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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 9 - Goodwill and Other Intangible Assets Goodwill: The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually, performing its annual impairment test as of October 1 st. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Engineered Bearings segment has one reporting unit and the Industrial Motion segment has six reporting units. During the first quarter of 2023, the Company reviewed goodwill for impairment for its reporting units due to the change in segment reporting that went into effect January 1, 2023. The Company utilizes both an income approach and a market approach in testing goodwill for impairment. The Company utilized updated forecasts for the income approach as part of the goodwill impairment review. Based on the earnings and cash flow forecasts for the Belts and Chain reporting unit within the Industrial Motion segment, the Company determined that the reporting unit could not support the carrying value of its goodwill. As a result, the Company recorded a pretax impairment loss of $28.3 million during the first quarter of 2023, which was reported in impairment and restructuring charges on the Consolidated Statement of Income. During the fourth quarter of 2024, the Company recorded an additional goodwill impairment loss of $1.5 million for the Belts and Chain reporting unit, bringing their goodwill balance to zero. This impairment loss is reported in impairment and restructuring charges on the Consolidated Statements of Income. Changes in the carrying value of goodwill were as follows: Year ended December 31, 2024:
| Engineered Bearings | Industrial Motion | Total
Beginning Balance | $ | 692.3 |  | $ | 677.3 |  | $ | 1,369.6 |
Acquisitions | — |  | 61.4 |  | 61.4 |
Measurement period adjustments related to 2023 acquisitions | 6.0 |  | 0.4 |  | 6.4 |
Impairment loss | — |  | (1.5) |  | (1.5) |
Foreign currency translation adjustments and other changes | (6.3) |  | (46.3) |  | (52.6) |
Ending Balance | $ | 692.0 |  | $ | 691.3 |  | $ | 1,383.3 |
Note 9 - Goodwill and Other Intangible Assets (continued) The acquisition of CGI added goodwill of $61.4 million in 2024. Goodwill arising from this acquisition is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated by combining the companies. The goodwill related to CGI is not deductible for tax purposes. Year ended December 31, 2023:
| Engineered Bearings | Industrial Motion | Total
Beginning Balance | $ | 679.8 |  | $ | 418.5 |  | $ | 1,098.3 |
Acquisitions | 13.2 |  | 272.4 |  | 285.6 |
Impairment loss | — |  | (28.3) |  | (28.3) |
Foreign currency translation adjustments and other changes | (0.7) |  | 14.7 |  | 14.0 |
Ending Balance | $ | 692.3 |  | $ | 677.3 |  | $ | 1,369.6 |
The acquisitions of Lagersmit, iMECH, Rosa, Des-Case, Nadella and ARB added goodwill of $58.5 million, $12.8 million, $6.5 million, $78.9 million, $128.5 million and $0.4 million, respectively, in 2023. Goodwill arising from these acquisitions is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated by combining the companies. The goodwill related to iMECH and ARB is deductible for tax purposes and will be amortized over 15 years. For the other 2023 acquisitions, goodwill is not deductible for tax purposes. No material goodwill impairment losses were recorded in 2022. Intangible Assets: The following table displays intangible assets as of December 31, 2024 and 2023:
| 2024 | 2023
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount
Intangible assets subject to amortization: |  |  |  |  |  |
Customer relationships | $ | 805.7 |  | $ | (262.9) |  | $ | 542.8 |  | $ | 776.5 |  | $ | (222.8) |  | $ | 553.7 |
Technology and know-how | 369.6 |  | (120.4) |  | 249.2 |  | 343.3 |  | (100.9) |  | 242.4 |
Trade names | 107.5 |  | (16.9) |  | 90.6 |  | 71.3 |  | (11.2) |  | 60.1 |
Capitalized Software | 302.8 |  | (276.1) |  | 26.7 |  | 299.5 |  | (272.8) |  | 26.7 |
Other | 11.0 |  | (9.8) |  | 1.2 |  | 10.8 |  | (8.7) |  | 2.1 |
| $ | 1,596.6 |  | $ | (686.1) |  | $ | 910.5 |  | $ | 1,501.4 |  | $ | (616.4) |  | $ | 885.0 |
Intangible assets not subject to amortization: |  |  |  |  |  |
Trade names | $ | 87.3 |  |  | $ | 87.3 |  | $ | 137.7 |  |  | $ | 137.7 |
FAA air agency certificates | 8.7 |  |  | 8.7 |  | 8.7 |  |  | 8.7 |
| $ | 96.0 |  |  | $ | 96.0 |  | $ | 146.4 |  |  | $ | 146.4 |
Total intangible assets | $ | 1,692.6 |  | $ | (686.1) |  | $ | 1,006.5 |  | $ | 1,647.8 |  | $ | (616.4) |  | $ | 1,031.4 |
Intangible assets acquired in 2024 totaled $100.4 million. The intangible assets subject to amortization were assigned useful lives of 15 to 18 years and had a weighted-average amortization of 16.8 years. Amortization expense for intangible assets was $85.5 million, $72.3 million and $50.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense for intangible assets is estimated to be approximately $82 million in 2025, $80 million in 2026, $77 million in 2027, $74 million in 2028 and $71 million in 2029.

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