GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The following table presents the changes in goodwill by segment during 2017 and 2016:



	Consumer			Professional			Elizabeth Arden		Other			Total
Balance at January 1, 2016	$	210.1		$	240.7		$	—	$	18.9		$	469.7
Goodwill acquired ^(a)	17.4			—			221.7		—			239.1
Foreign currency translation adjustment	—			(0.4		)	—		(2.2		)	(2.6		)
Goodwill impairment charge	—			—			—		(16.7		)	(16.7		)
Balance at December 31, 2016	$	227.5		$	240.3		$	221.7	$	—		$	689.5
Measurement Period Adjustments ^(b)	—			—			12.3		—			12.3
Foreign currency translation adjustment	—			1.5			—		—			1.5
Goodwill impairment charge	(10.8		)	—			—		—			(10.8		)
Balance at December 31, 2017	$	216.7		$	241.8		$	234.0	$	—		$	692.5

Cumulative goodwill impairment charges	$	(20.5	)	$	—		$	—	$	(16.7	)	$	(37.2	)

^(a)The goodwill acquired during 2016 relates to: (i) $221.7 million of goodwill acquired in the Elizabeth Arden Acquisition; and (ii) $17.4 million of goodwill acquired in the Cutex Acquisitions. See Note 2, "Business Combinations," for further discussion of the Elizabeth Arden Acquisition and Cutex Acquisitions.

^(b) Refer to Note 2, "Business Combinations," for more information on the Measurement Period Adjustments related to the Elizabeth Arden Acquisition.

For 2017, in assessing whether goodwill was impaired in connection with its annual impairment test performed during the fourth quarter of 2017 using October 1^st, 2017 carrying values, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step process, as prescribed by ASC 350, Intangibles - Goodwill and Other, to assess the Company's indefinite-lived intangible assets for indicators of impairment. In performing the qualitative assessments, the Company considered the results of the step one test performed in 2016 and the financial performance of the (i) Revlon, Almay and Other; (ii) Elizabeth Arden; and (iii) Professional reporting units. Based upon such assessment, the Company determined that it was more likely than not that the fair values of these reporting units exceeded their carrying amounts for 2017.

However, for 2017, the Company determined that it would utilize the two-step process to test the GCB reporting unit for impairment. In the first step of this test, the Company compared the fair value of the GCB reporting unit, determined based upon discounted estimated future cash flows, to the carrying amount, including goodwill. The results of the step one test indicated that impairment indicators existed for the GCB reporting unit due to continued net sales declines for both the SinfulColors and Pure Ice brands and lower promotional activity for the Pure Ice brand, and accordingly, the Company performed step two of the goodwill impairment test for the GCB reporting unit.

In the second step, the Company measured the potential impairment of the GCB reporting unit by comparing the implied fair value with the carrying amount of its goodwill at October 1, 2017. The implied fair value of the GCB reporting unit's goodwill was determined in the same manner as the amount of goodwill recognized in a business combination, where the estimated fair value of GCB reporting unit was allocated to all the assets and liabilities of that reporting unit (including both recognized and unrecognized intangible assets) as if the GCB had been acquired in a business combination and the estimated fair value of the GCB reporting unit was the purchase price paid. When the carrying amount of the reporting unit's goodwill is greater than the implied fair value of that reporting unit's goodwill, an impairment loss is recognized. The Company determined the fair value of the GCB reporting unit using discounted estimated future cash flows. The weighted-average cost of capital used in testing the GCB reporting unit for impairment was 12% with a perpetual growth rate of 2%. As a result of this annual impairment test, the Company recognized an aggregate $10.8 million non-cash goodwill impairment charge related to the GCB reporting unit in the fourth quarter of 2017. Following the recognition of this non-cash goodwill impairment charge, the GCB reporting unit had $14.8 million remaining goodwill as of December 31, 2017.

For 2016 and 2015, the Company also utilized the two-step process in assessing whether goodwill was impaired for each of the Company's then existing four reporting units (i.e., for 2016 (i) Revlon, Almay and Other; (ii) GCB; (iii) Professional; and (iv) Other). As a result of the annual impairment testing for 2016 and 2015, the Company recognized a $16.7 million non-cash goodwill impairment charge related to the Other reporting unit in the fourth quarter of 2016 and a $9.7 million non-cash goodwill impairment charge related to the GCB reporting unit in the fourth quarter of 2015.

Intangible Assets, Net

The following tables present details of the Company's total intangible assets as of December 31, 2017 and 2016:



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Life (in Years)
Finite-lived intangible assets:
Trademarks and licenses	$	271.4	$	(72.8	)	$	198.6	13
Customer relationships	250.6		(46.8		)	203.8		13
Patents and internally-developed IP	20.8		(8.4		)	12.4		7
Distribution rights	31.0		(2.3		)	28.7		17
Other	1.3		(0.6		)	0.7		2
Total finite-lived intangible assets	$	575.1	$	(130.9	)	$	444.2

Indefinite-lived intangible assets:
Trade names	$	147.9	$	—		$	147.9
Total indefinite-lived intangible assets	$	147.9	$	—		$	147.9

Total intangible assets	$	723.0	$	(130.9	)	$	592.1

	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Life (in Years)
Finite-lived intangible assets:
Trademarks and licenses	$	177.9	$	(47.9	)	$	130.0	13
Customer relationships	247.6		(30.1		)	217.5		14
Patents and internally-developed IP	20.3		(6.1		)	14.2		8
Distribution rights	31.0		(0.5		)	30.5		18
Other	1.3		(0.2		)	1.1		3
Total finite-lived intangible assets	$	478.1	$	(84.8	)	$	393.3

Indefinite-lived intangible assets:
Trade names	$	243.3	$	—		$	243.3
Total indefinite-lived intangible assets	$	243.3	$	—		$	243.3

Total intangible assets	$	721.4	$	(84.8	)	$	636.6

Amortization expense for finite-lived intangible assets was $43.2 million, $27.5 million and $22.4 million for 2017, 2016, and 2015 respectively.

The Company reviews finite-lived intangible assets for impairment whenever facts and circumstances indicate that their carrying values may not be fully recoverable. This test compares the current carrying values of the intangible assets to the undiscounted pre-tax cash flows expected to result from the use of the assets.

Based upon the results of the annual goodwill impairment testing for the Company's GCB reporting unit during 2017, the Company performed an impairment review of the acquired finite-lived intangible assets. No impairment was recognized related to the carrying value of any of the finite or indefinite-lived intangible assets as a result of the annual impairment test for the year ended December 31, 2017.

Based upon the results of the annual goodwill impairment testing for the Company's Other reporting unit during 2016, the Company performed an impairment review of the finite-lived intangible assets acquired as part of the 2015 acquisition of CBBeauty Group and certain of its related entities (collectively "CBB" and, such transaction, the "CBB Acquisition"). As a result of this review, the Company recognized during the fourth quarter of 2016 within the Other reporting unit $4.2 million, $2.0 million and $0.5 million of non-cash impairment charges as a result of the change in the fair value of customer relationships, distribution rights and trade names, respectively, in the aggregate amount of $6.7 million.

The Company did not recognize any impairment charges related to the carrying value of any of the Company's identifiable intangible assets in 2015.

The following table reflects the estimated future amortization expense for each period presented, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2017:



	Estimated Amortization Expense
2018	$	40.2
2019	37.3
2020	36.5
2021	35.3
2022	34.1
Thereafter	260.8
Total	$	444.2