Goodwill And Other Intangibles

6 Months Ended

Jul. 02, 2011

7. GOODWILL AND OTHER INTANGIBLES

Goodwill

As required, the Company performs an annual impairment test of goodwill during the fourth quarter or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value.

At July 2, 2011, substantially all of the Company's goodwill is attributable to the Electrical segment and the Company believes that substantially all of the goodwill is deductible for tax purposes. The following information presents changes to goodwill during the periods indicated (in thousands):


				Electrical			Mechanical
	Total			Segment			Segment
Balance as of January 2, 2010	$	663,920		$	663,920		$	—
Acquisitions		23,869			15,010			8,859
Translation Adjustments		(1,441	)		(1,437	)		(4	)

Balance as of July 3, 2010	$	686,348		$	677,493		$	8,855


Balance as of January 1, 2011	$	775,371		$	763,135		$	12,236
Acquisitions and Valuation Adjustments		12,161			12,096			65
Translation Adjustments		6,184			5,230			954

Balance as of July 2, 2011	$	793,716		$	780,461		$	13,255

Intangible Assets

Intangible assets consisted of the following (dollars in thousands):


			July 2, 2011					July 3, 2010
	Useful Life		Gross		Accumulated			Gross		Accumulated
	(years)		Value		Amortization			Value		Amortization
Customer Relationships		3— 17	$	144,406	$	(48,709	)	$	104,396	$	(34,498	)
Technology		3— 9		79,770		(17,458	)		33,452		(10,739	)
Trademarks		3— 20		31,657		(11,476	)		23,586		(8,374	)
Patents & Engineering Drawings		10		16,610		(10,831	)		16,610		(9,169	)
Non-Compete Agreements		3— 5		8,207		(6,343	)		6,372		(5,412	)

			$	280,650	$	(94,817	)	$	184,416	$	(68,192	)

Net Values					$	185,833				$	116,224

Estimated Amortization (in millions)


2011		2012		2013		2014		2015
$	28.8	$	29.4	$	30.0	$	28.2	$	20.4

Amortization expense recorded for the three and six months ended July 2, 2011 was $7.3 million and $14.4 million, respectively. Amortization expense recorded for the three and six months ended July 3, 2010 was $5.1 million and $9.5 million, respectively.

- 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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