Goodwill and Intangibles, net

12 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles, including DAC and VOBA, net

mmary of the changes in the carrying amounts of goodwill and intangible assets associated with Spectrum Brands’ continuing operations are as follows:



				Intangible Assets
	Goodwill			Indefinite Lived			Definite Lived			Total
Balance at September 30, 2015	$	2,138.9		$	957.6		$	637.7		$	1,595.3
Adjustments	3.3			—			3.2			3.2
Impairments (Note 2)	(10.7		)	(2.7		)	—			(2.7		)
Periodic amortization	—			—			(60.6		)	(60.6		)
Effect of translation	1.8			(1.0		)	0.6			(0.4		)
Balance at September 30, 2016	2,133.3			953.9			580.9			1,534.8
Adjustments	—			—			(0.9		)	(0.9		)
Acquisitions (Note 3)	135.0			81.1			67.1			148.2
Impairments (Note 2)	—			(16.3		)	—			(16.3		)
Periodic amortization	—			—			(62.0		)	(62.0		)
Effect of translation	8.8			5.6			2.6			8.2
Balance at September 30, 2017	$	2,277.1		$	1,024.3		$	587.7		$	1,612.0

The fair values of the hardware and home improvement, global pet supplies, home and garden control and global auto care product categories, which are also Spectrum Brands’ reportable segments, exceeded their carrying values by 93.2%, 38.6%, 352.3% and 12.4%, respectively. As a result, no impairment was recognized and there were no reporting units that were deemed at risk of impairment.

Definite Lived Intangible Assets

Amortizable intangible assets associated with Spectrum Brands’ continuing operations as of September 30, 2017 and 2016 consist of the following:



	September 30, 2017							September 30, 2016
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Customer relationships	$	671.7	$	(222.3	)	$	449.4	$	653.4	$	(183.5	)	$	469.9
Technology assets	194.6		(59.7		)	134.9		181.3		(76.8		)	104.5
Trade names	18.5		(15.1		)	3.4		18.3		(11.8		)	6.5
	$	884.8	$	(297.1	)	$	587.7	$	853.0	$	(272.1	)	$	580.9

Certain trade names intangible assets have an indefinite life and are not amortized. The balance of trade names not subject to amortization was $1,024.3 and $953.9 as of September 30, 2017 and 2016, respectively. During Fiscal 2017, Spectrum Brands recognized $16.3 impairment on indefinite life intangible assets due to the reduction in value of certain tradenames in response to changes in management’s strategy. During Fiscal 2016, Spectrum Brands recognized $2.7 impairment on indefinite-lived intangible assets. In connection with its annual impairment testing of indefinite-lived intangible assets, Spectrum Brands concluded that the fair values of its intangible assets exceeded their carrying values resulting in no impairment for Fiscal 2015.

See Note 2, Significant Accounting Policies and Practices and Recent Accounting Pronouncements, for further detail.

Amortization expense associated with Spectrum Brands’ continuing operations for Fiscal 2017, 2016 and 2015 was $62.0, $60.6 and $53.8, respectively. Excluding the impact of any future acquisitions or changes in foreign currency, the Company anticipates the annual amortization expense of intangible assets for the next five fiscal years will be as follows:



Fiscal Year	Estimated Amortization Expense
2018	$	57.5
2019	57.4
2020	55.0
2021	49.7
2022	48.0

- 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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