Supplemental balance sheet information

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental balance sheet information

14. Supplemental balance sheet information

Allowance for doubtful accounts

The allowance for doubtful accounts reflects the Company's current estimate of credit losses expected to be incurred over the life of the trade accounts receivables. Collectability of the trade accounts receivable balance is assessed on an ongoing basis and determined based on the delinquency of customer accounts, the financial condition of individual customers, past collections experience and future economic expectations. The change in the allowance for doubtful accounts is as follows:

(in millions)
Balance, January 1, 2020	$	12.9
Provision for credit losses	9.4
Write-offs	(1.3)
Recoveries	0.3
Foreign exchange	(0.7)
Balance, June 30, 2020	$	20.6

Property, plant and equipment, net

(in millions)	June 30, 2020		December 31, 2019
Property, plant and equipment, at cost	$	2,196.5	$	2,190.3
Less: accumulated depreciation	(1,095.0)		(1,037.9)
Property, plant and equipment, net	$	1,101.5	$	1,152.4

Goodwill

The following is a summary of the activity in goodwill by segment.

(in millions)	USA		EMEA		Canada		LATAM		Total
Balance, January 1, 2020	$	1,802.3	$	8.4	$	441.1	$	29.0	$	2,280.8
Purchase price adjustments	7.0		—		—		—		7.0
Other adjustments	—		—		—		(0.5)		(0.5)
Foreign exchange	—		(0.6)		(19.0)		(4.5)		(24.1)
Balance, June 30, 2020	$	1,809.3	$	7.8	$	422.1	$	24.0	$	2,263.2

Intangible assets, net

	June 30, 2020						December 31, 2019
(in millions)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Customer relationships	$	947.7	$	(678.7)	$	269.0	$	986.4	$	(680.8)	$	305.6
Other	174.0		(167.0)		7.0		182.0		(167.4)		14.6
Total intangible assets	$	1,121.7	$	(845.7)	$	276.0	$	1,168.4	$	(848.2)	$	320.2

Other intangible assets consist of intellectual property (mostly trademarks and trade names), producer relationships and contracts, non-compete agreements and exclusive distribution rights.

The estimated annual amortization expense in each of the next five years is as follows:

(in millions)
2020	$	60.9
2021	51.1
2022	43.4
2023	39.0
2024	31.3

Other accrued expenses

As of June 30, 2020, other accrued expenses that were greater than five percent of total current liabilities consisted of current tax liabilities of $101.3 million, comprised of income, VAT and local indirect taxes payable. As of December 31, 2019, other accrued expenses that were greater than five percent of total current liabilities consisted of current tax liabilities of $87.1 million and customer prepayments and deposits of $81.5 million.

Impairment charges

There is a more likely than not expectation that certain long-lived asset groups within the USA segment will be sold. The Company determined this to be a triggering event, requiring the assessment of the recoverability of these long-lived asset groups. Testing the asset groups for recoverability involves developing estimates of future cash flows directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the assets. Significant estimates include forecasted Adjusted EBITDA, working capital, capital expenditures and discount rates. As the inputs for testing recoverability and determining fair value of the asset groups are largely based on management’s judgments and are not generally observable in active markets, the Company considers such inputs to be Level 3 measurements in the fair value hierarchy.

The Company tested the recoverability of its long-lived asset groups and determined the carrying amount of the asset groups exceeded the sum of the expected undiscounted future cash flows. The computation of the impairment charge was based on the difference between carrying value and fair value of the asset groups, as determined by discounted future cash flows. As a

result, the Company recorded a non-cash, pretax impairment charge of $15.5 million, consisting of $12.8 million of intangible assets, net and $2.7 million of property, plant and equipment, net within its condensed consolidated statement of operations during the three months ended June 30, 2020.

Additionally, the Company has announced the closure of certain production facilities in the USA segment during the second quarter of 2020. The closures resulted in a $1.4 million impairment of property, plant and equipment, net within the condensed consolidated statement of operations during the three months ended June 30, 2020.