Goodwill and Intangible Assets

12 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

Goodwill

The Company allocates goodwill to reporting units within its Engine Products and Industrial Products segments. There were no dispositions or impairment charges recorded during the years ended July 31, 2022, 2021 and 2020.

Goodwill by reportable segment was as follows (in millions):

	Engine Products Segment		Industrial Products Segment		Total
Balance as of July 31, 2020	$	84.8	$	232.0	$	316.8
Goodwill acquired	—		—		—
Foreign currency translation	(0.1)		5.8		5.7
Balance as of July 31, 2021	84.7		237.8		322.5
Goodwill acquired	—		42.8		42.8
Foreign currency translation	(1.0)		(18.5)		(19.5)
Balance as of July 31, 2022	$	83.7	$	262.1	$	345.8

Intangible Assets

Preliminary intangible assets recognized from the Purilogics acquisition were $29.9 million, of which $28.6 million was technology with a 20 year useful life, trademarks and tradenames were $0.7 million with a 10 year useful life and non-competition agreements were $0.6 million with a five year useful life.

Intangible assets recognized from other acquisitions were $23.8 million, of which technology was $17.3 million with a 15 year useful life, trademarks and tradenames were $3.3 million with a 10 year useful life, customer relationships were $3.0 million with a 20 year useful life and backlog was $0.2 million with a six month useful life.

The weighted average useful lives for customer relationships and patents, trademarks and technology were 11.4 and 19.6 years, respectively, as of July 31, 2022.

Intangible asset classes were as follows (in millions):

	Customer Relationships						Patents, Trademarks and Technology
	Gross Carrying Amount		Accumulated Amortization		Total Net Value		Gross Carrying Amount		Accumulated Amortization		Total Net Value		Total
Balance as of July 31, 2020	$	105.2	$	(50.0)	$	55.2	$	23.7	$	(11.6)	$	12.1	$	67.3
Intangible assets acquired	—		—		—		—		—		—		—
Amortization expense	—		(6.1)		(6.1)		—		(2.1)		(2.1)		(8.2)
Foreign currency translation	2.3		(0.3)		2.0		0.6		(0.1)		0.5		2.5
Balance as of July 31, 2021	107.5		(56.4)		51.1		24.3		(13.8)		10.5		61.6
Intangible assets acquired	3.2		—		3.2		50.5		—		50.5		53.7
Amortization expense	—		(6.0)		(6.0)		—		(3.2)		(3.2)		(9.2)
Foreign currency translation	(6.1)		2.1		(4.0)		(2.9)		0.6		(2.3)		(6.3)
Balance as of July 31, 2022	$	104.6	$	(60.3)	$	44.3	$	71.9	$	(16.4)	$	55.5	$	99.8

Amortization expense is included in operating expenses in the Consolidated Statements of Earnings. Amortization expense relating to existing intangible assets as of July 31, 2022 was as follows (in millions):

2023	$	8.9
2024	8.5
2025	8.4
2026	8.1
2027	7.8
Thereafter	58.1
Total amortization expense	$	99.8