GOODWILL

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL Changes in the carrying amount of goodwill by segment are as follows:

(Millions of Dollars)	Tools & Outdoor		Industrial		Total
Balance December 31, 2022	$	5,939.7	$	2,563.0	$	8,502.7
Foreign currency translation & other	(23.2)		(12.1)		(35.3)
Balance September 30, 2023	$	5,916.5	$	2,550.9	$	8,467.4

In the third quarter of 2023, the Company performed its annual goodwill impairment testing and determined that the fair values of each of its reporting units exceeded their respective carrying amounts. The Company's Industrial segment is comprised of the Engineered Fastening and Infrastructure reporting units. For the Engineered Fastening reporting unit, which included approximately $2.017 billion of goodwill as of September 30, 2023, the Company determined that the fair value, estimated using a discounted cash flow valuation model, exceeded its carrying amount by 16%. The key assumptions applied to the cash flow projections for the Engineered Fastening reporting unit included a 10.0% discount rate, near-term revenue growth rates over the next six years, which represented a compound annual growth rate of approximately 5%, and a 3% perpetual growth rate. For the Infrastructure reporting unit, which included approximately $534 million of goodwill as of September 30, 2023, the Company determined that the fair value, estimated using a discounted cash flow valuation model, exceeded its carrying amount by 13%. The key assumptions applied to the cash flow projections for the Infrastructure reporting unit included a 10.5% discount rate, near-term revenue growth rates over the next six years, which represented a compound annual growth rate of approximately 5%, and a 3% perpetual growth rate. The assumptions for the Engineered Fastening and Infrastructure reporting units contemplated business, market and overall economic conditions. Management continues to be confident in the long-term viability and success of both reporting units, particularly given their market positions, growth prospects, such as automotive electrification and the aerospace market recovery, and geographies served. The fair value for the Tools & Outdoor reporting unit, which was estimated using a discounted cash flow valuation model, exceeded its respective carrying amount by 44%.