Goodwill And Intangible Assets

9 Months Ended

Oct. 03, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

As required, the Company performs an annual impairment test of goodwill as of the end of the October fiscal month or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value.

The following information presents changes to goodwill during the nine months ended October 3, 2015 (in millions):



	Total			Commercial and Industrial Systems			Climate Solutions			Power Transmission Solutions
Balance as of January 3, 2015	$	1,004.0		$	645.4		$	344.6		$	14.0
Acquisition and valuation adjustments	568.7			(5.2		)	—			573.9
Translation adjustments	(8.7		)	(9.5		)	(1.0		)	1.8
Balance as of October 3, 2015	$	1,564.0		$	630.7		$	343.6		$	589.7

Cumulative goodwill impairment charges	$	195.8		$	164.9		$	7.7		$	23.2

Intangible Assets

Intangible assets consisted of the following (in millions):



		October 3, 2015				January 3, 2015
	Weighted Average Amortization Period (Years)	Gross Value		Accumulated Amortization		Gross Value		Accumulated Amortization
Amortizable intangible assets:
Customer relationships	15	$	719.8	$	151.5	$	256.8	$	122.6
Technology	11	191.8		88.5		129.4		74.9
Trademarks	12	32.2		21.2		33.1		20.1
Patent and engineering drawings	5	16.6		16.6		16.6		16.6
Non-compete agreements	5	8.5		8.1		8.6		8.0
		968.9		285.9		444.5		242.2
Non-amortizable trademarks		121.9		—		—		—
		$	1,090.8	$	285.9	$	444.5	$	242.2

The estimated expected future annual amortization for intangible assets is as follows (in millions):



Year	Estimated Amortization
2016	$	62.1
2017	55.4
2018	53.6
2019	53.1
2020	50.4

Amortization expense recorded for the three and nine months ended October 3, 2015 was $16.7 million and $47.7 million, respectively. Amortization expense recorded for the three and nine months ended September 27, 2014 was $11.8 million and $34.7 million, respectively. Amortization expense for 2015 is estimated to be $64.2 million.

- 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.

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