GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jul. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill consists of the following:


(in millions)	GPC		H&G		HPC		Total
As of September 30, 2022	$	502.4	$	342.6	$	108.1	$	953.1
Tristar Business acquisition adjustment	—		—		3.0		3.0
Impairment	—		—		(111.1)		(111.1)
Foreign currency impact	13.6		—		—		13.6
As of July 2, 2023	$	516.0	$	342.6	$	—	$	858.6

During the three month period ended July 2, 2023, the Company recognized an impairment of the HPC goodwill that was attributable to a declining trend in operating performance results, challenging retail environment with increased competition, lower distribution, and excess retail inventory levels impacting pricing and promotional spending, resulting in a reduction in actual and projected sales and margin realization within its current and forecasted cash flows and a full impairment of the identified goodwill for the HPC reporting unit and segment.

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


	July 2, 2023						September 30, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Amortizable intangible assets:
Customer relationships	$	638.3	$	(406.2)	$	232.1	$	627.8	$	(373.9)	$	253.9
Technology assets	75.3		(34.7)		40.6		75.3		(30.8)		44.5
Tradenames	26.1		(6.6)		19.5		10.6		(5.1)		5.5
Total amortizable intangible assets	739.7		(447.5)		292.2		713.7		(409.8)		303.9
Indefinite-lived intangible assets – tradenames	786.7		—		786.7		898.3		—		898.3
Total Intangible Assets	$	1,526.4	$	(447.5)	$	1,078.9	$	1,612.0	$	(409.8)	$	1,202.2

During the three month period ended July 2, 2023, the Company and H&G segment identified a triggering event for our Rejuvenate tradename attributable to a significant shift in consumer purchasing activity and retail inventory management efforts with certain retail customers within the quarter that make up a significant concentration of revenue for the brand and further reducing the anticipated near-term sales for the brand, resulting in the recognition of a $8.0 million impairment on the intangible asset. During the prior fiscal quarter, we had identified triggering events associated with the Rejuvenate tradename due to a shift in the projected timing and realization of long-term projected revenues and changes in strategic distribution opportunities, as well as a change in the amount and timing of product innovations being introduced to customers. As a result, the Company and H&G segment recognized a cumulative impairment loss of $56.0 million for the nine month period ended July 2, 2023 associated with the Rejuvenate tradename.

During the three month period ended July 2, 2023, the Company and HPC segment identified a triggering event for our PowerXL tradename intangible asset driven by the reduction in the sales from a decrease in distribution with retail customers, significant pricing adjustments and required incremental promotional spending activity resulting in a substantial shift in actual and projected future revenues for the brand, resulting in the recognition of an impairment on the intangible asset of $26.0 million. During the prior fiscal quarter, we had identified a triggering event associated with the PowerXL tradename driven by a decrease in realized sales due to the continuation of retail inventory reduction efforts, lowered consumer demand, increased competition, and adverse macro-economic factors. As a result, during the nine month period ended July 2, 2023, we recognized a cumulative impairment loss of $45.0 million associated with the PowerXL tradename. Additionally, during the three and nine month periods ended July 2, 2023, the Company and HPC segment recognized a triggering event for our George Foreman tradename due to shifts in market demand for related product categories as well as a change in the Company's brand portfolio strategy and projected utilization of the tradename going forward, resulting in the recognition of an impairment on the intangible asset of $19.7 million.

Amortization expense from the intangible assets for the three month periods ended July 2, 2023 and July 3, 2022 was $10.5 million and $13.1 million, respectively; and for the nine month periods ended July 2, 2023 and July 3, 2022 was $31.4 million and $39.9 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	$	42.4
2024	42.3
2025	39.8
2026	39.8
2027	38.7