XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Goodwill and Identifiable Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2018
Goodwill and Identifiable Intangible Assets |
5. | Goodwill and Identifiable Intangible Assets
We had goodwill of $1,918.7 million and $1,912.0 million as of March 31, 2018 and December 31, 2017, respectively. The $6.7 million increase was primarily due to acquisition-related adjustments in our Plumbing segment, including $5.8 million of additional purchase price consideration paid during the three months ended March 31, 2018 related to our acquisition of Victoria + Albert, partially offset by foreign translation adjustments. The change in the net carrying amount of goodwill by segment was as follows:
(In millions) |  | Cabinets |  |  | Plumbing |  |  | Doors |  |  | Security |  |  | Total Goodwill |
Goodwill at December 31, 2017 (a) |  | $ | 926.3 |  |  | $ | 745.2 |  |  | $ | 143.0 |  |  | $ | 97.5 |  |  | $ | 1,912.0 |
Year-to-date translation adjustments |  |  | (0.2 | ) |  |  | (1.1 | ) |  |  | — |  |  |  | (0.5 | ) |  |  | (1.8 | )
Acquisition-related adjustments |  |  | — |  |  |  | 8.5 |  |  |  | — |  |  |  | — |  |  |  | 8.5 |
Goodwill at March 31, 2018 (a) |  | $ | 926.1 |  |  | $ | 752.6 |  |  | $ | 143.0 |  |  | $ | 97.0 |  |  | $ | 1,918.7 |
| (a) | Net of accumulated impairment losses of $399.5 million in the Doors segment.
We also had net identifiable intangible assets, principally tradenames, of $1,151.2 million and $1,162.4 million as of March 31, 2018 and December 31, 2017, respectively. The $3.3 million decrease in gross identifiable intangible assets was primarily due to acquisition related adjustments and foreign translation adjustments. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2018 and December 31, 2017 were as follows:
(In millions) |  | As of March 31, 2018 |  |  | As of December 31, 2017 |
|  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |
Indefinite-lived tradenames |  | $ | 709.2 |  |  | $ | — |  |  | $ | 709.2 |  |  | $ | 709.9 |  |  | $ | — |  |  | $ | 709.9 |
Amortizable intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradenames |  |  | 15.7 |  |  |  | (10.4 | ) |  |  | 5.3 |  |  |  | 15.7 |  |  |  | (9.9 | ) |  |  | 5.8 |
Customer and contractual relationships |  |  | 661.1 |  |  |  | (238.8 | ) |  |  | 422.3 |  |  |  | 663.8 |  |  |  | (232.0 | ) |  |  | 431.8 |
Patents/proprietary technology |  |  | 60.3 |  |  |  | (45.9 | ) |  |  | 14.4 |  |  |  | 60.2 |  |  |  | (45.3 | ) |  |  | 14.9 |
Total |  |  | 737.1 |  |  |  | (295.1 | ) |  |  | 442.0 |  |  |  | 739.7 |  |  |  | (287.2 | ) |  |  | 452.5 |
Total identifiable intangibles |  | $ | 1,446.3 |  |  | $ | (295.1 | ) |  | $ | 1,151.2 |  |  | $ | 1,449.6 |  |  | $ | (287.2 | ) |  | $ | 1,162.4 |
Amortizable identifiable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, ranging from 2 to 20 years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, customer attrition rates and other relevant factors. In the first quarter of 2018, no events or circumstances occurred that would have required us to perform interim impairment tests of goodwill or indefinite-lived tradenames. As of December 31, 2017, the fair value of two tradenames in the Cabinets segment exceeded their carrying value by less than 10%. Accordingly, a reduction in the estimated fair value of these tradenames could trigger an impairment. As of December 31, 2017, the total carrying value of these tradenames was $217.8 million. Factors influencing our fair value estimates of the tradenames are described in the following paragraph. The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that lag our assumptions, actions of key customers, volatility of discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets.

X
- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -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