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Goodwill and Purchased Intangible Assets
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Purchased Intangible Assets

12. 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.

The following table presents changes in goodwill during the three months ended March 31, 2024 (in millions):

 

Access

 

 

Defense

 

 

Vocational

 

 

Total

 

Net goodwill at December 31, 2023

 

$

979.9

 

 

$

44.4

 

 

$

392.1

 

 

$

1,416.4

 

Foreign currency translation

 

 

(7.0

)

 

 

—

 

 

 

—

 

 

 

(7.0

)

Net goodwill at March 31, 2024

 

$

972.9

 

 

$

44.4

 

 

$

392.1

 

 

$

1,409.4

 

 

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

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

Gross

 

 

Accumulated
Impairment

 

 

Net

 

 

Gross

 

 

Accumulated
Impairment

 

 

Net

 

Access

 

$

1,905.0

 

 

$

(932.1

)

 

$

972.9

 

 

$

1,912.0

 

 

$

(932.1

)

 

$

979.9

 

Defense

 

 

44.4

 

 

 

—

 

 

 

44.4

 

 

 

44.4

 

 

 

—

 

 

 

44.4

 

Vocational

 

 

561.5

 

 

 

(169.4

)

 

 

392.1

 

 

 

561.5

 

 

 

(169.4

)

 

 

392.1

 

 

 

$

2,510.9

 

 

$

(1,101.5

)

 

$

1,409.4

 

 

$

2,517.9

 

 

$

(1,101.5

)

 

$

1,416.4

 

 

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

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

Gross

 

 

Accumulated
Amortization

 

 

Net

 

 

Gross

 

 

Accumulated
Amortization

 

 

Net

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

818.8

 

 

$

(582.1

)

 

$

236.7

 

 

$

819.5

 

 

$

(574.6

)

 

$

244.9

 

Trade names

 

 

118.1

 

 

 

(10.6

)

 

 

107.5

 

 

 

118.6

 

 

 

(7.5

)

 

 

111.1

 

Technology-related

 

 

165.8

 

 

 

(110.6

)

 

 

55.2

 

 

 

166.5

 

 

 

(108.2

)

 

 

58.3

 

Distribution network

 

 

55.3

 

 

 

(38.7

)

 

 

16.6

 

 

 

55.3

 

 

 

(38.4

)

 

 

16.9

 

Other

 

 

37.5

 

 

 

(27.3

)

 

 

10.2

 

 

 

37.5

 

 

 

(25.2

)

 

 

12.3

 

 

 

 

1,195.5

 

 

 

(769.3

)

 

 

426.2

 

 

 

1,197.4

 

 

 

(753.9

)

 

 

443.5

 

Non-amortizable trade names

 

 

386.6

 

 

 

—

 

 

 

386.6

 

 

 

386.7

 

 

 

—

 

 

 

386.7

 

 

 

$

1,582.1

 

 

$

(769.3

)

 

$

812.8

 

 

$

1,584.1

 

 

$

(753.9

)

 

$

830.2

 

Amortization of purchased intangible assets was $15.6 million (including $2.1 million that was recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) for the three months ended March 31, 2024. The estimated future amortization expense of purchased intangible assets for the remainder of 2024 and each of the five years succeeding December 31, 2024 is as follows: 2024 (remaining nine months) - $46.8 million; 2025 - $54.0 million; 2026 - $51.2 million; 2027 - $51.2 million; 2028 - $46.4 million; and 2029 - $42.9 million.