Goodwill and Purchased Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

10.Goodwill and Purchased Intangible Assets

Goodwill and other indefinite-lived intangible assets are not amortized but are reviewed for impairment annually or more frequently if potential interim indicators exist that could result in impairment. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The Company acquired Maxi-Metal on June 13, 2022. The goodwill and intangible values related to the Maxi-Metal acquisition are preliminary. See Note 1 of the Condensed Consolidated Financial Statements for additional information.

The following table presents changes in goodwill during the six months ended June 30, 2022 (in millions):

	Access Equipment			Defense		Fire & Emergency		Commercial		Total
Net goodwill at December 31, 2021	$	877.6		$	44.4	$	106.1	$	20.9	$	1,049.0
Foreign currency translation		(14.9	)		—		—		—		(14.9	)
Acquisition		—			—		8.9		—		8.9
Net goodwill at June 30, 2022	$	862.7		$	44.4	$	115.0	$	20.9	$	1,043.0

The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions):

	June 30, 2022							December 31, 2021
	Gross		Accumulated Impairment			Net		Gross		Accumulated Impairment			Net
Access Equipment	$	1,794.8	$	(932.1	)	$	862.7	$	1,809.7	$	(932.1	)	$	877.6
Defense		44.4		—			44.4		44.4		—			44.4
Fire & Emergency		117.0		(2.0	)		115.0		108.1		(2.0	)		106.1
Commercial		188.5		(167.6	)		20.9		188.5		(167.6	)		20.9
	$	2,144.7	$	(1,101.7	)	$	1,043.0	$	2,150.7	$	(1,101.7	)	$	1,049.0

Details of the Company’s total purchased intangible assets are as follows (in millions):

	June 30, 2022
	Weighted- Average Life		Gross		Accumulated Amortization			Net
Amortizable intangible assets:
Distribution network		39.2	$	55.4	$	(36.3	)	$	19.1
Technology-related		12.0		108.3		(104.1	)		4.2
Customer relationships		12.6		572.5		(554.2	)		18.3
Other		12.0		23.5		(20.3	)		3.2
		14.4		759.7		(714.9	)		44.8
Preliminary acquisition amortizable intangible assets		5.0		3.8		—			3.8
		14.4		763.5		(714.9	)		48.6
Non-amortizable trade names				417.0		—			417.0
			$	1,180.5	$	(714.9	)	$	465.6

	December 31, 2021
	Weighted- Average Life		Gross		Accumulated Amortization			Net
Amortizable intangible assets:
Distribution network		39.2	$	55.4	$	(35.6	)	$	19.8
Technology-related		11.9		104.7		(104.0	)		0.7
Customer relationships		12.6		572.6		(551.3	)		21.3
Other		12.1		23.6		(18.5	)		5.1
		14.4		756.3		(709.4	)		46.9
Non-amortizable trade names				417.1		—			417.1
			$	1,173.4	$	(709.4	)	$	464.0

On March 1, 2022, the Company acquired two patents with a combined value of $3.7 million. The technology-related intangible asset is subject to amortization with an estimated life of 14.3 years.

The estimated future amortization expense of purchased intangible assets for the remainder of fiscal 2022 and each of the five years succeeding December 31, 2021 are as follows: 2022 (remaining six months) $6.0 million; 2023 - $6.5 million; 2024 - $5.3 million; 2025 - $5.2 million; 2026 - $5.2 million; and 2027 - $4.8 million.