XML 33 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Intangible Assets | 9 Months Ended
--- | ---
Sep. 26, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):
|  | December 31, 2019 |  | Purchase accounting adjustments |  | Business acquisitions |  | Business divestitures |  | Impairments |  | Currency translation adjustments |  | September 26, 2020
CSCA |  | $ | 1,899.1 |  |  | $ | (10.4 | ) |  | $ | 14.1 |  |  | $ | — |  |  | $ | — |  |  | $ | (4.0 | ) |  | $ | 1,898.8 |
CSCI(1) |  | 1,203.7 |  |  | 12.0 |  |  | 1.8 |  |  | (115.6 | ) |  | — |  |  | 27.5 |  |  | 1,129.4 |
RX(2) |  | 1,013.9 |  |  | — |  |  | — |  |  | — |  |  | (202.4 | ) |  | (0.4 | ) |  | 811.1 |
Total goodwill |  | $ | 4,116.7 |  |  | $ | 1.6 |  |  | $ | 15.9 |  |  | $ | (115.6 | ) |  | $ | (202.4 | ) |  | $ | 23.1 |  |  | $ | 3,839.3 |
(1) We had accumulated goodwill impairments of $868.4 million as of each of December 31, 2019 and September 26, 2020. (2) We had accumulated goodwill impairments of $109.2 million and $311.6 million as of December 31, 2019 and September 26, 2020, respectively. RX U.S. Reporting Unit Goodwill During the three months ended September 26, 2020, our RX U.S. reporting unit had an indication of potential impairment driven primarily by the stoppage of production and distribution of albuterol sulfate inhalation aerosol and voluntary U.S. nationwide recall to the retail level, after we learned that some units may not dispense due to clogging, combined with a decline in market multiples. We prepared an impairment test as of September 26, 2020 and determined the carrying value of the RX U.S. reporting unit exceeded its estimated fair value. We recognized a goodwill impairment of $202.4 million, leaving $811.1 million of goodwill in this reporting unit after the impairment. The change in fair value from previous estimates was driven by the financial impact of the recall in the current period and related changes in estimates of future cash flows (refer to Note 6). Other Reporting Unit Goodwill During the three months ended June 27, 2020, our Branded Consumer Self-care ("BCS") reporting unit included in the CSCI segment had an indication of potential impairment which was driven by a decrease in forecasted cash flows in the second half of 2020 related to impacts from the COVID-19 pandemic. We prepared an impairment test as of June 27, 2020 and determined that the fair value of the BCS reporting unit exceeded net book value by less than 10%, consistent with our last annual impairment test as of October 1, 2019. While no impairment was recorded as of June 27, 2020, future developments such as deterioration in business performance or market multiples could reduce the fair value of this reporting unit and lead to impairment in a future period. There was no indication of impairment during the three months ended September 26, 2020. Goodwill remaining in this reporting unit was $995.5 million as of September 26, 2020. Intangible Assets Intangible assets and related accumulated amortization consisted of the following (in millions):
| September 26, 2020 |  | December 31, 2019
| Gross |  | Accumulated Amortization |  | Gross |  | Accumulated Amortization
Indefinite-lived intangibles: |  |  |  |  |  |  |
Trademarks, trade names, and brands | $ | 4.0 |  |  | $ | — |  |  | $ | 18.8 |  |  | $ | — |
In-process research and development | 10.8 |  |  | — |  |  | 50.0 |  |  | — |
Total indefinite-lived intangibles | $ | 14.8 |  |  | $ | — |  |  | $ | 68.8 |  |  | $ | — |
Definite-lived intangibles: |  |  |  |  |  |  |
Distribution and license agreements and supply agreements | $ | 134.7 |  |  | $ | 83.8 |  |  | $ | 126.7 |  |  | $ | 81.1 |
Developed product technology, formulations, and product rights | 1,335.7 |  |  | 731.8 |  |  | 1,392.8 |  |  | 755.3 |
Customer relationships and distribution networks | 1,866.8 |  |  | 776.0 |  |  | 1,805.6 |  |  | 671.4 |
Trademarks, trade names, and brands | 1,462.7 |  |  | 313.1 |  |  | 1,353.5 |  |  | 250.1 |
Non-compete agreements | 5.2 |  |  | 5.0 |  |  | 6.5 |  |  | 6.0 |
Total definite-lived intangibles | $ | 4,805.1 |  |  | $ | 1,909.7 |  |  | $ | 4,685.1 |  |  | $ | 1,763.9 |
Total intangible assets | $ | 4,819.9 |  |  | $ | 1,909.7 |  |  | $ | 4,753.9 |  |  | $ | 1,763.9 |
We recorded amortization expense of $73.9 million and $219.3 million for the three and nine months ended September 26, 2020, respectively, and $78.7 million and $227.7 million for the three and nine months ended September 28, 2019, respectively. Evamist Branded Product During the three months ended September 28, 2019, we identified impairment indicators related to our Evamist branded product, which is a definite-lived intangible asset in our RX segment. The indicators related to a decline in sales volume and a corresponding reduction in our long-range revenue forecast. We recorded an asset impairment of $10.8 million. Generic Product During the three months ended June 29, 2019, we identified impairment indicators for a certain definite-lived intangible asset related to changes in pricing and competition in the market, which lowered the projected cash flows we expect to generate from the asset. We recorded an asset impairment of $27.8 million in our RX segment. In-process R&D We recorded impairment charges of $4.3 million on certain IPR&D assets in the CSCA and RX segments during the nine months ended September 28, 2019, due to changes in projected development and regulatory timelines.

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