Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

FOOTNOTE 8

Goodwill and Other Intangible Assets, Net

A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2017 and 2016 (in millions):


Segment	Balance at December 31, 2016		Acquisitions		Other Adjustments (1)			Impairment (3)		Foreign Currency			Balance at December 31, 2017
Live	$	3,639.9	$	201.7	$	45.8		$	—	$	23.4		$	3,910.8
Learn		2,785.4		—		3.9			—		64.9			2,854.2
Work		1,871.0		—		(16.9	)		—		27.7			1,881.8
Play		1,161.4		—		(7.6	)		—		5.5			1,159.3
Other		761.2		—		(9.7	)		—		2.5			754.0

	$	10,218.9	$	201.7	$	15.5		$	—	$	124.0		$	10,560.1


Segment	Balance at December 31, 2015		Acquisitions		Other Adjustments (2)			Impairment (3)		Foreign Currency			Balance at December 31, 2016
Live	$	376.9	$	3,315.0	$	(28.5	)	$	—	$	(23.5	)	$	3,639.9
Learn		1,359.0		1,442.4		—			—		(16.0	)		2,785.4
Work		387.3		1,510.7		—			—		(27.0	)		1,871.0
Play		174.7		991.9		—			—		(5.2	)		1,161.4
Other		493.3		1,011.6		(734.0	)		—		(9.7	)		761.2

	$	2,791.2	$	8,271.6	$	(762.5	)	$	—	$	(81.4	)	$	10,218.9

(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)	Includes amounts reclassified to assets held for sale.

(3)	The Company recorded impairment charges to goodwill related to its Winter Sports and fire building businesses during 2017, which were classified as assets held for sale (see Footnote 3).

Cumulative goodwill impairment charges were $860 million as of December 31, 2017, $425 million from the Live Segment and $435 million from the Learn segment.

The table below summarizes the balance of other intangible assets, net and the related amortization periods using the straight-line method and attribution method as of December 31, (in millions):


	2017							2016
	Gross Carrying Amount (1)		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value		Amortization Periods (in years)
Trade names — indefinite life	$	10,210.8	$	—		$	10,210.8	$	9,935.1	$	—		$	9,935.1	N/A
Trade names — other		366.9		(58.5	)		308.4		286.3		(34.2	)		252.1	3–30 years
Capitalized software		558.6		(349.6	)		209.0		482.0		(252.9	)		229.1	3–12 years
Patents and intellectual property		252.1		(142.8	)		109.3		227.9		(105.0	)		122.9	3–14 years
Customer relationships and distributor channels		3,703.2		(377.8	)		3,325.4		3,761.7		(204.0	)		3,557.7	3–30 years
Other		135.6		(62.5	)		73.1		25.9		(11.0	)		14.9	3–5 years

	$	15,227.2	$	(991.2	)	$	14,236.0	$	14,718.9	$	(607.1	)	$	14,111.8

(1)	Includes adjustments made related to the Jarden Acquisition purchase price allocation, which was finalized during the second quarter of 2017, as well as amounts from the acquisitions of Smith Mountain, Sistema and Chesapeake Bay Candle (see Footnote 2).

Amortization expense for intangible assets for continuing operations was $352 million, $223 million and $76.5 million in 2017, 2016 and 2015, respectively.

As of December 31, 2017, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):


Years Ending December 31,	Amount
2018	$	340.0
2019		328.3
2020		267.6
2021		224.0
2022		205.4
Thereafter		2,659.9

Subsequent Events

In January 2018, the Company announced it is exploring strategic options for its industrial and commercial product assets, including Waddington, Process Solutions, Rubbermaid Commercial Products and Mapa, as well as the smaller consumer businesses, including Rawlings, Goody, Rubbermaid Outdoor, Closet, Refuse and Garage, and U.S. Playing Cards. The estimated selling price for each of these businesses is subject to many factors, including but not limited to, the number of prospective buyers, buyer’s strategic fit and synergies and nature of the sales transaction. The Company may incur future impairment charges if the carrying value of the business exceeds its estimated sales price.

- 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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