Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets, Net

A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2014 and 2013 (in millions):



Segment	December 31, 2013 Balance		Acquisitions⁽¹⁾		Other Adjustments		Foreign Currency			December 31, 2014 Balance
Writing	$	1,161.5	$	—	$	—	$	(70.6	)	$	1,090.9
Home Solutions	205.7		173.6		—		—			379.3
Tools	484.5		—		—		(5.9		)	478.6
Commercial Products	387.8		—		—		(0.3		)	387.5
Baby & Parenting	121.6		91.8		—		(3.7		)	209.7
	$	2,361.1	$	265.4	$	—	$	(80.5	)	$	2,546.0



Segment	December 31, 2012 Balance		Acquisitions		Other Adjustments⁽²⁾			Foreign Currency			December 31, 2013 Balance
Writing	$	1,145.4	$	—	$	(7.7	)	$	23.8		$	1,161.5
Home Solutions	226.9		—		(21.2		)	—			205.7
Tools	482.2		—		—			2.3			484.5
Commercial Products	387.7		—		—			0.1			387.8
Baby & Parenting	128.0		—		—			(6.4		)	121.6
	$	2,370.2	$	—	$	(28.9	)	$	19.8		$	2,361.1

(1)

On September 4, 2014, the Company acquired Ignite for $312.9 million, and on October 22, 2014, the Company acquired the assets of bubba for $82.9 million. Both acquisitions are included in the Company’s Home Solutions segment and resulted in total goodwill of $173.6 million. On December 15, 2014, the Company acquired Baby Jogger for a purchase price of $206.5 million, and Baby Jogger is included in the Baby & Parenting segment. The acquisition of Baby Jogger resulted in goodwill of $91.8 million.

(2) The other adjustment for 2013 for Home Solutions includes the goodwill of the cabinet and drapery hardware business that was written off in connection with the sale of the Hardware business in 2013. The other adjustment for 2013 for Writing represents the goodwill of the Teach business that was deemed impaired in connection with plans to divest the business.

The Company performs its annual impairment tests of goodwill and indefinite-lived intangibles as of the first day of the Company’s third quarter because it coincides with the Company’s annual strategic planning process. Effective in the fourth quarter of 2012, the Company, as part of Project Renewal, implemented changes to its organizational structure that resulted in an increase in the number of reportable segments, from three to six, and reporting units, from nine to 15. Based on the Company’s plans to divest the Hardware and Teach businesses, the goodwill of these reporting units was evaluated for impairment each reporting period subsequent to the Company committing to dispose of these businesses, which occurred in the first quarter of 2013. The Company concluded that the goodwill of the Teach reporting unit was impaired in the first quarter of 2013, and the goodwill of the Hardware reporting unit was not impaired. Upon further reorganization in the first quarter of 2013 and excluding the Hardware and Teach reporting units, the number of reportable segments was reduced to five, and the number of reporting units was reduced to 13.

During 2014, the Company’s Endicia^®and Culinary electrics and retail businesses were classified as discontinued operations based on the Company’s commitment to sell the businesses. The Endicia business was included in the Writing segment, and the Culinary businesses were included in the Home Solutions segment. The goodwill of these businesses was evaluated for impairment each reporting period subsequent to the Company committing to dispose of these businesses, which occurred in the third quarter of 2014. The Company concluded that the goodwill of these businesses was not impaired. Other than the interim tests of impairment of the Endicia and Culinary businesses in connection with the Company’s plans to divest these businesses, there were no other impairment tests of goodwill and indefinite-lived intangible assets during 2014 other than the annual impairment tests. As of December 31, 2014, the Company continued to have 13 reporting units.

Cumulative impairment charges relating to goodwill since January 1, 2002, were $1,642.4 million as of December 31, 2014. Of these amounts, $538.0 million was included in cumulative effect of accounting change, and $363.6 million was included in discontinued operations.

Other intangible assets, net consisted of the following as of December 31, (in millions):



	2014							2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trade names — indefinite life	$	470.2	$	—		$	470.2	$	312.4	$	—		$	312.4
Trade names — other	48.5		(28.6		)	19.9		37.0		(25.9		)	11.1
Capitalized software	462.0		(229.7		)	232.3		446.8		(194.9		)	251.9
Patents	152.2		(84.9		)	67.3		89.5		(75.6		)	13.9
Customer lists	184.8		(89.0		)	95.8		108.6		(83.4		)	25.2
Other	4.2		(2.5		)	1.7		2.3		(2.3		)	—
	$	1,321.9	$	(434.7	)	$	887.2	$	996.6	$	(382.1	)	$	614.5

The table below summarizes the Company’s amortization periods using the straight-line method for other intangible assets, including capitalized software, as of December 31, 2014:



	Weighted-Average Amortization Period (in years)	Amortization Periods (in years)
Trade names — indefinite life	N/A	N/A
Trade names — other	11	3–20 years
Capitalized software	10	3–12 years
Patents	7	3–14 years
Customer lists	8	3–10 years
Other	4	3–5 years
	9

Amortization expense for intangible assets, including capitalized software, for continuing operations was $60.6 million, $55.3 million and $54.8 million in 2014, 2013 and 2012, respectively.

As of December 31, 2014, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):



2015	2016	2017	2018	2019
$74.3	$70.0	$66.9	$60.7	$54.6

Actual amortization expense to be reported in future periods could differ materially from these estimates as a result of acquisitions, changes in useful lives and other relevant factors.

- 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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