Note 9 - Goodwill and Other Intangible Assets
Goodwill:
The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually, performing its annual impairment test as of October 1st. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
The Company reviews goodwill for impairment at the reporting unit level. The Engineered Bearings segment has one reporting unit and the Industrial Motion segment has six reporting units. Changes in the carrying value of goodwill were as follows:
Year ended December 31, 2025:
Engineered BearingsIndustrial MotionTotal
Beginning balance$692.0 $691.3 $1,383.3 
Foreign currency translation adjustments and other changes11.9 91.2 103.1 
Ending balance$703.9 $782.5 $1,486.4 
Year ended December 31, 2024:
Engineered BearingsIndustrial MotionTotal
Beginning balance$692.3 $677.3 $1,369.6 
Acquisitions 61.4 61.4 
Measurement period adjustments related to 2023 acquisitions6.0 0.4 6.4 
Impairment loss (1.5)(1.5)
Foreign currency translation adjustments and other changes
(6.3)(46.3)(52.6)
Ending balance$692.0 $691.3 $1,383.3 
The acquisition of CGI added goodwill of $61.4 million in 2024. Goodwill arising from this acquisition is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated by combining the companies. The goodwill related to CGI is not deductible for tax purposes.
Note 9 - Goodwill and Other Intangible Assets (continued)
During the fourth quarter of 2024, the Company recorded a goodwill impairment loss of $1.5 million for the Belts and Chain reporting unit, bringing its goodwill balance to zero. This impairment loss is reported in impairment and restructuring charges on the Consolidated Statements of Income.
Intangible Assets:
The following table displays intangible assets as of December 31, 2025 and 2024:
  
20252024
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Intangible assets subject
 to amortization:
Customer relationships$863.0 $(321.9)$541.1 $805.7 $(262.9)$542.8 
Technology and know-how392.3 (152.6)239.7 369.6 (120.4)249.2 
Trade names116.6 (23.6)93.0 107.5 (16.9)90.6 
Capitalized Software312.0 (284.9)27.1 302.8 (276.1)26.7 
Other2.5 (1.7)0.8 11.0 (9.8)1.2 
 $1,686.4 $(784.7)$901.7 $1,596.6 $(686.1)$910.5 
Intangible assets not
 subject to amortization:
Trade names$91.9 $91.9 $87.3 $87.3 
FAA air agency certificates8.7 8.7 8.7 8.7 
 $100.6 $100.6 $96.0 $96.0 
Total intangible assets$1,787.0 $(784.7)$1,002.3 $1,692.6 $(686.1)$1,006.5 
No intangible assets were acquired in 2025. Intangible assets acquired in 2024 totaled $100.4 million. The intangible assets subject to amortization were assigned useful lives of 15 to 18 years and had a weighted-average amortization of 16.8 years.
Amortization expense for intangible assets was $87.4 million, $85.5 million and $72.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization expense for intangible assets is estimated to be approximately $89 million in 2026, $86 million in 2027, $83 million in 2028, $81 million in 2029 and $78 million in 2030.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 20, 2025
2023Feb 26, 2024
2022Feb 16, 2023
2021Feb 15, 2022
2020Feb 16, 2021
2019Feb 14, 2020
2018Feb 15, 2019
2017Feb 15, 2018
2016Feb 21, 2017
2015Feb 24, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.