Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangibles at December 31, 2015 and 2014, and related amortization periods for continuing operations are as follows:



(In Thousands)	2015		2014		Amortization Periods
Goodwill	$	117,839	$	169,687	Not amortized
Other identifiable intangibles (a):
Customer relationships (cost basis of $23,766 in 2015 and $29,117 in 2014)	15,620		21,620		10-12 years
Proprietary technology (cost basis of $16,738 in 2015 and $18,228 in 2014)	9,037		11,824		Not more than 15 years
Trade names	10,576		11,998		Indefinite life
Total carrying value of other intangibles	35,233		45,442
Total carrying value of goodwill and other intangibles	$	153,072	$	215,129

(a) Other identifiable intangibles includes non-compete agreements which have been fully amortized. These identifiable intangible assets,

which have a cost basis of $4.2 million, were previously amortized over 2 years.

A reconciliation of the beginning and ending balance of goodwill for each of the three years in the period ended December 31, 2015 is as follows:



(In Thousands)	PE Films			Flexible Packaging Films			Aluminum Extrusions (1)		Total
Net carrying value of goodwill at January 1, 2014	$	104,161		$	54,931		$	13,696	$	172,788
Increase (decrease) due to foreign currency translation	(1		)	(3,100		)	—		(3,101		)
Net carrying value of goodwill at December 31, 2014	104,160			51,831			13,696		169,687
Goodwill impairment charge	—			(44,465		)	—		(44,465		)
Increase (decrease) due to foreign currency translation	(17		)	(7,366		)	—		(7,383		)
Net carrying value of goodwill at December 31, 2015	$	104,143		$	—		$	13,696	$	117,839

(1) Goodwill balance is net of accumulated impairment losses of $30.6 million.

The Company recorded a goodwill impairment charge of $44.5 million ($44.5 million after taxes) for goodwill associated with Flexible Packaging Films in 2015. This impairment charge represents the entire amount of goodwill associated with the Flexible Packaging Films segment. The operations of Flexible Packaging Films continue to be adversely impacted by competitive pressures that are primarily related to ongoing unfavorable economic conditions in its primary market of Brazil and excess global capacity in the industry. The Company believes that these conditions have shifted the competitive environment from a regional to a global landscape and have driven price convergence and lower product margins in Brazil. While recent favorable anti-dumping rulings have been issued against China, Egypt and India, authorities in Brazil have initiated new investigations of dumping against Peru and Bahrain. In light of market trends, increased economic uncertainty and continued dumping activity in Brazil, the Company reassessed its projections for the timing and extent of a market recovery with Flexible Packaging Films in 2015. The Company’s assessment of future prospects and timing of a recovery under these conditions indicate that its current enterprise value is less than $120 million (Flexible Packaging Films’ net assets excluding goodwill), the minimum value needed to have avoided a full write-off of its goodwill. The Company also assessed the fair value of Flexible Packaging Films’ other long-lived assets and determined that no additional impairments had occurred.

Amortization expense for continuing operations over the next five years is expected to be as follows:



Year	Amount (In Thousands)
2016	$	3,889
2017	3,850
2018	3,680
2019	3,280
2020	3,280

- 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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