Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The Company conducted its annual impairment assessment in the fourth quarter of 2016 and determined the fair values of its reporting units and trademarks exceeded their carrying values. As a result, no impairment was indicated.

The following table summarizes the components of intangible assets:

Goodwill:



	Global Ceramic			Flooring NA		Flooring ROW		Total
Balances as of December 31, 2014
Goodwill	$	1,395,132		538,515		998,130		2,931,777
Accumulated impairments losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	863,202			195,461		545,689		1,604,352
Goodwill recognized during the year	99,848			329,401		345,905		775,154
Currency translation during the year	(22,223		)	—		(63,918	)	(86,141	)
Balances as of December 31, 2015
Goodwill	1,472,757			867,916		1,280,117		3,620,790
Accumulated impairments losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	940,827			524,862		827,676		2,293,365
Goodwill recognized during the year	$	—		1,848		1,158		3,006
Currency translation during the year	9,469			—		(31,414	)	(21,945	)
Balances as of December 31, 2016
Goodwill	1,482,226			869,764		1,249,861		3,601,851
Accumulated impairments losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	$	950,296		526,710		797,420		2,274,426

Intangible assets:

During the third quarter of 2016, the Company determined that it needed to simplify the branding strategy in the Flooring NA segment by consolidating products under the Mohawk Group brands and discontinuing the Lees brand. This resulted in the Company writing off the full value of the Lees tradename and recording an impairment charge of $47,905 in selling, general and administrative expenses in the consolidated statements of operations.



	Tradenames
Indefinite life assets not subject to amortization:
Balance as of December 31, 2014	$	622,691
Intangible assets acquired during the year	53,244
Currency translation during the year	(43,586		)
Balance as of December 31, 2015	632,349
Intangible assets acquired during the year	—
Intangible assets impaired during the year	(47,905		)
Currency translation during the year	(4,297		)
Balance as of December 31, 2016	$	580,147



	Customer relationships			Patents		Other		Total
Intangible assets subject to amortization:
Balances as of December 31, 2014	$	33,917		44,591		810		79,318
Intangible assets acquired during the year	258,875			—		5,290		264,165
Amortization during the year	(16,567		)	(13,331	)	(11	)	(29,909	)
Currency translation during the year	(5,102		)	(4,275	)	(5	)	(9,382	)
Balances as of December 31, 2015	271,123			26,985		6,084		304,192
Intangible assets acquired during the year	—			—		—		—
Amortization during the year	(25,778		)	(13,141	)	(626	)	(39,545	)
Currency translation during the year	(9,641		)	(420	)	(127	)	(10,188	)
Balances as of December 31, 2016	$	235,704		13,424		5,331		254,459



	December 31, 2016
	Cost		Acquisitions	Currency translation		Accumulated amortization	Net Value
Customer Relationships	$	588,716	—	(18,736	)	334,276	235,704
Patents	243,258		—	(9,236	)	220,598	13,424
Other	6,790		—	(460	)	999	5,331
Total	$	838,764	—	(28,432	)	555,873	254,459



	December 31, 2015
	Cost		Acquisitions	Currency translation		Accumulated amortization	Net Value
Customer Relationships	$	354,768	258,875	(24,927	)	317,593	271,123
Patents	270,466		—	(27,208	)	216,273	26,985
Other	1,479		5,290	21		706	6,084
Total	$	626,713	264,165	(52,114	)	534,572	304,192



	Years Ended December 31,
	2016		2015	2014
Amortization expense	$	39,545	29,909	24,724

Estimated amortization expense for the years ending December 31 are as follows:



2017	$	34,302
2018	26,013
2019	22,967
2020	22,967
2021	22,936

- 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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