Business Combinations

3 Months Ended

Apr. 03, 2015

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS COMBINATIONS

During first quarter of fiscal 2015, the Company acquired four businesses, all with cash consideration, in its Engineering and Construction and Mobile Solutions segments. The Condensed Consolidated Statements of Income include the operating results of the businesses from the dates of acquisition. The acquisitions were not significant individually or in the aggregate. The purchase prices ranged from less than $3.0 million to $17.0 million. The largest acquisitions were of a company that provides scheduling software for linear infrastructure projects and a provider of forestry enterprise and mobile software solutions for logistics and harvest operations. In the aggregate, the businesses acquired during the first quarter of fiscal 2015 collectively contributed less than one percent to the Company's total revenue during the first quarter of fiscal 2015.

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 last three quarters of fiscal 2014 and the first quarter of fiscal 2015, 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 $2.8 million and $1.4 million for the first quarter of fiscal 2015 and 2014, respectively, were expensed as incurred and were included in General and administrative expense in the Condensed Consolidated Statements of Income.

The following table summarizes the Company’s business combinations completed during the first quarter of fiscal 2015.

	First Quarter of
	2015
(Dollars in millions)
Fair value of total purchase consideration	$	37.8
Fair value of net liabilities acquired	1.3
Identified intangible assets	17.8
Deferred taxes	(3.2		)
Goodwill	$	21.9

Intangible Assets

Intangible Assets consisted of the following:

As of	First Quarter of Fiscal 2015							Fiscal Year End 2014
	Gross							Gross
	Carrying		Accumulated			Net Carrying		Carrying		Accumulated			Net Carrying
(Dollars in millions)	Amount		Amortization			Amount		Amount		Amortization			Amount
Developed product technology	$	758.1	$	(459.8	)	$	298.3	$	770.4	$	(445.4	)	$	325.0
Trade names and trademarks	50.5		(35.0		)	15.5		51.2		(33.9		)	17.3
Customer relationships	435.5		(225.6		)	209.9		455.0		(226.8		)	228.2
Distribution rights and other intellectual properties	77.8		(55.3		)	22.5		78.5		(54.5		)	24.0
	$	1,321.9	$	(775.7	)	$	546.2	$	1,355.1	$	(760.6	)	$	594.5

The estimated future amortization expense of purchased intangible assets as of the end of the first quarter of fiscal 2015 was as follows:

(Dollars in millions)
2015 (Remaining)	$	118.0
2016	140.5
2017	117.5
2018	89.0
2019	47.8
Thereafter	33.4
Total	$	546.2

Goodwill

The changes in the carrying amount of goodwill by segment for the first quarter of fiscal 2015 were as follows:

	Engineering and Construction			Field Solutions			Mobile Solutions			Advanced Devices			Total
(Dollars in millions)
Balance as of fiscal year end 2014	$	1,186.0		$	96.0		$	796.0		$	23.2		$	2,101.2
Additions due to acquisitions	11.8			—			10.1			—			21.9
Purchase price adjustments	(0.1		)	1.6			—			—			1.5
Foreign currency translation adjustments	(44.2		)	(3.3		)	(3.6		)	(1.1		)	(52.2		)
Divestiture	(13.0		)	—			—			—			(13.0		)
Balance as of the end of the first quarter of fiscal 2015	$	1,140.5		$	94.3		$	802.5		$	22.1		$	2,059.4