Goodwill and Purchased Intangible Assets

9 Months Ended

Sep. 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 for the nine months ended September 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		42.8		0.2		—			43.0
Net goodwill at September 30, 2025	$	1,053.8	$	393.6	$	—		$	1,447.4

The following table presents details of the Company’s goodwill by segment (in millions):


	September 30, 2025							December 31, 2024
	Gross		Accumulated Impairment			Net		Gross		Accumulated Impairment			Net
Access	$	1,985.9	$	(932.1	)	$	1,053.8	$	1,943.1	$	(932.1	)	$	1,011.0
Vocational		563.0		(169.4	)		393.6		562.8		(169.4	)		393.4
Corporate and other		44.4		(44.4	)		—		44.4		(38.7	)		5.7
	$	2,593.3	$	(1,145.9	)	$	1,447.4	$	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 nine months ended September 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):


	September 30, 2025							December 31, 2024
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Amortizable intangible assets:
Customer relationships	$	835.6	$	(630.3	)	$	205.3	$	829.8	$	(604.6	)	$	225.2
Trade names		120.2		(22.9	)		97.3		120.2		(19.3	)		100.9
Technology-related		163.7		(117.3	)		46.4		158.9		(107.4	)		51.5
Distribution network		55.3		(40.8	)		14.5		55.3		(39.8	)		15.5
Other		2.3		(1.2	)		1.1		33.1		(27.4	)		5.7
		1,177.1		(812.5	)		364.6		1,197.3		(798.5	)		398.8
Non-amortizable trade names		378.8		—			378.8		378.8		—			378.8
	$	1,555.9	$	(812.5	)	$	743.4	$	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 nine months ended September 30, 2024.

Amortization of purchased intangible assets was $13.9 million and $15.4 million (including $2.0 million recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) for the three months ended September 30, 2025 and 2024, respectively, and $45.8 million (including $4.6 million recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) and $46.7 million (including $6.2 million recognized in "Cost of sales" in the Condensed Consolidated Statements of Income) for the nine months ended September 30, 2025 and 2024, respectively.

Estimated future amortization expense for purchased intangible assets is as follows (in millions):


Years:
2025 (remaining three months)	$	14.5
2026		55.7
2027		55.7
2028		51.4
2029		47.1
2030		45.6