XML 45 R18.htm IDEA: XBRL DOCUMENT v3.25.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
The Company assesses both goodwill and indefinite-lived intangible assets for impairment as of the first day of the fourth quarter annually or more frequently if events or changes in circumstances indicate the asset might be impaired. As of June 28, 2024 and prior to its annual impairment test, the Company identified indicators of a "more likely than not" impairment related to its various reporting units within the Specialty Products & Technologies and Equipment & Consumables segments.

As part of its June 28, 2024 evaluation, the Company used the income approach in performing a goodwill impairment test in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value amount. The income approach uses a discounted cash flow model with inputs developed using both internal and market-based data. The Company's significant assumptions in the discounted cash flow models vary amongst, and are specific to, each reporting unit which include, but are not limited to, discount rates, revenue growth rates assumptions (including perpetual growth rates) and operating margin assumptions. These assumptions were developed in light of current market conditions and future expectations which include, but were not limited to, impact of competition, new product development and future economic conditions. As a result of this impairment test, the Company recorded a pre-tax goodwill impairment charge of $960.5 million during the second quarter of 2024, with $707.8 million related to its Specialty Products & Technologies segment and $252.7 million related to its Equipment & Consumables segment. The reduction in value was primarily due to adverse macroeconomic factors such as, higher cost of borrowing and inflationary pressures, geopolitical factors, and weakened global demand which contributed to reduced expectations of future cash flows and a sustained suppressed stock price.

As part of its June 28, 2024 assessment, the Company also reviewed its indefinite-lived intangible assets for impairment and used the relief from royalty method to estimate the fair value of such assets. The Company's significant assumptions vary amongst, and are specific to, each underlying indefinite-lived intangible asset which include, but are not limited to, revenue growth rates assumptions (including perpetual growth rates), discount rates and royalty rates. As a result of this impairment test, the Company recorded an impairment charge of $101.1 million related to certain indefinite-lived trade names within the Specialty Products & Technologies segment during the second quarter of 2024. The reduction in value was primarily due to a reduction in projected cash flows due to the factors discussed above.

For both goodwill and indefinite-lived intangible assets the Company performed its 2024 annual test of impairment on the first day of the fourth quarter. Based on this assessment, the Company’s analysis indicated that the fair value of its reporting units exceeded its carrying values and consequently did not result in a further impairment charge. However, any deviation in future actual financial results compared to the forecasted financial results or valuation assumptions used in the impairment tests, a decline in equity valuations, increases in interest rates, or changes in the use of intangible assets, among other factors, could have a material adverse effect on the fair value of either the reporting units or indefinite-lived intangible assets and could result in future impairment charges. There can be no assurance that the Company’s future asset impairment testing will not result in a material charge to earnings.

The Company also recorded impairment charges as a result of the Company’s annual impairment test during the year ended 2023, whereby the Company recorded a pre-tax goodwill impairment charge of $212.3 million, with $134.5 million related to its Specialty Products & Technologies segment and $77.8 million related to its Equipment & Consumables segment, and a $46.0 million indefinite-lived intangible asset impairment related to certain indefinite-lived trade names within the Specialty Products & Technologies segment.

There were no goodwill and indefinite-lived intangible asset impairment charges recorded for the year ended December 31, 2022.

The impairment charges described above are recorded in the Goodwill and intangible asset impairment line within the Consolidated Statements of Operations.
The following is a rollforward of the Company’s goodwill by segment ($ in millions):
Specialty Products & TechnologiesEquipment & ConsumablesTotal
GrossAccumulated Impairment ChargesTotalGrossAccumulated Impairment ChargesTotalGrossAccumulated Impairment ChargesTotal
Balance at December 31, 2023$2,007.0 $(134.5)$1,872.5 $1,497.5 $(77.8)$1,419.7 $3,504.5 $(212.3)$3,292.2 
Impairment charges— (707.8)(707.8)— (252.7)(252.7)— (960.5)(960.5)
Foreign currency translation(54.0)— (54.0)(15.8)— (15.8)(69.8)— (69.8)
Balance at December 31, 2024$1,953.0 $(842.3)$1,110.7 $1,481.7 $(330.5)$1,151.2 $3,434.7 $(1,172.8)$2,261.9 
Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful life. During the year ended December 31, 2024, the Company recorded an impairment charge of $92.2 million related to developed technology and customer relationships within the Equipment & Consumables segment. The reduction in value was primarily due to a reduction in projected cash flows due to the factors discussed above. There were no finite-lived intangible assets impairment charges recorded for the years ended December 31, 2023 and 2022.

The following summarizes the gross carrying value, accumulated amortization and accumulated impairment losses, for each major category of intangible asset ($ in millions):
As of December 31, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Accumulated Impairment LossesNet Carrying Amount
Finite-lived intangibles:
Patents and technology$376.0 $(235.6)$(87.2)$53.2 
Customer relationships and other intangibles881.6 (714.9)(5.0)161.7 
Trademarks and trade names189.3 (90.9)— 98.4 
Total finite-lived intangibles1,446.9 (1,041.4)(92.2)313.3 
Indefinite-lived intangibles:
Trademarks and trade names483.7 — (147.1)336.6 
Total intangibles$1,930.6 $(1,041.4)$(239.3)$649.9 

As of December 31, 2023
Gross
Carrying
Amount		Accumulated
Amortization		Accumulated Impairment LossesNet Carrying Amount
Finite-lived intangibles:
Patents and technology$439.5 $(269.1)$— $170.4 
Customer relationships and other intangibles928.1 (706.9)— 221.2 
Trademarks and trade names225.5 (115.8)— 109.7 
Total finite-lived intangibles1,593.1 (1,091.8)— 501.3 
Indefinite-lived intangibles:
Trademarks and trade names498.7 — (46.0)452.7 
Total intangibles$2,091.8 $(1,091.8)$(46.0)$954.0 
Total intangible amortization expense in 2024, 2023 and 2022 was $82.3 million, $99.6 million and $106.0 million, respectively. Based on the intangible assets recorded as of December 31, 2024, amortization expense is estimated as follows for the next five years and thereafter ($ in millions):
Years Ending December 31,
2025$72.2 
202658.9
202748.7
202846.9
202917.8
Thereafter68.8 
$313.3