XML 130 R14.htm IDEA: XBRL DOCUMENT
v3.24.3

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on September 1 of each fiscal year or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The carrying value of the reporting unit, including goodwill, is compared with the estimated fair value of the reporting unit as determined utilizing a combination of the income, market and/or cost approaches. The income approach, which is a level 3 fair value measurement, is based on projected debt-free cash flow estimates which are discounted to the present value using discount rates that consider the timing and risk of those cash flows. The market approach is based on the guideline public company method, which uses market multiples to value our reporting units as applicable. The cost approach is based on the net aggregate value of the reporting unit’s underlying assets. We weight the approaches in a manner considering the risks of the underlying cash flows. The key assumptions used in estimating the fair value of our reporting units utilizing the income approach include management's best estimate of revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”) margin, and discount rate. The key assumptions used in estimating the fair value of our reporting units utilizing the market approach include revenue multiples, and EBITDA multiples. Accordingly, a change in market conditions or other factors could have a material effect on the estimated values. There are inherent uncertainties related to the assumptions used and to management's application of these assumptions. We performed our annual impairment testing at September 1, 2024. The results of the testing indicated that the carrying value of a reporting unit within Water Management Solutions exceeded the fair value primarily due to lower forecasted revenues and profitability based on a change in the forecasted product portfolio. Such change occurred in the fourth quarter of 2024. As a result, we recognized an impairment charge of $16.3 million during the fiscal year ended September 30, 2024. Indefinite-lived Intangible Assets Indefinite-lived intangible assets are tested for impairment on an annual basis on September 1 of each fiscal year or more frequently if events or circumstances indicate that it is more likely than not that the asset is impaired. We test our trade name indefinite-lived intangible assets for impairment using a “royalty savings method”, which is an income approach using a variation of the discounted cash flow method. This method estimates a fair value by calculating an estimated discounted future cash flow stream from the hypothetical licensing of the indefinite-lived intangible assets. If the estimated fair value exceeds the carrying value, no impairment is indicated. If the estimated fair value is less than the carrying value, impairment is indicated. This analysis is dependent on management’s best estimates of future revenue and the selection of reasonable discount rates and hypothetical royalty rates. We performed our annual impairment testing at September 1, 2024 and recorded an impairment charge of $0.4 million related to trade names within Water Management Solutions. The impairment was primarily as a result of lower forecasted cash flow streams from a lower hypothetical royalty rate and a change in the forecasted revenues from the product portfolio associated with certain trade names. Intangible Assets Direct internal and external costs to develop software used in the provision of services to customers by Water Management Solutions are capitalized and amortized over the six-year estimated useful life of the software, beginning when the software is ready for its intended use. At September 30, 2024, the remaining weighted-average amortization period for this software was 4.2 years. Amortization expense related to such software assets was $2.6 million in 2024 and $2.9 million in 2023 and 2022. Amortization expense for each of the next five years is expected to be $2.3 million in 2025, $1.9 million in 2026, $1.5 million in 2027, $1.1 million in 2028, and $0.7 million in 2029. At September 30, 2024, the remaining weighted-average amortization period for business combination-related finite-lived customer relationships and technology intangible assets were 7.3 years and 7.1 years, respectively. Amortization expense related to these assets was $24.9 million, $25.2 million and $25.5 million for 2024, 2023 and 2022, respectively. Amortization expense for each of the next five years is scheduled to be $5.3 million in 2025, $5.0 million in 2026, $4.8 million in 2027 and 2028 and $4.0 million in 2029. Intangible assets are presented below.
| September 30,
| 2024 |  | 2023
| (in millions)
Capitalized internal-use software: |  |  |
Cost | $ | 40.1 |  |  | $ | 38.1 |
Accumulated amortization | (32.4) |  |  | (29.7) |
Capitalized internal-use software, net | $ | 7.7 |  |  | $ | 8.4 |
Business combination-related: |  |  |
Cost: |  |  |
Finite-lived intangible assets: |  |  |
Technology | $ | 118.6 |  |  | $ | 119.6 |
Customer relationships and other | 371.5 |  |  | 371.5 |
Indefinite-lived intangible assets: |  |  |
Trade names and trademarks | 272.5 |  |  | 272.6 |
| $ | 762.6 |  |  | $ | 763.7 |
Accumulated amortization: |  |  |
Technology | $ | (97.9) |  |  | $ | (95.3) |
Customer relationships and other | (362.7) |  |  | (342.8) |
| (460.6) |  |  | (438.1) |
Business combination-related intangible assets, net | 302.0 |  |  | 325.6 |
Intangible assets, net | $ | 309.7 |  |  | $ | 334.0 |
Goodwill As of September 30, 2024, o ur remaining goodwill balance is within our Water Management Solutions segment. Changes in the carrying amount of goodwill for the years ended September 30, 2024, and 2023 were as follows, in millions:
Balance at September 30, 2022: |
Goodwill | $ | 822.7 |
Accumulated impairment | (724.1) |
Net goodwill | 98.6 |
2023 Activity: |
Change in foreign currency exchange rates | (4.9) |
Balance at September 30, 2023: |
Goodwill | 817.8 |
Accumulated impairment | (724.1) |
Net goodwill | 93.7 |
2024 Activity: |
Goodwill impairment | (16.3) |
Change in foreign currency exchange rates | 3.3 |
Balance at September 30, 2024: |
Goodwill | 821.1 |
Accumulated impairment | (740.4) |
Net goodwill | $ | 80.7 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-4 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 985 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481283/985-20-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 985 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/985-20/tableOfContent + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration