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GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended
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Mar. 29, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the three months ended March 29, 2025 were as follows:
| December 31, 2024 |  |  |  | Goodwill Resulting from Business Combinations (1) |  |  |  |  |  | Foreign Currency Translation |  | March 29, 2025
HVAC reportable segment |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | $ | 907.3 |  |  |  |  | $ | 5.2 |  |  |  |  |  |  | $ | 5.8 |  |  | $ | 918.3 |
Accumulated impairments | (326.6) |  |  |  |  | — |  |  |  |  |  |  | (3.0) |  |  | (329.6) |
Goodwill | 580.7 |  |  |  |  | 5.2 |  |  |  |  |  |  | 2.8 |  |  | 588.7 |
Detection and Measurement reportable segment |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | 426.6 |  |  |  |  | 105.0 |  |  |  |  |  |  | 3.7 |  |  | 535.3 |
Accumulated impairments | (172.8) |  |  |  |  | — |  |  |  |  |  |  | (1.2) |  |  | (174.0) |
Goodwill | 253.8 |  |  |  |  | 105.0 |  |  |  |  |  |  | 2.5 |  |  | 361.3 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | 1,333.9 |  |  |  |  | 110.2 |  |  |  |  |  |  | 9.5 |  |  | 1,453.6 |
Accumulated impairments | (499.4) |  |  |  |  | — |  |  |  |  |  |  | (4.2) |  |  | (503.6) |
Goodwill | $ | 834.5 |  |  |  |  | $ | 110.2 |  |  |  |  |  |  | $ | 5.3 |  |  | $ | 950.0 |
___________________________ (1)Reflects goodwill acquired with the KTS acquisition of $105.0 and an immaterial acquisition within the HVAC reportable segment. As indicated in Note 1, the acquired assets, including goodwill, and liabilities assumed in the KTS acquisition have been recorded at estimates of fair value and are subject to change upon completion of acquisition accounting. Other Intangibles, Net Identifiable intangible assets at March 29, 2025 and December 31, 2024 comprised the following:
| March 29, 2025 |  | December 31, 2024
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Intangible assets with determinable lives: (1) |  |  |  |  |  |  |  |  |  |  |
Customer relationships and contracts | $ | 496.0 |  |  | $ | (113.6) |  |  | $ | 382.4 |  |  | $ | 421.1 |  |  | $ | (103.3) |  |  | $ | 317.8 |
Technology | 262.4 |  |  | (46.3) |  |  | 216.1 |  |  | 181.7 |  |  | (41.3) |  |  | 140.4 |
Patents | 4.5 |  |  | (4.5) |  |  | — |  |  | 4.5 |  |  | (4.5) |  |  | — |
Other | 86.4 |  |  | (51.3) |  |  | 35.1 |  |  | 71.0 |  |  | (45.7) |  |  | 25.3 |
| 849.3 |  |  | (215.7) |  |  | 633.6 |  |  | 678.3 |  |  | (194.8) |  |  | 483.5 |
Trademarks with indefinite lives | 220.3 |  |  | — |  |  | 220.3 |  |  | 219.5 |  |  | — |  |  | 219.5 |
Total | $ | 1,069.6 |  |  | $ | (215.7) |  |  | $ | 853.9 |  |  | $ | 897.8 |  |  | $ | (194.8) |  |  | $ | 703.0 |
___________________________ (1)The gross carrying value of identifiable intangible assets acquired with the KTS acquisition consist of technology of $79.8, customer relationships and contracts of $70.7, definite-lived trademarks of $6.7, and backlog of $7.3. In connection with the acquisition of KTS, which has definite-lived intangible assets as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $76.0 for the full year 2025, $66.0 for 2026, and $63.0 for each of the three years thereafter. At March 29, 2025, the net carrying value of intangible assets with determinable lives consisted of $371.8 in the HVAC reportable segment and $261.8 in the Detection and Measurement reportable segment. At March 29, 2025, trademarks with indefinite lives consisted of $156.6 in the HVAC reportable segment and $63.7 in the Detection and Measurement reportable segment. We review goodwill and indefinite-lived intangible assets for impairment annually during th e fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. In reviewing goodwill and indefinite-lived intangible assets for impairment, we initially perform a qualitative analysis. If there is an indication of impairment, we then perform a quantitative analysis. A significant amount of judgment is involved in determining if an indication of impairment has occurred between annual testing dates. Such indication may include: a significant decline in expected future cash flows; a significant adverse change in legal factors or the business climate; unanticipated competition; and a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit. The fair value of the net assets related to the KTS and Ingénia acquisitions approximate their respective carrying values. If KTS and Ingénia are unable to achieve their current financial forecasts, or there is a change in key assumptions used in the fair value analyses (e.g. projected revenues and profit growth rates, industry price multiples, discount rates, etc.) we may be required to record an impairment charge in a future period related to their goodwill. As of March 29, 2025, KTS and Ingénia's goodwill totaled $105.0 and $134.7, respectively. We perform our annual indefinite-lived trademarks impairment testing during the fourth quarter, or on a more frequent basis, if there are indications of potential impairment. The fair value of these trademarks is based on applying estimated royalty rates to projected revenues, with resulting cash flows discounted at a rate of return that reflects current market conditions (fair value based on unobservable inputs - Level 3, as defined in Note 17). The primary basis for these projected revenues is the annual operating plan for each of the related businesses, which is prepared in the fourth quarter of each year. During the fourth quarter of 2024, in connection with the 2024 annual trademark impairment analyses, we determined that the implied value of ASPEQ’s trademarks approximated their carrying value. If ASPEQ is unable to achieve its current revenue forecast, or there is a change in assumptions used in ASPEQ’s analysis (e.g., projected revenues and discount rates, etc.), we may be required to record an impairment charge in a future period related to its trademarks. As of March 29, 2025, ASPEQ’s trademarks totaled $51.5.

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