GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill:

Changes in the carrying amount of goodwill by reportable segment and for the “All Other” category were as follows:

In millions
	Domestic and Canada RCS			International RCS			All Other			Total
Balance as of January 1, 2017	$	2,811.8		$	498.4		$	280.8		$	3,591.0
Goodwill acquired during year		36.9			4.9			4.7			46.5
Purchase accounting adjustments		(10.1	)		1.2			1.5			(7.4	)
Impairments during the year		-			(65.0	)		-			(65.0	)
Write-offs related to disposition and assets held for sale		-			(7.1	)		-			(7.1	)
Changes due to foreign currency fluctuations		11.6			34.4			-			46.0
Balance as of December 31, 2017		2,850.2			466.8			287.0			3,604.0
Goodwill acquired during period		17.9			-			-			17.9
Purchase accounting adjustments		(5.4	)		(0.2	)		(0.8	)		(6.4	)
Changes due to foreign currency fluctuations		(3.9	)		13.6			-			9.7
Balance as of March 31, 2018	$	2,858.8		$	480.2		$	286.2		$	3,625.2

Current period adjustments to goodwill for certain prior year acquisitions are primarily due to the finalization of intangible asset valuations among other opening balance sheet adjustments.

Other Intangible Assets:

As of March 31, 2018 and December 31, 2017, the values of other intangible assets were as follows:

In millions
	March 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortizable intangibles:
Customer relationships	$	1,625.4	$	413.0	$	1,212.4	$	1,613.4	$	381.4	$	1,232.0
Covenants not-to-compete		7.9		6.2		1.7		7.9		5.9		2.0
Tradenames		6.0		2.0		4.0		6.0		1.8		4.2
Other		16.1		3.5		12.6		17.0		3.4		13.6
Indefinite lived intangibles:
Operating permits		222.3		-		222.3		222.3		-		222.3
Tradenames		318.2		-		318.2		317.4		-		317.4
Total	$	2,195.9	$	424.7	$	1,771.2	$	2,184.0	$	392.5	$	1,791.5

Changes in the carrying amount of intangible assets were as follows:

In millions
	Total
Balance as of January 1, 2017	$	1,862.0
Intangible assets acquired during the year		28.2
Valuation adjustments for prior year acquisitions		7.9
Write-offs due to disposition and amounts reclassified to assets held for sale		(2.6	)
Impairments during the year		(21.0	)
Amortization during the year		(118.4	)
Changes due to foreign currency fluctuations		35.4
Balance as of December 31, 2017		1,791.5
Intangible assets acquired during the period		9.0
Valuation adjustments for prior year acquisitions		0.6
Impairments during the period		(4.2	)
Amortization during the period		(31.9	)
Changes due to foreign currency fluctuations		6.2
Balance as of March 31, 2018	$	1,771.2

Our indefinite-lived intangible assets include permits and certain tradenames. We have determined that our permits and certain tradenames have indefinite lives due to our ability to renew them with minimal additional cost, and therefore these are not amortized. We perform our annual impairment test as of October 1.

During the three months ended March 31, 2018, we impaired $1.2 million of operating permits and $3.0 million of customer relationships due to rationalizing certain operations across all segments.

Our finite-lived intangible assets are amortized over their useful lives using the straight-line method. Our customer relationships have useful lives ranging from 10 to 30 years, based upon the type of customer, and a weighted average remaining useful life of 11.7 years. We have covenants not-to-compete with useful lives ranging from 5 to 14 years and a weighted average remaining useful life of 2.6 years. Our tradenames have useful lives ranging from 4 to 40 years and a weighted average remaining useful life of 15.3 years. Other intangibles mainly consist of landfill air rights with a remaining useful life of 16.5 years.

During the three months ended March 31, 2018 and 2017, the aggregate intangible asset amortization expense was $31.9 million, and $29.1 million, respectively.

The estimated amortization expense for each of the next five years (based upon exchange rates at March 31, 2018) is as follows for the years ended December 31:

In millions
2018	$	127.9
2019	$	127.8
2020	$	127.0
2021	$	126.6
2022	$	126.2

- 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