Goodwill and Other Intangible Assets

6 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Changes in the carrying value of goodwill by segment for the six months ended July 1, 2023 are as follows:

(in thousands)	Electronics		Transportation		Industrial		Total
Net book value of goodwill as of December 31, 2022
Gross goodwill as of December 31, 2022	$	909,167	$	234,793	$	84,889	$	1,228,849
Accumulated impairment losses as of December 31, 2022	—		(33,401)		(8,526)		(41,927)
Total	909,167		201,392		76,363		1,186,922
Changes during 2023:
Additions (a)	3,879		—		94,823		98,702
Currency translation	3,384		365		(185)		3,564
Net book value of goodwill as of July 1, 2023
Gross goodwill as of July 1, 2023	916,430		235,281		179,719		1,331,430
Accumulated impairment losses as of July 1, 2023	—		(33,524)		$	(8,718)	(42,242)
Total	$	916,430	$	201,757	$	171,001	$	1,289,188

(a) The additions resulted from the acquisitions of Western Automation and measurement period adjustment related to the C&K acquisition.

The components of other intangible assets as of July 1, 2023 and December 31, 2022 are as follows:

	As of July 1, 2023
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	17,275	$	2,470	$	14,805
Patents, licenses, and software	271,310		151,514		119,796
Distribution network	43,089		43,089		—
Customer relationships, trademarks, and tradenames	680,820		187,088		493,732
Total	$	1,012,494	$	384,161	$	628,333

	December 31, 2022
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	17,938	$	2,299	$	15,639
Patents, licenses, and software	259,603		140,208		119,395
Distribution network	41,733		40,955		778
Customer relationships, trademarks, and tradenames	623,721		165,563		458,158
Total	$	942,995	$	349,025	$	593,970

During the three months ended July 1, 2023 and July 2, 2022, the Company recorded amortization expense of $16.9 million and $11.6 million, respectively. During the six months ended July 1, 2023 and July 2, 2022, the Company recorded amortization expense of 33.8 million and $24.3 million, respectively.

During the six months ended July 1, 2023, the Company recorded additions to intangible assets of $68.0 million, related to the Western Automation acquisition, the components of which were as follows:

(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses, and software	6.7	$	11,500
Customer relationships, trademarks, and tradenames	14.7	56,500
Total		$	68,000

Estimated annual amortization expense related to intangible assets with definite lives as of July 1, 2023 is as follows:

(in thousands)	Amount
2023	$	65,730
2024	62,859
2025	62,536
2026	51,576
2027	49,529
2028 and thereafter	369,854
Total	$	662,084