Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.22.1
Goodwill and Intangible Assets
3 Months Ended
Apr. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

A summary of changes in goodwill by segment for the three months ended April 2, 2022, is as follows:

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

Balance at January 1, 2022

 

$

273,665

 

 

$

186,271

 

 

$

459,936

 

Measurement period adjustment, Joyonway acquisition

 

 

 

 

 

66

 

 

 

66

 

Measurement period adjustment, NEM acquisition

 

 

(37

)

 

 

 

 

 

(37

)

Currency translation

 

 

(7,308

)

 

 

(3

)

 

 

(7,311

)

Balance at April 2, 2022

 

$

266,320

 

 

$

186,334

 

 

$

452,654

 

Acquired Intangible Assets

At April 2, 2022 and January 1, 2022, intangible assets consisted of the following:

 

 

 

April 2, 2022

 

 

January 1, 2022

 

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

Definite-lived intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names and brands

 

$

81,962

 

 

$

(15,419

)

 

$

66,543

 

 

$

83,443

 

 

$

(15,216

)

 

$

68,227

 

Non-compete agreements

 

 

2,265

 

 

 

(283

)

 

 

1,982

 

 

 

3,218

 

 

 

(1,092

)

 

 

2,126

 

Technology

 

 

49,536

 

 

 

(17,534

)

 

 

32,002

 

 

 

50,425

 

 

 

(16,729

)

 

 

33,696

 

Supply agreement

 

 

21,000

 

 

 

(11,200

)

 

 

9,800

 

 

 

21,000

 

 

 

(10,675

)

 

 

10,325

 

Customer relationships

 

 

331,173

 

 

 

(46,314

)

 

 

284,859

 

 

 

336,809

 

 

 

(43,488

)

 

 

293,321

 

Workforce

 

 

6,077

 

 

 

(1,317

)

 

 

4,760

 

 

 

6,077

 

 

 

(1,013

)

 

 

5,064

 

 

 

$

492,013

 

 

$

(92,067

)

 

$

399,946

 

 

$

500,972

 

 

$

(88,213

)

 

$

412,759

 

 

 

Amortization expense on acquired intangible assets for the three months ended April 2, 2022 and April 3, 2021, was $6,980 and $10,198, respectively. Future estimated amortization expense is presented below.

 

Year:

 

 

 

2022 Remaining

 

$

20,755

 

2023

 

 

27,639

 

2024

 

 

26,984

 

2025

 

 

26,775

 

2026

 

 

24,965

 

2027

 

 

21,692

 

Thereafter

 

 

251,136

 

Total

 

$

399,946