Goodwill & Intangibles

9 Months Ended

Sep. 25, 2022

Goodwill & Intangibles

Goodwill & Intangibles

4. Goodwill & Intangibles

The Company operates in three geographic segments: Americas, Europe, and APMEA. The changes in the carrying amount of goodwill by geographic segment are as follows:

	Gross Balance						Accumulated Impairment Losses						Foreign Currency Translation		Net Goodwill
			Acquired										January 1,
	Balance		During		Balance		Balance		Impairment		Balance		2022 -
	January 1,		the		September 25,		January 1,		Loss During		September 25,		September 25,		September 25,
	2022		Period		2022		2022		the Period		2022		2022		2022
	(in millions)
Americas	$	490.9	$	—	$	490.9	$	(24.5)	$	—	$	(24.5)	$	(0.5)	$	465.9
Europe		242.9		—		242.9		(129.7)		—		(129.7)		(15.0)		98.2
APMEA		34.0		—		34.0		(12.9)		—		(12.9)		(2.7)		18.4
Total	$	767.8	$	—	$	767.8	$	(167.1)	$	—	$	(167.1)	$	(18.2)	$	582.5

Goodwill and indefinite-lived intangible assets are tested for impairment at least annually or more frequently if events or circumstances indicate that it is “more likely than not” that they might be impaired, such as from a change in business conditions. The Company performs its annual goodwill and indefinite-lived intangible assets impairment assessment in the fourth quarter of each year. At the most recent annual impairment test which occurred in the fourth quarter of 2021, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all seven of its reporting units. The Company concluded that the fair value of all seven reporting units exceeded their carrying values at that time.

Intangible assets include the following:

	September 25, 2022						December 31, 2021
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
	(in millions)
Patents	$	16.0	$	(16.0)	$	—	$	16.1	$	(16.1)	$	—
Customer relationships		235.2		(177.2)		58.0		237.5		(173.1)		64.4
Technology		56.6		(42.9)		13.7		58.6		(40.7)		17.9
Trade names		25.9		(17.0)		8.9		26.8		(16.9)		9.9
Other		4.2		(3.7)		0.5		4.3		(3.8)		0.5
Total amortizable intangibles		337.9		(256.8)		81.1		343.3		(250.6)		92.7
Indefinite-lived intangible assets		33.8		—		33.8		35.9		—		35.9
	$	371.7	$	(256.8)	$	114.9	$	379.2	$	(250.6)	$	128.6

Aggregate amortization expense for amortized intangible assets for the third quarters ended September 25, 2022 and September 26, 2021 was $3.0 million and $3.2 million, respectively, and for the first nine months of 2022 and 2021 was $9.1 million and $10.5 million, respectively.