Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

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Intangible Assets and Goodwill
3 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at the lower of cost or fair value. With the exception of most trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which the Company expects to receive future economic benefits from these assets. The Company assesses the carrying value of most trade names annually, or more often if events or changes in circumstances indicate there may be an impairment.

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2019 and September 30, 2019:

 
December 31, 2019
 
September 30, 2019
 
Cost
 
Accumulated
Amortization
 
Cost
 
Accumulated
Amortization
Finite-lived assets:
 

 
 

 
 

 
 

Trade names
$
0.2

 
$
(0.2
)
 
$
0.2

 
$
(0.2
)
Customer relationships
1,026.3

 
(179.4
)
 
464.2

 
(169.2
)
Technology, including patents
173.0

 
(52.2
)
 
76.8

 
(49.4
)
Software
65.4

 
(53.1
)
 
58.7

 
(51.7
)
Backlog
10.0

 
(4.2
)
 

 

Other
0.1

 
(0.1
)
 
0.2

 
(0.2
)
 
1,275.0

 
(289.2
)
 
600.1

 
(270.7
)
Indefinite-lived assets:
 

 
 

 
 

 
 

Trade names
331.9

 

 
125.5

 

 
 
 
 
 
 
 
 
Total
$
1,606.9

 
$
(289.2
)
 
$
725.6

 
$
(270.7
)


The net change in intangible assets during the three months ended December 31, 2019 was driven primarily by the acquisition of Milacron, which included acquired intangible assets of $865.0, normal amortization, and foreign currency adjustments. See Note 4 for further information on the acquisition of Milacron. Estimated amortization expense related to intangible assets for the next five years is: $72.7 in 2020 (includes three months actual and nine months estimated), $68.7 in 2021, $67.7 in 2022, $67.3 in 2023, and $67.1 in 2024.

Goodwill

Goodwill is not amortized, but is subject to annual impairment tests.  Goodwill has been assigned to reporting units within the reportable segments.  The Company assesses the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment.  Impairment testing is performed at a reporting unit level. There were no goodwill impairment charges during the three months ended December 31, 2019 and 2018.

The following table summarizes the changes in the Company’s goodwill, by reportable segment, for the three months ended December 31, 2019.
 
Process
Equipment
Group
 
Milacron
 
Batesville
 
Total
Balance as of September 30, 2019
$
569.7

 
$

 
$
8.3

 
$
578.0

Acquisition (see Note 4)
1.7

 
666.5

 

 
668.2

Foreign currency adjustments
8.4

 
2.3

 

 
10.7

Balance as of December 31, 2019
$
579.8

 
$
668.8

 
$
8.3

 
$
1,256.9