XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment for 2020 and 2019 are as follows:
(Amounts in millions) |  | Commercial & Industrial Group |  | Snap-on Tools Group |  | Repair Systems & Information Group |  | Total
Balance as of 2018 year end |  | $ | 286.2 |  |  | $ | 12.5 |  |  | $ | 603.5 |  |  | $ | 902.2 |
Currency translation |  | (6.4) |  |  | — |  |  | (1.1) |  |  | (7.5) |
Acquisitions |  | 6.4 |  |  | — |  |  | 12.7 |  |  | 19.1 |
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 |
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, on a preliminary basis, 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 are expected to be 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. Goodwill of $913.8 million as of 2019 year end includes: (i) $11.4 million, on a preliminary basis, from the acquisition of Cognitran; (ii) $6.4 million from the acquisition of Power Hawk; and (iii) $1.3 million from the acquisition of TMB. The goodwill from the Cognitran and TMB acquisitions is included in the Repair Systems & Information Group. The goodwill from the Power Hawk 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 2020 and 2019 year end are as follows:
|  | 2020 |  | 2019
(Amounts in millions) |  | Gross Carrying Value |  | Accumulated Amortization |  | Gross Carrying Value |  | Accumulated Amortization
Amortized other intangible assets: |  |  |  |  |  |  |  |
Customer relationships |  | $ | 191.5 |  |  | $ | (130.1) |  |  | $ | 182.9 |  |  | $ | (117.9) |
Developed technology |  | 21.8 |  |  | (19.9) |  |  | 19.8 |  |  | (18.9) |
Internally developed software |  | 172.2 |  |  | (128.0) |  |  | 168.0 |  |  | (125.4) |
Patents |  | 43.2 |  |  | (25.3) |  |  | 38.5 |  |  | (23.7) |
Trademarks |  | 3.9 |  |  | (2.4) |  |  | 3.5 |  |  | (2.1) |
Other |  | 8.2 |  |  | (3.9) |  |  | 7.3 |  |  | (3.1) |
Total |  | 440.8 |  |  | (309.6) |  |  | 420.0 |  |  | (291.1) |
Non-amortized trademarks |  | 129.6 |  |  | — |  |  | 115.0 |  |  | — |
Total other intangible assets |  | $ | 570.4 |  |  | $ | (309.6) |  |  | $ | 535.0 |  |  | $ | (291.1) |
As of year-end 2020, the gross carrying value of intangible assets includes $4.6 million of customer relationship s, $1.7 million of developed technology and $7.4 million of non-amortized trademarks as a result of the AutoCrib acquisition, as well as $0.3 million of patents from the Sigmavision acquisition. As of year-end 2019, the gross carrying value of customer relationships includes $10.2 million related to the Cognitran acquisition and $0.9 million related to the Power Hawk acquisition. Additionally, the gross carrying value of intangible assets in 2019 includes $6.5 million of non-amortized trademarks and $1.1 million of developed technology as a result of the Cognitran acquisition. 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, could require a provision for impairment of goodwill and/or other intangible assets in a future period. As of 2020 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 |  | 15
Developed technology |  | 3
Internally developed software |  | 6
Patents |  | 7
Trademarks |  | 5
Other |  | 39
Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15 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 11 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 15 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 $23.4 million in 2020, $22.3 million in 2019 and $25.3 million in 2018. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $23.3 million in 2021, $20.2 million in 2022, $17.2 million in 2023, $12.5 million in 2024, and $8.2 million in 2025.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration