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Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets . Goodwill and Other Intangible Assets

The Company performs its annual goodwill and indefinite lived assets impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired.

The changes in the carrying amount of goodwill as of March 31, 2022 and December 31, 2021 are summarized as follows:

 

 

 

Americas - Manufacturing

 

 

Americas - Distribution

 

 

MEAP

 

 

Consolidated

 

Balance as of January 1, 2021

 

$

166.5

 

 

$

 

 

$

68.6

 

 

$

235.1

 

Foreign currency impact

 

 

 

 

 

 

 

 

(0.5

)

 

 

(0.5

)

Acquisitions

 

 

 

 

 

15.1

 

 

 

 

 

 

15.1

 

Balance as of December 31, 2021

 

 

166.5

 

 

 

15.1

 

 

 

68.1

 

 

 

249.7

 

Purchase accounting adjustments

 

 

 

 

 

0.4

 

 

 

 

 

 

0.4

 

Foreign currency impact

 

 

 

 

 

 

 

 

0.5

 

 

 

0.5

 

Balance as of March 31, 2022

 

$

166.5

 

 

$

15.5

 

 

$

68.6

 

 

$

250.6

 

During the year ended December 31, 2021, the Company recorded goodwill of approximately $6.6 million and $8.9 million from the acquisitions of Aspen and the H&E crane business, respectively. Management determined the goodwill represents the assembled workforce and synergies between the acquired companies and Manitowoc that are not individually identified and separately recognized. Goodwill related to the acquisitions are subject to change as part of the completion of acquisition accounting. The total goodwill related to the acquisitions is deductible for tax purposes over 15 years. Refer to Note 2, "Business Combinations," for additional information.

The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill as of March 31, 2022 and December 31, 2021 are summarized as follows:

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization
Amount

 

 

Net
Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization
Amount

 

 

Net
Book
Value

 

Definite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

 

26.9

 

 

 

(9.3

)

 

 

17.6

 

 

 

27.0

 

 

 

(9.0

)

 

 

18.0

 

Patents

 

 

29.2

 

 

 

(28.6

)

 

 

0.6

 

 

 

29.7

 

 

 

(29.1

)

 

 

0.6

 

Noncompetition agreements

 

 

4.2

 

 

 

(0.6

)

 

 

3.6

 

 

 

4.2

 

 

 

(0.4

)

 

 

3.8

 

Trademarks and tradenames

 

 

2.2

 

 

 

(0.3

)

 

 

1.9

 

 

 

2.2

 

 

 

(0.1

)

 

 

2.1

 

Other intangibles

 

 

0.6

 

 

 

(0.3

)

 

 

0.3

 

 

 

0.6

 

 

 

(0.2

)

 

 

0.4

 

Total

 

$

63.1

 

 

$

(39.1

)

 

$

24.0

 

 

$

63.7

 

 

$

(38.8

)

 

$

24.9

 

Indefinite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks and tradenames

 

 

94.3

 

 

 

 

 

 

94.3

 

 

 

95.9

 

 

 

 

 

 

95.9

 

Distribution network

 

 

18.6

 

 

 

 

 

 

18.6

 

 

 

18.8

 

 

 

 

 

 

18.8

 

Total

 

 

112.9

 

 

 

 

 

 

112.9

 

 

 

114.7

 

 

 

 

 

 

114.7

 

Total other intangible assets

 

$

176.0

 

 

$

(39.1

)

 

$

136.9

 

 

$

178.4

 

 

$

(38.8

)

 

$

139.6

 

Other intangible assets with definite lives are amortized over their estimated useful lives. Amortization expense for the three months ended March 31, 2022 and 2021 was $0.8 million and $0.1 million, respectively.

As a result of the acquisition of Aspen during the year ended December 31, 2021, intangible assets of approximately $2.2 million for customer relationships, $2.2 million for tradenames, $0.8 million for other intangibles and $0.2 million for a noncompetition agreement were acquired. The useful life for each intangible asset class is 18 years, 5 years, 9 months and 5 years, respectively. The weighted average useful life for acquired intangibles is 3.2 years. The fair value of identifiable intangible assets has been determined using the income approach which involves significant unobservable inputs.

As a result of the acquisition of the H&E crane business during the year ending December 31, 2021, intangible assets of approximately $15.1 million for customer relationships and $3.8 million for a noncompetition agreement were acquired. The useful life for each intangible asset class is 12 years and 5 years, respectively. The weighted average useful life for the acquired intangibles is 9.4 years. The fair value of identifiable intangible assets has been determined using the income approach which involves significant unobservable inputs.

Definite lived intangible assets and long-lived assets are subject to impairment testing whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The Company determined there was not a triggering event for the three months ended March 31, 2022.