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8. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the years ended December 30, 2023 and December 31, 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 |
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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 |
) |
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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Acquisition of Schultes |
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11.8 |
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— |
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11.8 |
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Acquisition of i3 |
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— |
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25.9 |
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25.9 |
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Currency translation |
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7.8 |
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— |
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|
7.8 |
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Balance at December 30, 2023 |
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$ |
302.1 |
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$ |
211.9 |
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$ |
514.0 |
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Acquired Intangibles Assets
At December 30, 2023 and December 31, 2022, intangible assets consisted of the following:
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December 30, 2023 |
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December 31, 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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$ |
95.8 |
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$ |
(23.9 |
) |
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$ |
71.9 |
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$ |
87.5 |
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$ |
(18.5 |
) |
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$ |
69.0 |
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Non-compete agreements |
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2.0 |
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(1.1 |
) |
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0.9 |
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2.1 |
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(0.7 |
) |
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1.4 |
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Technology |
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54.7 |
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(26.9 |
) |
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27.8 |
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50.8 |
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(21.3 |
) |
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29.5 |
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Supply agreement |
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21.0 |
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(14.9 |
) |
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6.1 |
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21.0 |
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(12.8 |
) |
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8.2 |
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Customer relationships |
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391.8 |
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(74.8 |
) |
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317.0 |
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349.4 |
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(56.1 |
) |
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293.3 |
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Sales order backlog |
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1.4 |
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(1.4 |
) |
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— |
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0.7 |
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(0.4 |
) |
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0.3 |
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Workforce |
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6.1 |
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(3.4 |
) |
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2.7 |
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6.1 |
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(2.2 |
) |
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3.9 |
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$ |
572.8 |
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$ |
(146.4 |
) |
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$ |
426.4 |
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$ |
517.6 |
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$ |
(112.0 |
) |
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$ |
405.6 |
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Amortization expense on acquired intangibles assets for the 2023, 2022 and 2021 fiscal years was approximately $32.9, $28.1 and $32.8, respectively. Future estimated amortization expense is presented below.
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Year: |
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2024 |
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$ |
32.4 |
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2025 |
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32.2 |
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2026 |
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30.5 |
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2027 |
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27.2 |
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2028 |
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26.8 |
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Thereafter |
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277.3 |
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Total |
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$ |
426.4 |
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