Goodwill & Intangibles

9 Months Ended

Sep. 24, 2023

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		2023 -
	January 1,		the		September 24,		January 1,		Loss During		September 24,		September 24,		September 24,
	2023		Period		2023		2023		the Period		2023		2023		2023
	(in millions)
Americas	$	490.3	$	—	$	490.3	$	(24.5)	$	—	$	(24.5)	$	—	$	465.8
Europe		236.7		—		236.7		(129.7)		—		(129.7)		(0.8)		106.2
APMEA		32.5		0.6		33.1		(12.9)		—		(12.9)		(1.3)		18.9
Total	$	759.5	$	0.6	$	760.1	$	(167.1)	$	—	$	(167.1)	$	(2.1)	$	590.9

During the second quarter, the Company completed the acquisition of the primary business assets of Enware Australia Pty Ltd (“Enware”) within the APMEA region, resulting in $0.6 million of goodwill. The acquisition of Enware was not considered material to the Company’s consolidated financial statements.

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 2022, 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 24, 2023						December 31, 2022
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
	(in millions)
Patents	$	5.0	$	(5.0)	$	—	$	5.0	$	(5.0)	$	—
Customer relationships		174.8		(124.1)		50.7		175.1		(118.6)		56.5
Technology		53.2		(43.3)		9.9		53.2		(40.5)		12.7
Trade names		20.7		(11.8)		8.9		19.8		(10.8)		9.0
Other		1.1		(0.7)		0.4		1.1		(0.6)		0.5
Total amortizable intangibles		254.8		(184.9)		69.9		254.2		(175.5)		78.7
Indefinite-lived intangible assets		34.9		—		34.9		35.0		—		35.0
	$	289.7	$	(184.9)	$	104.8	$	289.2	$	(175.5)	$	113.7

Aggregate amortization expense for amortized intangible assets for the third quarters ended September 24, 2023 and September 25, 2022 was $3.0 million for both periods, and for the first nine months of 2023 and 2022 was $9.0 million and $9.1 million, respectively.