Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 02/07/2017
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(8) Goodwill and Intangibles, net
A summary of the changes in the carrying amounts of goodwill and intangible assets are as follows:
 
 
 
Intangible Assets
 
Goodwill
 
Indefinite Lived
 
Definite Lived
 
Total
Balance at September 30, 2016
$
2,478.4

 
$
1,473.5

 
$
899.0

 
$
2,372.5

Additions
—

 
—

 
0.8

 
0.8

Periodic amortization
—

 
—

 
(23.6
)
 
(23.6
)
Effect of translation
(13.9
)
 
(13.9
)
 
(7.9
)
 
(21.8
)
Balance at December 31, 2016
$
2,464.5

 
$
1,459.6

 
$
868.3

 
$
2,327.9

Goodwill and indefinite lived trade name intangibles are not amortized and are tested for impairment at least annually at the Company’s August financial period end, or more frequently if an event or circumstance indicates that an impairment loss may have been incurred between annual impairment tests.
Definite Lived Intangible Assets
The range and weighted average useful lives for definite lived intangible assets are as follows:
 
December 31, 2016
 
September 30, 2016
 
Cost
 
Accumulated Amortization
 
Net
 
Cost
 
Accumulated Amortization
 
Net
Customer relationships
$
973.3

 
$
(313.2
)
 
$
660.1

 
$
984.8

 
$
(302.9
)
 
$
681.9

Technology assets
237.8

 
(102.3
)
 
135.5

 
237.2

 
(96.7
)
 
140.5

Trade names
165.7

 
(93.0
)
 
72.7

 
165.7

 
(89.1
)
 
76.6

 
$
1,376.8

 
$
(508.5
)
 
$
868.3

 
$
1,387.7

 
$
(488.7
)
 
$
899.0

At December 31, 2016, the range and weighted average useful lives for definite-lived intangibles assets were as follows:
Asset Type
 
Range
 
Weighted Average
Customer relationships
 
2 to 20 years
 
18.5 years
Technology assets
 
5 to 18 years
 
11.2 years
Trade names
 
5 to 13 years
 
11.4 years
Amortization expense for definite lived intangible assets for the three months ended December 31, 2016 and 2015 was $23.6 and was included in “Selling, acquisition, operating and general expenses” within the accompanying Condensed Consolidated Statements of Operations. Excluding the impact of any future acquisitions or change in foreign currency, the Company estimates annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows:
Fiscal Year
 
Estimated Amortization Expense
2017
 
$
91.9

2018
 
85.7

2019
 
85.4

2020
 
85.2

2021
 
81.9



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