Business Combinations

9 Months Ended

Oct. 03, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS COMBINATIONS

During first three quarters of fiscal 2014, the Company acquired ten businesses, all with cash consideration, across its Engineering and Construction, Field Solutions, and Mobile Solutions segments. The Condensed Consolidated Statements of Income include the operating results of the businesses from the dates of acquisition. None of the acquisitions were significant individually or in the aggregate. The purchase prices ranged from less than $1.0 million to $83.1 million. The largest acquisitions were of a company that provides product in real estate and facility management software and a manufacturer of wireless and hardwired crane safety instrumentation. Both acquisitions are within the Engineering and Construction segment. In the aggregate, the businesses acquired during fiscal 2014 collectively contributed less than one percent to the Company's total revenue during the first three quarters of fiscal 2014.

The Company determined the total consideration paid for each of its acquisitions as well as the fair value of the assets acquired and liabilities assumed as of the date of acquisition. For certain acquisitions completed in the fourth quarter of fiscal 2013 and the first three quarters of fiscal 2014, the fair value of the assets acquired and liabilities assumed are preliminary and may be adjusted as the Company obtains additional information, primarily related to adjustments for the true up of acquired net working capital in accordance with certain purchase agreements, and estimated values of certain net tangible assets and liabilities including tax balances, pending the completion of final studies and analyses. If there are adjustments made for these items, the fair value of intangible assets and goodwill could be impacted. Thus the provisional measurements of fair value are subject to change. Such changes could be significant. The Company expects to finalize the valuation of the net tangible and intangible assets as soon as practicable, but not later than one-year from the acquisition date.

The fair value of identifiable assets acquired and liabilities assumed were determined under the acquisition method of accounting for business combinations. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair value of intangible assets acquired is generally determined based on a discounted cash flow analysis. Acquisition costs directly related to the acquisitions of $4.1 million and $7.4 million for the third quarter and the first three quarters of fiscal 2014, respectively and $2.9 million and $9.3 million for the corresponding period of fiscal 2013, respectively, were expensed as incurred and were included in General and administrative expense in the Consolidated Statements of Income.

The following table summarizes the Company’s business combinations completed during the first three quarters of fiscal 2014.

	Third Quarter of
As of	2014
(Dollars in thousands)
Fair value of total purchase consideration	$	185,337
Fair value of net assets acquired	24,277
Identified intangible assets	83,079
Deferred taxes	(29,667		)
Goodwill	$	107,648

Intangible Assets

Intangible Assets consisted of the following:

As of	Third Quarter of Fiscal 2014							Fiscal Year End 2013
	Gross							Gross
	Carrying		Accumulated			Net Carrying		Carrying		Accumulated			Net Carrying
(Dollars in thousands)	Amount		Amortization			Amount		Amount		Amortization			Amount
Developed product technology	$	737,269	$	(426,224	)	$	311,045	$	699,479	$	(363,389	)	$	336,090
Trade names and trademarks	50,221		(32,721		)	17,500		46,195		(28,699		)	17,496
Customer relationships	436,335		(218,578		)	217,757		424,630		(189,338		)	235,292
Distribution rights and other intellectual properties	79,679		(54,058		)	25,621		79,844		(49,323		)	30,521
	$	1,303,504	$	(731,581	)	$	571,923	$	1,250,148	$	(630,749	)	$	619,399

The estimated future amortization expense of purchased intangible assets as of the third quarter of fiscal 2014 was as follows:

(Dollars in thousands)
2014 (Remaining)	$	39,291
2015	150,328
2016	131,588
2017	109,987
2018	79,562
Thereafter	61,167
Total	$	571,923

Goodwill

The changes in the carrying amount of goodwill by segment for the first three quarters of fiscal 2014 were as follows:

	Engineering and Construction			Field Solutions			Mobile Solutions			Advanced Devices			Total
(Dollars in thousands)
Balance as of fiscal year end 2013	$	1,080,240		$	88,651		$	796,094		$	24,485		$	1,989,470
Additions due to acquisitions	102,356			45			4,422			—			106,823
Purchase price adjustments	845			46			(66		)	—			825
Foreign currency translation adjustments	(38,960		)	(2,858		)	(2,093		)	(754		)	(44,665		)
Write off	$	(72	)	$	—		$	(821	)	$	—		$	(893	)
Balance as of the third quarter of fiscal 2014	$	1,144,409		$	85,884		$	797,536		$	23,731		$	2,051,560