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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in the carrying amount of goodwill by segment are as follows:
 (amounts in millions)
 
Performance Solutions
 
Agricultural Solutions
 
Total
Balance, December 31, 2013
 
$
989.8

 
$
—

 
$
989.8

Addition from acquisitions
 
16.3

 
459.6

 
475.9

Foreign currency translation and other
 
(44.9
)
 
(15.5
)
 
(60.4
)
Balance, December 31, 2014
 
961.2

 
444.1

 
1,405.3

Addition from acquisitions
 
1,258.3

 
1,697.1

 
2,955.4

Purchase accounting adjustments
 
—

 
80.2

 
80.2

Foreign currency translation and other
 
(72.3
)
 
(346.7
)
 
(419.0
)
Balance, December 31, 2015
 
$
2,147.2

 
$
1,874.7

 
$
4,021.9


During the fourth quarter of 2015 and 2014, the Company performed its annual impairment analysis of goodwill at the reporting unit level.  Platform's goodwill impairment testing analysis varies by reporting unit, using the qualitative approach for certain reporting units and an income approach derived from a discounted cash flow model to estimate the fair value of other reporting units.  Based on the assessments used in the qualitative approach and the projections and other assumptions used in the analysis, the Company concluded that the fair values of the reporting units exceeded the carrying values of their net assets.  As a result, there was no impairment of goodwill in 2015 and 2014.  
However, in performing the first step of the goodwill impairment test for the year ended December 31, 2015, and 2014, the fair values of certain reporting units exceeded their carrying values by less margin than others. Specifically in 2015, the excess of the fair value of the Agro Business, a reporting unit within the Agricultural Solutions segment, over its carrying value was 16.1%. Goodwill assigned to the Agro Business reporting unit totaled $1.87 billion. In 2014, the excess of the fair value of Offshore and ASF Americas, reporting units within the Performance Solutions segment, over their carrying values were 7.6% and 11.1%, respectively. Goodwill assigned to the Offshore and ASF Americas reporting units totaled $364 million and $78.3 million, respectively.
•
Valuation Techniques - The Company uses a discounted cash flow analysis, which requires assumptions about short and long-term net cash flows, growth rates, as well as discount rates.  Additionally, the Company considers guideline company and guideline transaction information, where available, to aid in the valuation of the reporting units.
•
Growth Assumptions - Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, client service and retention standards, market share changes, historical performance, and industry and economic trends, among other considerations. The annual revenue growth rates used in 2015 for the initial 8 year period ranged from 1.3% to 7.2% for the Agro Business. The long-term growth rates used in 2015 in determining the terminal value of the Agro Business were estimated at 3.0%.
The annual revenue growth rates used in 2014 for the initial 7 year period ranged from (0.7)% to 9.0% for Offshore and 2.3% to 5.9% for ASF Americas.  The long-term growth rates used in 2014 in determining the terminal value of the Offshore and ASF Americas reporting units were estimated at 3.5% and 3.0%, respectively, based on management's assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as gross domestic product and inflation.
•
Discount Rate Assumptions - Discount rates were estimated based on a Weighted Average Cost of Capital, or WACC.  The WACC combines the required return on equity, based on a Modified Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, small stock risk premium and a company specific risk premium, with the cost of debt, based on BBB rated corporate bonds, adjusted using an income tax factor.  For the period ended in 2015, the calculation resulted in a WACC rate of 10.0% for the Agro Business. For the period ended in 2014, the calculation resulted in a WACC rate of 10.5% for both Offshore and ASF Americas.
•
Estimated Fair Value and Sensitivities - The estimated fair value of each reporting unit is derived from the valuation techniques described above.  The estimated fair value of each reporting unit is analyzed in relation to numerous market and historical factors, including current economic and market conditions, company-specific growth opportunities, and guideline company information.
The estimated fair value of the reporting unit is highly sensitive to changes in these estimates and assumptions; therefore, in some instances, changes in these assumptions could impact whether the fair value of a reporting unit is greater than its carrying value.  Platform performed sensitivity analysis around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values.  In 2015, based on the sensitivity analysis performed for the Agro Business reporting unit, a 1% decrease in the terminal growth rate does not result in the carrying value exceeding their fair value, however, a 1% increase in the WACC rate would have resulted in the carrying value of the net assets to exceed their fair value, making it necessary to proceed to the second step of the impairment test.   In 2014, based on the sensitivity analysis performed for the Offshore reporting unit, a 1% decrease in the terminal growth rate or a 1% increase in the WACC rate would have resulted in the carrying value of the net assets to exceed their fair value, making it necessary to proceed to the second step of the impairment test.  In 2014, for ASF Americas, a 1% decrease in the terminal growth rate does not result in the carrying value exceeding their fair value, however, a 1% increase in the WACC rate would have resulted in the carrying value of the net assets to exceed their fair value, making it necessary to proceed to the second step of the impairment test.
Indefinite-Lived Intangible Assets
The carrying value of indefinite-lived intangible assets, other than goodwill, which consists solely of tradenames, was $360 million and $69.3 million at December 31, 2015 and 2014, respectively. The Company found no indications of impairment related to its indefinite-lived intangible assets as a result of its annual impairment review.
Finite-Lived Intangible Assets
Intangible assets subject to amortization were as follows:
 (amounts in millions)
 
 
 
December 31, 2015
 
December 31, 2014
 
 
Weighted average useful life (years)
 
Gross Carrying Amount
 
Accumulated Amortization and Foreign Exchange
 
Net Book Value
 
Gross Carrying Amount
 
Accumulated Amortization and Foreign Exchange
 
Net Book Value
Customer lists
 
20.3
 
$
1,297.2

 
$
(184.0
)
 
$
1,113.2

 
$
613.6

 
$
(71.6
)
 
$
542.0

Developed technology (1)
 
11.8
 
2,260.9

 
(440.4
)
 
1,820.5

 
760.5

 
(50.8
)
 
709.7

Tradenames
 
12.8
 
24.2

 
(5.4
)
 
18.8

 
19.7

 
(1.0
)
 
18.7

Non-compete agreement
 
5.0
 
1.9

 
(0.5
)
 
1.4

 
1.9

 
(0.1
)
 
1.8

Total
 
15.0
 
$
3,584.2

 
$
(630.3
)
 
$
2,953.9

 
$
1,395.7

 
$
(123.5
)
 
$
1,272.2

 
(1) Includes in-process registration rights awaiting completion before amortization commences.
For the years ended December 31, 2015 and 2014, the Company recorded amortization expense on intangible assets of $202 million and $67.4 million, respectively.  For the Successor and Predecessor 2013 Periods, the Company and the Predecessor recorded amortization expense on intangible assets of $8.9 million and $22.4 million, respectively.
The Company found no indications of impairment related to its finite-lived intangible assets as a result of its annual impairment review.
Estimated future amortization of intangible assets for each of the next five fiscal years are as follows:
 (amounts in millions)
 
Amortization Expense
2016
 
$
265.1

2017
 
265.1

2018
 
265.1

2019
 
265.0

2020
 
261.3