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Goodwill and Other Intangibles, Net
6 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles, Net

11.

Goodwill and Other Intangibles, Net

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

 

 

June 30, 2019

 

 

 

 

December 31, 2018

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortization

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Period

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Amount

 

 

Amortization

 

 

Net

 

 

(Years)

 

Amount

 

 

Amortization

 

 

Net

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Names

$

1,026.0

 

 

$

(193.9

)

 

$

832.1

 

 

3-20

 

$

578.6

 

 

$

(175.2

)

 

$

403.4

 

Customer Relationships

 

584.8

 

 

 

(237.1

)

 

 

347.7

 

 

15-20

 

 

506.3

 

 

 

(220.8

)

 

 

285.5

 

Patents/Formulas

 

211.4

 

 

 

(66.8

)

 

 

144.6

 

 

4-20

 

 

165.4

 

 

 

(61.5

)

 

 

103.9

 

Non-Compete Agreement

 

0.4

 

 

 

(0.4

)

 

 

0.0

 

 

5-10

 

 

0.4

 

 

 

(0.3

)

 

 

0.1

 

Total

$

1,822.6

 

 

$

(498.2

)

 

$

1,324.4

 

 

 

 

$

1,250.7

 

 

$

(457.8

)

 

$

792.9

 

 

Indefinite Lived Intangible Assets - Gross Carrying Amount  

 

June 30,

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

Trade Names

$

1,479.4

 

 

 

 

 

 

 

 

$

1,481.1

 

 

 

 

 

Intangible amortization expense was $22.7 and $17.8 for the second quarter of 2019 and 2018, respectively.  Intangible amortization expense amounted to $40.3 and $35.8 for the first six months of 2019 and 2018, respectively.  The Company estimates that intangible amortization expense will be approximately $90.0 in 2019 and approximately $98.0 to $89.0 annually over the next five years.

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 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 since 2017, 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.     

The carrying amount of goodwill is as follows:

 

 

Consumer

 

 

Consumer

 

 

Specialty

 

 

 

 

 

 

Domestic

 

 

International

 

 

Products

 

 

Total

 

Balance at December 31, 2018

$

1,633.2

 

 

$

223.7

 

 

$

136.0

 

 

$

1,992.9

 

Flawless acquired goodwill

 

74.7

 

 

 

13.2

 

 

 

0.0

 

 

 

87.9

 

Other

 

0.0

 

 

 

(1.3

)

 

 

0.0

 

 

 

(1.3

)

Balance at June 30, 2019

$

1,707.9

 

 

$

235.6

 

 

$

136.0

 

 

$

2,079.5

 

 

In connection with its annual goodwill impairment test performed in the beginning of the second quarter of 2019, the Company determined that the estimated fair value substantially exceeded the carrying values of all reporting units.