XML 132 R14.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Goodwill, Intangible and Long-Lived Assets | 12 Months Ended
--- | ---
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL, INTANGIBLE AND LONG-LIVED ASSETS | GOODWILL, INTANGIBLE AND LONG-LIVED ASSETS In accordance with the Property, Plant and Equipment Topic of the ASC, whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable or the useful life may have changed, impairment tests are to be performed. Subsequent to the adoption of ASU 2016-02, right-of-use assets recognized in the consolidated balance sheet are considered to be long-lived assets. Undiscounted cash flows were used to calculate the recoverable value of long-lived assets to determine if such assets were not recoverable. If the carrying value of the assets was deemed to not be recoverable, the impairment to be recognized is the amount by which the carrying value of the assets exceeds the estimated fair value of the assets as determined in accordance with the Fair Value Topic of the ASC. No material impairments of long-lived assets were recorded in 2019, 2018 or 2017. During 2019, the Company acquired three companies which resulted in the recognition of goodwill of $14.2 million and finite-lived intangibles of $34.9 million. During 2017, the Company recognized goodwill of $5.9 billion, finite-lived intangibles of $4.9 billion and indefinite-lived trademarks of $614.3 million in connection with the acquisition of Valspar in 2017. See Note 3 for additional information related to the acquisitions. In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill and indefinite-lived intangible assets are tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred. October 1 has been established for the annual impairment review. At the time of impairment testing, values are estimated separately for goodwill and trademarks with indefinite lives using a valuation model, incorporating discount rates commensurate with the risks involved for each group of assets. An optional qualitative assessment may alleviate the need to perform the quantitative goodwill impairment test when impairment is unlikely. During the fourth quarter of 2019, the Company performed a strategic review of its business lines as part of the annual planning cycle. Decisions were made during this review related to certain brands which resulted in a reduction to the long-term forecasted net sales for certain indefinite-lived trademarks acquired in the Valspar acquisition within the Performance Coatings and Consumer Brands Groups. As a result of the strategic decisions made at that time and in conjunction with the annual impairment review performed as of October 1, 2019, the Company recognized non-cash pre-tax impairment charges totaling $122.1 million related to certain recently acquired indefinite-lived trademarks. These charges included impairments totaling $117.0 million in the Performance Coatings Group and $5.1 million in the Consumer Brands Group. In the Performance Coatings Group, $75.6 million related to trademarks in North America directly associated with strategic decisions made to rebrand industrial products to the Sherwin-Williams® brand name, $25.7 million related to trademarks in the Asia Pacific region as a direct result of recent performance that reduced the long-term forecasted net sales and $15.7 million related to other recently acquired trademarks in various regions. The fair values of the indefinite-lived trademarks were calculated using the royalty savings method. The annual impairment review did not result in any goodwill impairment. The annual impairment reviews performed as of October 1, 2018 did no t result in any goodwill or trademark impairment. The annual impairment review performed as of October 1, 2017 resulted in trademark impairment of $2.0 million in The Americas Group related to lower than anticipated sales of an acquired brand and no goodwill impairment. A summary of changes in the Company’s carrying value of goodwill by Reportable Segment is as follows:
Goodwill | The Americas Group |  | Consumer Brands Group |  | Performance Coatings Group |  | Consolidated Totals
Balance at January 1, 2017 (1) | $ | 285.4 |  |  | $ | 699.9 |  |  | $ | 141.6 |  |  | $ | 1,126.9 |
Acquisition | 2,276.1 |  |  | 1,473.2 |  |  | 1,925.9 |  |  | 5,675.2 |
Currency and other adjustments | (5.9 | ) |  | 60.1 |  |  | (42.0 | ) |  | 12.2 |
Balance at December 31, 2017 (1) | 2,555.6 |  |  | 2,233.2 |  |  | 2,025.5 |  |  | 6,814.3 |
Acquisition adjustments | (273.9 | ) |  | (413.3 | ) |  | 900.8 |  |  | 213.6 |
Currency and other adjustments | (25.1 | ) |  | (66.1 | ) |  | 20.0 |  |  | (71.2 | )
Balance at December 31, 2018 (1) | 2,256.6 |  |  | 1,753.8 |  |  | 2,946.3 |  |  | 6,956.7 |
Acquisitions |  |  |  |  |  |  | 14.2 |  |  | 14.2 |
Currency and other adjustments |  |  |  | 0.1 |  |  | 33.8 |  |  | 33.9 |
Balance at December 31, 2019 (1) | $ | 2,256.6 |  |  | $ | 1,753.9 |  |  | $ | 2,994.3 |  |  | $ | 7,004.8 |
(1) | Net of accumulated impairment losses of $19.4 million ($10.5 million in The Americas Group, $8.1 million in the Consumer Brands Group and $0.8 million in the Performance Coatings Group).
A summary of the Company’s carrying value of intangible assets is as follows:
| Finite-Lived Intangible Assets |  | Trademarks With Indefinite Lives (1) |  | Total Intangible Assets
| Software |  | Customer Relationships |  | Intellectual Property |  | All Other |  | Subtotal |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Gross | $ | 166.4 |  |  | $ | 3,062.8 |  |  | $ | 1,730.3 |  |  | $ | 312.9 |  |  | $ | 5,272.4 |  |  |  |  |
Accumulated amortization | (134.8 | ) |  | (527.5 | ) |  | (223.5 | ) |  | (260.5 | ) |  | (1,146.3 | ) |  |  |  |
Net value | $ | 31.6 |  |  | $ | 2,535.3 |  |  | $ | 1,506.8 |  |  | $ | 52.4 |  |  | $ | 4,126.1 |  |  | $ | 608.4 |  |  | $ | 4,734.5 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Gross | $ | 165.2 |  |  | $ | 3,103.7 |  |  | $ | 1,730.3 |  |  | $ | 315.0 |  |  | $ | 5,314.2 |  |  |  |  |
Accumulated amortization | (127.3 | ) |  | (326.3 | ) |  | (137.0 | ) |  | (256.2 | ) |  | (846.8 | ) |  |  |  |
Net value | $ | 37.9 |  |  | $ | 2,777.4 |  |  | $ | 1,593.3 |  |  | $ | 58.8 |  |  | $ | 4,467.4 |  |  | $ | 734.2 |  |  | $ | 5,201.6 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Gross | $ | 165.0 |  |  | $ | 3,361.7 |  |  | $ | 1,774.0 |  |  | $ | 329.4 |  |  | $ | 5,630.1 |  |  |  |  |
Accumulated amortization | (116.6 | ) |  | (129.6 | ) |  | (51.7 | ) |  | (257.5 | ) |  | (555.4 | ) |  |  |  |
Net value | $ | 48.4 |  |  | $ | 3,232.1 |  |  | $ | 1,722.3 |  |  | $ | 71.9 |  |  | $ | 5,074.7 |  |  | $ | 927.7 |  |  | $ | 6,002.4 |
(1) | Trademarks with indefinite lives as of December 31, 2019 is net of accumulated impairment losses of $122.1 million. There were no material accumulated impairment losses as of December 31, 2018 and 2017.
Amortization of finite-lived intangible assets is estimated as follows for the next five years: $298.7 million in 2020, $297.9 million in 2021, $296.3 million in 2022, $293.9 million in 2023 and $291.3 million in 2024. Although the Company believes its estimates of fair value related to reporting units and indefinite-lived trademarks are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact and future impairment charges may be required.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration