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Goodwill and Identifiable Intangible Assets | 6 Months Ended
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Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Identifiable Intangible Assets | 9. Goodwill and Identifiable Intangible Assets Goodwill 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. During the second quarter of 2022, we completed the annual goodwill impairment assessment, on a quantitative basis, for goodwill for each of our three reporting units. The result of our annual assessment was that the fair value of the North America, International and EMEA reporting units exceeded their carrying values as of our measurement date of May 31, 2022 and we concluded that no impairment existed. Estimating the fair value of each reporting unit requires us to make assumptions and estimates regarding our future. We utilized a combination of both a discounted cash flows and market approach. The financial projections used in the valuation models reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results for each of our three reporting units. In management’s opinion, the goodwill balance for our ACCO Brands North America and ACCO Brands International reporting units could be at risk for impairment if operating performance does not improve as expected. This includes negative changes to our long-term outlook for our business and other assumptions which impact fair value including low or declining revenue growth rates, depressed operating margins, or adverse changes to discount rates. The excess fair value over carrying value for both our North America and International reporting units were less than ten percent as of our measurement date of May 31, 2022. 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, 2021 | $ |  | 446.7 |  | $ |  | 178.6 |  | $ |  | 177.2 |  | $ |  | 802.5 |
Foreign currency translation |  |  | — |  |  |  | (24.0 | ) |  |  | 0.7 |  |  |  | (23.3 | )
Balance at June 30, 2022 | $ |  | 446.7 |  | $ |  | 154.6 |  | $ |  | 177.9 |  | $ |  | 779.2 |
The goodwill balance includes $215.1 million of accumulated impairment losses, which occurred prior to December 31, 2016. Identifiable Intangible Assets The gross carrying value and accumulated amortization by class of identifiable intangible assets as of June 30, 2022 and December 31, 2021, were as follows:
|  | June 30, 2022 |  |  | December 31, 2021 |
(in millions) |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names(1) | $ |  | 408.2 |  | $ |  | (44.5 | ) | $ |  | 363.7 |  | $ |  | 417.6 |  | $ |  | (44.5 | ) | $ |  | 373.1 |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 370.5 |  |  |  | (116.3 | ) |  |  | 254.2 |  |  |  | 373.2 |  |  |  | (110.5 | ) |  |  | 262.7 |
Customer and contractual relationships |  |  | 355.5 |  |  |  | (187.5 | ) |  |  | 168.0 |  |  |  | 366.5 |  |  |  | (182.4 | ) |  |  | 184.1 |
Vendor relationships |  |  | 82.4 |  |  |  | (8.5 | ) |  |  | 73.9 |  |  |  | 82.4 |  |  |  | (5.7 | ) |  |  | 76.7 |
Patents |  |  | 8.0 |  |  |  | (3.2 | ) |  |  | 4.8 |  |  |  | 8.6 |  |  |  | (3.0 | ) |  |  | 5.6 |
Subtotal |  |  | 816.4 |  |  |  | (315.5 | ) |  |  | 500.9 |  |  |  | 830.7 |  |  |  | (301.6 | ) |  |  | 529.1 |
Total identifiable intangibles | $ |  | 1,224.6 |  | $ |  | (360.0 | ) | $ |  | 864.6 |  | $ |  | 1,248.3 |  | $ |  | (346.1 | ) | $ |  | 902.2 |
(1) Accumulated amortization prior to the adoption of authoritative guidance on goodwill and other intangible assets, at which time further amortization ceased. The Company's intangible amortization expense for the three and six months ended June 30, 2022 was $10.5 million and $21.6 million, respectively, and $11.6 million and $23.6 million for the three and six months ended June 30, 2021, respectively. Estimated amortization expense for amortizable intangible assets, as of June 30, 2022, for the current year and the next five years is as follows:
(in millions) |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |
Estimated amortization expense(2) | $ |  | 42.4 |  | $ |  | 40.1 |  | $ |  | 38.5 |  | $ |  | 36.9 |  | $ |  | 34.7 |  | $ |  | 32.2 |
(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, for our indefinite-lived trade names and concluded that no impairment existed as of our measurement date of May 31, 2022.

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