Helios Technologies Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jul. 01, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

A summary of changes in goodwill at July 1, 2017 is as follows:

	Hydraulics		Electronics		Total
Balance at December 31, 2016	$	2,214	$	101,369	$	103,583
Working capital adjustment		—		500		500
Measurement period adjustment		—		6,314		6,314
Currency translation		80		—		80
Balance at July 1, 2017	$	2,294	$	108,183	$	110,477

As of July 1, 2017, no factors were identified that indicated impairment of the carrying value of the Company’s goodwill.

At July 1, 2017 and December 31, 2016, intangible assets consisted of the following:

	July 1, 2017							December 31, 2016
	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Definite-lived intangibles:
Trade Name and Brands	$	30,774	$	(1,330	)	$	29,444	$	30,774	$	(541	)	$	30,233
Non-compete Agreements		950		(111	)		839		950		(16	)		934
Technology		18,435		(1,645	)		16,790		18,435		(620	)		17,815
Supply Agreement		21,000		(1,225	)		19,775		21,000		(175	)		20,825
Sales Order Backlog		620		(620	)		—		620		(347	)		273
Customer Relationships		39,751		(1,610	)		38,141		39,751		(614	)		39,137
Licensing Agreement		3,727		(510	)		3,217		3,727		(379	)		3,348
	$	115,257	$	(7,051	)	$	108,206	$	115,257	$	(2,692	)	$	112,565

Amortization expense of intangible assets for the six months ended July 1, 2017, and July 2, 2016 was approximately $4,348 and $302, respectively. Total estimated amortization expense of intangible assets for the years 2018 through 2022 is presented below. The remaining amortization for 2017 is approximately $4,074.

Year:
2018	$	8,148
2019		8,148
2020		8,148
2021		8,117
2022		7,839
Total	$	40,400

Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the six months ended July 1, 2017.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details