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Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Summary of Changes in Goodwill by Reportable Business Segment | A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2019 and 2018 (in millions):
|  |  |  |  |  |  |  |  |  | December 31, 2019
Segments: |  | Net Book Value at December 31, 2018 |  | Other Adjustments (1) |  | Impairment Charges (2) |  | Foreign Exchange |  | Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value
Appliances and Cookware |  | $ | 211.2 |  |  | $ | (7.0 | ) |  | $ | 7.0 |  |  | $ | 1.1 |  |  | $ | 744.2 |  |  | $ | (531.9 | ) |  | $ | 212.3 |
Food and Commercial |  | 903.7 |  |  | 3.2 |  |  | (160.3 | ) |  | 0.2 |  |  | 2,266.3 |  |  | (1,519.5 | ) |  | 746.8 |
Home and Outdoor Living |  | 163.8 |  |  | 5.7 |  |  | (5.7 | ) |  | 0.7 |  |  | 2,155.2 |  |  | (1,990.7 | ) |  | 164.5 |
Learning and Development |  | 2,595.2 |  |  | 0.6 |  |  | (0.6 | ) |  | (10.0 | ) |  | 3,431.8 |  |  | (846.6 | ) |  | 2,585.2 |
Other |  | — |  |  | 0.2 |  |  | — |  |  | (0.2 | ) |  | — |  |  | — |  |  | — |
|  | $ | 3,873.9 |  |  | $ | 2.7 |  |  | $ | (159.6 | ) |  | $ | (8.2 | ) |  | $ | 8,597.5 |  |  | $ | (4,888.7 | ) |  | $ | 3,708.8 |
(1) | During 2019, in connection with the Company’s state income tax payable/receivable reconciliation process, the Company identified that a state income tax receivable initially recorded in March 2017 was overstated by $19.9 million. The Company determined that the offset to this overstated receivable was recorded as a reduction to goodwill and, subsequently, recorded an entry during the current year to increase goodwill by this amount with a corresponding reduction to its state income tax receivable. Additionally, the Company identified and reversed $8.8 million of reserves for uncertain tax positions that were no longer required as the statutes of limitations had previously expired across multiple prior years. Therefore, the Company recorded an adjustment to income tax expense with a corresponding reduction to its reserves for uncertain tax positions. The Company was required to allocate the goodwill and reversal of reserves for uncertain tax positions to its businesses and reporting units in order to determine whether or not the carrying value of a disposal group or reporting unit that was
previously sold or impaired needed to be updated. Based on its analysis, the Company concluded that the entire $19.9 million goodwill balance and the reversal of $8.8 million of reserves for uncertain tax positions would have been impaired or recognized as a loss on disposal in previously issued financial statements. As such, in 2019 the Company recorded pre-tax out-of-period impairment charges and a loss on sale of divested businesses of $2.9 million and $8.2 million, respectively, of which $2.9 million ($2.2 million after-tax) and $8.2 million ($6.2 million after-tax) were reflected in continuing operations and discontinued operations, respectively, in the Company’s Consolidated Statement of Operations. The Company concluded the effects of such adjustments were not material to the current period or previously issued financial statements.
(2) | In 2019, the Company recorded impairment charges in the Food and Commercial segment to reflect a decrease in the carrying values of Mapa/Spontex and Quickie by a total of $158 million while these businesses were classified as held for sale.
|  |  |  |  |  |  |  |  |  | December 31, 2018
Segment |  | Net Book Value at December 31, 2017 |  | Other Adjustments |  | Impairment Charges (1) |  | Foreign Exchange |  | Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value
Appliances and Cookware |  | $ | 635.1 |  |  | $ | — |  |  | $ | (419.6 | ) |  | $ | (4.3 | ) |  | $ | 750.1 |  |  | $ | (538.9 | ) |  | $ | 211.2 |
Food and Commercial |  | 2,283.8 |  |  | — |  |  | (1,359.3 | ) |  | (20.8 | ) |  | 2,263.0 |  |  | (1,359.3 | ) |  | 903.7 |
Home and Outdoor Living |  | 2,148.0 |  |  | — |  |  | (1,985.0 | ) |  | 0.8 |  |  | 2,148.8 |  |  | (1,985.0 | ) |  | 163.8 |
Learning and Development |  | 2,735.0 |  |  | — |  |  | (105.3 | ) |  | (34.5 | ) |  | 3,441.2 |  |  | (846.0 | ) |  | 2,595.2 |
|  | $ | 7,801.9 |  |  | $ | — |  |  | $ | (3,869.2 | ) |  | $ | (58.8 | ) |  | $ | 8,603.1 |  |  | $ | (4,729.2 | ) |  | $ | 3,873.9 |
(1) | In the Appliances and Cookware segment, the impairment charge was attributable to the Appliances and Cookware reporting unit. In the Food and Commercial segment, the impairment charge was recorded, primarily within the Food reporting unit. In the Home and Outdoor Living segment, impairment charges of $875 million, $787 million and $323 million were recorded within the Home Fragrance, Outdoor and Recreation and Connected Home and Security reporting units, respectively. In the Learning and Development segment, the impairment charge was attributable to the Baby reporting unit.
Summary of Other Intangible Asset Impairment Charges Allocated to Reporting Segments | cquired intangible asset impairment charges were recorded in the Company’s reporting segments as follows (in millions):
| 2019 (1) |  | 2018 (2)
Impairment of acquired intangible assets |  |  |
Appliances and Cookware | $ | 606.9 |  |  | $ | 1,292.0 |
Food and Commercial | 152.5 |  |  | 454.7 |
Home and Outdoor Living | 269.5 |  |  | 2,434.1 |
Learning and Development | 24.2 |  |  | 246.0 |
Total | $ | 1,053.1 |  |  | $ | 4,426.8 |
(1) | The carrying value of certain Appliances and Cookware tradenames exceeded their fair value primarily due to the recently announced tariffs on Chinese imports, as well as a decline in sales volume due to a loss in market share for certain appliance categories driven by the success of newly launched competitive products. Both of these factors resulted in downward revisions to forecasted results. In 2019, the Company recorded impairment charges in the Food and Commercial segment to reflect a decrease in the carrying values of Mapa/Spontex and Quickie by a total of $153 million while these businesses were classified as held for sale. In the Home and Outdoor Living segment, the impairment charges of $151 million and $118 million were recorded within the Home Fragrance and Outdoor and Recreation reporting units, respectively. The carrying value of certain Home and Outdoor Living tradenames exceeded their fair value primarily within the Home Fragrance reporting unit. The reporting unit has begun to experience a shift in product mix that is expected to continue into the future, which resulted in a downward revision to forecasted results for one of its tradenames. In the Learning and Development segment, the impairment charge was recorded within the Writing reporting unit. The Writing reporting unit continues to experience softening trends in sales of slime-related adhesive products. Related sales of such products during the fourth quarter of 2019 deteriorated at a faster rate than expected, which resulted in a downward revision to forecasted results for one of its tradenames. The rate and duration of the decline for such products, which is expected to continue into
the future, is difficult to predict. Further impairments of this tradename may also occur if future expected cash flows are not achieved. Given the current trade negotiations with China and the uncertainties regarding the potential impact on the Company's business, there can be no assurance that the Company's estimates and assumptions regarding the impact of tariffs made for purposes of the goodwill and indefinite-lived intangible asset impairment test during the fourth quarter of 2019 will prove to be accurate predictions of the future. If the Company's assumptions regarding forecasted cash flow and revenue and operating income growth rates of certain reporting units are not achieved, it is possible that a material impairment charge may be required in the future. (2) In the Food and Commercial segment, the impairment charge was recorded within the Food reporting unit. In the Home and Outdoor Living segment, impairment charges of $1.7 billion, $630 million and $75 million were recorded within the Home Fragrance, Outdoor and Recreation and Connected Home and Security reporting units, respectively. In the Learning and Development segment, the impairment charge recorded was attributable to the Baby reporting unit.
Schedule of Other Intangible Assets and Related Amortization Periods | The table below summarizes the balance of other intangible assets, net and the related amortization periods using the straight-line method and attribution method at December 31, (in millions):
| 2019 |  | 2018 |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Amortization Periods (in years)
Tradenames - indefinite life | $ | 3,560.2 |  |  | $ | — |  |  | $ | 3,560.2 |  |  | $ | 4,628.9 |  |  | $ | — |  |  | $ | 4,628.9 |  |  | N/A
Tradenames - other | 168.9 |  |  | (49.7 | ) |  | 119.2 |  |  | 170.5 |  |  | (36.5 | ) |  | 134.0 |  |  | 2-15
Capitalized software | 586.8 |  |  | (435.4 | ) |  | 151.4 |  |  | 559.0 |  |  | (376.1 | ) |  | 182.9 |  |  | 3-12
Patents and intellectual property | 135.3 |  |  | (101.3 | ) |  | 34.0 |  |  | 137.6 |  |  | (79.8 | ) |  | 57.8 |  |  | 3-14
Customer relationships and distributor channels | 1,327.5 |  |  | (282.8 | ) |  | 1,044.7 |  |  | 1,329.5 |  |  | (217.2 | ) |  | 1,112.3 |  |  | 3-30
Other | 109.0 |  |  | (102.1 | ) |  | 6.9 |  |  | 109.0 |  |  | (74.3 | ) |  | 34.7 |  |  | 3-5
| $ | 5,887.7 |  |  | $ | (971.3 | ) |  | $ | 4,916.4 |  |  | $ | 6,934.5 |  |  | $ | (783.9 | ) |  | $ | 6,150.6 |  |  |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | December 31, 2019, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):
Years ending December 31, |  | Amount
2020 |  | $ | 148.1 |
2021 |  | 119.4 |
2022 |  | 95.3 |
2023 |  | 88.5 |
2024 |  | 79.6 |
Thereafter |  | 825.3 |

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