Goodwill and Purchased Intangible Assets

3 Months Ended

Mar. 31, 2023

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 Hinowa on January 31, 2023. The goodwill and intangible values related to the Hinowa acquisition are based on management’s best estimates as of March 31, 2023. See Note 1 of the Condensed Consolidated Financial Statements for additional information.

The following table presents changes in goodwill during the three months ended March 31, 2023 (in millions):

	Access		Defense		Vocational		Total
Net goodwill at December 31, 2022	$	865.8	$	44.4	$	131.8	$	1,042.0
Foreign currency translation		1.7		—		—		1.7
Acquisition		85.5		—		—		85.5
Net goodwill at March 31, 2023	$	953.0	$	44.4	$	131.8	$	1,129.2

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

	March 31, 2023							December 31, 2022
	Gross		Accumulated Impairment			Net		Gross		Accumulated Impairment			Net
Access	$	1,885.1	$	(932.1	)	$	953.0	$	1,797.9	$	(932.1	)	$	865.8
Defense		44.4		—			44.4		44.4		—			44.4
Vocational		301.2		(169.4	)		131.8		303.5		(171.7	)		131.8
	$	2,230.7	$	(1,101.5	)	$	1,129.2	$	2,145.8	$	(1,103.8	)	$	1,042.0

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

	March 31, 2023
	Weighted- Average Life		Gross		Accumulated Amortization			Net
Amortizable intangible assets:
Distribution network		39.2	$	55.3	$	(37.3	)	$	18.0
Technology-related		11.7		137.7		(102.4	)		35.3
Customer relationships		12.5		601.8		(559.2	)		42.6
Other		10.3		44.2		(16.9	)		27.3
		14.0		839.0		(715.8	)		123.2
Non-amortizable trade names				412.9		—			412.9
			$	1,251.9	$	(715.8	)	$	536.1

	December 31, 2022
	Weighted- Average Life		Gross		Accumulated Amortization			Net
Amortizable intangible assets:
Distribution network		39.2	$	55.3	$	(37.0	)	$	18.3
Technology-related		12.0		108.3		(104.4	)		3.9
Customer relationships		12.6		576.6		(557.3	)		19.3
Other		10.9		50.2		(22.1	)		28.1
		14.2		790.4		(720.8	)		69.6
Non-amortizable trade names				387.4		—			387.4
			$	1,177.8	$	(720.8	)	$	457.0

The estimated future amortization expense of purchased intangible assets for the remainder of fiscal 2023 and each of the five years succeeding December 31, 2023 are as follows: 2023 (remaining nine months) - $9.7 million; 2024 - $12.7 million; 2025 - $12.6 million; 2026 - $12.6 million; 2027 - $12.6 million; and 2028 - $10.1 million.