Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table represents the changes in goodwill by segment:


	Cryo Tank Solutions		Heat Transfer Systems		Specialty Products		Repair, Service & Leasing		Consolidated
Balance at December 31, 2022	$	79.1	$	430.5	$	304.0	$	178.4	$	992.0
Goodwill acquired during the period (1)	186.6		30.9		274.5		1,450.7		1,942.7
Foreign currency translation adjustments and other	(0.6)		(0.3)		0.1		(0.3)		(1.1)
Divestiture of Roots	(66.7)		—		(1.5)		(34.0)		(102.2)
Transfer to assets held for sale (2)	—		(9.8)		—		(12.7)		(22.5)
Purchase price adjustments (3)	—		—		0.1		0.3		0.4
Balance at September 30, 2023	$	198.4	$	451.3	$	577.2	$	1,582.4	$	2,809.3

Accumulated goodwill impairment loss at December 31, 2022	$	23.5	$	49.3	$	35.8	$	20.4	$	129.0

Accumulated goodwill impairment loss at September 30, 2023	$	23.5	$	49.3	$	35.8	$	20.4	$	129.0

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(1)Goodwill acquired during the period was $1,942.7. All goodwill acquired during the period related to the Howden Acquisition.

(2)Regarding our Cofimco business, we reclassified goodwill from our Heat Transfer Systems and Repair, Service & Leasing segments to assets held for sale.

(3)During the first nine months of 2023, we recorded purchase price adjustments, which increased goodwill by $0.1 in our Specialty Products segment related to the 2022 acquisition of Fronti Fabrications, Inc. (“Fronti”) and increased goodwill by $0.3 in our Repair, Service & Leasing segment related to the 2022 acquisition of CSC Cryogenic Service Center AB (“CSC”). For further information regarding goodwill acquired and the purchase price adjustments during the period refer to Note 13, “Business Combinations.”

Intangible Assets

The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1):


		September 30, 2023				December 31, 2022
	Estimated Useful Lives	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships	4 to 18 years	$	1,807.3	$	(156.8)	$	311.5	$	(104.6)
Technology	5 to 18 years	493.5		(68.1)		202.5		(44.8)
Patents, backlog and other	2 to 10 years	138.1		(2.0)		6.8		(2.0)
Trademarks and trade names	5 to 23 years	2.5		(1.8)		2.5		(1.7)
Land use rights	50 years	10.1		(24.8)		10.4		(1.7)
Total finite-lived intangible assets		2,451.5		(253.5)		533.7		(154.8)
Indefinite-lived intangible assets:
Trademarks and trade names (2)		614.2		—		156.4		—
Total intangible assets		$	3,065.7	$	(253.5)	$	690.1	$	(154.8)

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(1)Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off.

(2)Accumulated indefinite-lived intangible assets impairment loss was $16.0 at both September 30, 2023 and December 31, 2022.

Amortization expense for intangible assets subject to amortization was $49.0 and $10.6 for the three months ended September 30, 2023 and 2022, respectively, and $115.0 and $32.4 for the nine months ended September 30, 2023 and 2022, respectively. We estimate amortization expense to be recognized during the next five years as follows:


For the Year Ending December 31,
2023	$	51.5
2024	204.0
2025	201.9
2026	163.0
2027	150.6

Government Grants

During the fourth quarter of 2021, we were selected by the U.S. Department of Energy (“DOE”) for funding of up to $5.0 to engineer and build our Cryogenic Carbon CaptureTM system for a cement plant. During the project’s duration, the DOE shall reimburse us in cash for approved expenses we incur. This project began on February 1, 2022, and as of September 30, 2023, we have received $0.3 in reimbursed expenses related to these grants.

We received certain government grants related to land use rights for capacity expansion in China (“China Government Grants”). China Government Grants are generally recorded in other current liabilities and other long-term liabilities in the unaudited condensed consolidated balance sheets and generally recognized into income over the useful life of the associated assets (10 to 50 years).

China Government Grants are presented in our unaudited condensed consolidated balance sheets as follows:


	September 30, 2023		December 31, 2022
Current	$	0.4	$	0.5
Long-term	5.7		6.1
Total China Government Grants	$	6.1	$	6.6

We also received government grants from certain local jurisdictions across Chart, which are recorded in other assets in the condensed consolidated balance sheets and were not significant for the periods presented.