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Goodwill and Other Intangibles, Net
6 Months Ended
Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles, Net

13.

Goodwill and Other Intangibles, Net

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

 

 

June 30, 2018

 

 

December 31, 2017

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Amount

 

 

Amortization

 

 

Net

 

 

Amount

 

 

Amortization

 

 

Net

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Names

$

579.0

 

 

$

(160.4

)

 

$

418.6

 

 

$

576.7

 

 

$

(145.2

)

 

$

431.5

 

Customer Relationships

 

506.2

 

 

 

(205.4

)

 

 

300.8

 

 

 

480.5

 

 

 

(190.2

)

 

 

290.3

 

Patents/Formulas

 

165.4

 

 

 

(56.6

)

 

 

108.8

 

 

 

165.4

 

 

 

(51.7

)

 

 

113.7

 

Non-Compete Agreement

 

0.4

 

 

 

(0.3

)

 

 

0.1

 

 

 

0.4

 

 

 

(0.2

)

 

 

0.2

 

Total

$

1,251.0

 

 

$

(422.7

)

 

$

828.3

 

 

$

1,223.0

 

 

$

(387.3

)

 

$

835.7

 

 

Indefinite lived intangible assets - Carrying value  

 

June 30,

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2018

 

 

 

 

 

 

2017

 

 

 

 

 

Trade Names

$

1,483.6

 

 

 

 

 

 

$

1,484.8

 

 

 

 

 

Intangible amortization expense was $17.8 and $14.4 for the second quarter of 2018 and 2017, respectively.  Intangible amortization expense amounted to $35.8 and $28.3 for the first six months of 2018 and 2017, respectively.  The Company estimates that intangible amortization expense related to amortizable intangible assets held as of June 30, 2018 will be approximately $71.0 in 2018 and declining over the next five years from approximately $70.0 to $60.0 annually.

The Company determined that the carrying value of all trade names as of December 31, 2017, 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 was reduced to approximately $34.0 or 12% in large part due 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.

The carrying amount of goodwill is as follows:

 

 

Consumer

 

 

Consumer

 

 

Specialty

 

 

 

 

 

 

Domestic

 

 

International

 

 

Products

 

 

Total

 

Balance at December 31, 2017

$

1,632.1

 

 

$

223.3

 

 

$

103.5

 

 

$

1,958.9

 

Passport acquired goodwill

 

0.0

 

 

 

0.0

 

 

 

32.5

 

 

 

32.5

 

Waterpik adjustment

 

1.1

 

 

 

0.4

 

 

 

0.0

 

 

 

1.5

 

Balance at June 30, 2018

$

1,633.2

 

 

$

223.7

 

 

$

136.0

 

 

$

1,992.9

 

 

The goodwill and other intangible assets associated with the Waterpik and Passport acquisitions are not deductible for U.S. tax purposes.  In connection with its annual goodwill impairment test performed in the beginning of the second quarter of 2018, the Company determined that the estimated fair value substantially exceeded the carrying values of all reporting units.