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Goodwill and Other Intangibles, Net
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles, Net

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, 2018

 

 

 

 

December 31, 2017

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortization

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Period

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Amount

 

 

Amortization

 

 

Net

 

 

(Years)

 

Amount

 

 

Amortization

 

 

Net

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

$

578.6

 

 

$

(175.2

)

 

$

403.4

 

 

3-20

 

$

576.7

 

 

$

(145.2

)

 

$

431.5

 

Customer Relationships

 

506.3

 

 

 

(220.8

)

 

 

285.5

 

 

15-20

 

 

480.5

 

 

 

(190.2

)

 

 

290.3

 

Patents/Formulas

 

165.4

 

 

 

(61.5

)

 

 

103.9

 

 

4-20

 

 

165.4

 

 

 

(51.7

)

 

 

113.7

 

Non-Compete Agreement

 

0.4

 

 

 

(0.3

)

 

 

0.1

 

 

5-10

 

 

0.4

 

 

 

(0.2

)

 

 

0.2

 

Total

$

1,250.7

 

 

$

(457.8

)

 

$

792.9

 

 

 

 

$

1,223.0

 

 

$

(387.3

)

 

$

835.7

 

 

Indefinite lived intangible assets - Carrying value

 

 

December 31,

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

Trade names

$

1,481.1

 

 

 

 

 

 

 

 

$

1,484.8

 

 

 

 

 

 

The Company determined that the carrying value of its trade names as of December 31, 2018 and 2017, was recoverable based upon the forecasted cash flows and profitability of the brands.  In 2017 there was a personal care trade name that, based on recent performance, had experienced sales and profit declines that had 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 had been reduced due in large part to an increased competitive market environment therefore resulting in reduced cash flow projections. The performance of the tradename improved in 2018, thereby increasing the excess between fair value and carrying value.  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 $71.2 for 2018, $61.0 for 2017 and $46.0 for 2016, respectively.  The Company estimates that intangible amortization expense will be approximately $70.0 in 2019 and approximately $68.0 to $59.0 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, 2018 and 2017 are as follows:

 

 

Consumer

 

 

Consumer

 

 

Specialty

 

 

 

 

 

 

Domestic

 

 

International

 

 

Products

 

 

Total

 

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

 

Passport acquired goodwill

 

0.0

 

 

 

0.0

 

 

 

32.5

 

 

 

32.5

 

Waterpik adjustment

 

1.1

 

 

 

0.4

 

 

 

0.0

 

 

 

1.5

 

Balance at December 31, 2018

$

1,633.2

 

 

$

223.7

 

 

$

136.0

 

 

$

1,992.9

 

 

The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2018, 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.