Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following:


	September 30, 2023		December 31, 2022
Goodwill, net	$	495.6	$	305.9
Definite-lived intangible assets, net	164.3		118.4
Indefinite-lived intangible assets	33.5		15.5
Total goodwill and other intangible assets, net	$	693.3	$	439.8

Goodwill

The changes in the carrying amount of goodwill, by reporting segment, are as follows:


	Workplace Furnishings		Residential Building Products		Total
Balance as of December 31, 2022
Goodwill	$	148.7	$	222.4	$	371.1
Accumulated impairment losses	(65.0)		(0.1)		(65.2)
Net goodwill balance as of December 31, 2022	83.6		222.3		305.9

Goodwill acquired	189.6		—		189.6



Balance as of September 30, 2023
Goodwill	338.3		222.4		560.7
Accumulated impairment losses	(65.0)		(0.1)		(65.2)
Net goodwill balance as of September 30, 2023	$	273.3	$	222.3	$	495.6

Goodwill acquired in the current year relates to the acquisition of Kimball International. See "Note 3. Acquisitions and Divestitures" in the Notes to Condensed Consolidated Financial Statements for further information.

Definite-lived intangible assets

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets, net" in the Condensed Consolidated Balance Sheets:


	September 30, 2023						December 31, 2022
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net

Software	$	206.8	$	138.9	$	67.9	$	194.4	$	122.5	$	71.9
Trademarks and trade names	16.2		6.9		9.2		14.3		5.9		8.4
Customer lists and other	134.0		46.8		87.1		80.2		42.1		38.1
Net definite-lived intangible assets	$	356.9	$	192.7	$	164.3	$	288.8	$	170.4	$	118.4

The increase in gross definite-lived intangible assets is due to the acquisition of Kimball International.

Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Capitalized software	$	5.9	$	6.1	$	16.8	$	18.4
Other definite-lived intangibles	$	2.3	$	1.6	$	5.8	$	4.9

The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five years is as follows:


	2023		2024		2025		2026		2027
Amortization expense	$	30.5	$	31.0	$	28.0	$	23.3	$	17.5

Indefinite-lived intangible assets

The Corporation also owns certain intangible assets, which are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets, net" in the Condensed Consolidated Balance Sheets:


	September 30, 2023		December 31, 2022
Trademarks and trade names	$	33.5	$	15.5

The increase in indefinite-lived trademarks and trade names is due to the acquisition of Kimball International.

Impairment Analysis

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist.