Goodwill and Other Intangible Assets

6 Months Ended

Jun. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by segment for the six months ended June 29, 2024, are as follows:


(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of December 30, 2023	$	346.6	$	12.4	$	738.4	$	1,097.4
Currency translation	(10.7)		—		(5.6)		(16.3)
Acquisition adjustments	(13.2)		—		—		(13.2)
Balance as of June 29, 2024	$	322.7	$	12.4	$	732.8	$	1,067.9

Goodwill of $1,067.9 million as of June 29, 2024, includes $19.8 million from the acquisition of Mountz. In the first quarter of 2024, the purchase accounting valuations for the acquired net assets of Mountz were completed, resulting in a reduction of goodwill of $13.2 million from year end 2023. See Note 3 for additional information on acquisitions.

Additional disclosures related to other intangible assets are as follows:


	June 29, 2024						December 30, 2023
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Amortized other intangible assets:
Customer relationships	$	220.7	$	(166.8)	$	53.9	$	214.5	$	(163.6)	$	50.9
Developed technology	36.1		(31.2)		4.9		36.2		(29.8)		6.4
Internally developed software	196.8		(153.0)		43.8		191.3		(148.2)		43.1
Patents	48.1		(20.7)		27.4		53.0		(26.8)		26.2
Trademarks	3.9		(2.5)		1.4		4.0		(2.5)		1.5
Other	6.1		(2.8)		3.3		6.2		(2.8)		3.4
Total	511.7		(377.0)		134.7		505.2		(373.7)		131.5
Non-amortized trademarks	140.1		—		140.1		137.4		—		137.4
Total other intangible assets	$	651.8	$	(377.0)	$	274.8	$	642.6	$	(373.7)	$	268.9

The gross carrying value of customer relationships and non-amortized trademarks includes $8.7 million and $5.4 million, respectively, related to the Mountz acquisition.

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2024, the results of which did not result in any impairment. Provisions for the impairment of goodwill and/or other intangible assets could arise in a future period due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, changes in key personnel or litigation, a sustained decrease in share price and/or other events. As of June 29, 2024, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:


			In Years
Customer relationships			14
Developed technology			5
Internally developed software			6
Patents			15
Trademarks			9
Other			39

The weighted-average amortization period for all amortizable intangible assets on a combined basis is 12 years. Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $6.4 million and $12.7 million for the respective three and six month periods ended June 29, 2024, and $7.0 million and $13.9 million for the respective three and six month periods ended July 1, 2023. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $25.1 million in 2024, $19.6 million in 2025, $14.5 million in 2026, $12.2 million in 2027, $10.6 million in 2028, and $8.0 million in 2029.