Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is assigned to specific reporting units and is tested annually for impairment as of October 31 or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. Due to the decline in the Company’s stock price and the uncertainty and impacts of the COVID-19 pandemic on the Company and the global economy, an interim goodwill impairment test was completed on the goodwill in the Core Print and Related Services reporting unit during the first quarter of 2020.

Fair value was determined using an equal weighting of both the income and market approaches. Under the income approach, the Company determined fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk and the rate of return an outside investor would expect to earn. Under the market approach, the Company derived the fair value of the reporting units based on market multiples of comparable publicly-traded companies. This fair value determination was categorized as Level 3 in the fair value hierarchy (see Note 13, “Financial Instruments and Fair Value Measurements,” for the definition of Level 3 inputs).

As a result of the interim goodwill impairment test performed during the first quarter of 2020, the Company determined the fair value of the Core Print and Related Services reporting unit exceeded the carrying value, and therefore no impairment was recorded. No indicators of impairment were identified in any of the Company's reporting units during the three months ended September 30, 2020.

The accumulated goodwill impairment losses and the carrying value of goodwill at September 30, 2020, and December 31, 2019, were as follows:



	United States Print and Related Services		International		Total
Goodwill	$	881.3	$	30.0	$	911.3
Accumulated goodwill impairment loss	(778.3)		(30.0)		(808.3)
Goodwill, net of accumulated goodwill impairment loss	$	103.0	$	—	$	103.0

Other Intangible Assets

The components of finite-lived intangible assets at September 30, 2020, and December 31, 2019, were as follows:


	September 30, 2020							December 31, 2019
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Trademarks, patents, licenses and agreements	6	$	68.5	$	(40.5)	$	28.0	6	$	68.6	$	(33.6)	$	35.0
Capitalized software	5	16.9		(10.9)		6.0		5	16.1		(8.5)		7.6
Acquired Technology	5	2.9		(0.4)		2.5		—	—		—		—
Customer relationships	6	561.5		(484.7)		76.8		6	562.1		(467.5)		94.6
Total		$	649.8	$	(536.5)	$	113.3		$	646.8	$	(509.6)	$	137.2

The gross carrying amount and accumulated amortization within other intangible assets—net in the condensed consolidated balance sheets at September 30, 2020, and December 31, 2019, differs from the value originally recorded at acquisition due to impairment charges recorded in prior years and the effects of currency fluctuations since the purchase date.

Other intangible assets are evaluated for potential impairment whenever events or circumstances indicate that the carrying value may not be recoverable. There were no impairment charges recorded on finite-lived intangible assets for the three and nine months ended September 30, 2020 and 2019.

Amortization expense for other intangible assets was $9.6 million and $29.4 million for the three and nine months ended September 30, 2020, respectively, and $10.9 million and $33.8 million for the three and nine months ended September 30, 2019, respectively. The estimated future amortization expense related to other intangible assets as of September 30, 2020, was as follows:


	Amortization Expense
Remainder of 2020	$	10.2
2021	31.2
2022	29.2
2023	25.4
2024	14.7
2025 and thereafter	2.6
Total	$	113.3