Goodwill, Long-Lived and Intangible Assets, Net

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Long-Lived and Intangible Assets, Net

Goodwill and Indefinite-Lived Intangible Assets

Goodwill represents the excess of purchase price over the fair value of net assets acquired. Trademarks and trade names are accounted for as indefinite-lived intangible assets and, accordingly, are not subject to amortization. We review goodwill on a reporting unit basis and indefinite-lived assets for impairment annually on October 1^st and on an interim basis whenever events or changes in circumstances indicate the carrying value of goodwill or indefinite-lived intangible assets may be impaired.

Due to the COVID-19 outbreak, we assessed whether events or circumstances indicate that it was more likely than not that our goodwill and indefinite-lived intangible assets were impaired as of March 31, 2020. The goodwill and indefinite-lived intangible assets assessments included consideration of key factors such as macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity-and reporting unit-specific events. While the extent and duration of the economic implications from the COVID-19 pandemic remain unclear, we concluded that it is more likely than not that the fair value of our reporting unit and indefinite-lived intangible assets exceeded their carrying values at March 31, 2020.

The following table shows our goodwill balances by operating segment that are aggregated into one reportable segment:



(in millions)	North America		Europe			Total
Gross carrying value at December 31, 2019	$	343.0	$	105.8		$	448.8
Currency translation	—		(2.1		)	(2.1		)
Gross carrying value at March 31, 2020	$	343.0	$	103.7		$	446.7

Finite-Lived Intangible Assets, net

Finite-lived or amortizable intangible assets consist of patented and unpatented technology and customer/distributor relationships.

Impairment of Long-lived Assets

We review our long-lived assets, including amortizable intangible assets and property, plant and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. For long-lived assets, an impairment loss is indicated when the undiscounted cash flows estimated to be generated by the asset group are not sufficient to recover the unamortized balance of the asset group. If indicators exist, the loss is measured as the excess of carrying value over the asset group's fair value, as determined based on discounted future cash flows, asset appraisal and market values of similar assets. As of March 31, 2020, there were no indicators of impairment present for property, plant and equipment or amortizable intangible assets that required us to test for recoverability.

The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives:



	March 31, 2020							December 31, 2019
(in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer/distributor relationships	$	197.2	$	(11.1	)	$	186.1	$	199.5	$	(7.9	)	$	191.6
Patented/unpatented technology	164.7		(12.2		)	152.5		164.5		(8.5		)	156.0
In-process research and development	5.0		—			5.0		5.0		—			5.0
Total intangible assets with definite lives	366.9		(23.3		)	343.6		369.0		(16.4		)	352.6
Trademarks/tradenames with indefinite lives	106.0		—			106.0		106.0		—			106.0
Total identifiable intangible assets, net	$	472.9	$	(23.3	)	$	449.6	$	475.1	$	(16.4	)	$	458.6

The following table shows the remaining estimated amortization expense for our definite-lived intangible assets at March 31, 2020:



	(in millions)
Year	Amount
2021	$	27.9
2022	27.9
2023	27.9
2024	27.9
2025	27.9
Thereafter	199.1
	$	338.6

Amortization expense was $7.0 million and $10.2 million in the three months ended March 31, 2020 and 2019, respectively.

The following table shows the remaining weighted-average useful life of our definite lived intangible assets as of March 31, 2020:



		Remaining Weighted-Average Useful Life
Customer/distributor relationships		14 years
Patented/unpatented technology		10 years
Total identifiable assets, net with definite lives		12 years