Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Footnote 8 — Goodwill and Other Intangible Assets, Net

Goodwill activity for the nine months ended September 30, 2017 is as follows (in millions):


Segment	Balance at December 31, 2016		Acquisitions		Other Adjustments (1)			Impairment (2)		Foreign Currency		Balance at September 30, 2017
Live	$	3,639.9	$	172.8	$	45.8		$	—	$	25.3	$	3,883.8
Learn		2,785.4		—		3.9			—		56.6		2,845.9
Work		1,871.0		—		(16.9	)		—		29.8		1,883.9
Play		1,161.4		—		(7.6	)		—		5.1		1,158.9
Other		761.2		—		(9.7	)		—		2.5		754.0

	$	10,218.9	$	172.8	$	15.5		$	—	$	119.3	$	10,526.5

(1)	Comprised primarily of adjustments related to the Jarden Acquisition, whose purchase price allocation was finalized during the second quarter of 2017 (see Footnote 2).

(2)	See Footnote 3 for impairment charges related to assets held for sale.

Other intangible assets, net are comprised of the following as of the dates indicated (in millions):


	September 30, 2017							December 31, 2016
	Gross Carrying Amount (1)		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Trade names — indefinite life	$	10,199.3	$	—		$	10,199.3	$	9,935.1	$	—		$	9,935.1
Trade names — other		375.5		(52.2	)		323.3		286.3		(34.2	)		252.1
Capitalized software		545.5		(331.4	)		214.1		482.0		(252.9	)		229.1
Patents and intellectual property		253.6		(133.3	)		120.3		227.9		(105.0	)		122.9
Customer relationships and distributor channels		3,703.8		(333.5	)		3,370.3		3,761.7		(204.0	)		3,557.7
Other		134.6		(54.3	)		80.3		25.9		(11.0	)		14.9

	$	15,212.3	$	(904.7	)	$	14,307.6	$	14,718.9	$	(607.1	)	$	14,111.8

(1)

At September 30, 2017, the amounts attributable to the Jarden Acquisition are as follows: trade names — indefinite life — $9.4 billion; trade names — other — $247 million; capitalized software — $63.0 million; patents and intellectual property — $99.1 million; customer relationships and distributor channels — $3.5 billion; and, other intangible assets — $124 million.

The table below summarizes the Company’s amortization periods for other intangible assets, including capitalized software, as of September 30, 2017:


		Amortization Periods (in years)
Trade names — indefinite life		N/A
Trade names — other		3–30 years
Capitalized software		3–12 years
Patents and intellectual property		3–14 years
Customer relationships & distributor channels		3–30 years
Other		3–5 years

Amortization expense for intangible assets for continuing operations was $84.1 million and $75.1 million for the three months ended September 30, 2017 and 2016, respectively, and $266 million and $154 million for the nine months ended September 30, 2017 and 2016, respectively. Amortization expense for the nine months ended September 30, 2017 includes a measurement period expense adjustment of $13.6 million related to the valuation of non-compete agreements within other intangible assets.

- 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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