Helios Technologies Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

7. GOODWILL AND INTANGIBLE ASSETS

Goodwill

A summary of changes in goodwill by segment for the years ended December 30, 2017 and December 31, 2016 is as follows:

	Hydraulics			Electronics		Total
Balance as January 2, 2016	$	2,286		$	2,702	$	4,988
Acquisitions		—			98,667		98,667
Currency translation		(72	)		—		(72	)
Balance as December 31, 2016	$	2,214		$	101,369	$	103,583
Working capital adjustment		—			500		500
Measure period adjustment		—			4,504		4,504
Currency translation		282			—		282
Balance as December 30, 2017	$	2,496		$	106,373	$	108,869

Goodwill is tested for impairment annually, in the third and fourth quarters, or more frequently if events or changes in circumstances indicate that goodwill might be impaired. Valuation models reflecting the expected future cash flow projections are used to value reporting units. A valuation of the reporting unit at December 30, 2017, indicated that there was no impairment of the carrying value of the Company’s goodwill associated with its Hydraulics segment. A valuation of the reporting units that comprise the Company’s Electronics segment at September 30, 2017, indicated that the fair value of the reporting unit was in excess of the carrying value. As of December 30, 2017, no factors were identified that indicated impairment of the carrying value of the Company’s goodwill associated with its Electronics segment.

Intangibles

At December 30, 2017, and December 31, 2016, intangible assets consisted of the following:

		December 30, 2017							December 31, 2016
	Useful life (years)	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Definite-lived intangibles:
Trade Name and Brands	1 - 20	$	30,774	$	(2,115	)	$	28,659	$	30,774	$	(541	)	$	30,233
Non-compete Agreements	2 - 5		950		(206	)		744		950		(16	)		934
Technology	7 - 10		18,435		(2,671	)		15,764		18,435		(620	)		17,815
Supply Agreement	10		21,000		(2,275	)		18,725		21,000		(175	)		20,825
Sales Order Backlog	1		620		(620	)		—		620		(347	)		273
Customer Relationships	15 - 20		39,751		(2,607	)		37,144		39,751		(614	)		39,137
Licensing Agreement	15		3,716		(621	)		3,095		3,727		(379	)		3,348
		$	115,246	$	(11,115	)	$	104,131	$	115,257	$	(2,692	)	$	112,565

Total amortization expense for the years ended 2017, 2016 and 2015 was approximately $8,423, $1,545 and $385, respectively. Total estimated amortization expense for the years 2018 through 2022 is presented below.

Year:
2018	$	8,148
2019		8,148
2020		8,148
2021		8,113
2022		7,842
Total	$	40,399

- 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