Business Combinations

9 Months Ended

Oct. 02, 2020

During the first quarter of fiscal 2020, we acquired Kuebix with total purchase consideration of $201.1 million. There were no other material acquisitions during the first three quarters of fiscal 2020. Kuebix is a leading transportation management system provider and creator of North America's largest connected shipping community. This acquisition will enable us to create a new platform for planning, execution, and freight demand-capacity matching. The Condensed Consolidated Statements of Income include the operating results of the acquired business from the date of acquisition. The acquisition contributed less than 1% to our total revenue during the first three quarters of fiscal 2020.

The fair value of identifiable assets acquired and liabilities assumed were determined under the acquisition method of accounting for business combinations as of the date of acquisition. The excess of purchase consideration over the fair value of

net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair value of intangible assets acquired is determined based on a discounted cash flow analysis. For the acquisition in the first quarter of fiscal 2020, the preliminary fair value of net tangible assets and intangible assets acquired was based on preliminary valuations and estimates, and assumptions are subject to change within the measurement period (up to one year from the acquisition date).

Intangible Assets

The following table presents details of the Company’s total intangible assets:


As of	Third Quarter of Fiscal 2020						Fiscal Year End 2019
	Gross						Gross
	Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
(In millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Developed product technology	$	1,318.7	$	(993.4)	$	325.3	$	1,266.7	$	(923.4)	$	343.3
Trade names and trademarks	76.4		(68.4)		8.0		74.8		(59.8)		15.0
Customer relationships	779.8		(507.7)		272.1		769.8		(465.6)		304.2
Distribution rights and other intellectual property	68.7		(64.0)		4.7		79.7		(63.5)		16.2
	$	2,243.6	$	(1,633.5)	$	610.1	$	2,191.0	$	(1,512.3)	$	678.7

The estimated future amortization expense of purchased intangible assets as of the end of the third quarter of fiscal 2020 was as follows:


(In millions)
2020 (Remaining)	$	37.8
2021	138.1
2022	118.9
2023	105.6
2024	80.1
Thereafter	129.6
Total	$	610.1

Goodwill

The changes in the carrying amount of goodwill by segment for the first three quarters of fiscal 2020 were as follows:


	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Balance as of fiscal year end 2019	$	1,973.0	$	401.5	$	445.4	$	860.7	$	3,680.6
Additions due to acquisitions	—		—		0.4		147.6		148.0
Purchase price and foreign currency translation adjustments	9.1		4.0		(0.4)		(3.9)		8.8

Balance as of the end of the third quarter of fiscal 2020	$	1,982.1	$	405.5	$	445.4	$	1,004.4	$	3,837.4