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Goodwill and Other Intangibles, Net | 12 Months Ended
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Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles, Net |
7. | Goodwill and Other Intangibles, Net
The following table provides information related to the carrying value of all intangible assets, other than goodwill:
| December 31, 2021 |  |  |  |  | December 31, 2020 |
| Gross |  |  |  |  |  |  |  |  |  |  | Amortization |  | Gross |  |  |  |  |  |  |  |  |
| Carrying |  |  | Accumulated |  |  |  |  |  |  | Period |  | Carrying |  |  | Accumulated |  |  |  |  |
| Amount |  |  | Amortization |  |  | Net |  |  | (Years) |  | Amount |  |  | Amortization |  |  | Net |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names | $ | 1,386.7 |  |  | $ | (336.2 | ) |  | $ | 1,050.5 |  |  | 3-20 |  | $ | 1,389.6 |  |  | $ | (269.6 | ) |  | $ | 1,120.0 |
Customer Relationships |  | 664.0 |  |  |  | (322.4 | ) |  |  | 341.6 |  |  | 15-20 |  |  | 659.5 |  |  |  | (291.2 | ) |  |  | 368.3 |
Patents/Formulas |  | 239.1 |  |  |  | (99.4 | ) |  |  | 139.7 |  |  | 4-20 |  |  | 230.5 |  |  |  | (85.3 | ) |  |  | 145.2 |
Total | $ | 2,289.8 |  |  | $ | (758.0 | ) |  | $ | 1,531.8 |  |  |  |  | $ | 2,279.6 |  |  | $ | (646.1 | ) |  | $ | 1,633.5 |
Indefinite lived intangible assets - Carrying value
| December 31, |  |  | December 31, |
| 2021 |  |  | 2020 |
Trade names | $ | 1,962.5 |  |  | $ | 1,476.7 |
The increase in indefinite lived intangible assets is due to the TheraBreath Acquisition. Intangible amortization expense amounted to $120.3 for 2021, $99.9 for 2020 and $90.4 for 2019, respectively. The Company estimates that intangible amortization expense will be approximately $117.0 in 2022 and approximately $115.0 to $107.0 annually over the next five years. The Company determined that the carrying value of its trade names as of December 31, 2021 and 2020, was recoverable based upon the forecasted cash flows and profitability of the brands. Fair value for indefinite lived intangible assets was estimated based on a “relief from royalty” or “excess earnings” discounted cash flow method, which contains numerous variables that are subject to change as business conditions change, and therefore could impact fair values in the future. The key assumptions used in determining fair value are sales growth, profitability margins, tax rates, discount rates and royalty rates. The Company determined that the fair value of all indefinite lived intangible assets for each of the years in the three-year period ended December 31, 2021 exceeded their respective carrying values based upon the forecasted cash flows and profitability. The Company’s indefinite lived intangible impairment review is completed in the fourth quarter of each year. In recent years the Company’s TROJAN® business, specifically the condom category, ha s not grown and competition has increased. Social distancing requirements due to the COVID-19 pandemic had further negatively impacted the business. As a result, the TROJAN business had experienced stagnant sales and profits resulting in a reduction in expected future cash flows which eroded a portion of the excess between the fair and carrying value of the tradename. This indefinite-lived intangible asset may be susceptible to impairment risk and a continued decline in fair value could trigger a future impairment charge of the TROJAN tradename. The carrying value of the TROJAN tradename is $176.4 and fair value exceeded carrying value by 70% as of December 31, 202 1. The k ey assumptions used in the projections from the Company’s October 1, 2021 impairment analysis include discount rates of 7.0% in the U.S. and 8.5% internationally, growth assumptions based on recent trends, and an average royalty rate of approximately 10%. While management can and has implemented strategies to address the risk, including lowering our production costs, investing in new product ideas, and developing new creative advertising, significant changes in operating plans or adverse changes in the future could reduce the underlying cash flows used to estimate fair value. In 2021, TROJAN experienced a recovery in sales and profits as it is benefiting from an easing of COVID-19 social restrictions leading to an increase in sexual activity. The Company expects this trend will continue into next year with the continued adoption of vaccines, the reduction of social distancing restrictions and the benefit of management strategies to improve sales and profitability. The Company’s Passport Food Safety business has experienced sales and profit declines due to decreased demand driven by the COVID-19 pandemic and pressures from new competitive activities resulting from the loss of exclusivity on a key product line. In the fourth quarter of 2021, management’s review of the outlook for the Passport business indicated an assessment of the recoverability of the long-lived assets associated with the business was necessary. That review determined that the estimated future cash flows would not be sufficient to recover the carrying value of the assets resulting in an impairment of the associated tradename and other intangible assets of $11.3. The charge is recorded in selling, general and administrative expenses. The assets have a current remaining net book value of approximately $9.5 and are being amortized over their remaining weighted average life which has been reduced to 7 years. The Company is implementing strategies to address the decline in profitability. However, if unsuccessful, this decline could trigger an additional future impairment charge. During the first quarter of 2020, the Company sold its PERL WEISS® toothpaste brand in Germany with a tradename net book value of $2.7 and corresponding goodwill of $1.3 for cash proceeds of $7.0. The $3.0 gain associated with this transaction was recorded as a reduction of SG&A expense in the Consumer International segment. The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 are as follows:
| Consumer |  |  | Consumer |  |  | Specialty |  |  |  |  |
| Domestic |  |  | International |  |  | Products |  |  | Total |
Balance at December 31, 2019 | $ | 1,707.9 |  |  | $ | 235.6 |  |  | $ | 136.0 |  |  | $ | 2,079.5 |
PERL WEISS divestiture |  | 0.0 |  |  |  | (1.3 | ) |  |  | 0.0 |  |  |  | (1.3 | )
Zicam acquired goodwill |  | 151.4 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 151.4 |
Balance at December 31, 2020 | $ | 1,859.3 |  |  | $ | 234.3 |  |  | $ | 136.0 |  |  | $ | 2,229.6 |
TheraBreath acquired goodwill |  | 39.3 |  |  |  | 4.4 |  |  |  | 0.0 |  |  |  | 43.7 |
Tax related and other |  | 1.2 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 1.2 |
Balance at December 31, 2021 | $ | 1,899.8 |  |  | $ | 238.7 |  |  | $ | 136.0 |  |  | $ | 2,274.5 |
The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2021, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future. The Company has never incurred a goodwill impairment charge.

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