XML 59 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and Intangible Assets
 12 Months Ended
Dec. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The excess of purchase price over estimated fair value of net assets acquired is assigned to goodwill. During the third quarter of 2018, the Company accelerated its plans to exit the hermetic climate business. This decision resulted in an impairment charge of $9.5 million.
The following information presents changes to goodwill during the periods indicated (in millions):
 
Total
 
Commercial Systems
 
Industrial Systems
 
Climate Solutions
 
Power Transmission Solutions
Balance as of December 30, 2017
$
1,477.1

 
$
375.0

 
$
173.8

 
$
342.4

 
$
585.9

Acquisitions
58.7

 
58.7

 
—

 
—

 
—

Less: Impairment Charges
(9.5
)
 
—

 
—

 
(9.5
)
 
—

Less: Held for Sale
(1.3
)
 
—

 
—

 
(1.3
)
 
—

Translation Adjustments
(15.8
)
 
(6.3
)
 
(2.3
)
 
(1.0
)
 
(6.2
)
Balance as of December 29, 2018
$
1,509.2

 
$
427.4

 
$
171.5

 
$
330.6

 
$
579.7

 
 
 
 
 
 
 
 
 
 
Divestiture
(2.8
)
 
—

 
—

 
—

 
(2.8
)
Translation Adjustments
(5.1
)
 
(0.8
)
 
(0.7
)
 
0.6

 
(4.2
)
Balance as of December 28, 2019
$
1,501.3

 
$
426.6

 
$
170.8

 
$
331.2

 
$
572.7

Cumulative Goodwill Impairment Charges
$
285.2

 
$
183.2

 
$
61.6

 
$
17.2

 
$
23.2


Intangible Assets
Intangible assets consist of the following (in millions):
 
Weighted Average Amortization Period (Years)
 
December 29, 2018
 
Impairment Charges
 
Divestitures
 
Translation Adjustments
 
December 28, 2019
Customer Relationships
17
 
$
708.8

 
$
(4.9
)
 
$
(7.8
)
 
$
(4.0
)
 
$
692.1

Technology
14
 
144.5

 
—

 
—

 
(0.5
)
 
144.0

Trademarks
14
 
37.0

 
—

 
(0.7
)
 
(0.4
)
 
35.9

Patent and Engineering Drawings
5
 
16.6

 
—

 
—

 
—

 
16.6

 
 
 
906.9

 
(4.9
)
 
(8.5
)
 
(4.9
)
 
888.6

Non-Amortizable Trade Name
 
 
121.9

 
—

 
—

 
(0.3
)
 
121.6

Total Gross Intangibles
 
 
$
1,028.8

 
$
(4.9
)
 
$
(8.5
)
 
$
(5.2
)
 
$
1,010.2


Accumulated amortization on intangible assets consists of the following:
 
 
December 29, 2018
 
Amortization
 
Divestitures
 
Translation Adjustments
 
December 28, 2019
Customer Relationships
 
$
272.4

 
$
39.4

 
$
(7.8
)
 
$
(1.6
)
 
$
302.4

Technology
 
90.1

 
9.2

 
—

 
(0.3
)
 
99.0

Trademarks
 
24.2

 
1.7

 
(0.7
)
 
(0.2
)
 
25.0

Patent and Engineering Drawings
 
16.6

 
—

 
—

 
—

 
16.6

Total Accumulated Amortization
 
$
403.3

 
$
50.3

 
$
(8.5
)
 
$
(2.1
)
 
$
443.0

Intangible Assets, Net of Amortization
 
$
625.5

 
 
 
 
 
 
 
$
567.2


While the Company believes its customer relationships are long-term in nature, the Company's contractual customer relationships are generally short-term. Useful lives are established at acquisition based on historical attrition rates.
Amortization expense was $50.3 million in fiscal 2019, $54.9 million in fiscal 2018 and $55.2 million in fiscal 2017. Amortization expense does not include any impairment recognized during the respective periods. The Company recognized $4.9 million of customer relationships intangible asset impairments related to the transfer of assets to held for sale during the first quarter of 2019.

The following table presents estimated future amortization expense (in millions):
 
 
 
Estimated Amortization
Year
 
 
2020
 
 
$
47.6

2021
 
 
42.7

2022
 
 
41.0

2023
 
 
40.9

2024
 
 
39.5