REGAL REXNORD CORP
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
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FY2024 · Filed Feb 21, 2025
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) Goodwill and Intangible Assets
(4)Goodwill and Intangible Assets
The following information presents changes to goodwill during the periods indicated:
| Total | Industrial Powertrain Solutions | Power Efficiency Solutions | Automation & Motion Control | Industrial Systems | |
|---|---|---|---|---|---|
| Balance as of December 31, 2022 | $4,018.8 | $2,290.0 | $752.3 | $865.0 | $111.5 |
| Acquisitions | 2,614.6 | 1,438.3 | — | 1,176.3 | — |
| Reclassification to Noncurrent Assets Held for Sale | (53.9) | — | — | — | (53.9) |
| Impairment Charges | (57.3) | — | — | — | (57.3) |
| Translation and Other | 30.9 | 18.7 | 1.6 | 10.9 | (0.3) |
| 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 and Other | (89.1) | (44.0) | (4.7) | (40.4) | — |
| Balance as of December 31, 2024 | $6,458.9 | $3,697.2 | $749.2 | $2,012.5 | $— |
| Cumulative Goodwill Impairment Charges⁽¹⁾ | $223.6 | $18.1 | $200.4 | $5.1 | $— |
(1) Excludes impairment charges related to Industrial Systems, since it was sold in April 2024. See Note 3 - Acquisitions and Divestitures for more information.
Intangible Assets
Intangible assets consist of the following:
| December 31, 2024 · December 31, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Weighted Average Amortization Period (Years) | Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | |
| Customer Relationships | 15 | $3,892.8 | $915.1 | $2,977.7 | $4,028.5 | $746.2 | $3,282.3 |
| Technology | 13 | 293.0 | 109.0 | 184.0 | 302.6 | 92.9 | 209.7 |
| Trademarks | 10 | 692.3 | 189.4 | 502.9 | 712.1 | 120.7 | 591.4 |
| Total Intangibles | $4,878.1 | $1,213.5 | $3,664.6 | $5,043.2 | $959.8 | $4,083.4 | |
While the Company believes its customer relationships are long-term in nature, the Company's contractual customer relationships are generally short-term. Useful lives are established at acquisition based on historical attrition rates.
Amortization expense was $346.5 million in 2024, $307.8 million in 2023 and $185.5 million in 2022.
The following table presents estimated future amortization expense:
| Year | Estimated Amortization |
|---|---|
| 2025 | $341.9 |
| 2026 | 338.6 |
| 2027 | 338.5 |
| 2028 | 338.5 |
| 2029 | 333.5 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.