Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2015

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 2015 and 2014 (in millions):



Segment	December 31, 2014 Balance		Acquisitions⁽¹⁾		Other Adjustments⁽²⁾			Foreign Currency			December 31, 2015 Balance
Writing	$	1,090.9	$	373.5	$	(50.0	)	$	(55.4	)	$	1,359.0
Home Solutions	379.3		1.0		(19.2		)	—			361.1
Tools	478.6		—		—			(4.2		)	474.4
Commercial Products	387.5		—		—			(0.2		)	387.3
Baby & Parenting	209.7		—		—			(0.3		)	209.4
	$	2,546.0	$	374.5	$	(69.2	)	$	(60.1	)	$	2,791.2



Segment	December 31, 2013 Balance		Acquisitions⁽³⁾		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

(1) On October 22, 2015, the Company acquired Elmer’s Products Inc. for $570.1 million, of which $373.5 million was preliminarily allocated to goodwill.

(2) During the year ended December 31, 2015, the Company sold Endicia, including $50.0 million of goodwill. Endicia was included in the Company’s Writing segment. The Company also reclassified $19.2 million of Décor goodwill to assets held for sale.

(3)

In 2014, the Company acquired Ignite for $313.1 million and the assets of bubba for $82.4 million. Both acquisitions are included in the Company’s Home Solutions segment and resulted in total goodwill of $174.6 million, of which $173.6 million was recorded in 2014 based on preliminary purchase price allocations. In 2014, the Company also acquired Baby Jogger for a net purchase price of $210.1 million, and Baby Jogger is included in the Baby & Parenting segment. The acquisition of Baby Jogger resulted in goodwill of $91.8 million.

Cumulative impairment charges relating to goodwill since January 1, 2002, were $1,642.4 million as of December 31, 2015. 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):



	2015							2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trade names — indefinite life	$	653.4	$	—		$	653.4	$	470.2	$	—		$	470.2
Trade names — other	46.0		(30.0		)	16.0		48.5		(28.6		)	19.9
Capitalized software	465.6		(252.7		)	212.9		462.0		(229.7		)	232.3
Patents	142.8		(89.9		)	52.9		152.2		(84.9		)	67.3
Customer lists	231.9		(104.5		)	127.4		184.8		(89.0		)	95.8
Other	4.2		(3.1		)	1.1		4.2		(2.5		)	1.7
	$	1,543.9	$	(480.2	)	$	1,063.7	$	1,321.9	$	(434.7	)	$	887.2

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, 2015:



	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	9	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 $76.5 million, $60.6 million and $55.3 million in 2015, 2014 and 2013, respectively.

As of December 31, 2015, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):



2016	2017	2018	2019	2020
$72.5	$70.0	$64.4	$57.6	$35.3

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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