Goodwill and Intangibles

12 Months Ended

Dec. 31, 2015

6. Goodwill and Intangibles

Goodwill activity for 2015 and 2014 is as follows:


											December 31, 2015
(in millions)	Net Book Value at December 31, 2014		Additions		Impairment Charge			Foreign Exchange and Other Adjustments			Gross Carrying Amount		Accumulated Impairment Charges			Net Book Value
Goodwill
Branded Consumables	$	1,385.1	$	592.6	$	—		$	(5.2	)	$	2,195.7	$	(223.2	)	$	1,972.5
Consumer Solutions		757.7		—		—			(17.1	)		740.6		—			740.6
Outdoor Solutions		715.7		936.7		(119.2	)		(7.6	)		1,663.3		(137.7	)		1,525.6
Process Solutions		21.7		—		—			—			21.7		—			21.7

	$	2,880.2	$	1,529.3	$	(119.2	)	$	(29.9	)	$	4,621.3	$	(360.9	)	$	4,260.4


											December 31, 2014
(in millions)	Net Book Value at December 31, 2013		Additions		Impairment Charge			Foreign Exchange and Other Adjustments			Gross Carrying Amount		Accumulated Impairment Charges			Net Book Value
Goodwill
Branded Consumables	$	1,353.8	$	23.0	$	—		$	8.3		$	1,608.3	$	(223.2	)	$	1,385.1
Consumer Solutions		526.3		244.5		—			(13.1	)		757.7		—			757.7
Outdoor Solutions		718.5		—		—			(2.8	)		734.2		(18.5	)		715.7
Process Solutions		21.7		—		—			—			21.7		—			21.7

	$	2,620.3	$	267.5	$	—		$	(7.6	)	$	3,121.9	$	(241.7	)	$	2,880.2

In the fourth quarter of 2015, the Company’s impairment test resulted in a non-cash charge of $119 to reflect impairment of goodwill in the Company’s Outdoor Solutions segment. The impairment charge was recorded within the winter sports business. The impairment was due to a decrease in the fair value of forecasted cash flows, reflecting the deterioration of revenues and margins in the business.

Intangibles activity for 2015 and 2014 is as follows:


(in millions)	Gross Carrying Amount at December 31, 2014		Additions		Impairment Charge			Accumulated Amortization and Foreign Exchange			Net Book Value at December 31, 2015		Amortization Periods (years)
Intangibles
Patents	$	9.3	$	—	$	—		$	(5.3	)	$	4.0		12-30
Manufacturing process and expertise		65.2		34.0		—			(56.7	)		42.5		3-7
Brand names		23.3		2.5		—			(14.0	)		11.8		4-20
Non-compete agreements		—		18.4		—			(1.2	)		17.2		3-5
Customer relationships and distributor channels		549.6		1,203.3		—			(159.6	)		1,593.3		10-35
Trademarks and tradenames		2,131.7		357.0		(26.4	)		(36.5	)		2,425.8		indefinite

	$	2,779.1	$	1,615.2	$	(26.4	)	$	(273.3	)	$	4,094.6

(in millions)	Gross Carrying Amount at December 31, 2013		Additions		Impairment Charge			Accumulated Amortization and Foreign Exchange			Net Book Value at December 31, 2014		Amortization Periods (years)
Intangibles
Patents	$	9.3	$	—	$	—		$	(4.5	)	$	4.8		12-30
Manufacturing process and expertise		56.2		9.0		—			(45.7	)		19.5		3-7
Brand names		23.3		—		—			(10.5	)		12.8		4-20
Customer relationships and distributor channels		347.4		202.2		—			(100.6	)		449.0		10-35
Trademarks and tradenames		2,080.9		76.2		(25.4	)		(19.3	)		2,112.4		indefinite

	$	2,517.1	$	287.4	$	(25.4	)	$	(180.6	)	$	2,598.5

In the fourth quarter of 2015 and 2014, the Company’s annual impairment test, in connection with certain fourth quarter triggering events, resulted in non-cash charges to reflect impairment of intangible assets related to certain of the Company’s tradenames. The impairment charges were allocated to the Company’s reporting segments as follows:


(in millions)	2015		2014
Impairment of intangibles
Branded Consumables	$	—	$	13.9
Consumer Solutions		—		0.7
Outdoor Solutions		26.4		9.9
Process Solutions		—		0.9

	$	26.4	$	25.4

Impairments – 2015

In the Outdoor Solutions segment, the impairment charge recorded relates to certain tradenames primarily associated with this segment’s winter sports business. The impairment was due to a decrease in the fair value of forecasted cash flows, primarily resulting from the continued deterioration of revenues and margins related to these tradenames.

During 2015, the Company recorded a $5.2 impairment charge related to the impairment of certain other assets. This impairment charge is classified in the consolidated financial statement of operations in impairment of goodwill, intangibles and other assets.

Impairments – 2014

In the Branded Consumables segment, the impairment charge recorded relates to certain tradenames primarily associated with this segment’s home care and safety and security businesses. The impairment was due to a decrease in the fair value of forecasted cash flows, primarily resulting from the deterioration of revenues and margins related to these tradenames. In the Outdoor Solutions segment, the impairment charge recorded relates primarily to certain tradenames within this segment’s team sports and winter sports business, primarily a result of the deterioration of revenues and margins related to these tradenames.

The estimated future amortization expense related to amortizable intangible assets at December 31, 2015 is as follows:


Years Ending December 31,	Amount
	(in millions)
2016	$	130.0
2017		120.5
2018		112.6
2019		105.1
2020		96.7
Thereafter		1,103.9

Amortization of intangibles for 2015, 2014 and 2013 was $61.8, $27.5 and $21.7, respectively. At December 31, 2015, approximately $7 billion of the goodwill and other intangible assets recorded by the Company is not deductible for income tax purposes.

- 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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