GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Apr. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill consists of the following:


(in millions)	HPC		GPC		H&G		Total
As of September 30, 2022	$	108.1	$	502.4	$	342.6	$	953.1
Tristar Business acquisition adjustment	3.0		—		—		3.0
Foreign currency impact	—		12.4		—		12.4
As of April 2, 2023	$	111.1	$	514.8	$	342.6	$	968.5

During the three month period ended January 1, 2023, the Company recognized incremental adjustments to HPC goodwill attributable to changes to the preliminary valuation of net assets acquired associated with the acquisition of the Tristar Business, previously acquired on February 18, 2022, primarily associated with the valuation of reserves on trade receivables and deferred tax assets as of the acquisition date. The preliminary values recorded were determined based upon a valuation with estimates and assumptions used in such valuation that are subject to change within the measurement period (up to one year from the acquisition date). The one year measurement period has closed and there are no further adjustments on the valuation of acquired net assets. See Note 4 - Acquisitions in the Notes to the Consolidated Financial Statements within the Company's Annual Report on Form 10-K, released on November 22, 2022, for further discussion on the Tristar Business acquisition.

The carrying value and accumulated amortization of intangible assets are as follows:


	April 2, 2023						September 30, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Amortizable intangible assets:
Customer relationships	$	638.2	$	(397.6)	$	240.6	$	627.8	$	(373.9)	$	253.9
Technology assets	75.3		(33.4)		41.9		75.3		(30.8)		44.5
Tradenames	11.0		(6.1)		4.9		10.6		(5.1)		5.5
Total amortizable intangible assets	724.5		(437.1)		287.4		713.7		(409.8)		303.9
Indefinite-lived intangible assets – tradenames	853.3		—		853.3		898.3		—		898.3
Total Intangible Assets	$	1,577.8	$	(437.1)	$	1,140.7	$	1,612.0	$	(409.8)	$	1,202.2

During the three and six month periods ended April 2, 2023, we identified triggering events for our Rejuvenate and PowerXL tradename intangible assets resulting in recognition of a $67.0 million impairment loss on intangible assets. The loss associated with the Rejuvenate tradename is primarily attributable to a shift in the projected timing and realization of future revenues associated with the acquired brand due to changes in strategic distribution opportunities as well as a change in the amount and timing of product innovations being introduced to customers by the H&G segment. The loss associated with the PowerXL tradename was primarily attributable to a decrease in projected future revenues associated with the brand driven by decrease in realized sales with expected continuation of retail inventory reduction, lower consumer demand, increased competition in product categories, and adverse macro-economic factors.

Amortization expense from the intangible assets for the three month periods ended April 2, 2023 and April 3, 2022 was $10.5 million and $13.5 million, respectively; and for the six month periods ended April 2, 2023 and April 3, 2022 was $20.9 million and $26.7 million, respectively.

Excluding the impact of any future acquisitions, dispositions or changes in foreign currency, the Company estimates annual amortization expense of intangible assets for the next five fiscal years will be as follows:


(in millions)	Amortization
2023	$	42.0
2024	41.2
2025	38.8
2026	38.3
2027	37.8