Goodwill and Indefinite-Lived Intangible Assets

6 Months Ended

Jul. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-Lived Intangible Assets

A summary of the changes in the carrying amount of goodwill, by operating segment, in the six months ended July 2, 2022, is shown below (in millions):


	Seating		E-Systems		Total
Balance at January 1, 2022	$	1,249.3	$	408.6	$	1,657.9
Acquisition of Kongsberg ICS	27.4		—		27.4
Foreign currency translation and other	(27.5)		(5.9)		(33.4)
Balance at July 2, 2022	$	1,249.2	$	402.7	$	1,651.9

Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that

a reporting unit's fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit's fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The annual goodwill impairment assessment is completed as of the first day of the Company's fourth quarter.

There was no impairment of goodwill in the first six months of 2022 and 2021. The Company will, however, continue to assess the impact of significant industry and other events on its recorded goodwill.

For further information related to the acquisition, see Note 3, "Acquisition of Kongsberg ICS."

Indefinite-Lived Intangible Assets

In the three and six months ended July 2, 2022, the Company recognized an impairment charge of $8.9 million related to an intangible asset of its E-Systems segment resulting from a change in the intended use of such asset. The impairment charge is included in amortization of intangible assets in the accompanying condensed consolidated statements of comprehensive income (loss) for the three and six months ended July 2, 2022.