37.8
Other		(0.8	)		(0.1	)		0.0		(0.9	)
Balance at December 31, 2016	$	1,280.1		$	113.9		$	50.1	$	1,444.1
VIVISCAL acquired goodwill		29.5			7.4			0.0		36.9
Agro acquired goodwill		0.0			0.0			53.4		53.4
Waterpik acquired goodwill		322.5			101.8			0.0		424.3
Other		0.0			0.2			0.0		0.2
Balance at December 31, 2017	$	1,632.1		$	223.3		$	103.5	$	1,958.9

The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2017, 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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