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7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
A summary of changes in goodwill by segment for the six months ended July 1, 2023, is as follows:
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Hydraulics |
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Electronics |
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Total |
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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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25.1 |
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25.1 |
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Currency translation |
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4.7 |
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(0.1 |
) |
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4.6 |
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Balance at July 1, 2023 |
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$ |
299.0 |
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$ |
211.0 |
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$ |
510.0 |
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Acquired Intangible Assets
At July 1, 2023 and December 31, 2022, acquired intangible assets consisted of the following:
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July 1, 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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$ |
95.4 |
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$ |
(21.2 |
) |
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$ |
74.2 |
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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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(0.9 |
) |
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1.1 |
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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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54.0 |
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(24.1 |
) |
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29.9 |
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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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(13.8 |
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7.2 |
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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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391.1 |
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(65.4 |
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325.7 |
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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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(1.0 |
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0.4 |
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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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(2.8 |
) |
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3.3 |
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6.1 |
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(2.2 |
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3.9 |
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$ |
571.0 |
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$ |
(129.2 |
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$ |
441.8 |
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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 intangible assets for the six months ended July 1, 2023 and July 2, 2022, was $16.4 and $13.8, respectively. Future estimated amortization expense is presented below.
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Year: |
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2023 Remaining |
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$ |
16.7 |
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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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30.4 |
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2027 |
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27.2 |
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2028 |
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26.7 |
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Thereafter |
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276.2 |
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Total |
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$ |
441.8 |
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