Goodwill and intangible assets

9 Months Ended

Oct. 03, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Pursuant to the segment realignment during the second quarter of 2015, the Company has reclassified certain goodwill and intangible asset balances to reflect the new segment structure. See Note 1, General - Segment Realignment, for further information. ASC 350, Intangibles - Goodwill and Other, requires that goodwill be tested for impairment at least annually or on an interim basis if an event occurs requiring goodwill to be tested. During the second quarter of 2015, the Company completed an assessment of any potential goodwill impairment for reporting units impacted by the segment realignment and determined that no impairment existed. The Company performs its annual testing during the fourth quarter.

The components of goodwill and other intangible assets are as follows:

Goodwill:



	Global Ceramic segment			Flooring NA segment		Flooring ROW segment		Total
Balance as of December 31, 2014
Goodwill	$	1,395,132		538,515		998,130		2,931,777
Accumulated impairment losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	$	863,202		195,461		545,689		1,604,352

Goodwill recognized or adjusted during the period	$	100,316		319,528		313,820		733,664
Currency translation during the period	(12,579		)	—		(44,715	)	(57,294	)

Balance as of October 3, 2015
Goodwill	1,482,869			858,043		1,267,235		3,608,147
Accumulated impairment losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	$	950,939		514,989		814,794		2,280,722

Intangible assets not subject to amortization:



	Tradenames
Balance as of December 31, 2014	$	622,691
Intangible assets acquired during the period	48,563
Currency translation during the period	(31,423		)
Balance as of October 3, 2015	$	639,831

Intangible assets subject to amortization:



Gross carrying amounts:	Customer relationships			Patents		Other	Total
Balance as of December 31, 2014	$	354,768		270,466		1,479	626,713
Intangible assets acquired during the period	223,825			—		501	224,326
Currency translation during the period	(16,727		)	(20,984	)	—	(37,711	)
Balance as of October 3, 2015	$	561,866		249,482		1,980	813,328

Accumulated amortization:	Customer relationships			Patents		Other	Total
Balance as of December 31, 2014	$	320,851		225,875		669	547,395
Amortization during the period	10,573			10,170		5	20,748
Currency translation during the period	(16,178		)	(17,468	)	7	(33,639	)
Balance as of October 3, 2015	$	315,246		218,577		681	534,504

Intangible assets subject to amortization, net	$	246,620		30,905		1,299	278,824



	Three Months Ended			Nine Months Ended
	October 3, 2015		September 27, 2014	October 3, 2015	September 27, 2014
Amortization expense	$	9,378	6,140	20,748	18,687

Estimated amortization expense for the years ending December 31 are as follows:



2015	$	28,321
2016	34,864
2017	33,449
2018	24,757
2019	21,711

- 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.

+ References + Details