(5)BALANCE SHEET COMPONENTS Inventories are as follows:
|
|
|
|
|
|
|
|
|
(in millions) |
|
July 4, 2026 |
|
|
January 3, 2026 |
|
Raw materials and parts |
|
$ |
107.2 |
|
|
$ |
103.4 |
|
Work-in-process |
|
|
62.1 |
|
|
|
56.6 |
|
Finished goods |
|
|
37.8 |
|
|
|
33.6 |
|
Inventories, net |
|
$ |
207.1 |
|
|
$ |
193.6 |
|
The changes in the net carrying amount of goodwill are as follows:
|
|
|
|
|
(in millions) |
|
|
|
Balance as of January 3, 2026 |
|
$ |
502.3 |
|
Measurement period adjustments to goodwill acquired in prior year |
|
|
2.0 |
|
Exchange effect |
|
|
(5.0 |
) |
Balance as of July 4, 2026 |
|
$ |
499.3 |
|
Other intangibles, net consist of the following:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2026 |
|
|
January 3, 2026 |
|
(in millions) |
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net Carrying Amount |
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net Carrying Amount |
|
Amortized intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
$ |
105.5 |
|
|
$ |
(83.5 |
) |
|
$ |
22.0 |
|
|
$ |
106.5 |
|
|
$ |
(80.5 |
) |
|
$ |
26.0 |
|
Developed technology |
|
|
25.0 |
|
|
|
(12.6 |
) |
|
|
12.4 |
|
|
|
25.3 |
|
|
|
(11.6 |
) |
|
|
13.7 |
|
Backlog |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
(3.1 |
) |
|
|
0.4 |
|
Total amortized intangible assets |
|
|
130.5 |
|
|
|
(96.1 |
) |
|
|
34.4 |
|
|
|
135.3 |
|
|
|
(95.2 |
) |
|
|
40.1 |
|
Indefinite-lived assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trademarks and tradenames |
|
|
131.5 |
|
|
|
— |
|
|
|
131.5 |
|
|
|
133.2 |
|
|
|
— |
|
|
|
133.2 |
|
Other intangibles, net |
|
$ |
262.0 |
|
|
$ |
(96.1 |
) |
|
$ |
165.9 |
|
|
$ |
268.5 |
|
|
$ |
(95.2 |
) |
|
$ |
173.3 |
|
The aggregate intangible amortization expense was $2.6 million for both the three months ended July 4, 2026 and June 28, 2025. The aggregate intangible amortization expense was $5.3 million and $5.5 million for the six months ended July 4, 2026 and June 28, 2025, respectively. The estimated future amortization expense of intangible assets is as follows:
|
|
|
|
|
(in millions) |
|
|
|
Remainder of 2026 |
|
$ |
3.6 |
|
2027 |
|
|
7.0 |
|
2028 |
|
|
7.0 |
|
2029 |
|
|
6.4 |
|
2030 |
|
|
4.5 |
|
Thereafter |
|
|
5.9 |
|
Total |
|
$ |
34.4 |
|
Accrued expenses consist of the following:
|
|
|
|
|
|
|
|
|
(in millions) |
|
July 4, 2026 |
|
|
January 3, 2026 |
|
Contract liabilities |
|
$ |
134.4 |
|
|
$ |
131.1 |
|
Accrued payroll and related expenses |
|
|
37.9 |
|
|
|
35.4 |
|
Accrued warranty |
|
|
9.7 |
|
|
|
8.9 |
|
Accrued professional fees |
|
|
9.5 |
|
|
|
3.8 |
|
Accrued agent commission |
|
|
5.4 |
|
|
|
5.3 |
|
Operating lease liabilities |
|
|
5.0 |
|
|
|
4.4 |
|
Accrued sales and other tax |
|
|
3.7 |
|
|
|
5.3 |
|
Accrued contingent consideration |
|
|
2.9 |
|
|
|
12.3 |
|
Accrued product liability and workers compensation |
|
|
1.4 |
|
|
|
1.2 |
|
Other accrued expenses |
|
|
13.4 |
|
|
|
9.5 |
|
Accrued expenses |
|
$ |
223.3 |
|
|
$ |
217.2 |
|
In the normal course of business, the Company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded. The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable. A rollforward of the warranty reserve is as follows:
|
|
|
|
|
(in millions) |
|
Six Months Ended July 4, 2026 |
|
Beginning balance |
|
$ |
8.9 |
|
Warranty expense |
|
|
3.3 |
|
Warranty claims paid |
|
|
(2.6 |
) |
Warranty reserve related to acquisitions |
|
|
0.2 |
|
Exchange effect |
|
|
(0.1 |
) |
Ending balance |
|
$ |
9.7 |
|
|