|
7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the nine months ended September 30, 2023, is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hydraulics |
|
|
Electronics |
|
|
Total |
|
Balance at December 31, 2022 |
|
$ |
282.5 |
|
|
$ |
186.0 |
|
|
$ |
468.5 |
|
Acquisition of Schultes |
|
|
11.8 |
|
|
|
— |
|
|
|
11.8 |
|
Acquisition of i3 |
|
|
— |
|
|
|
25.9 |
|
|
|
25.9 |
|
Currency translation |
|
|
(3.3 |
) |
|
|
(0.2 |
) |
|
|
(3.5 |
) |
Balance at September 30, 2023 |
|
$ |
291.0 |
|
|
$ |
211.7 |
|
|
$ |
502.7 |
|
Acquired Intangible Assets
At September 30, 2023, and December 31, 2022, acquired intangible assets consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
Gross Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net Carrying
Amount |
|
|
Gross Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net Carrying
Amount |
|
Definite-lived intangibles: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade names and brands |
|
$ |
94.7 |
|
|
$ |
(22.3 |
) |
|
$ |
72.4 |
|
|
$ |
87.5 |
|
|
$ |
(18.5 |
) |
|
$ |
69.0 |
|
Non-compete agreements |
|
|
2.0 |
|
|
|
(1.0 |
) |
|
|
1.0 |
|
|
|
2.1 |
|
|
|
(0.7 |
) |
|
|
1.4 |
|
Technology |
|
|
53.8 |
|
|
|
(25.3 |
) |
|
|
28.5 |
|
|
|
50.8 |
|
|
|
(21.3 |
) |
|
|
29.5 |
|
Supply agreement |
|
|
21.0 |
|
|
|
(14.4 |
) |
|
|
6.6 |
|
|
|
21.0 |
|
|
|
(12.8 |
) |
|
|
8.2 |
|
Customer relationships |
|
|
383.1 |
|
|
|
(68.4 |
) |
|
|
314.7 |
|
|
|
349.4 |
|
|
|
(56.1 |
) |
|
|
293.3 |
|
Sales order backlog |
|
|
1.4 |
|
|
|
(1.2 |
) |
|
|
0.2 |
|
|
|
0.7 |
|
|
|
(0.4 |
) |
|
|
0.3 |
|
Workforce |
|
|
6.1 |
|
|
|
(3.1 |
) |
|
|
3.0 |
|
|
|
6.1 |
|
|
|
(2.2 |
) |
|
|
3.9 |
|
|
|
$ |
562.1 |
|
|
$ |
(135.7 |
) |
|
$ |
426.4 |
|
|
$ |
517.6 |
|
|
$ |
(112.0 |
) |
|
$ |
405.6 |
|
Amortization expense on acquired intangible assets for the nine months ended September 30, 2023, and October 1, 2022, was $24.7 and $20.6, respectively. Future estimated amortization expense is presented below.
|
|
|
|
|
Year: |
|
|
|
2023 Remaining |
|
$ |
8.2 |
|
2024 |
|
|
31.9 |
|
2025 |
|
|
31.7 |
|
2026 |
|
|
30.0 |
|
2027 |
|
|
26.7 |
|
2028 |
|
|
26.2 |
|
Thereafter |
|
|
271.7 |
|
Total |
|
$ |
426.4 |
|
|