Goodwill and Intangible Assets

6 Months Ended

Jan. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Goodwill and Intangible Assets

Goodwill

The Company allocates goodwill to reporting units within its Mobile Solutions, Industrial Solutions and Life Sciences segments. There were no dispositions or impairment charges recorded during the three and six months ended January 31, 2023 and 2022. 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 2022 and did not record any impairment as a result of this assessment. As a result of the organization redesign, the Company performed a qualitative impairment assessment based on the new segments in the second quarter of fiscal 2023 and concluded there was no impairment.

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



	Mobile Solutions		Industrial Solutions		Life Sciences		Total
Balance as of July 31, 2022(1)	$	25.3	$	282.1	$	38.4	$	345.8


Foreign currency translation	—		2.9		1.5		4.4
Balance as of January 31, 2023	$	25.3	$	285.0	$	39.9	$	350.2

(1)All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 18).

Intangible Assets

Intangible asset classes were as follows (in millions):


	Customer Relationships						Patents, Trademarks and Technology
	Gross Carrying Amount		Accumulated Amortization		Total Net Value		Gross Carrying Amount		Accumulated Amortization		Total Net Value		Total
Balance as of July 31, 2022	$	104.6	$	(60.3)	$	44.3	$	71.9	$	(16.4)	$	55.5	$	99.8

Amortization expense	—		(2.6)		(2.6)		—		(2.5)		(2.5)		(5.1)
Foreign currency translation	0.5		0.2		0.7		1.1		(0.1)		1.0		1.7
Balance as of January 31, 2023	$	105.1	$	(62.7)	$	42.4	$	73.0	$	(19.0)	$	54.0	$	96.4

Amortization expense was $2.5 million and $5.1 million for the three and six months ended January 31, 2023, respectively, and was $2.4 million and $4.5 million for the three and six months ended January 31, 2022, respectively. Amortization expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings.