REGAL REXNORD CORP
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
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5. Goodwill and Intangible Assets
- GOODWILL AND INTANGIBLE ASSETS
Goodwill
As required, the Company performs an annual impairment test of goodwill as of the end of October, or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value.
The following table presents changes to goodwill during the six months ended June 30, 2024:
| Total | Industrial Powertrain Solutions | Power Efficiency Solutions | Automation & Motion Control | |
|---|---|---|---|---|
| Balance as of December 31, 2023 | $6,553.1 | $3,747.0 | $753.9 | $2,052.2 |
| Acquisitions | (5.1) | (5.8) | — | 0.7 |
| Translation Adjustments | (51.2) | (25.8) | (2.8) | (22.6) |
| Balance as of June 30, 2024 | $6,496.8 | $3,715.4 | $751.1 | $2,030.3 |
| Cumulative Goodwill Impairment Charges(1) | $223.6 | $18.1 | $200.4 | $5.1 |
(1) Excludes impairment charges related to Industrial Systems.
Intangible Assets
Intangible assets consist of the following:
| June 30, 2024 · December 31, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Weighted Average Amortization Period (Years) | Gross Value | AccumulatedAmortization | Net Carrying Amount | Gross Value | AccumulatedAmortization | Net Carrying Amount | |
| Customer Relationships | 15 | $3,991.3 | $858.6 | $3,132.7 | $4,028.5 | $746.2 | $3,282.3 |
| Technology | 13 | 299.6 | 108.8 | 190.8 | 302.6 | 92.9 | 209.7 |
| Trademarks | 10 | 702.0 | 156.1 | 545.9 | 712.1 | 120.7 | 591.4 |
| Total Intangibles | $4,992.9 | $1,123.5 | $3,869.4 | $5,043.2 | $959.8 | $4,083.4 | |
Amortization expense recorded for the three and six months ended June 30, 2024 was $86.5 million and $173.2 million, respectively. Amortization expense recorded for the three and six months ended June 30, 2023 was $89.4 and $135.7 million, respectively. Amortization expense for 2024 is estimated to be $348.5 million.
The following table presents future estimated annual amortization expense for intangible assets:
| Year | Estimated Amortization |
|---|---|
| 2025 | $346.3 |
| 2026 | 342.9 |
| 2027 | 342.9 |
| 2028 | 342.9 |
| 2029 | 340.9 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.