XML 64 R17.htm IDEA: XBRL DOCUMENT
v3.20.1

Goodwill And Identifiable Intangibles | 3 Months Ended
--- | ---
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill And Identifiable Intangibles | 9. Goodwill and Identifiable Intangible Assets Goodwill As more fully described in the Company’s 2019 Annual Report on Form 10-K, we test goodwill for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performed this annual assessment, on a qualitative basis, as allowed by GAAP, in the second quarter of 2019 and concluded that no impairment existed. Changes in the net carrying amount of goodwill by segment were as follows:
(in millions) | ACCO Brands North America |  | ACCO Brands EMEA |  | ACCO Brands International |  | Total
Balance at December 31, 2019 | $ | 375.6 |  |  | $ | 165.7 |  |  | $ | 177.3 |  |  | $ | 718.6 |
Acquisitions | — |  |  | — |  |  | (0.5 | ) |  | (0.5 | )
Foreign currency translation | — |  |  | 2.1 |  |  | (2.5 | ) |  | (0.4 | )
Balance at March 31, 2020 | $ | 375.6 |  |  | $ | 167.8 |  |  | $ | 174.3 |  |  | $ | 717.7 |
The goodwill balance is net of $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. Identifiable Intangible Assets Foroni Acquisition The valuation of identifiable intangible assets of $11.1 million acquired in the Foroni Acquisition includes an amortizable trade name, "Foroni®," which has been recorded at its estimated fair value. The fair value of the trade name was determined using the relief from royalty method, which is based on the present value of royalty fees derived from projected revenues. The Foroni® trade name is expected to be amortized over 23 years on a straight-line basis. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2020 and December 31, 2019, was as follows:
| March 31, 2020 |  | December 31, 2019
(in millions) | Gross Carrying Amounts |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amounts |  | Accumulated Amortization |  | Net Book Value
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trade names | $ | 454.2 |  |  | $ | (44.5 | ) | (1) | $ | 409.7 |  |  | $ | 467.3 |  |  | $ | (44.5 | ) | (1) | $ | 422.8 |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trade names | 308.4 |  |  | (85.8 | ) |  | 222.6 |  |  | 316.7 |  |  | (83.7 | ) |  | 233.0 |
Customer and contractual relationships | 232.9 |  |  | (143.2 | ) |  | 89.7 |  |  | 241.0 |  |  | (142.3 | ) |  | 98.7 |
Patents | 5.4 |  |  | (1.5 | ) |  | 3.9 |  |  | 5.5 |  |  | (1.4 | ) |  | 4.1 |
Subtotal | 546.7 |  |  | (230.5 | ) |  | 316.2 |  |  | 563.2 |  |  | (227.4 | ) |  | 335.8 |
Total identifiable intangibles | $ | 1,000.9 |  |  | $ | (275.0 | ) |  | $ | 725.9 |  |  | $ | 1,030.5 |  |  | $ | (271.9 | ) |  | $ | 758.6 |
(1) | Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased.
The intangible amortization expense was $8.4 million and $9.3 million for the three months ended March 31, 2020 and 2019, respectively. Estimated amortization expense for amortizable intangible assets as of March 31, 2020, for the current year and the next five years is as follows:
(in millions) | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025
Estimated amortization expense(2) | $ | 32.0 |  |  | $ | 28.4 |  |  | $ | 24.9 |  |  | $ | 22.6 |  |  | $ | 21.0 |  |  | $ | 19.4 |
(2) | Actual amounts of amortization expense may differ from estimated amounts due to changes in foreign currency exchange rates, additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events.
We test indefinite-lived intangibles for impairment at least annually and on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. We performed this annual assessment, on a qualitative basis, as allowed by GAAP, for our indefinite-lived trade names in the second quarter of 2019 and concluded that no impairment existed. COVID-19 Impact We continue to monitor the significant global economic uncertainty as a result of COVID-19 to assess the outlook for demand for our products and the impact on our business and our overall financial performance. This includes our risk of impairment losses to our goodwill and indefinite-lived intangible assets. Although the potential impact of COVID-19 related demand is uncertain, we remain committed to the strategic actions necessary to preserve the long-term forecasted financial performance and expect the macroeconomic environment will recover in the medium to long-term. As a result of our analysis, and consideration of events and circumstances, we concluded that there were no triggering events that would make it more likely than not that our goodwill or indefinite-lived intangible assets were impaired as of March 31, 2020.

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