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Goodwill and Other Intangibles, Net
12 Months Ended
Dec. 31, 2019
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, 2019

 

 

 

 

December 31, 2018

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortization

 

Gross

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Period

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Amount

 

 

Amortization

 

 

Net

 

 

(Years)

 

Amount

 

 

Amortization

 

 

Net

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

$

1,025.8

 

 

$

(219.7

)

 

$

806.1

 

 

3-20

 

$

578.6

 

 

$

(175.2

)

 

$

403.4

 

Customer Relationships

 

584.8

 

 

 

(255.0

)

 

 

329.8

 

 

15-20

 

 

506.3

 

 

 

(220.8

)

 

 

285.5

 

Patents/Formulas

 

211.4

 

 

 

(73.0

)

 

 

138.4

 

 

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

$

1,822.4

 

 

$

(548.1

)

 

$

1,274.3

 

 

 

 

$

1,250.7

 

 

$

(457.8

)

 

$

792.9

 

 

Indefinite lived intangible assets - Carrying value

 

 

December 31,

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

Trade names

$

1,475.7

 

 

 

 

 

 

 

 

$

1,481.1

 

 

 

 

 

 

The Company determined that the carrying value of its trade names as of December 31, 2019 and 2018, was recoverable based upon the forecasted cash flows and profitability of the brands.  There are personal care trade names 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 assets.  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 $90.4 for 2019, $71.2 for 2018 and $61.0 for 2017, respectively.  The Company estimates that intangible amortization expense will be approximately $98.2 in 2020 and approximately $96.5 to $88.0 annually over the next five years.

During the fourth quarter of 2017, the Company determined that a Consumer Domestic trade name should be re-characterized from an indefinite lived to a finite lived asset. 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 trade name 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, 2019 and 2018 are 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 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 December 31, 2019

$

1,707.9

 

 

$

235.6

 

 

$

136.0

 

 

$

2,079.5

 

 

The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2019, 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.