Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

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Goodwill and Intangibles
 6 Months Ended
Jul. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles [Text Block] Goodwill and Other Intangibles
Changes in the Company's goodwill during the six months ended July 1, 2023 and July 2, 2022, by segment, are summarized below:
(in millions) Propulsion Engine P&A Navico Group Boat Total
December 31, 2022 $ 14.0  $ 232.8  $ 595.8  $ 125.0  $ 967.6 
Adjustments (0.1) 0.1  2.1  4.9  7.0 
July 1, 2023 $ 13.9  $ 232.9  $ 597.9  $ 129.9  $ 974.6 
December 31, 2021 $ 14.7  $ 233.1  $ 581.8  $ 58.8  $ 888.4 
Acquisitions —  —  —  79.5  79.5 
Adjustments (0.8) (0.4) (0.1) 0.1  (1.2)
July 2, 2022 $ 13.9  $ 232.7  $ 581.7  $ 138.4  $ 966.7 

Adjustments in both periods include the effect of foreign currency translation on goodwill denominated in currencies other than the U.S. dollar. In addition, adjustments during the six months ended July 1, 2023 also include $4.8 million of purchase accounting adjustments from the 2022 Freedom Boat Club acquisitions, a majority of which relate to boat fleet fair market value adjustments. There was no accumulated impairment loss on goodwill as of July 1, 2023, December 31, 2022 or July 2, 2022.

As discussed in Note 1 – Significant Accounting Policies, effective January 1, 2023, we changed our reportable segments. Concurrent with the change in reportable segments, the Navico Group operating segment is now also the reporting unit at which we evaluate goodwill for impairment. As a result of this change, we evaluated impairment indicators at the previous reporting units immediately prior to the change and at the Navico Group reporting unit immediately following the change and concluded there were no indicators of impairment.

The Company's intangible assets, included within Other intangibles, net on the Condensed Consolidated Balance Sheets as of July 1, 2023, December 31, 2022 and July 2, 2022, are summarized by intangible asset type below:
July 1, 2023 December 31, 2022 July 2, 2022
(in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization
Intangible assets:
  Customer relationships $ 897.6  $ (408.7) $ 897.4  $ (386.1) $ 897.4  $ (362.4)
  Trade names 305.5  —  305.4  —  305.4  — 
  Developed technology 160.0  (18.7) 160.0  (13.3) 160.0  (8.0)
  Other 82.1  (38.4) 67.6  (33.6) 74.3  (28.5)
    Total $ 1,445.2  $ (465.8) $ 1,430.4  $ (433.0) $ 1,437.1  $ (398.9)

Other intangible assets primarily consist of software, patents and franchise agreements. Gross amounts and related accumulated amortization amounts include adjustments related to the impact of foreign currency translation. Aggregate amortization expense for intangibles was $17.2 million and $33.8 million for three and six months ended July 1, 2023, respectively. Aggregate amortization expense for intangibles was $15.4 million and $31.3 million for three and six months ended July 2, 2022, respectively.

The Company tests its intangible assets for impairment during the fourth quarter of each year, or whenever a significant change in events and circumstances (triggering event) occurs that indicates the fair value of intangible assets may be below their carrying values. The Company did not record an impairment charge during the six months ended July 1, 2023 or July 2, 2022.