Goodwill and Intangible Assets

6 Months Ended

Jan. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company allocates goodwill to reporting units within its Engine Products and Industrial Products segments. There were no dispositions or impairment charges recorded during the three and six months ended January 31, 2022 and 2021. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2021 and did not record any impairment as a result of this assessment.

Goodwill by reportable segment was as follows (in millions):



	Engine Products Segment		Industrial Products Segment		Total
Balance as of July 31, 2021	$	84.7	$	237.8	$	322.5
Goodwill acquired	—		27.6		27.6
Currency translation	(0.4)		(5.4)		(5.8)
Balance as of January 31, 2022	$	84.3	$	260.0	$	344.3

Intangible Assets

Intangible assets recognized from the Solaris acquisition were $20.8 million, of which technology was $17.3 million with a 15 year useful life, trademarks and tradenames were $3.3 million with a 10 year useful life and backlog was $0.2 million with a six month useful life.

Intangible assets recognized from the PAIS acquisition were $3.0 million, all of which were customer relationships with a 20 year useful life. See Note 2 for the acquisitions.

Intangible asset classes were as follows (in millions):


	Customer Relationships						Patents, trademarks and technology
	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total		Total
Balance as of July 31, 2021	$	107.5	$	(56.4)	$	51.1	$	24.3	$	(13.8)	$	10.5	$	61.6
Intangible assets acquired	3.2		—		3.2		20.6		—		20.6		23.8
Amortization expense	—		(3.2)		(3.2)		—		(1.3)		(1.3)		(4.5)
Currency translation	(1.8)		0.7		(1.1)		(0.5)		0.1		(0.4)		(1.5)
Balance as of January 31, 2022	$	108.9	$	(58.9)	$	50.0	$	44.4	$	(15.0)	$	29.4	$	79.4

Amortization expense was $2.4 million and $4.5 million for the three and six months ended January 31, 2022, respectively, and was $2.1 million and $4.2 million for the three and six months ended January 31, 2021, respectively.