Goodwill and Intangible Assets

12 Months Ended

Jul. 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 years ended July 31, 2023, 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 2023 and did not record any impairment as a result of this assessment. In addition, as a result of the organizational 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 Segment		Industrial Solutions Segment		Life Sciences Segment		Total Goodwill
Balance as of July 31, 2021 (1)	$	25.6	$	296.9	$	—	$	322.5
Goodwill acquired	—		2.1		40.7		42.8
Foreign exchange translation	(0.3)		(16.9)		(2.3)		(19.5)
Balance as of July 31, 2022 (1)	$	25.3	$	282.1	$	38.4	$	345.8
Goodwill acquired	—		—		125.1		125.1
Foreign exchange translation	0.2		7.0		3.0		10.2
Balance as of July 31, 2023	$	25.5	$	289.1	$	166.5	$	481.1

(1)All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 19).

Intangible Assets

Intangible assets preliminarily recognized from the UTEC acquisition were $51.6 million, of which $42.3 million was technology with an 18 year useful life, $6.7 million was trademarks with a 10 year useful life, $1.4 million was non-competition agreements with a 2 year useful life and $1.2 million was customer relationships with a 20 year useful life.

Intangible assets recognized from the Isolere acquisition were $44.5 million, of which $41.7 million was technology with a 20 year useful life, trademarks and tradenames 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 assets recognized from the Purilogics acquisition in fiscal 2022 were $29.9 million, of which $28.6 million was technology with a 20 year useful life, trademarks and tradenames were $0.7 million with a 10 year useful life and non-competition agreements were $0.6 million with a five year useful life.

Intangible assets recognized from other acquisitions in fiscal 2022 were $23.8 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, customer relationships were $3.0 million with a 20 year useful life and backlog was $0.2 million with a six month useful life.

There was a foreign currency translation gain of $3.2 million in fiscal 2023 and translation loss of $6.3 million in fiscal 2022.

Intangible asset classes were as follows (in millions):


	Year Ended July 31, 2023
	Weighted Amortizable Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	10.8	$	107.8	$	(65.6)	$	42.2
Patents	18.9	33.4		(6.3)		27.1
Trademarks	9.0	15.9		(3.9)		12.0
Technology	17.2	116.3		(12.9)		103.4
Non-compete agreements	3.1	4.0		(0.6)		3.4
Total intangible assets		$	277.4	$	(89.3)	$	188.1


	Year Ended July 31, 2022
	Weighted Amortizable Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	11.4	$	104.0	$	(60.2)	$	43.8
Patents	19.9	33.4		(4.7)		28.7
Trademarks	7.9	7.3		(2.6)		4.7
Technology	12.0	30.6		(9.1)		21.5
Non-compete agreements	6.4	1.2		(0.1)		1.1
Total intangible assets		$	176.5	$	(76.7)	$	99.8

Intangible asset amortization expense was $11.4 million, $9.2 million and $8.2 million for the fiscal 2023, 2022 and 2021, respectively and is included in operating expenses in the Consolidated Statements of Earnings. Amortization expense relating to existing intangible assets as of July 31, 2023 was as follows (in millions):



2024	$	15.2
2025	15.0
2026	13.9
2027	13.4
2028	13.0
Thereafter	117.6
Total amortization expense	$	188.1