Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Note 9. Other Intangible Assets

The following table analyzes other intangible assets movement for 2024 and 2023.


(in millions)	2024			2023
Gross cost at January 1	$	315.1		$	291.1
Additions		24.3			22.4
Exchange effect		(7.5	)		1.6
Gross cost at December 31		331.9			315.1
Accumulated amortization at January 1		(257.8	)		(246.1	)
Amortization expense		(12.6	)		(10.6	)
Exchange effect		3.9			(1.1	)
Accumulated amortization at December 31		(266.5	)		(257.8	)
Net book amount at December 31	$	65.4		$	57.3

Amortization expense

The amortization expense was $12.6 million, $10.6 million and $14.0 million in 2024, 2023 and 2022, respectively. Excluding the impact of foreign exchange translation on the balance sheet, $2.3 million, $2.3 million and $2.3 million of amortization, respectively, was recognized in cost of goods sold, and the remainder was recognized in selling, general and administrative expenses.

In 2024, we capitalized $20.8 million (2023 - $15.1 million) in relation to our internally developed software for a new Enterprise Resource Planning (“ERP”) system covering our all our regions. The expenses capitalized include the acquisition costs for the software as well as the external and internal costs of the development. The additional completion costs are currently expected to be approximately $29.5 million. Our current plan is to complete the implementation of the new ERP system across all regions by the middle of 2026. We have determined the useful economic life of the ERP system to be up to 12 years.

In 2024, within the remeasurement period, we finalized the valuation of customer lists in relation to the acquisition of QGP in December 2023. This increased the intangible asset capitalized by $3.5 million in the second quarter of 2024. Management also revised the expected useful life of the customer lists from 10 years to 7 years. In 2023, we capitalized $7.3 million in relation to the acquisition of QGP.

Other intangible assets at December 31, 2024 were:


(in millions)	Gross carrying amount		Accumulated amortization
Product rights	$	34.0	$	(34.0	)
Brand names		8.9		(8.9	)
Technology		55.1		(44.6	)
Customer relationships		130.6		(111.9	)
Internally developed software		78.7		(42.5	)
Other		24.6		(24.6	)
	$	331.9	$	(266.5	)

Other intangible assets at December 31, 2023 were:


(in millions)	Gross carrying amount		Accumulated amortization
Product rights	$	34.0	$	(34.0	)
Brand names		8.9		(8.4	)
Technology		55.1		(42.3	)
Customer relationships		131.6		(105.4	)
Internally developed software		60.5		(42.7	)
Other		25.0		(25.0	)
	$	315.1	$	(257.8	)

Future amortization expense is estimated to be as follows for the next five years:


(in millions)
2025	$	11.1
2026	$	10.9
2027	$	7.4
2028	$	7.1
2029	$	6.2