Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table shows changes in the carrying amount of goodwill for the Successor years ended December 31, 2015 and 2014 by reportable segment:



	Performance Coatings			Transportation Coatings			Total
At December 31, 2013	$	1,038.8		$	74.8		$	1,113.6
Acquisition-related adjustments	5.7			0.4			6.1
Divestitures	(4.7		)	—			(4.7		)
Foreign currency translation	(106.2		)	(7.7		)	(113.9		)
At December 31, 2014	$	933.6		$	67.5		$	1,001.1
Acquisition-related adjustments	17.2			0.7			17.9
Foreign currency translation	(84.7		)	(6.1		)	(90.8		)
December 31, 2015	$	866.1		$	62.1		$	928.2

In March 2015, we purchased an additional 25% interest in a previously held equity method investment. See Note 13 for additional information. In July 2015, we purchased all of the outstanding capital stock of a coatings distribution business with operations in the Netherlands and Belgium. In November 2015, we purchased the assets of a coatings manufacturer with operations in the United States. These acquisitions were not material, individually or in the aggregate, to our consolidated financial statements.

Identifiable Intangible Assets

The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:



December 31, 2015	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	413.0	$	(117.2	)	$	295.8	10.0
Trademarks - indefinite-lived	284.4		—			284.4		Indefinite
Trademarks - definite-lived	45.2		(8.5		)	36.7		14.7
Customer relationships	676.1		(102.1		)	574.0		19.3
Non-compete agreements	1.9		(1.2		)	0.7		4.6
Total	$	1,420.6	$	(229.0	)	$	1,191.6



December 31, 2014	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	411.8	$	(76.3	)	$	335.5	10.0
Trademarks—indefinite-lived	284.4		—			284.4		Indefinite
Trademarks—definite-lived	41.8		(5.5		)	36.3		14.8
Customer relationships	713.9		(71.3		)	642.6		19.4
Non-compete agreements	2.0		(0.8		)	1.2		4.6
Total	$	1,453.9	$	(153.9	)	$	1,300.0

Activity related to in process research and development projects for the years ended December 31, 2014 and 2015:



In Process Research and Development	Activity
Balance at December 31, 2013	$	15.7
Completed	(10.4		)
Abandoned	(0.1		)
Balance at December 31, 2014	$	5.2
Completed	(3.5		)
Abandoned	(0.1		)
Balance at December 31, 2015	$	1.6

In the Successor years ended December 31, 2015, 2014 and 2013, amortization expense for acquired intangibles was $80.7 million, $83.8 million, and $79.9 million respectively. Amortization expense for the Successor years ended December 31, 2015, 2014 and 2013 included losses of $0.1 million, $0.1 million and $3.2 million respectively, associated with abandoned acquired in process research and development projects, all of which was related to the Acquisition.

Amortization expense for the Predecessor period from January 1, 2013 through January 31, 2013 was $2.6 million, which was primarily reported as a reduction in net sales.

The estimated amortization expense related to the identifiable intangible assets for each of the succeeding five years is:



2016	$	80.2
2017	$	79.9
2018	$	79.8
2019	$	79.8
2020	$	79.8

- 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.

+ References + Details