GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill:

Changes in the carrying amount of goodwill by reportable segment were as follows:

In millions
	Domestic and Canada RCS			International RCS			Total
Balance as of December 31, 2018	$	2,848.4		$	373.8		$	3,222.2
Goodwill acquired during period		0.3		-				0.3
Purchase accounting adjustments		(2.1	)	-				(2.1	)
Impairment during the period		-			(20.9	)		(20.9	)
Divestiture of business	-				(6.2	)		(6.2	)
Changes due to foreign currency fluctuations		2.6			1.6			4.2
Balance as of March 31, 2019	$	2,849.2		$	348.3		$	3,197.5

During the first quarter of 2019, there were business, market, and strategic developments which negatively impacted the estimated cash flows of our Latin America reporting unit and triggered an interim assessment as of March 31, 2019. The Company determined that the Latin America reporting unit’s carrying value was in excess of its estimated fair value.

Factors that contributed to the estimated fair value of the Latin America reporting unit as of March 31, 2019, included continued challenges and volatility in certain of our markets due to declining market trends, cost pressures and insights from strategic developments.

These items were factored into updates to our forecasted cash-flow assumptions during the first quarter to reflect our current outlook. As a result of this impairment assessment, we recognized $20.9 million of non-cash goodwill impairment charges related to our Latin America reporting unit. Following the impairment, the Latin America reporting unit has no remaining goodwill.

Accumulated non-cash impairment charges by segment as of March 31, 2019 were as follows:

In millions
	2019
International RCS	$	158.3
All Other		286.3
Total	$	444.6

Other Intangible Assets:

As of March 31, 2019 and December 31, 2018, the values of other intangible assets were as follows:

In millions
	March 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortizable intangibles:
Customer relationships	$	1,588.5	$	527.5	$	1,061.0	$	1,591.5	$	492.0	$	1,099.5
Covenants not-to-compete		5.1		3.4		1.7		5.1		3.2		1.9
Tradenames		4.2		1.3		2.9		3.9		1.2		2.7
Other		12.2		3.7		8.5		12.3		3.5		8.8
Indefinite lived intangibles:						-
Operating permits		212.2		-		212.2		212.5		-		212.5
Tradenames		313.4		-		313.4		312.3		-		312.3
Total	$	2,135.6	$	535.9	$	1,599.7	$	2,137.6	$	499.9	$	1,637.7

Changes in the carrying amount of intangible assets were as follows:

In millions
	Total
Balance as of December 31, 2018	$	1,637.7
Intangible assets acquired during the period		0.2
Valuation adjustments for prior year acquisitions		2.5
Divestiture of business		(5.7	)
Amortization during the period		(37.8	)
Changes due to foreign currency fluctuations		2.8
Balance as of March 31, 2019	$	1,599.7

The estimated amortization expense for each of the next five years (based upon exchange rates at March 31, 2019) is as follows for the years ended December 31:

In millions
2019	$	144.5
2020		140.0
2021		135.7
2022		134.1
2023		131.5