Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The excess of purchase price over estimated fair value is assigned to goodwill. See Note 3 of Notes to the Consolidated Financial Statements, "Goodwill" and "Long-Lived Assets" for additional details.

The following table presents changes to goodwill during the periods indicated (in millions):




	Total			Commercial and Industrial Systems			Climate Solutions			Power Transmission Solutions
Balance as of January 3, 2015	$	1,004.0		$	645.4		$	344.6		$	14.0
Acquisitions and Valuation Adjustments	559.4			(5.2		)	—			564.6
Less: Impairment Charges	79.9			79.9			—			—
Translation Adjustments	(17.9		)	(12.6		)	(1.8		)	(3.5		)
Balance as of January 2, 2016	$	1,465.6		$	547.7		$	342.8		$	575.1

Acquisitions and Valuation Adjustments	(0.3		)	—			—			(0.3		)
Translation Adjustments	(12.1		)	(7.1		)	(1.0		)	(4.0		)
Balance as of December 31, 2016	$	1,453.2		$	540.6		$	341.8		$	570.8

Cumulative Goodwill Impairment Charges	$	275.7		$	244.8		$	7.7		$	23.2

Intangible Assets

Gross intangible assets consist of the following (in millions):



	Weighted Average Amortization Period (Years)	January 2, 2016		Acquisitions		Translation Adjustments			December 31, 2016
Customer Relationships	15	$	709.0	$	—	$	(5.4	)	$	703.6
Technology	11	191.1		—		(1.4		)	189.7
Trademarks	12	32.1		—		(0.3		)	31.8
Patent and Engineering Drawings	5	16.6		—		—			16.6
Non-compete Agreements	5	8.5		—		(0.2		)	8.3
		957.3		—		(7.3		)	950.0
Non-amortizable Trade Names		121.3		—		(0.5		)	120.8
Total Gross Intangibles		$	1,078.6	$	—	$	(7.8	)	$	1,070.8

Accumulated amortization on intangible assets consists of the following:



	January 2, 2016		Amortization		Translation Adjustments			December 31, 2016
Customer Relationships	$	161.4	$	42.6	$	(2.4	)	$	201.6
Technology	92.9		17.4		(0.8		)	109.5
Trademarks	21.8		1.9		(0.4		)	23.3
Patent and Engineering Drawings	16.6		—		—			16.6
Non-compete Agreements	8.1		0.1		(0.1		)	8.1
Total Accumulated Amortization	$	300.8	$	62.0	$	(3.7	)	$	359.1
Intangible Assets, Net of Amortization	$	777.8						$	711.7

While the Company believes its customer relationships are long-term in nature, the Company's contractual customer relationships are generally short-term. Useful lives are established at acquisition based on historical attrition rates.

Amortization expense was $62.0 million in fiscal 2016, $63.9 million in fiscal 2015 and $46.7 million in fiscal 2014.

The following table presents estimated future amortization expense (in millions):



	Estimated Amortization
Year	Estimated Amortization
2017	$	55.0
2018	53.0
2019	52.6
2020	49.5
2021	41.9

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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