| GOODWILL AND INTANGIBLE ASSETS |
6. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the three months ended April 2, 2022, is as follows:
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Hydraulics |
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Electronics |
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Total |
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Balance at January 1, 2022 |
|
$ |
273,665 |
|
|
$ |
186,271 |
|
|
$ |
459,936 |
|
Measurement period adjustment, Joyonway acquisition |
|
|
— |
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|
|
66 |
|
|
|
66 |
|
Measurement period adjustment, NEM acquisition |
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|
(37 |
) |
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|
— |
|
|
|
(37 |
) |
Currency translation |
|
|
(7,308 |
) |
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|
(3 |
) |
|
|
(7,311 |
) |
Balance at April 2, 2022 |
|
$ |
266,320 |
|
|
$ |
186,334 |
|
|
$ |
452,654 |
|
Acquired Intangible Assets
At April 2, 2022 and January 1, 2022, intangible assets consisted of the following:
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April 2, 2022 |
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January 1, 2022 |
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Gross Carrying
Amount |
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Accumulated
Amortization |
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Net Carrying
Amount |
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|
Gross Carrying
Amount |
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Accumulated
Amortization |
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|
Net Carrying
Amount |
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Definite-lived intangibles: |
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Trade names and brands |
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$ |
81,962 |
|
|
$ |
(15,419 |
) |
|
$ |
66,543 |
|
|
$ |
83,443 |
|
|
$ |
(15,216 |
) |
|
$ |
68,227 |
|
Non-compete agreements |
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|
2,265 |
|
|
|
(283 |
) |
|
|
1,982 |
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|
|
3,218 |
|
|
|
(1,092 |
) |
|
|
2,126 |
|
Technology |
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|
49,536 |
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|
(17,534 |
) |
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|
32,002 |
|
|
|
50,425 |
|
|
|
(16,729 |
) |
|
|
33,696 |
|
Supply agreement |
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|
21,000 |
|
|
|
(11,200 |
) |
|
|
9,800 |
|
|
|
21,000 |
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|
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(10,675 |
) |
|
|
10,325 |
|
Customer relationships |
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|
331,173 |
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|
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(46,314 |
) |
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|
284,859 |
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|
336,809 |
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|
|
(43,488 |
) |
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|
293,321 |
|
Workforce |
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|
6,077 |
|
|
|
(1,317 |
) |
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|
4,760 |
|
|
|
6,077 |
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|
|
(1,013 |
) |
|
|
5,064 |
|
|
|
$ |
492,013 |
|
|
$ |
(92,067 |
) |
|
$ |
399,946 |
|
|
$ |
500,972 |
|
|
$ |
(88,213 |
) |
|
$ |
412,759 |
|
Amortization expense on acquired intangible assets for the three months ended April 2, 2022 and April 3, 2021, was $6,980 and $10,198, respectively. Future estimated amortization expense is presented below.
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Year: |
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2022 Remaining |
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$ |
20,755 |
|
2023 |
|
|
27,639 |
|
2024 |
|
|
26,984 |
|
2025 |
|
|
26,775 |
|
2026 |
|
|
24,965 |
|
2027 |
|
|
21,692 |
|
Thereafter |
|
|
251,136 |
|
Total |
|
$ |
399,946 |
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