| GOODWILL AND INTANGIBLE ASSETS |
7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the nine months ended October 1, 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 |
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|
$ |
186,271 |
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|
$ |
459,936 |
|
Measurement period adjustment, Joyonway acquisition |
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|
— |
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|
|
66 |
|
|
|
66 |
|
Measurement period adjustment, NEM acquisition |
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(37 |
) |
|
|
— |
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|
|
(37 |
) |
Acquisition of Taimi |
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|
260 |
|
|
|
— |
|
|
|
260 |
|
Acquisition of Daman |
|
|
24,891 |
|
|
|
— |
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|
|
24,891 |
|
Currency translation |
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|
(37,611 |
) |
|
|
(365 |
) |
|
|
(37,976 |
) |
Balance at October 1, 2022 |
|
$ |
261,168 |
|
|
$ |
185,972 |
|
|
$ |
447,140 |
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Acquired Intangible Assets
At October 1, 2022 and January 1, 2022, intangible assets consisted of the following:
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October 1, 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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$ |
85,184 |
|
|
$ |
(16,859 |
) |
|
$ |
68,325 |
|
|
$ |
83,443 |
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|
$ |
(15,216 |
) |
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$ |
68,227 |
|
Non-compete agreements |
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|
2,025 |
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(506 |
) |
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|
1,519 |
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|
|
3,218 |
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(1,092 |
) |
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|
2,126 |
|
Technology |
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|
49,292 |
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(19,563 |
) |
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|
29,729 |
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50,425 |
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(16,729 |
) |
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|
33,696 |
|
Supply agreement |
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|
21,000 |
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|
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(12,250 |
) |
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|
8,750 |
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21,000 |
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(10,675 |
) |
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|
10,325 |
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Customer relationships |
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332,808 |
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(49,476 |
) |
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|
283,332 |
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|
336,809 |
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(43,488 |
) |
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|
293,321 |
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Sales order backlog |
|
|
720 |
|
|
|
— |
|
|
|
720 |
|
|
|
1,023 |
|
|
|
(1,023 |
) |
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|
— |
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Workforce |
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|
6,077 |
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(1,924 |
) |
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|
4,153 |
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|
6,077 |
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(1,013 |
) |
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|
5,064 |
|
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$ |
497,106 |
|
|
$ |
(100,578 |
) |
|
$ |
396,528 |
|
|
$ |
501,995 |
|
|
$ |
(89,236 |
) |
|
$ |
412,759 |
|
Amortization expense on acquired intangible assets for the nine months ended October 1, 2022 and October 2, 2021, was $20,554 and $25,285, respectively. Future estimated amortization expense is presented below.
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Year: |
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|
|
2022 Remaining |
|
$ |
7,443 |
|
2023 |
|
|
28,655 |
|
2024 |
|
|
27,640 |
|
2025 |
|
|
27,456 |
|
2026 |
|
|
25,704 |
|
2027 |
|
|
22,431 |
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Thereafter |
|
|
257,199 |
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Total |
|
$ |
396,528 |
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