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GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended
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Jul. 03, 2021
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 six months ended July 3, 2021 were as follows:
| December 31, 2020 |  |  |  | Goodwill Resulting from Business Combinations (1) |  | Impairments |  |  |  | Foreign Currency Translation |  | July 3, 2021
HVAC reportable segment |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | $ | 492.2 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (3.9) |  |  | $ | 488.3 |
Accumulated impairments | (340.6) |  |  |  |  | — |  |  | — |  |  |  |  | 2.7 |  |  | (337.9) |
Goodwill | 151.6 |  |  |  |  | — |  |  | — |  |  |  |  | (1.2) |  |  | 150.4 |
Detection and Measurement reportable segment |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | 351.5 |  |  |  |  | 42.8 |  |  | — |  |  |  |  | (0.3) |  |  | 394.0 |
Accumulated impairments | (134.5) |  |  |  |  | — |  |  | — |  |  |  |  | (0.7) |  |  | (135.2) |
Goodwill | 217.0 |  |  |  |  | 42.8 |  |  | — |  |  |  |  | (1.0) |  |  | 258.8 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | — |  |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Accumulated impairments | — |  |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Goodwill | — |  |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total |  |  |  |  |  |  |  |  |  |  |  |  |
Gross goodwill | 843.7 |  |  |  |  | 42.8 |  |  | — |  |  |  |  | (4.2) |  |  | 882.3 |
Accumulated impairments | (475.1) |  |  |  |  | — |  |  | — |  |  |  |  | 2.0 |  |  | (473.1) |
Goodwill | $ | 368.6 |  |  |  |  | $ | 42.8 |  |  | $ | — |  |  |  |  | $ | (2.2) |  |  | $ | 409.2 |
___________________________ (1)Reflects (i) goodwill acquired with the Sealite acquisition of $39.6, (ii) an increase in ULC's goodwill during 202 1 of $0.8 resulting from revisions to the valuation of certain assets and liabilities, and (iii) an increase in Sensors & Software's goodwill of $2.4 resulting from revisions to the valuation of certain assets and income tax accounts. As indicated in Note 1, the acquired assets, including goodwill, and liabilities assumed in the Sealite, ULC and Sensors & Software 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 July 3, 2021 and December 31, 2020 comprised the following:
| July 3, 2021 |  | December 31, 2020
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Intangible assets with determinable lives (1): |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 115.2 |  |  | $ | (21.0) |  |  | $ | 94.2 |  |  | $ | 103.4 |  |  | $ | (16.2) |  |  | $ | 87.2 |
Technology | 60.7 |  |  | (9.2) |  |  | 51.5 |  |  | 54.4 |  |  | (6.8) |  |  | 47.6 |
Patents | 4.5 |  |  | (4.5) |  |  | — |  |  | 4.5 |  |  | (4.5) |  |  | — |
Other | 20.9 |  |  | (15.8) |  |  | 5.1 |  |  | 18.8 |  |  | (12.5) |  |  | 6.3 |
| 201.3 |  |  | (50.5) |  |  | 150.8 |  |  | 181.1 |  |  | (40.0) |  |  | 141.1 |
Trademarks with indefinite lives (2) | 175.0 |  |  | — |  |  | 175.0 |  |  | 163.9 |  |  | — |  |  | 163.9 |
Total | $ | 376.3 |  |  | $ | (50.5) |  |  | $ | 325.8 |  |  | $ | 345.0 |  |  | $ | (40.0) |  |  | $ | 305.0 |
___________________________ (1)The identifiable intangible assets associated with the Sealite acquisition consist of customer backlog of $1.9, customer relationships of $12.1 and technology of $6.6. (2)Changes during the six months ended July 3, 2021 related primarily to the acquisition of Sealite trademarks of $11.6. In connection with the acquisition of Sealite, which has definite-lived intangibles as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $20.0 for the full year 2021, and $17.0 for 2022 and each of the four years thereafter. At July 3, 2021, the net carrying value of intangible assets with determinable lives consisted of $23.1 in the HVAC reportable segment and $127.7 in the Detection and Measurement reportable segment. At July 3, 2021, trademarks with indefinite lives consisted of $105.6 in the HVAC reportable segment and $69.4 in the Detection and Measurement 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. Based on our annual goodwill impairment testing during the fourth quarter of 2020, we concluded that the estimated fair value of each of our reporting units, exclusive of Cues, Inc. (“Cues”), Patterson-Kelley, LLC (“Patterson-Kelley”) and ULC, exceeded the carrying value of their respective net assets by over 75%. The estimated fair values of Cues and Patterson-Kelley exceeded the carrying value of their respective net assets by approximately 12% and 3%, while given the recent acquisition of ULC, its fair value approximated the carrying value of its net assets. The total goodwill for Cues, Patterson-Kelley and ULC was $47.9, $14.2 and $38.4, respectively, as of July 3, 2021. A change in assumptions used in valuing Cues, Patterson-Kelley, or ULC (e.g., projected revenues and profit growth rates, discount rates, industry price multiples, etc.) could result in these reporting units estimated fair value being less than the respective carrying value of their net assets. If any of these reporting units is unable to achieve its current financial forecast, we may be required to record an impairment charge in a future period related to its goodwill. 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. As indicated in Note 1, the COVID-19 pandemic could have an adverse impact on our future operating results. As of July 3, 2021, there are no indications that the carrying value of our goodwill and other intangible assets may not be recoverable. However, a prolonged adverse impact of the COVID-19 pandemic on our future operating results may require an impairment charge related to one or more of these assets in a future period.

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- 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
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