Goodwill & Intangibles

9 Months Ended

Sep. 29, 2024

Goodwill & Intangibles

Goodwill & Intangibles

5. 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		2024 -
	January 1,		the		September 29,		January 1,		Loss During		September 29,		September 29,		September 29,
	2024		Period		2024		2024		the Period		2024		2024		2024
	(in millions)
Americas	$	587.1	$	31.5	$	618.6	$	(24.5)	$	—	$	(24.5)	$	(0.2)	$	593.9
Europe		239.8		—		239.8		(129.7)		—		(129.7)		1.2		111.3
APMEA		33.2		—		33.2		(12.9)		—		(12.9)		—		20.3
Total	$	860.1	$	31.5	$	891.6	$	(167.1)	$	—	$	(167.1)	$	1.0	$	725.5

During the first nine months of 2024, the Company completed the acquisition of Josam, resulting in $35.5 million of goodwill, and adjustments to the purchase price allocation of Bradley, resulting in a $4.0 million reduction in goodwill, both within the Americas region. The final working capital adjustments for the two acquisitions were completed in the second quarter of 2024.

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 2023, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all of its reporting units with goodwill at the impairment test date. The Company concluded that the fair value of all reporting units tested exceeded their carrying values at that time.

Intangible assets include the following:

	September 29, 2024						December 31, 2023
	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		252.2		(96.8)		155.4		218.0		(85.3)		132.7
Technology		53.2		(47.0)		6.2		53.2		(44.2)		9.0
Trade names		20.8		(12.7)		8.1		20.8		(12.3)		8.5
Other		1.1		(0.8)		0.3		1.1		(0.7)		0.4
Total amortizable intangibles		332.3		(162.3)		170.0		298.1		(147.5)		150.6
Indefinite-lived intangible assets		71.5		—		71.5		65.5		—		65.5
	$	403.8	$	(162.3)	$	241.5	$	363.6	$	(147.5)	$	216.1

In the first quarter of 2024, the Company acquired $39.4 million in intangible assets as part of the Josam acquisition, consisting of customer relationships valued at $33.5 million, with an estimated useful life of 15 years, and an indefinite-lived trade name of $5.9 million. Aggregate amortization expense for amortized intangible assets for the third quarters ended September 29, 2024 and September 24, 2023 was $5.1 million and $3.0 million, respectively, and for the first nine months of 2024 and 2023 was $14.9 million and $9.0 million, respectively.