Goodwill and Intangible Assets

Goodwill and indefinite lived trademarks are not amortized but are tested for impairment at least annually. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The fair value of a reporting unit is determined using a discounted cash flow methodology. The Company’s reporting units are determined based upon whether discrete financial information is available and reviewed regularly, whether those units constitute a business, and the extent of economic similarities between those reporting units for purposes of aggregation. The Company’s reporting units identified under ASC 350-20-35-33 are at the component level, or one level below the operating segment level as defined under ASC 280-10-50-10 “Segment Reporting - Disclosure.” The Company has four reporting units as of June 30, 2026 and March 31, 2026. The Linear Motion Products reporting unit (which designs, manufactures and sources mechanical and electromechanical actuators and rotary unions) had goodwill of $9,699,000 at June 30, 2026 and March 31, 2026. The Rest of Products reporting unit (representing the hoist, chain, forgings, digital power, motion control, manufacturing, and distribution businesses) had goodwill of $263,398,000 and $265,708,000 at June 30, 2026 and March 31, 2026, respectively. The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $201,357,000 and $201,359,000 at June 30, 2026 and March 31, 2026, respectively. The Kito Crosby reporting unit had goodwill of $946,098,000 and $931,874,000 at June 30, 2026 and March 31, 2026, respectively.

Refer to the 2026 Form 10-K for information regarding our annual goodwill and indefinite lived trademark impairment evaluation. Future impairment indicators, such as declines in forecasted cash flows, may cause impairment charges. Impairment charges could be based on such factors as the Company’s stock price, forecasted cash flows, assumptions used, control premiums or other variables. There were no such indicators during the three months ended June 30, 2026.

A summary of changes in goodwill during the three months ended June 30, 2026 is as follows (in thousands):


Balance at April 1, 2026	$	1,408,640
Kito Crosby Acquisition (refer to Note 2)	2,654
Foreign currency translation	9,258
Balance at June 30, 2026	$	1,420,552

Goodwill is recognized net of accumulated impairment losses of $313,174,000 as of June 30, 2026 and March 31, 2026, respectively. Refer to the Company's 2026 Form 10-K for additional information regarding an impairment loss recorded in the fourth quarter of Fiscal 2026.

Identifiable intangible assets acquired in a business combination are amortized over their estimated useful lives.

Identifiable intangible assets are summarized as follows (in thousands):


	June 30, 2026						March 31, 2026
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Trademark	$	139,913	$	(15,345)	$	124,568	$	142,191	$	(12,444)	$	129,747
Indefinite lived trademark	47,306		—		47,306		47,554		—		47,554
Customer relationships	1,535,503		(204,242)		1,331,261		1,538,349		(170,641)		1,367,708
Acquired technology	113,543		(51,841)		61,702		113,797		(50,132)		63,665
Other	3,362		(2,672)		690		3,646		(2,658)		988
Total	$	1,839,627	$	(274,100)	$	1,565,527	$	1,845,537	$	(235,875)	$	1,609,662

The Company’s intangible assets that are considered to have finite lives are amortized. The weighted-average amortization periods are 13 years for trademarks, 14 years for customer relationships, 16 years for acquired technology, 9 years for other, and 14 years in total.