Ryerson Holding Corp Goodwill & Intangibles Disclosure
Note 7: Goodwill
The following is a summary of changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017:
|
|
|
Cost |
|
|
Accumulated Impairment |
|
|
Carrying Amount |
|
|||
|
|
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
Balance at January 1, 2017 |
|
$ |
111.5 |
|
|
$ |
(8.3 |
) |
|
$ |
103.2 |
|
|
Acquisitions |
|
|
12.1 |
|
|
|
— |
|
|
$ |
12.1 |
|
|
Balance at December 31, 2017 |
|
$ |
123.6 |
|
|
$ |
(8.3 |
) |
|
$ |
115.3 |
|
|
Acquisitions |
|
|
5.0 |
|
|
|
— |
|
|
|
5.0 |
|
|
Balance at December 31, 2018 |
|
$ |
128.6 |
|
|
$ |
(8.3 |
) |
|
$ |
120.3 |
|
In 2018, the Company recognized $5.0 million of goodwill within the US Reporting unit related to the Fanello acquisition, which will be deductible for income tax purposes. In 2017, the Company recognized $12.1 million of goodwill within the US reporting unit related to both the Laserflex acquisition, which will be deductible for income tax purposes, and the Guy Metals acquisition, which is not deductible for income tax purposes.
Pursuant to ASC 350, “Intangibles – Goodwill and Other,” we review the recoverability of goodwill annually as of October 1 or whenever significant events or changes occur which might impair the recovery of recorded amounts. Based on our October 1, annual goodwill impairment test, we determined there was no goodwill impairment in 2018.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Mar 5, 2019 | Showing above |
| 2017 | Mar 5, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 9, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.