XML 28 R21.htm IDEA: XBRL DOCUMENT
v3.25.2

Goodwill and Purchased Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Purchased Intangible Assets | 12. Goodwill and Purchased Intangible Assets The following table presents changes in goodwill by segment during the six months ended June 30, 2025 (in millions):
|  | Access |  |  | Vocational |  |  | Corporate and Other |  |  | Total |
Net goodwill at December 31, 2024 |  | $ | 1,011.0 |  |  | $ | 393.4 |  |  | $ | 5.7 |  |  | $ | 1,410.1 |
Impairment |  |  | — |  |  |  | — |  |  |  | (5.7 | ) |  |  | (5.7 | )
Foreign currency translation |  |  | 44.4 |  |  |  | 0.4 |  |  |  | — |  |  |  | 44.8 |
Net goodwill at June 30, 2025 |  | $ | 1,055.4 |  |  | $ | 393.8 |  |  | $ | — |  |  | $ | 1,449.2 |
The following table presents details of the Company’s goodwill by segment (in millions):
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | Gross |  |  | Accumulated Impairment |  |  | Net |  |  | Gross |  |  | Accumulated Impairment |  |  | Net |
Access |  | $ | 1,987.5 |  |  | $ | (932.1 | ) |  | $ | 1,055.4 |  |  | $ | 1,943.1 |  |  | $ | (932.1 | ) |  | $ | 1,011.0 |
Vocational |  |  | 563.2 |  |  |  | (169.4 | ) |  |  | 393.8 |  |  |  | 562.8 |  |  |  | (169.4 | ) |  |  | 393.4 |
Corporate and other |  |  | 44.4 |  |  |  | (44.4 | ) |  |  | — |  |  |  | 44.4 |  |  |  | (38.7 | ) |  |  | 5.7 |
|  | $ | 2,595.1 |  |  | $ | (1,145.9 | ) |  | $ | 1,449.2 |  |  | $ | 2,550.3 |  |  | $ | (1,140.2 | ) |  | $ | 1,410.1 |
Goodwill and other indefinite-lived intangible assets are not amortized but are assessed 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 Company recorded goodwill impairment charges of $5.7 million and $38.7 million for the three months ended June 30, 2025 and 2024, respectively. Impairment charges are recorded within "Intangible asset impairments" in the Condensed Consolidated Statement of Income. During the second quarter of 2024, the Company recorded an impairment charge related to Pratt Miller goodwill as a result of unfavorable performance compared to forecast and adverse market conditions related to mobility and motorsports. During the second quarter of 2025, the Company impaired the remaining Pratt Miller goodwill as changes to royalties expected on defense contracts led to a further decline in the Company's expectations of future performance. A combination of the income and market approaches were used to calculate the fair values of the reporting unit, weighted consistently with the Company’s annual impairment test. Details of the Company’s purchased intangible assets are as follows (in millions):
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | Gross |  |  | Accumulated Amortization |  |  | Net |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 835.9 |  |  | $ | (622.2 | ) |  | $ | 213.7 |  |  | $ | 829.8 |  |  | $ | (604.6 | ) |  | $ | 225.2 |
Trade names |  |  | 120.4 |  |  |  | (20.5 | ) |  |  | 99.9 |  |  |  | 120.2 |  |  |  | (19.3 | ) |  |  | 100.9 |
Technology-related |  |  | 164.0 |  |  |  | (114.5 | ) |  |  | 49.5 |  |  |  | 158.9 |  |  |  | (107.4 | ) |  |  | 51.5 |
Distribution network |  |  | 55.3 |  |  |  | (40.4 | ) |  |  | 14.9 |  |  |  | 55.3 |  |  |  | (39.8 | ) |  |  | 15.5 |
Other |  |  | 2.3 |  |  |  | (1.2 | ) |  |  | 1.1 |  |  |  | 33.1 |  |  |  | (27.4 | ) |  |  | 5.7 |
|  |  | 1,177.9 |  |  |  | (798.8 | ) |  |  | 379.1 |  |  |  | 1,197.3 |  |  |  | (798.5 | ) |  |  | 398.8 |
Non-amortizable trade names |  |  | 378.8 |  |  |  | — |  |  |  | 378.8 |  |  |  | 378.8 |  |  |  | — |  |  |  | 378.8 |
|  | $ | 1,556.7 |  |  | $ | (798.8 | ) |  | $ | 757.9 |  |  | $ | 1,576.1 |  |  | $ | (798.5 | ) |  | $ | 777.6 |
In the second quarter of 2024, Pratt Miller's purchased intangibles were assessed for impairment. As a result of the assessments, the Company recorded impairment charges of $8.8 million related to the trade name and $4.1 million related to the customer relationship within "Intangible asset impairments" in the Condensed Consolidated Statement of Income during the three months ended June 30, 2024. Amortization of purchased intangible assets was $15.5 million and $15.7 million (including $1.7 million and $2.1 million recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) for the three months ended June 30, 2025 and 2024, respectively, and $31.9 million and $31.3 million (including $4.6 million and $4.2 million recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) for the six months ended June 30, 2025 and 2024, respectively. Estimated future amortization expense for purchased intangible assets is as follows (in millions):
Years: |  |  |
2025 (remaining six months) |  | $ | 28.5 |
2026 |  |  | 55.8 |
2027 |  |  | 55.8 |
2028 |  |  | 51.5 |
2029 |  |  | 47.2 |
2030 |  |  | 45.7 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration