Acquisitions, Goodwill And Other Intangible Assets

3 Months Ended

Mar. 31, 2025

Acquisitions, Goodwill And Other Intangible Assets [Abstract]

Acquisitions, Goodwill And Other Intangible Assets

ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

Subsequent Event

Freedman Seating Company

In April 2025, the Company acquired substantially all of the business assets of Freedman Seating Company, a manufacturer of transportation seating solutions to the bus, rail, marine, delivery truck, and specialty and commercial vehicle markets. The purchase price was approximately $78.7 million, subject to customary adjustments related to working capital and indebtedness. The results of the acquired business will be included primarily in the OEM segment.

Acquisitions Completed During the Three Months Ended March 31, 2025

Trans/Air Manufacturing Corporation

In March 2025, the Company acquired substantially all of the business assets of Trans/Air Manufacturing Corporation, a manufacturer of climate control systems for the school, commercial, and electric/hybrid vehicle markets. The Company paid $29.6 million in cash consideration at closing with contingent consideration up to a maximum of $2.0 million. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the OEM segment. As this acquisition is not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented.

Goodwill

Changes in the carrying amount of goodwill by reportable segment were as follows:

(In thousands)	OEM Segment		Aftermarket Segment		Total
Net balance – December 31, 2024	$	418,220	$	167,553	$	585,773
Acquisitions	218		—		218
Foreign currency translation	3,707		506		4,213
Net balance – March 31, 2025	$	422,145	$	168,059	$	590,204

Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist.

Other Intangible Assets

Other intangible assets consisted of the following at March 31, 2025:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	518,072	$	237,189	$	280,883	6	to	20
Patents	110,127		72,183		37,944		3	to	20
Trade names (finite life)	97,566		30,895		66,671		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	5,154		4,793		361		3	to	6
Other	609		345		264		2	to	12
Other intangible assets	$	738,960	$	345,405	$	393,555

Other intangible assets consisted of the following at December 31, 2024:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	508,945	$	228,332	$	280,613	6	to	20
Patents	111,934		74,010		37,924		3	to	20
Trade names (finite life)	95,879		30,524		65,355		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	5,154		4,732		422		3	to	6
Other	609		337		272		2	to	12
Other intangible assets	$	729,953	$	337,935	$	392,018

Acquisitions, Goodwill And Other Intangible Assets

ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

Subsequent Event

Freedman Seating Company

In April 2025, the Company acquired substantially all of the business assets of Freedman Seating Company, a manufacturer of transportation seating solutions to the bus, rail, marine, delivery truck, and specialty and commercial vehicle markets. The purchase price was approximately $78.7 million, subject to customary adjustments related to working capital and indebtedness. The results of the acquired business will be included primarily in the OEM segment.

Acquisitions Completed During the Three Months Ended March 31, 2025

Trans/Air Manufacturing Corporation

In March 2025, the Company acquired substantially all of the business assets of Trans/Air Manufacturing Corporation, a manufacturer of climate control systems for the school, commercial, and electric/hybrid vehicle markets. The Company paid $29.6 million in cash consideration at closing with contingent consideration up to a maximum of $2.0 million. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the OEM segment. As this acquisition is not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented.

Goodwill

Changes in the carrying amount of goodwill by reportable segment were as follows:

(In thousands)	OEM Segment		Aftermarket Segment		Total
Net balance – December 31, 2024	$	418,220	$	167,553	$	585,773
Acquisitions	218		—		218
Foreign currency translation	3,707		506		4,213
Net balance – March 31, 2025	$	422,145	$	168,059	$	590,204

Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist.

Other Intangible Assets

Other intangible assets consisted of the following at March 31, 2025:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	518,072	$	237,189	$	280,883	6	to	20
Patents	110,127		72,183		37,944		3	to	20
Trade names (finite life)	97,566		30,895		66,671		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	5,154		4,793		361		3	to	6
Other	609		345		264		2	to	12
Other intangible assets	$	738,960	$	345,405	$	393,555

Other intangible assets consisted of the following at December 31, 2024:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	508,945	$	228,332	$	280,613	6	to	20
Patents	111,934		74,010		37,924		3	to	20
Trade names (finite life)	95,879		30,524		65,355		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	5,154		4,732		422		3	to	6
Other	609		337		272		2	to	12
Other intangible assets	$	729,953	$	337,935	$	392,018