GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 27, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 27, 2025 were as follows:


	December 31, 2024		Goodwill Resulting from Business Combinations (1)		Foreign Currency Translation		September 27, 2025
HVAC reportable segment
Gross goodwill	$	907.3	$	80.5	$	20.5	$	1,008.3
Accumulated impairments	(326.6)		—		(10.1)		(336.7)
Goodwill	580.7		80.5		10.4		671.6

Detection and Measurement reportable segment
Gross goodwill	426.6		102.8		10.8		540.2
Accumulated impairments	(172.8)		—		(3.0)		(175.8)
Goodwill	253.8		102.8		7.8		364.4

Total
Gross goodwill	1,333.9		183.3		31.3		1,548.5
Accumulated impairments	(499.4)		—		(13.1)		(512.5)
Goodwill	$	834.5	$	183.3	$	18.2	$	1,036.0

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(1)Reflects (i) goodwill acquired with the KTS and Sigma & Omega acquisitions of $102.8 and $75.3, respectively, 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 and Sigma & Omega acquisitions 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 September 27, 2025 and December 31, 2024 comprised the following:


	September 27, 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	$	555.8	$	(138.1)	$	417.7	$	421.1	$	(103.3)	$	317.8
Technology	273.2		(58.2)		215.0		181.7		(41.3)		140.4
Patents	4.5		(4.5)		—		4.5		(4.5)		—
Other	100.5		(66.9)		33.6		71.0		(45.7)		25.3
	934.0		(267.7)		666.3		678.3		(194.8)		483.5
Trademarks with indefinite lives	222.0		—		222.0		219.5		—		219.5
Total	$	1,156.0	$	(267.7)	$	888.3	$	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 customer backlog of $7.3. The gross carrying value of identifiable intangible assets acquired with the Sigma & Omega acquisition consist of customer relationships of $56.3, customer backlog of $8.9, technology of $8.5, and definite-lived trademarks of $3.9.

In connection with the acquisitions of KTS and Sigma & Omega, which have definite-lived intangible assets as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $90.0 for the full year 2025, $73.0 for 2026, and $70.0 for each of the three years thereafter.

At September 27, 2025, the net carrying value of intangible assets with determinable lives consisted of $423.4 in the HVAC reportable segment and $242.9 in the Detection and Measurement reportable segment. At September 27, 2025, trademarks with indefinite lives consisted of $157.1 in the HVAC reportable segment and $64.9 in the Detection and Measurement reportable segment.

We review goodwill and indefinite-lived intangible assets for impairment annually during the 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 Sigma & Omega, KTS and Ingénia acquisitions approximate their respective carrying values. If Sigma & Omega, KTS or 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 September 27, 2025, Sigma & Omega, KTS and Ingénia's goodwill totaled $75.2, $102.8 and $138.2, 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 September 27, 2025, ASPEQ’s trademarks totaled $51.5.