Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed.

The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired.

The Company tested goodwill for impairment as of November 30, 2016. The Company elected the option under ASC Topic 350, Intangibles — Goodwill and Other, to perform a qualitative assessment of the Company's reporting units to determine whether further impairment testing is necessary. In this qualitative assessment, the Company considered the following items for each of the reporting units: macroeconomic conditions, industry and market conditions, overall financial performance and other entity specific events. In addition, for each of these reporting units, the most recent fair value determination results in an amount that exceeds the carrying amount of the reporting units. Based on these assessments, the Company determined that the likelihood that a current fair value determination would be less than the current carrying amount of the reporting unit is not more likely than not. There was no impairment in the carrying value of goodwill for the years ended December 31, 2016, 2015 and 2014 .

Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment. Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually.

The following table presents the carrying value of goodwill by business segment and changes in the carrying value of goodwill.



	Technical Products									Fine Paper and Packaging		Other
	Gross Amount			Accumulated Impairment Losses						Fine Paper and Packaging		Gross Amount
	Gross Amount			Accumulated Impairment Losses			Net			Gross Amount		Gross Amount		Net
Balance at December 31, 2014	$	100.8		$	(50.3	)	$	50.5		$	—	$	—	$	50.5
Goodwill acquired in the Fibermark Acquisition	18.9			—			18.9			6.2		0.4		25.5
Foreign currency translation	(9.0		)	5.2			(3.8		)	—		—		(3.8		)
Balance at December 31, 2015	110.7			(45.1		)	65.6			6.2		0.4		72.2
Adjustment of goodwill acquired in the Fibermark Acquisition ⁽¹⁾	(0.4		)	—			(0.4		)	—		—		(0.4		)
Foreign currency translation	(2.9		)	1.5			(1.4		)	—		—		(1.4		)
Balance at December 31, 2016	$	107.4		$	(43.6	)	$	63.8		$	6.2	$	0.4	$	70.4

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(1)	As a result of finalizing the acquisition accounting for Fibermark in the first quarter of 2016, an adjustment of $0.4 million was recorded as a reduction to the net deferred tax liability and to goodwill.

Other Intangible Assets

As of December 31, 2016, the Company had net identifiable intangible assets of $74.0 million. All such intangible assets were acquired in the acquisitions of Neenah Germany, Fox River, FiberMark and the Crane technical materials business, and the acquisition of the Wausau and Southworth brands. The following table details amounts related to those assets.



	December 31, 2016					December 31, 2015
	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortizable intangible assets
Customer based intangibles	$	34.4	$	(11.1	)	$	35.5	$	(9.2	)
Trade names and trademarks	6.8		(4.2		)	4.4		(1.8		)
Acquired technology	14.6		(2.7		)	16.0		(1.4		)
Total amortizable intangible assets	55.8		(18.0		)	55.9		(12.4		)
Trade names	36.2		—			35.6		—
Total	$	92.0	$	(18.0	)	$	91.5	$	(12.4	)

The following table presents intangible assets acquired in conjunction with the FiberMark acquisition:



	Intangibles		Estimated Useful Lives (Years)
Intangible assets — definite lived
Trade names and trademarks	$	2.3	15
Customer based intangibles	14.1		15
Acquired technology	8.7		13
Total	25.1
Non-amortizable trade names	1.8
Total intangible assets	$	26.9

As of December 31, 2015, $49.8 million, $28.3 million and $1.0 million of such intangible assets are reported within the Technical Products, Fine Paper and Packaging and Other segments, respectively. See Note 14, "Business Segment and Geographic Information." Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2016, 2015 and 2014 was $3.9 million, $2.9 million and $2.3 million, respectively and was reported in Cost of products sold on the Consolidated Statement of Operations. Estimated amortization expense for the years ended December 31, 2017, 2018, 2019, 2020 and 2021 is $3.6 million, $3.6 million, $3.6 million, $3.6 million and $3.3 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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