Intangible Assets and Goodwill

9 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets are stated at the lower of cost or fair value. Intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which the Company expects to receive future economic benefits from these assets. The Company assesses the carrying value of indefinite-lived trade names annually, or more often if events or changes in circumstances indicate there may be an impairment.

The following table summarizes the carrying amounts and related accumulated amortization for intangible assets as of:


	June 30, 2023				September 30, 2022
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Finite-lived assets:
Customer relationships	$	1,024.4	$	(276.5)	$	739.6	$	(221.1)
Trade names	48.1		(3.6)		—		—
Technology, including patents	142.1		(80.8)		132.9		(68.4)
Software	39.7		(31.0)		34.4		(27.0)


	1,254.3		(391.9)		906.9		(316.5)
Indefinite-lived assets:
Trade names	223.2		—		217.6		—

Total	$	1,477.5	$	(391.9)	$	1,124.5	$	(316.5)

The net change in intangible assets during the nine months ended June 30, 2023, was driven primarily by the acquisitions of Linxis, Herbold, and Peerless which included acquired intangible assets of $291.7, including impact of measurement period adjustments, normal amortization, and foreign currency adjustments. See Note 5 for further detail on the acquisitions of Linxis, Herbold, and Peerless. Estimated amortization expense related to intangible assets for the next five years is: $76.1 in 2023, $76.0 in 2024, $73.2 in 2025, $72.4 in 2026, and $72.4 in 2027.

Goodwill

Goodwill is not amortized, but is subject to annual impairment tests. Goodwill has been assigned to reporting units within the reportable operating segments. The Company assesses the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment. Impairment testing is performed at a reporting unit level.

The following table summarizes the changes in the Company’s goodwill, by reportable operating segment, for the nine months ended June 30, 2023:


	Advanced Process Solutions		Molding Technology Solutions		Total
Balance as of September 30, 2022	$	516.0	$	635.1	$	1,151.1
Acquisitions(1)	354.7		—		354.7
Acquisition measurement period adjustments	(11.8)		—		(11.8)


Foreign currency adjustments	64.1		3.3		67.4
Balance as of June 30, 2023	$	923.0	$	638.4	$	1,561.4

(1)See Note 5 for further information on the acquisitions of Linxis and Peerless.

During the three and nine months ended June 30, 2023 and 2022, the Company did not observe any triggering events or substantive changes in circumstances requiring the need for an interim impairment assessment.