Goodwill and Other Intangible Assets

12 Months Ended

Jan. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by segment for 2021 and 2020 are as follows:


(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of 2019 year end	$	286.2	$	12.5	$	615.1	$	913.8
Currency translation	26.7		(0.1)		15.0		41.6
Acquisitions	18.3		—		8.7		27.0
Balance as of 2020 year end	$	331.2	$	12.4	$	638.8	$	982.4
Currency translation	(19.4)		—		(11.3)		(30.7)
Acquisitions	14.0		—		150.8		164.8
Balance as of 2021 year end	$	325.8	$	12.4	$	778.3	$	1,116.5

Goodwill of $1,116.5 million as of 2021 year end included $150.8 million, on a preliminary basis, from the acquisition of Dealer-FX, $10.7 million, on a preliminary basis, from the acquisition of Pradines and $3.3 million, on a preliminary basis, from the acquisition of AutoCrib Germany. The goodwill from Dealer-FX is included in the Repair Systems & Information Group and the goodwill from AutoCrib Germany and Pradines is included in the Commercial & Industrial Group.

Goodwill of $982.4 million as of 2020 year end includes: (i) $5.6 million from the acquisition of certain assets of Sigmavision, (ii) $14.5 million from the acquisition of Cognitran; and (iii) $18.3 million, from the acquisition of AutoCrib. During 2020, the purchase accounting valuations for the acquired net assets, including intangible assets, of Sigmavision and Cognitran were completed, resulting in an increase in goodwill of $3.1 million for Cognitran. The remaining purchase accounting valuations for the acquired net assets, including intangible assets, of AutoCrib were completed in the first quarter of 2021. The goodwill from the Sigmavision and Cognitran acquisitions is included in the Repair Systems & Information Group. The goodwill from the AutoCrib acquisition is included in the Commercial & Industrial Group.

See Note 3 for additional information on acquisitions.

Additional disclosures related to other intangible assets as of 2021 and 2020 year end are as follows:


	2021				2020
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	217.8	$	(142.1)	$	191.5	$	(130.1)
Developed technology	36.6		(23.2)		21.8		(19.9)
Internally developed software	182.7		(139.1)		172.2		(128.0)
Patents	45.7		(25.1)		43.2		(25.3)
Trademarks	3.9		(2.3)		3.9		(2.4)
Other	8.3		(4.1)		8.2		(3.9)
Total	495.0		(335.9)		440.8		(309.6)
Non-amortized trademarks	142.6		—		129.6		—
Total other intangible assets	$	637.6	$	(335.9)	$	570.4	$	(309.6)

As of year-end 2021, the gross carrying value of intangible assets includes $28.4 million of customer relationships, $14.8 million of developed technology and a $17.7 million non-amortized trademark related to the Dealer-FX acquisition. As of year-end 2020, the gross carrying value of intangible assets includes $4.6 million of customer relationships, $1.7 million of developed technology and a $7.4 million non-amortized trademark from the AutoCrib acquisition, as well as $0.3 million of patents related to the Sigmavision acquisition.

Provision for impairment of goodwill and/or other intangible assets could arise in a future period due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit. As of 2021 year end, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:


						In Years
Customer relationships						14
Developed technology						5
Internally developed software						6
Patents						14
Trademarks						9
Other						39

Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 14 year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 12 years.

The company’s customer relationships generally have contractual terms of three to five years and are typically renewed without significant cost to the company. The weighted-average 14 year life for customer relationships is based on the company’s historical renewal experience. Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $29.2 million in 2021, $23.4 million in 2020 and $22.3 million in 2019. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $28.0 million in 2022, $24.5 million in 2023, $18.8 million in 2024, $14.0 million in 2025, and $10.8 million in 2026.