Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

10. Goodwill and Other Intangible Assets

The Company performs its annual goodwill and indefinite lived assets impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. There have been no impairment indicators since the fourth quarter of 2020; therefore, no impairment review has occurred as of September 30, 2021.

The changes in the carrying amount of goodwill as of September 30, 2021 and December 31, 2020 are summarized as follows:


	Americas		MEAP			Consolidated
Balance as of January 1, 2020	$	166.5	$	66.0		$	232.5
Foreign currency impact		—		2.6			2.6
Balance as of December 31, 2020		166.5		68.6			235.1
Foreign currency impact		—		(0.9	)		(0.9	)
Acquisition of business		5.5		—			5.5
Balance as of September 30, 2021	$	172.0	$	67.7		$	239.7

During the three months ended September 30, 2021, the Company recorded goodwill of approximately $5.5 million from the acquisition of Aspen. Goodwill related to the Aspen acquisition is subject to change as part of completion of acquisition accounting. The total goodwill related to this acquisition is deductible for tax purposes. Refer to Note 9, “Business Combinations,” for additional information.

The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill as of September 30, 2021 and December 31, 2020 are summarized as follows:


	September 30, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Definite lived intangible assets:
Customer relationships	$	12.2	$	(8.7	)	$	3.5	$	9.9	$	(8.6	)	$	1.3
Patents		30.0		(29.4	)		0.6		31.0		(30.3	)		0.7
Other intangibles		2.5		(0.5	)		2.0		—		—			—
Total		44.7		(38.6	)		6.1		40.9		(38.9	)		2.0
Indefinite lived intangible assets:
Trademarks and tradenames		99.1		—			99.1		100.0		—			100.0
Distribution network		19.0		—			19.0		19.6		—			19.6
Total		118.1		—			118.1		119.6		—			119.6
Total other intangible assets	$	162.8	$	(38.6	)	$	124.2	$	160.5	$	(38.9	)	$	121.6

Other intangible assets with definite lives are amortized over their estimated useful lives. Amortization expense for the three months ended September 30, 2021 and 2020 was $0.5 million and zero, respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 was $0.7 and $0.2 million, respectively.

As a result of the acquisition of Aspen during the three months ended September 30, 2021, intangible assets of approximately $7.1 million related to customer relationships, backlog, trade names and noncompete agreements were acquired. The fair value of identifiable intangible assets has been determined using the income approach which involves significant unobservable inputs (Level 3 inputs). The allocation of purchase price to intangible assets is subject to change upon completion of acquisition accounting.

Definite lived intangible assets and long-lived assets are subject to impairment testing whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The Company determined there was not a triggering event as of September 30, 2021.