Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of Goodwill were (in millions):


	Intelligent Devices		Software & Control		Lifecycle Services		Total
Balance as of October 1, 2021	$	543.1	$	2,447.5	$	635.3	$	3,625.9
Acquisition of businesses	—		—		12.1		12.1
Translation and other	(40.1)		(48.8)		(25.1)		(114.0)
Balance as of September 30, 2022	$	503.0	$	2,398.7	$	622.3	$	3,524.0
Acquisition of businesses	74.4		—		36.9		111.3
Impairment	—		—		(157.5)		(157.5)
Translation and other	18.4		21.4		11.6		51.4
Balance as of September 30, 2023	$	595.8	$	2,420.1	$	513.3	$	3,529.2

Gross carrying value of Goodwill	595.8		2,420.1		670.8		3,686.7
Accumulated impairment losses	—		—		(157.5)		(157.5)
Goodwill	$	595.8	$	2,420.1	$	513.3	$	3,529.2

We performed our annual evaluation of goodwill and indefinite life intangible assets for impairment during the second quarter of fiscal 2023 and concluded that these assets were not impaired. For our annual evaluation, we performed qualitative tests for our Intelligent Devices, Software & Control, and Lifecycle Services (excluding Sensia) reporting units and a quantitative test for our Sensia reporting unit. Refer to Note 1 for additional information on our goodwill impairment evaluations.

Interim Impairment Assessment

Since formation in October 2019, our Sensia joint venture operations have been challenged by the global pandemic, geopolitical activities, volatility in commodity prices and supply chain dynamics. The cumulative historical growth and profitability below plan have resulted in a declining cushion between carrying value and fair value in previous impairment tests. The joint venture partners appointed a new management team in 2023 and have updated the strategy of Sensia, which included downward revisions to growth and profitability projections for 2024 and future years. Lower sales growth reflects historical performance and an updated outlook of market conditions. Lower profitability reflects an updated view of mix and volume. Based upon the update of Sensia’s strategy and projections in the fourth quarter, we determined that it was more likely than not that the fair value of Sensia was below its carrying value. As a result of this triggering event, we performed an interim quantitative analysis, using a combination of an income approach derived from discounted cash flows and a market multiples approach using selected comparable public companies, consistent with our annual impairment testing. As of the fourth quarter testing date, the carrying value of our Sensia reporting unit of $665.1 million was determined to be in excess of the reporting unit’s fair value, resulting in a $157.5 million goodwill impairment charge recorded in the Consolidated Statement of Operations. Subsequent to the impairment, $160.3 million of goodwill remains within the Sensia reporting unit.

Other intangible assets consist of (in millions):


	September 30, 2023
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Software products	$	100.4	$	65.1	$	35.3
Customer relationships	606.1		141.3		464.8
Technology	424.1		173.1		251.0
Trademarks	86.3		29.3		57.0
Other	6.0		5.4		0.6
Total amortized intangible assets	1,222.9		414.2		808.7
Allen-Bradley® trademark not subject to amortization	43.7		—		43.7
Other intangible assets	$	1,266.6	$	414.2	$	852.4


	September 30, 2022
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Software products	$	97.6	$	57.9	$	39.7
Customer relationships	582.7		107.2		475.5
Technology	410.8		119.3		291.5
Trademarks	70.4		19.4		51.0
Other	6.4		5.8		0.6
Total amortized intangible assets	1,167.9		309.6		858.3
Allen-Bradley® trademark not subject to amortization	43.7		—		43.7
Other intangible assets	$	1,211.6	$	309.6	$	902.0

Software products represent costs of computer software to be sold, leased, or otherwise marketed. Software products amortization expense was $11.3 million in 2023, $9.4 million in 2022, and $11.9 million in 2021. Estimated total amortization expense for all amortized intangible assets is $116.2 million in 2024, $112.2 million in 2025, $110.9 million in 2026, $102.8 million in 2027, and $90.0 million in 2028.