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8. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the years ended December 31, 2022 and January 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 2, 2021 |
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$ |
261.1 |
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$ |
182.4 |
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$ |
443.5 |
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Acquisition of NEM |
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31.6 |
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— |
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31.6 |
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Measurement period adjustment, Balboa Water Group acquisition |
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— |
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0.5 |
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0.5 |
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Acquisition of Joyonway |
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— |
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3.3 |
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3.3 |
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Currency translation |
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(19.0 |
) |
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— |
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(19.0 |
) |
Balance at January 1, 2022 |
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$ |
273.7 |
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$ |
186.2 |
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$ |
459.9 |
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Acquisition of Daman |
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24.7 |
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— |
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24.7 |
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Acquisition of Taimi |
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0.3 |
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— |
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0.3 |
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Measurement period adjustment, Joyonway acquisition |
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— |
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0.1 |
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0.1 |
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Currency translation |
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(16.2 |
) |
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(0.3 |
) |
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(16.5 |
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Balance at December 31, 2022 |
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$ |
282.5 |
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$ |
186.0 |
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$ |
468.5 |
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Acquired Intangibles Assets
At December 31, 2022 and January 1, 2022, intangible assets consisted of the following:
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December 31, 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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$ |
87.5 |
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$ |
(18.5 |
) |
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$ |
69.0 |
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$ |
83.4 |
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$ |
(15.2 |
) |
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$ |
68.2 |
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Non-compete agreements |
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2.1 |
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(0.7 |
) |
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1.4 |
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3.3 |
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(1.1 |
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2.2 |
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Technology |
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50.8 |
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(21.3 |
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29.5 |
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50.4 |
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(16.7 |
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33.7 |
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Supply agreement |
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21.0 |
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(12.8 |
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8.2 |
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21.0 |
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(10.7 |
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10.3 |
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Customer relationships |
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349.4 |
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(56.1 |
) |
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293.3 |
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336.8 |
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(43.5 |
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293.3 |
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Sales order backlog |
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0.7 |
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(0.4 |
) |
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0.3 |
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1.0 |
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(1.0 |
) |
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— |
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Workforce |
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6.1 |
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(2.2 |
) |
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3.9 |
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6.1 |
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(1.0 |
) |
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5.1 |
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$ |
517.6 |
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$ |
(112.0 |
) |
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$ |
405.6 |
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$ |
502.0 |
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$ |
(89.2 |
) |
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$ |
412.8 |
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Amortization expense on acquired intangibles assets for the 2022, 2021 and 2020 fiscal years was approximately $28.1, $32.8 and $22.1, respectively. Future estimated amortization expense is presented below.
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Year: |
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2023 |
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$ |
29.6 |
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2024 |
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28.6 |
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2025 |
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28.4 |
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2026 |
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26.6 |
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2027 |
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23.4 |
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Thereafter |
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269.0 |
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Total |
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$ |
405.6 |
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