Goodwill and Other Intangible Assets

9 Months Ended

Sep. 29, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized, but are reviewed at least annually for impairment. If the carrying amount of goodwill or an intangible asset with an indefinite life exceeds its fair value, an impairment loss would be recognized in the amount equal to the excess.

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



	Goodwill								Indefinite-Lived Assets – Trade Names
	North America			Latin America		Total			North America		Europe			Total
Balance, December 31, 2016	$	8.1		$	3.9	$	12.0		$	0.4	$	0.4		$	0.8
Currency translation and other adjustments	(0.9		)	—		(0.9		)	—		(0.1		)	(0.1		)
Goodwill and indefinite-lived asset impairment	—			—		—			—		—			—
Balance, September 29, 2017	$	7.2		$	3.9	$	11.1		$	0.4	$	0.3		$	0.7

The amounts of other intangible assets, excluding capitalized software, were as follows (in millions):



	September 29, 2017			December 31, 2016
Amortized intangible assets:
Amortized intangible assets	$	108.9		$	108.9
Accumulated amortization	(89.1		)	(85.0		)
Foreign currency translation adjustment	(4.8		)	(5.2		)
Amortized intangible assets, net	$	15.0		$	18.7

In the three and nine months ended September 30, 2016, the Company recorded a goodwill impairment charge of $7.4 million and an impairment charge on the amortized intangible assets of $4.7 million related to the North America automotive business.

Amortized intangible assets are stated at cost less accumulated amortization as of September 29, 2017 and December 31, 2016. 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 for the nine months ended September 29, 2017 and September 30, 2016 was $4.1 million and $6.7 million, respectively. The estimated amortization expense during the twelve month periods beginning September 29, 2017 through September 30, 2022, based on exchange rates as of September 29, 2017, is $2.3 million, $2.2 million, $2.2 million, $2.2 million, $2.2 million, respectively, and $3.9 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. As of September 29, 2017 and December 31, 2016, capitalized software was $8.7 million and $8.8 million, respectively.

- 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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