Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.19.3
Goodwill and Intangible Assets
 9 Months Ended
Sep. 28, 2019
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 nine months ended September 28, 2019, is as follows:

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

Balance at December 29, 2018

 

$

276,758

 

 

$

106,373

 

 

$

383,131

 

Faster acquisition measurement period adjustment

 

 

(343

)

 

 

—

 

 

 

(343

)

Custom Fluidpower acquisition measurement period adjustment

 

 

1,205

 

 

 

—

 

 

 

1,205

 

Currency translation

 

 

(12,190

)

 

 

—

 

 

 

(12,190

)

Balance at September 28, 2019

 

$

265,430

 

 

$

106,373

 

 

$

371,803

 

Intangible Assets

At September 28, 2019, and December 29, 2018, intangible assets consisted of the following:

 

 

 

September 28, 2019

 

 

December 29, 2018

 

 

 

Gross carrying

amount

 

 

Accumulated

amortization

 

 

Net carrying

amount

 

 

Gross carrying

amount

 

 

Accumulated

amortization

 

 

Net carrying

amount

 

Definite-lived intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names and brands

 

$

55,483

 

 

$

(6,862

)

 

$

48,621

 

 

$

56,604

 

 

$

(4,712

)

 

$

51,892

 

Non-compete agreements

 

 

950

 

 

 

(538

)

 

 

412

 

 

 

950

 

 

 

(396

)

 

 

554

 

Technology

 

 

31,414

 

 

 

(7,821

)

 

 

23,593

 

 

 

32,004

 

 

 

(5,488

)

 

 

26,516

 

Supply agreement

 

 

21,000

 

 

 

(5,951

)

 

 

15,049

 

 

 

21,000

 

 

 

(4,375

)

 

 

16,625

 

Customer relationships

 

 

223,854

 

 

 

(16,847

)

 

 

207,007

 

 

 

232,275

 

 

 

(10,168

)

 

 

222,107

 

Licensing agreement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,716

 

 

 

(862

)

 

 

2,854

 

 

 

$

332,701

 

 

$

(38,019

)

 

$

294,682

 

 

$

346,549

 

 

$

(26,001

)

 

$

320,548

 

 

During the third quarter of 2019, the Company terminated its technology licensing agreement with Sturman Industries, Inc. A phase out of all digital logic valve (“DLV”) related products was completed and no further sales of any related products or technologies will occur. The termination of the agreement resulted in the recognition of a loss on disposal of the related intangible asset totaling $2,713.

Amortization expense for the nine months ended September 28, 2019, and September 29, 2018, was $13,544 and $17,174, respectively. Total estimated amortization expense for the remainder of 2019 and for the years 2020 through 2024 is presented below.

 

Year:

 

 

 

 

2019 Remaining

 

$

4,492

 

2020

 

 

17,660

 

2021

 

 

17,560

 

2022

 

 

17,297

 

2023

 

 

17,237

 

2024

 

 

16,582

 

Total

 

$

90,828