XML 54 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Jan. 02, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 8. GOODWILL AND INTANGIBLE ASSETS Goodwill A summary of changes in goodwill by segment for the years ended January 2, 2021 and December 28, 2019 is as follows:
|  | Hydraulics |  |  | Electronics |  |  | Total |
Balance at December 29, 2018 |  | $ | 276,758 |  |  | $ | 106,373 |  |  | $ | 383,131 |
Faster acquisition measurement period adjustment |  |  | (343 | ) |  |  | — |  |  |  | (343 | )
Custom Fluidpower acquisition measurement period adjustment |  |  | 1,205 |  |  |  | — |  |  |  | 1,205 |
Currency translation |  |  | (6,424 | ) |  |  | — |  |  |  | (6,424 | )
Balance at December 28, 2019 |  | $ | 271,196 |  |  | $ | 106,373 |  |  | $ | 377,569 |
Acquisition of Balboa |  |  | — |  |  |  | 76,031 |  |  |  | 76,031 |
Impairment charge |  |  | (31,871 | ) |  |  | — |  |  |  | (31,871 | )
Currency translation |  |  | 21,804 |  |  |  | — |  |  |  | 21,804 |
Balance at January 2, 2021 |  | $ | 261,129 |  |  | $ | 182,404 |  |  | $ | 443,533 |
During the first quarter of 2020, the global economy was significantly impacted by the COVID-19 pandemic. Given the economic impact, primarily in Europe, government-mandated facility closures and an unfavorable outlook for certain end markets, the Company concluded that this change in circumstances triggered the need to conduct an interim impairment review of its Faster reporting unit. The interim review was performed as of March 28, 2020. A recoverability test for the long-lived assets within the Faster reporting unit was performed first and resulted in the conclusion that the carrying value of the long-lived assets was fully recoverable. An interim quantitative impairment test for goodwill was then performed. 68 The fair value of the Faster reporting unit was determined based on a combination of income and market approach methodologies. The income approach utilized a discounted cash flow analysis, which estimates the present value of the projected free cash flows to be generated by the reporting unit. Principal assumptions used in the analysis include the Company’s estimates of future revenue and terminal growth rates, margin assumptions and discount rates. While assumptions utilized are subject to a high degree of judgment and complexity, the Company made every effort to estimate future cash flows as accurately as possible, given the high degree of economic uncertainty that existed. The market approaches estimate fair value by comparing to guideline public companies and guideline transactions. Various valuation multiples of companies that are economically and operationally similar were used as data points for selecting multiples. The Company concluded that the estimated fair value of the Faster reporting unit was less tha n its carrying value, and as a result, recorded a non-cash, non-tax-deductible goodwill impairment charge of $31,871. If the economic impact from the COVID-19 pandemic is more severe than anticipated, or if the economic recovery takes longer to materialize or does not materialize as strongly as anticipated, it could result in further goodwill impairment charges. Intangibles Assets At January 2, 2021 and December 28, 2019, intangible assets consisted of the following:
|  |  |  | January 2, 2021 |  |  | December 28, 2019 |
|  | Useful life (years) |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |  |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |
Definite-lived intangibles: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names and brands |  | 10-20 |  | $ | 80,402 |  |  | $ | (11,188 | ) |  | $ | 69,214 |  |  | $ | 56,032 |  |  | $ | (7,658 | ) |  | $ | 48,374 |
Non-compete agreements |  | 5 |  |  | 950 |  |  |  | (776 | ) |  |  | 174 |  |  |  | 950 |  |  |  | (586 | ) |  |  | 364 |
Technology |  | 7 - 13 |  |  | 45,955 |  |  |  | (12,368 | ) |  |  | 33,587 |  |  |  | 31,704 |  |  |  | (8,661 | ) |  |  | 23,043 |
Supply agreement |  | 10 |  |  | 21,000 |  |  |  | (8,575 | ) |  |  | 12,425 |  |  |  | 21,000 |  |  |  | (6,475 | ) |  |  | 14,525 |
Customer relationships |  | 15 - 26 |  |  | 330,406 |  |  |  | (31,431 | ) |  |  | 298,975 |  |  |  | 227,844 |  |  |  | (19,499 | ) |  |  | 208,345 |
Sales order backlog |  | 0.5 |  |  | 8,000 |  |  |  | (3,000 | ) |  |  | 5,000 |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  |  | $ | 486,713 |  |  | $ | (67,338 | ) |  | $ | 419,375 |  |  | $ | 337,530 |  |  | $ | (42,879 | ) |  | $ | 294,651 |
During 2019, the Company terminated its technology licensing agreement with Sturman Industries, Inc. A phase out of all digital logic valve (“DLV”) related products was completed and no further sales of any related products or technologies will occur. The termination of the agreement resulted in the recognition of a loss on disposal of the related intangibles asset totaling $2,713. Amortization expense for the 2020, 2019 and 2018 fiscal years was approximately $22,114, $18,065 and $23,262, respectively. Future estimated amortization expense is presented below.
Year: |  |  |  |
2021 |  | $ | 29,955 |
2022 |  |  | 24,692 |
2023 |  |  | 24,633 |
2024 |  |  | 23,978 |
2025 |  |  | 23,909 |
Thereafter |  |  | 292,208 |
Total |  | $ | 419,375 |
69

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