Goodwill and Intangible Assets

9 Months Ended

Oct. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

7. GOODWILL AND INTANGIBLE ASSETS

Goodwill

A summary of changes in goodwill by segment for the nine months ended October 1, 2022, is as follows:

	Hydraulics			Electronics			Total
Balance at January 1, 2022	$	273,665		$	186,271		$	459,936
Measurement period adjustment, Joyonway acquisition		—			66			66
Measurement period adjustment, NEM acquisition		(37	)		—			(37	)
Acquisition of Taimi		260			—			260
Acquisition of Daman		24,891			—			24,891
Currency translation		(37,611	)		(365	)		(37,976	)
Balance at October 1, 2022	$	261,168		$	185,972		$	447,140

Acquired Intangible Assets

At October 1, 2022 and January 1, 2022, intangible assets consisted of the following:

	October 1, 2022							January 1, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangibles:
Trade names and brands	$	85,184	$	(16,859	)	$	68,325	$	83,443	$	(15,216	)	$	68,227
Non-compete agreements		2,025		(506	)		1,519		3,218		(1,092	)		2,126
Technology		49,292		(19,563	)		29,729		50,425		(16,729	)		33,696
Supply agreement		21,000		(12,250	)		8,750		21,000		(10,675	)		10,325
Customer relationships		332,808		(49,476	)		283,332		336,809		(43,488	)		293,321
Sales order backlog		720		—			720		1,023		(1,023	)		—
Workforce		6,077		(1,924	)		4,153		6,077		(1,013	)		5,064
	$	497,106	$	(100,578	)	$	396,528	$	501,995	$	(89,236	)	$	412,759

Amortization expense on acquired intangible assets for the nine months ended October 1, 2022 and October 2, 2021, was $20,554 and $25,285, respectively. Future estimated amortization expense is presented below.

Year:
2022 Remaining	$	7,443
2023		28,655
2024		27,640
2025		27,456
2026		25,704
2027		22,431
Thereafter		257,199
Total	$	396,528