Quarterly report [Sections 13 or 15(d)]

Goodwill and Intangible Assets

v3.25.2
Goodwill and Intangible Assets
6 Months Ended
Jun. 28, 2025
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 six months ended June 28, 2025, is as follows:

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

Balance at December 28, 2024

 

$

287.1

 

 

$

211.8

 

 

$

498.9

 

Assets held for sale

 

 

(5.6

)

 

 

 

 

 

(5.6

)

Currency translation

 

 

30.5

 

 

 

0.1

 

 

 

30.6

 

Balance at June 28, 2025

 

$

312.0

 

 

$

211.9

 

 

$

523.9

 

Acquired Intangible Assets

At June 28, 2025, and December 28, 2024, acquired intangible assets consisted of the following:

 

 

 

June 28, 2025

 

 

December 28, 2024

 

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying
Amount

 

Definite-lived intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names and brands

 

$

95.8

 

 

$

(31.8

)

 

$

64.0

 

 

$

94.1

 

 

$

(28.6

)

 

$

65.5

 

Non-compete agreements

 

 

2.0

 

 

 

(1.9

)

 

 

0.1

 

 

 

2.0

 

 

 

(1.6

)

 

 

0.4

 

Technology

 

 

54.6

 

 

 

(34.1

)

 

 

20.5

 

 

 

53.4

 

 

 

(31.3

)

 

 

22.1

 

Supply agreement

 

 

21.0

 

 

 

(18.0

)

 

 

3.0

 

 

 

21.0

 

 

 

(17.0

)

 

 

4.0

 

Customer relationships

 

 

400.2

 

 

 

(102.5

)

 

 

297.7

 

 

 

380.1

 

 

 

(89.6

)

 

 

290.5

 

Workforce

 

 

6.1

 

 

 

(6.1

)

 

 

 

 

 

6.2

 

 

 

(4.7

)

 

 

1.5

 

 

 

$

579.7

 

 

$

(194.3

)

 

$

385.4

 

 

$

556.8

 

 

$

(172.8

)

 

$

384.0

 

 

Amortization expense on acquired intangible assets for the six months ended June 28, 2025, and June 29, 2024, was $16.5 and $15.7, respectively, reflected in amortization of intangible assets in the Consolidated Statements of Operations. Additionally, $0.2 and $0.4 of acquired amortization expense for the three and six months ended June 28, 2025, respectively, was reflected in cost of sales in the Consolidated Statement of Operations. Future estimated total amortization expense is presented below.

Year:

 

 

 

2025 Remaining

 

$

15.5

 

2026

 

 

30.5

 

2027

 

 

27.4

 

2028

 

 

27.1

 

2029

 

 

25.2

 

2030

 

 

24.4

 

Thereafter

 

 

235.4

 

Total

 

$

385.4

 

 

In January 2025, the Company began the early phases of restructuring the Helios Center of Engineering Excellence (“HCEE”). Consistent with the Company's previously announced restructuring plan, during the end of the second quarter 2025, management ceased operations at the San Antonio office and reassigned resources to the operations at our other major facilities across the business, and eliminated certain positions. As a result of this change in the HCEE business operations, the workforce intangible asset associated with the HCEE acquisition was reviewed by management and it was determined that the remaining net book value of the asset should be amortized over a useful life ending during the second quarter of 2025. This resulted in increases of $0.3 and $0.8 amortization expense for the three and six months ending June 28, 2025, respectively, associated with this intangible asset.