Goodwill and Other Intangible Assets, net

The amounts of goodwill and indefinite-lived intangible assets were as follows (in millions):



	Goodwill											Indefinite-lived intangible assets — Trade names
	North America			Latin America		Africa/Asia Pacific			Total			North America			Europe		Total
Balance, December 31, 2014	$	17.0		$	3.0	$	6.1		$	26.1		$	0.3		$	0.4	$	0.7
Currency translation and other adjustments	(0.5		)	0.9		(0.4		)	—			—			—		—
Goodwill and indefinite-lived asset impairment	—			—		(3.9		)	(3.9		)	—			—		—
Balance, December 31, 2015	$	16.5		$	3.9	$	1.8		$	22.2		$	0.3		$	0.4	$	0.7
Currency translation and other adjustments	(1.0		)	—		(0.2		)	(1.2		)	0.4			—		0.4
Goodwill and indefinite-lived asset impairment	(7.4		)	—		(1.6		)	(9.0		)	(0.3		)	—		(0.3		)
Balance, December 31, 2016	$	8.1		$	3.9	$	—		$	12.0		$	0.4		$	0.4	$	0.8

At December 31, 2016, the total accumulated goodwill impairment charge within the North America segment was $7.4 million prior to foreign currency translation adjustments. At December 31, 2016 and 2015, the total accumulated goodwill impairment charge within the Latin America segment was $82.6 million prior to foreign currency translation adjustments. At December 31, 2016 and 2015, the total accumulated goodwill impairment charge within the Africa / Asia Pacific segment was $77.4 million and $75.8 million, respectively, prior to foreign currency translation adjustments. At December 31, 2016 and 2015, the total accumulated indefinite-lived asset trade name impairment loss was $2.1 million, prior to foreign currency translation adjustments, within the North America segment, $68.9 million, prior to foreign currency translation adjustments, within the Latin America segment and $24.2 million, prior to foreign currency translation adjustments, within the Africa / Asia Pacific segment.

The amounts of other intangible assets were as follows (in millions):



	Dec 31, 2016			Dec 31, 2015
Amortized intangible assets:
Amortized intangible assets	$	108.9		$	129.4
Accumulated amortization	(85.0		)	(87.9		)
Foreign currency translation adjustment	(5.2		)	(5.6		)
Total Amortized intangible assets	$	18.7		$	35.9

Amortized intangible assets are stated at cost less accumulated amortization as of December 31, 2016 and 2015. Amortized intangible assets have been determined to have a useful life in the range of 7 to 12 years. The approximate weighted average useful life of the amortized intangible assets is 10 years. For customer relationships, the Company has accelerated the amortization expense to align with the historical customer attrition rates. All other amortized intangible assets are amortized on a straight-line basis. The amortization of intangible assets in 2016, 2015 and 2014 was $8.6 million, $11.6 million, and $14.0 million, respectively. The estimated amortization expense for the next five years in millions of dollars is: 2017 — $5.3 million, 2018 — $2.8 million, 2019 — $2.7 million, 2020 — $2.7 million, 2021 — $2.7 million and $2.5 million thereafter.

The Company capitalizes costs for internal use software incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Capitalized software will be amortized once the product is ready for its intended use, using the straight-line method over the estimated useful lives of the assets, which is three years.

2014 Goodwill and Indefinite-lived Intangible Impairment Testing

Goodwill and intangible assets with indefinite useful lives are not amortized, but are reviewed at least annually for impairment. The Company completes its annual impairment test during the fourth quarter of each year. In addition, the Company evaluates the carrying amount between such annual valuations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Events or circumstances may include, but are not limited to, a significant change in legal factors or in the business climate, adverse action or assessment by a regulator, unanticipated competition, loss of key personnel, possible sale or disposal of a reporting unit or a significant portion of a reporting unit, significant changes in financial projections or significant changes in the market capitalization. In the first quarter of 2014, the following events occurred which represented changes in the fair value of the PDIC reporting unit and caused the Company to perform an interim goodwill and intangible asset impairment test:

•

Except certain cost of sales related to copper inventory, all of the Venezuelan subsidiary's BsF denominated revenues and expenses for future periods were to reflect remeasurement using the SICAD 1 rate versus the prior official rate of 6.30 BsF per U.S. dollar. Due to this, the Company's estimated future operating results were determined to be lower than historical and previously projected future profit levels. Refer to Note 2 - Summary of Significant Accounting Policies for more information regarding the Company's Venezuelan operations.

•

In the first quarter of 2014, the Venezuelan President used decree power to pass the Law of Costs, Earnings, and Fair Profits, which became effective in January 2014, authorizing, among other things, the Venezuelan government to set maximum pricing limits in the private sector. Therefore, the majority of the Company’s product portfolio in Venezuela became subject to price controls, which restricted the Company’s ability to increase prices more than 30% higher than product costs. Until this law would be removed or revised to allow for a higher level of pricing, the Venezuelan operating profit margin was expected to be lower than historical and previously projected future profit levels. In addition, ongoing labor negotiations and expected continuing social unrest in Venezuela were expected to result in lower than historical and previously projected future profit levels. Refer to Note 2 - Summary of Significant Accounting Policies for more information regarding the Company's Venezuelan operations.


•	During the first quarter of 2014, the Company experienced a significant decline in its stock price, resulting in the Company’s market capitalization falling below its book value.

Based upon the combination of the above factors, the Company concluded that goodwill impairment indicators existed as of March 28, 2014, and performed an interim goodwill impairment analysis. The Company engaged an outside valuation firm to assist in valuing the Company’s reporting unit and preparing the goodwill impairment analysis. To determine the fair value of the reporting unit (Level 3), the Company employed an income and market-based approach with each being weighted equally. Under the income approach, the Company used a discounted cash flow method to calculate the fair value based on the present value of estimated future cash flows. Assumptions used in the discounted cash flow method, such as forecasted operating results, expected growth rates, working capital needs, tax rates, and cost of capital, were based on the then current market conditions and were consistent with internal management projections. The cost of capital rate selected was based on consideration of the risks inherent in the investment and market rates of return available from alternative investments of similar type and quality as of the valuation date. The guideline public company method was used for the market approach. The approach provided an estimate of value using multiples of earnings derived from the market values of publicly traded companies in the wire and cable industry. In addition to the selection of guideline companies, the market approach included an analysis of the Company’s financial and operating performance risk, profitability, and growth as compared to the reporting unit.

The Company performed the first step (“Step 1”) of the goodwill impairment assessment at March 28, 2014. In Step 1 of the goodwill impairment test, the Company compared the fair value of the reporting unit, to its carrying amount, including goodwill of $154.5 million. Based on the results of the valuation, the carrying amount of the reporting unit exceeded the fair value. Based on the results of Step 1 of the impairment analysis and the preliminary results of Step 2, the Company believed that an impairment loss was probable and based on a preliminary estimate, after consultation with a third party valuation specialist, the Company recognized impairment charges equal to the total recorded PDIC goodwill of $82.9 million and $72.2 million in the Latin America and Africa/Asia Pacific reportable segments, respectively. The impairment charge was recorded in the goodwill impairment charge caption in the Consolidated Statements of Operations and Comprehensive Income (Loss).

In the second quarter of 2014, the Company completed Step 2 of the goodwill impairment test ("Step 2") to determine if any adjustment to the goodwill impairment charge was required. The Step 2 analysis required the Company to perform a theoretical purchase price allocation for the reporting unit to determine the implied fair value of goodwill and to compare the implied fair value of goodwill to the recorded amount of goodwill. Based on the analysis, no modification of the initial impairment estimate was required in the second quarter of 2014.

Based on the decrease of our cash flow projections for the PDIC reporting unit, the Company also completed an impairment test for the trade name in the first quarter of 2014. The fair value of the trade name was based on the discounted cash flows the trade name could be expected to generate in the future. Based on the results of the valuation, the carrying amount of the trade name exceeded the fair value. The impairment valuation resulted in $69.1 million and $24.3 million of impairment charges in the first quarter related to the PDIC trade name in the Latin America and Africa/Asia Pacific reportable segments, respectively. The impairment charge was recorded in the intangible asset impairment charges caption in the Consolidated Statements of Operations and Comprehensive Income (Loss). In the second quarter of 2014 in connection with the completion of the above mentioned Step 2 analysis, the Company reassessed the remaining life of the PDIC trade name and concluded it was no longer indefinite. In the second quarter, the Company reclassified the PDIC trade name to a definite-lived asset with an estimated remaining life of 10 years based on increased political and economic instability in countries in which the trade name is utilized.