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GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Sep. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The changes in the carrying amount of goodwill for the nine months ended September 28, 2019 were as follows:
 
December 31,
2018
 
Goodwill
Resulting from
Business
Combinations (1)
 
Impairments
 
Foreign
Currency
Translation
 
September 28,
2019
HVAC reportable segment
 

 
 
 
 

 
 

 
 

Gross goodwill
$
261.8

 
$
1.9

 
$
—

 
$
(1.5
)
 
$
262.2

Accumulated impairments
(144.4
)
 
—

 
—

 
0.1

 
(144.3
)
Goodwill
117.4

 
1.9

 
—

 
(1.4
)
 
117.9

 
 
 
 
 
 
 
 
 
 
Detection and Measurement reportable segment
 

 
 

 
 

 
 

 
 

Gross goodwill
265.0

 
36.1

 
—

 
(2.3
)
 
298.8

Accumulated impairments
(134.3
)
 
—

 
—

 
0.7

 
(133.6
)
Goodwill
130.7

 
36.1

 
—

 
(1.6
)
 
165.2

 
 
 
 
 
 
 
 
 
 
Engineered Solutions reportable segment
 

 
 

 
 

 
 

 
 

Gross goodwill
335.3

 
—

 
—

 
(2.0
)
 
333.3

Accumulated impairments
(189.0
)
 
—

 
—

 
2.0

 
(187.0
)
Goodwill
146.3

 
—

 
—

 
—

 
146.3

 
 
 
 
 
 
 
 
 
 
All Other
 
 
 
 
 
 
 
 
 
Gross goodwill
20.8

 
—

 
—

 
—

 
20.8

Accumulated impairments
(20.8
)
 
—

 
—

 
—

 
(20.8
)
Goodwill
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

Gross goodwill
882.9

 
38.0

 
—

 
(5.8
)
 
915.1

Accumulated impairments
(488.5
)
 
—

 
—

 
2.8

 
(485.7
)
Goodwill
$
394.4

 
$
38.0

 
$
—

 
$
(3.0
)
 
$
429.4

___________________________
(1) 
Reflects goodwill acquired in connection with the Sabik and SGS acquisitions of $36.9 and $1.9, respectively, partially offset by a reduction in Cues’ goodwill during the period of $0.8 resulting from revisions to the valuation of certain income tax accounts. As indicated in Note 3, the acquired assets, including goodwill, and liabilities assumed in the Sabik and SGS acquisitions have been recorded at estimates of fair value and are subject to change upon completion of acquisition accounting.
Other Intangibles, Net
Identifiable intangible assets at September 28, 2019 and December 31, 2018 comprised the following:
 
September 28, 2019
 
December 31, 2018
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
Intangible assets with determinable lives:(1)
 

 
 

 
 

 
 

 
 

 
 

Customer relationships
$
64.3

 
$
(7.1
)
 
$
57.2

 
$
44.8

 
$
(3.5
)
 
$
41.3

Technology
25.9

 
(2.7
)
 
23.2

 
17.1

 
(1.1
)
 
16.0

Patents
4.5

 
(4.5
)
 
—

 
4.5

 
(4.5
)
 
—

Other
12.2

 
(8.5
)
 
3.7

 
11.3

 
(7.9
)
 
3.4

 
106.9

 
(22.8
)
 
84.1

 
77.7

 
(17.0
)
 
60.7

Trademarks with indefinite lives(2)
146.8

 
—

 
146.8

 
137.7

 
—

 
137.7

Total
$
253.7

 
$
(22.8
)
 
$
230.9

 
$
215.4

 
$
(17.0
)
 
$
198.4

___________________________
(1) 
The identifiable intangible assets associated with the SGS and Sabik acquisitions consist of customer backlog of $0.4 and $0.4, respectively, and customer relationships of $3.7 and $16.3, respectively. In addition, the Sabik acquisition included definite-lived trademarks and technology of $0.2 and $9.1, respectively.
(2) 
Changes during the nine months ended September 28, 2019 related primarily to the acquisition of SGS and Sabik trademarks of $1.0 and $9.0, respectively.
In connection with the acquisitions of Sabik and SGS, which have definite-lived intangibles as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $7.9 for the full year 2019 and for each of the five years thereafter.
At September 28, 2019, the net carrying value of intangible assets with determinable lives consisted of $7.2 in the HVAC reportable segment and $76.9 in the Detection and Measurement reportable segment. At September 28, 2019, trademarks with indefinite lives consisted of $90.1 in the HVAC reportable segment, $47.6 in the Detection and Measurement reportable segment, and $9.1 in the Engineered Solutions reportable segment.
We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. A significant amount of judgment is involved in determining if an indication of impairment has occurred between annual testing dates. Such indication may include: a significant decline in expected future cash flows; a significant adverse change in legal factors or the business climate; unanticipated competition; and a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit.
We perform our annual trademarks impairment testing during the fourth quarter, or on a more frequent basis, if there are indications of potential impairment. The fair values of our trademarks are determined by applying estimated royalty rates to projected revenues, with the resulting cash flows discounted at a rate of return that reflects current market conditions (fair value based on unobservable inputs - Level 3, as defined in Note 17). The primary basis for these projected revenues is the annual operating plan for each of the related businesses, which is prepared in the fourth quarter of each year.