Black & Decker 2015 Annual Report Download - page 81

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reporting unit within the Industrial segment, primarily due to ongoing difficult market conditions in the oil & gas industry,
particularly in certain markets such as China and Russia, as well as continued declines in scrap steel prices. Accordingly, in
connection with the preparation of the Consolidated Financial Statements for the year ended January 2, 2016, the Company
performed an updated impairment analysis with respect to the Infrastructure reporting unit, which included approximately $273
million of goodwill at year-end. Based on this analysis, which included revised assumptions of near-term revenue growth and
profitability levels, it was determined that the fair value of the Infrastructure reporting unit exceeded its carrying value by 13%.
Therefore, management concluded it was not more-likely-than-not that an impairment had occurred. Management is confident
in the long-term viability and success of the Infrastructure reporting unit based on the strong long-term growth prospects of the
markets and geographies served, the intensified focus and investments being made in organic growth initiatives (bolstered by
the recently implemented SFS 2.0 program), and Infrastructure's leading market position in its respective industries.
In the event that future operating results of any of the Company's reporting units do not meet current expectations,
management, based upon conditions at the time, would consider taking restructuring or other actions as necessary to maximize
revenue growth and profitability. A thorough analysis of all the facts and circumstances existing at that time would need to be
performed to determine if recording an impairment loss would be appropriate.
INTANGIBLE ASSETS — Intangible assets at January 2, 2016 and January 3, 2015 were as follows:
2015 2014
(Millions of Dollars)
Gross
Carrying
Amount Accumulated
Amortization
Gross
Carrying
Amount Accumulated
Amortization
Amortized Intangible Assets — Definite lives
Patents and copyrights............................................ $ 50.6 $ (44.2)$ 52.8 $ (43.9)
Trade names ........................................................... 164.8 (100.8)165.7 (89.6)
Customer relationships........................................... 1,774.2 (995.5)1,832.0 (893.1)
Other intangible assets ........................................... 263.3 (148.7)275.6 (140.3)
Total............................................................................... $ 2,252.9 $ (1,289.2)$ 2,326.1 $ (1,166.9)
Total indefinite-lived trade names are $1,577.8 million at January 2, 2016 and $1,592.5 million at January 3, 2015. The year-
over-year change is due to currency fluctuations.
Aggregate intangible assets amortization expense by segment was as follows:
(Millions of Dollars) 2015 2014 2013
Tools & Storage...................................................................................... $ 39.0 $ 40.7 $ 47.2
Industrial................................................................................................. 56.8 66.9 65.4
Security................................................................................................... 61.3 78.8 90.7
Consolidated........................................................................................... $ 157.1 $ 186.4 $ 203.3
The 2014 and 2013 amounts above are inclusive of amortization expense for discontinued operations amounting to $2.9 million
and $4.2 million, respectively.
Future amortization expense in each of the next five years amounts to $150.0 million for 2016, $140.3 million for 2017, $131.1
million for 2018, $116.1 million for 2019, $96.5 million for 2020 and $329.7 million thereafter.