Business Combinations

12 Months Ended

Jan. 01, 2016

Business Combinations [Abstract]

Business Combinations

BUSINESS COMBINATIONS

During fiscal 2015, 2014 and 2013 the Company acquired multiple businesses, all with cash consideration. The Consolidated Statements of Income include the operating results of the businesses from the dates of acquisition.

During fiscal 2015, the Company acquired thirteen businesses, all with cash consideration, in its Engineering and Construction, Field Solutions and Mobile Solutions segments. The Consolidated Statements of Income include the operating results of the businesses from the dates of acquisitions. The acquisitions were not significant individually or in the aggregate. The purchase prices ranged from less than $2.0 million to $30.0 million. The largest acquisition was a Norwegian company specializing in BIM software for infrastructure design software solutions across the European region. In the aggregate, the businesses acquired during fiscal 2015 collectively contributed less than one percent to the Company's total revenue during fiscal 2015.

During fiscal 2014, the Company acquired thirteen businesses across its Engineering and Construction, Field Solutions, and Mobile Solutions segments. The purchase prices ranged from less than $0.6 million to $83.1 million. The largest acquisitions were of a company that provides software solutions to Mechanical, Electrical and Plumbing (MEP) industry and a software provider for real estate and facility management 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 fiscal 2014.

During fiscal 2013, the Company acquired sixteen businesses across its Engineering and Construction, Field Solutions and Mobile Solutions segments. The purchase prices ranged from less than $0.5 million to $80.0 million. The largest acquisitions were of a company that provides product and pricing information to the MEP industry within the Engineering and Construction segment, and a software for logistics providers within the Mobile Solutions segment. In the aggregate, the businesses acquired during fiscal 2013 collectively contributed less than three percent to the Company's total revenue during fiscal 2013.

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 each acquisition. For certain acquisitions completed in 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 set forth below 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 of $12.0 million, $13.4 million and $13.5 million in fiscal 2015, 2014 and 2013, respectively, were expensed as incurred and were included in General and administrative expenses in the Consolidated Statements of Income.

The following table summarizes the Company’s business combinations completed during fiscal 2015, 2014 and 2013:

(In millions)	Fiscal 2015			Fiscal 2014			Fiscal 2013
Fair value of total purchase consideration	$	176.2		$	331.8		$	284.7
Less fair value of net assets acquired:
Net tangible assets acquired	8.0			41.2			20.9
Identified intangible assets	83.3			155.8			130.1
Deferred taxes	(13.6		)	(46.8		)	(26.3		)
Noncontrolling interests	—			—			(2.0		)
Goodwill	$	98.5		$	181.6		$	162.0

Intangible Assets

The following table presents details of the Company’s total intangible assets:

	At the End of Fiscal 2015							At the End of Fiscal 2014
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net  Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net  Carrying Amount
Developed product technology	$	802.1	$	(536.0	)	$	266.1	$	770.4	$	(445.4	)	$	325.0
Trade names and trademarks	52.8		(39.8		)	13.0		51.2		(33.9		)	17.3
Customer relationships	448.1		(258.0		)	190.1		455.0		(226.8		)	228.2
Distribution rights and other intellectual properties	78.6		(60.7		)	17.9		78.5		(54.5		)	24.0
	$	1,381.6	$	(894.5	)	$	487.1	$	1,355.1	$	(760.6	)	$	594.5

The weighted-average amortization period is six years for developed product technology, five years for trade names and trademarks, seven years for customer relationships, and eight years for distribution rights and other intellectual properties.

The estimated future amortization expense of intangible assets at the end of fiscal 2015 is as follows (in millions):

2016	$	152.6
2017	129.1
2018	100.5
2019	59.3
2020	30.7
Thereafter	14.9
Total	$	487.1

Goodwill

The changes in the carrying amount of goodwill for fiscal 2015 are as follows (in millions):

	Engineering and Construction			Field Solutions			Mobile Solutions			Advanced Devices			Total
At the end of fiscal 2014	$	1,170.6		$	96.0		$	796.0		$	23.2		$	2,085.8
Additions due to acquisitions and current year acquisitions' purchase price adjustments	33.5			31.1			33.9			—			98.5
Purchase price adjustments	(0.6		)	1.7			(2.1		)	—			(1.0		)
Foreign currency translation adjustments	(49.1		)	(3.1		)	(7.1		)	(3.3		)	(62.6		)
Divestitures	(14.3		)	—			—			—			(14.3		)
At the end of fiscal 2015	$	1,140.1		$	125.7		$	820.7		$	19.9		$	2,106.4