| GOODWILL AND INTANGIBLE ASSETS |
6. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the six months ended July 2, 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 |
|
$ |
273,665 |
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|
$ |
186,271 |
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|
$ |
459,936 |
|
Measurement period adjustment, Joyonway acquisition |
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— |
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|
66 |
|
|
|
66 |
|
Measurement period adjustment, NEM acquisition |
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(37 |
) |
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— |
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|
|
(37 |
) |
Currency translation |
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|
(22,507 |
) |
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|
(178 |
) |
|
|
(22,685 |
) |
Balance at July 2, 2022 |
|
$ |
251,121 |
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|
$ |
186,159 |
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|
$ |
437,280 |
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Acquired Intangible Assets
At July 2, 2022 and January 1, 2022, intangible assets consisted of the following:
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July 2, 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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$ |
80,210 |
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|
$ |
(16,150 |
) |
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$ |
64,060 |
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$ |
83,443 |
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|
$ |
(15,216 |
) |
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$ |
68,227 |
|
Non-compete agreements |
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|
2,149 |
|
|
|
(403 |
) |
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|
1,746 |
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|
3,218 |
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(1,092 |
) |
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|
2,126 |
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Technology |
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|
48,428 |
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(18,542 |
) |
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|
29,886 |
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|
50,425 |
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(16,729 |
) |
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|
33,696 |
|
Supply agreement |
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|
21,000 |
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(11,725 |
) |
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|
9,275 |
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21,000 |
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(10,675 |
) |
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|
10,325 |
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Customer relationships |
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319,415 |
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(47,960 |
) |
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|
271,455 |
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|
336,809 |
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(43,488 |
) |
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|
293,321 |
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Workforce |
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|
6,077 |
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(1,621 |
) |
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|
4,456 |
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|
6,077 |
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(1,013 |
) |
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|
5,064 |
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$ |
477,279 |
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|
$ |
(96,401 |
) |
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$ |
380,878 |
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|
$ |
500,972 |
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|
$ |
(88,213 |
) |
|
$ |
412,759 |
|
Amortization expense on acquired intangible assets for the six months ended July 2, 2022 and July 3, 2021, was $13,780 and $17,878, respectively. Future estimated amortization expense is presented below.
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Year: |
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2022 Remaining |
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$ |
13,471 |
|
2023 |
|
|
26,907 |
|
2024 |
|
|
26,252 |
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2025 |
|
|
26,057 |
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2026 |
|
|
24,277 |
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2027 |
|
|
21,003 |
|
Thereafter |
|
|
242,911 |
|
Total |
|
$ |
380,878 |
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