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Goodwill & Intangibles | 9 Months Ended
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Sep. 27, 2020
Goodwill & Intangibles |
Goodwill & Intangibles | 4. Goodwill & Intangibles ​ The Company operates in three geographic segments: Americas, Europe, and APMEA. During the third quarter, the Company completed the acquisition of Australian Valve Group Pty Ltd (“AVG”) within the APMEA region, resulting in $3.9 million of goodwill. The acquisition of AVG was not considered material to the Company’s consolidated financial statements. The changes in the carrying amount of goodwill by geographic segment are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 27, 2020
​ | ​ | Gross Balance | ​ | Accumulated Impairment Losses | ​ | Net Goodwill
​ | ​ | ​ | ​ | Acquired | ​ | Foreign | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance | ​ | During | ​ | Currency | ​ | Balance | ​ | Balance | ​ | Impairment | ​ | Balance | ​ | ​
​ | ​ | January 1, | ​ | the | ​ | Translation | ​ | September 27, | ​ | January 1, | ​ | Loss During | ​ | September 27, | ​ | September 27,
​ |  | 2020 |  | Period |  | and Other |  | 2020 |  | 2020 |  | the Period |  | 2020 |  | 2020
​ | ​ | (in millions)
Americas | ​ | $ | 476.8 | ​ | ​ | — | ​ | $ | (0.3) | ​ | $ | 476.5 | ​ | $ | (24.5) | ​ | ​ | — | ​ | $ | (24.5) | ​ | $ | 452.0
Europe | ​ |  | 241.4 | ​ |  | — | ​ |  | 4.7 | ​ |  | 246.1 | ​ |  | (129.7) | ​ |  | — | ​ |  | (129.7) | ​ |  | 116.4
APMEA | ​ |  | 30.0 | ​ |  | 3.9 | ​ |  | (0.7) | ​ |  | 33.2 | ​ |  | (12.9) | ​ |  | — | ​ |  | (12.9) | ​ |  | 20.3
Total | ​ | $ | 748.2 | ​ | ​ | 3.9 | ​ | $ | 3.7 | ​ | $ | 755.8 | ​ | $ | (167.1) | ​ | ​ | — | ​ | $ | (167.1) | ​ | $ | 588.7
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2019
​ | ​ | Gross Balance | ​ | Accumulated Impairment Losses | ​ | Net Goodwill
​ | ​ | ​ | ​ | Acquired | ​ | Foreign | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance | ​ | During | ​ | Currency | ​ | Balance | ​ | Balance | ​ | Impairment | ​ | Balance | ​ | ​
​ | ​ | January 1, | ​ | the | ​ | Translation | ​ | December 31, | ​ | January 1, | ​ | Loss During | ​ | December 31, | ​ | December 31,
​ |  | 2019 |  | Period |  | and Other |  | 2019 |  | 2019 |  | the Period |  | 2019 |  | 2019
​ | ​ | (in millions)
Americas | ​ | $ | 438.1 | ​ | $ | 38.3 | ​ | $ | 0.4 | ​ | $ | 476.8 | ​ | $ | (24.5) | ​ | $ | — | ​ | $ | (24.5) | ​ | $ | 452.3
Europe | ​ |  | 243.7 | ​ |  | — | ​ |  | (2.3) | ​ |  | 241.4 | ​ |  | (129.7) | ​ |  | — | ​ |  | (129.7) | ​ |  | 111.7
APMEA | ​ |  | 30.1 | ​ |  | — | ​ |  | (0.1) | ​ |  | 30.0 | ​ |  | (12.9) | ​ |  | — | ​ |  | (12.9) | ​ |  | 17.1
Total | ​ | $ | 711.9 | ​ | $ | 38.3 | ​ | $ | (2.0) | ​ | $ | 748.2 | ​ | $ | (167.1) | ​ | $ | — | ​ | $ | (167.1) | ​ | $ | 581.1
​ Goodwill and indefinite-lived intangible assets are tested for impairment at least annually or more frequently if events or circumstances indicate that it is “more likely than not” that they might be impaired, such as from a change in business conditions. The Company performs its annual goodwill and indefinite-lived intangible assets impairment assessment in the fourth quarter of each year. At the most recent annual impairment test which occurred in the fourth quarter of 2019, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all seven of its reporting units. The Company concluded that the fair value of all seven reporting units exceed its carrying value at that time. ​ As a result of the impact of the COVID-19 global pandemic, the Company reviewed the guidance outlined in ASC 350 to determine if there was an event or change in circumstance to indicate it is more likely than not that an impairment loss has been incurred during the first nine months of 2020. The Company performed an analysis of the stock price when compared to December 31, 2019, reviewed cash flow forecasts, assessed other market risk factors, and performed a market capitalization reconciliation of its reporting units. The Company concluded a triggering event had not occurred as of September 27, 2020 and it was not “more likely than not” that the Company’s reporting units might be impaired. ​ Additionally, the Company noted the Heating and Hot Water Solutions (“HHWS”) reporting unit had a goodwill balance of $218.9 million as of September 27, 2020, which holds the greatest amount of goodwill and the least amount of excess of fair value over carrying value. While the Company concluded that a triggering event did not occur during the third quarter and nine months ended September 27, 2020, the impact of a prolonged COVID-19 pandemic could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the HHWS reporting unit that may be significant enough to trigger an impairment determination. ​ Intangible assets include the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 27, 2020 | ​ | December 31, 2019
​ | ​ | Gross | ​ | ​ | ​ | ​ | Net | ​ | Gross | ​ | ​ | ​ | ​ | Net
​ | ​ | Carrying | ​ | Accumulated | ​ | Carrying | ​ | Carrying | ​ | Accumulated | ​ | Carrying
​ |  | Amount |  | Amortization |  | Amount |  | Amount |  | Amortization |  | Amount
​ | ​ | (in millions)
Patents | ​ | $ | 16.1 | ​ | $ | (16.0) | ​ | $ | 0.1 | ​ | $ | 16.1 | ​ | $ | (15.9) | ​ | $ | 0.2
Customer relationships | ​ |  | 234.4 | ​ |  | (163.3) | ​ |  | 71.1 | ​ |  | 232.8 | ​ |  | (156.3) | ​ |  | 76.5
Technology | ​ |  | 56.8 | ​ |  | (34.9) | ​ |  | 21.9 | ​ |  | 56.9 | ​ |  | (31.6) | ​ |  | 25.3
Trade names | ​ |  | 26.7 | ​ |  | (14.0) | ​ |  | 12.7 | ​ |  | 26.0 | ​ |  | (13.1) | ​ |  | 12.9
Other | ​ |  | 4.3 | ​ |  | (3.7) | ​ |  | 0.6 | ​ |  | 4.3 | ​ |  | (3.6) | ​ |  | 0.7
Total amortizable intangibles | ​ |  | 338.3 | ​ |  | (231.9) | ​ |  | 106.4 | ​ |  | 336.1 | ​ |  | (220.5) | ​ |  | 115.6
Indefinite-lived intangible assets | ​ |  | 36.5 | ​ |  | — | ​ |  | 36.5 | ​ |  | 35.8 | ​ |  | — | ​ |  | 35.8
​ | ​ | $ | 374.8 | ​ | $ | (231.9) | ​ | $ | 142.9 | ​ | $ | 371.9 | ​ | $ | (220.5) | ​ | $ | 151.4
​ Aggregate amortization expense for amortized intangible assets for both the third quarters ended September 27, 2020 and September 29, 2019 was $3.8 million, and for the first nine months of 2020 and 2019 was $11.4 million and $11.6 million, respectively. As a result of the AVG acquisition completed in the third quarter of 2020, the Company recorded $2.6 million and $0.6 million, respectively, of intangible assets related to customer relationships and trade names.

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- 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
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