Goodwill and Intangible Assets

9 Months Ended

Apr. 30, 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 nine months ended April 30, 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 2023 and did not record any impairment as a result of this assessment. In addition, 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
Goodwill acquired	—		—		28.1		28.1

Foreign currency translation	—		4.5		1.9		6.4
Balance as of April 30, 2023	$	25.3	$	286.6	$	68.4	$	380.3

(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

Preliminary intangible assets recognized from the Isolere acquisition were $44.5 million, of which technology was $41.7 million with a 20-year useful life, trademarks were $1.5 million with a 10-year useful life and non-competition agreements were $1.3 million with a three-year useful life.

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
Intangible assets acquired	—		—		—		44.5		—		44.5		44.5
Amortization expense	—		(4.0)		(4.0)		—		(4.0)		(4.0)		(8.0)
Foreign currency translation	1.0		0.2		1.2		1.5		(0.2)		1.3		2.5
Balance as of April 30, 2023	$	105.6	$	(64.1)	$	41.5	$	117.9	$	(20.6)	$	97.3	$	138.8

Amortization expense was $2.9 million and $8.0 million for the three and nine months ended April 30, 2023, respectively, and was $2.4 million and $6.9 million for the three and nine months ended April 30, 2022, respectively. Amortization expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings.