Goodwill and Other Intangible Assets

12 Months Ended

Dec. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The changes in the gross carrying amount and accumulated impairment loss are as follows:



				Adjustments to Goodwill							Adjustments to Goodwill
	December 29, 2012			Acquisitions		Foreign Exchange		December 28, 2013			Acquisitions		Transfers		Foreign Exchange		December 27, 2014
	(in thousands)
Research Models and Services
Gross carrying amount	$	63,139		$	19,647	$	765	$	83,551		$	—	(23,172	)	(1,183	)	59,196
Discovery and Safety Assessment
Gross carrying amount	1,150,470			—		1,680		1,152,150			102,171		(9,196	)	(10,823	)	1,234,302
Accumulated impairment loss	(1,005,000		)	—		—		(1,005,000		)	—		—		—		(1,005,000	)
Manufacturing Support
Gross carrying amount	—			—		—		—					32,368		211		32,579
Total
Gross carrying amount	1,213,609							1,235,701									1,326,077
Accumulated impairment loss	(1,005,000		)					(1,005,000		)							(1,005,000	)
Goodwill	$	208,609						$	230,701								321,077

In the second quarter of 2014, the Company revised its reportable segments to align with the view of the business following its acquisition of Argenta and BioFocus. See Note 1, "Description of Business and Summary of Significant Accounting Policies." As a result of this reorganization, goodwill was allocated from the Company's prior reportable segments to new reportable segments, as shown in the preceding table within "transfers." The allocation was based on the fair value of each business group within its original reporting unit relative to the fair value of that reporting unit. In addition, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Based on the Company's step one goodwill impairment test for the fiscal years 2014, 2013 and 2012, the fair value of each reporting unit exceeded the reporting unit's book value and, therefore, goodwill was not impaired.

Other Intangible Assets

The following table displays the gross carrying amount and accumulated amortization of definite-lived intangible assets by major class:



	December 27, 2014							December 28, 2013
	Gross		Accumulated amortization			Net		Gross		Accumulated amortization			Net
	(in thousands)
Backlog	$	8,728	$	(6,636	)	$	2,092	$	2,916	$	(2,507	)	$	409
Client relationships	379,339		(217,938		)	161,401		311,507		(238,002		)	73,505
Trademarks and trade names	6,603		(5,314		)	1,289		5,399		(4,997		)	402
Standard operating procedures	2,309		(1,642		)	667		2,754		(1,498		)	1,256
Other identifiable intangible assets	16,334		(6,346		)	9,988		10,432		(4,905		)	5,527
Total definite-lived intangible assets	$	413,313	$	(237,876	)	$	175,437	$	333,008	$	(251,909	)	$	81,099

Additionally, as of both December 27, 2014 and December 28, 2013, other intangible assets, net included $3.4 million of indefinite-lived intangible assets.

Amortization expense of definite-lived intangible assets for the fiscal years 2014, 2013 and 2012 was $26.0 million, $17.8 million and $18.1 million, respectively. Estimated amortization expense for intangible assets for each of the next five fiscal years is expected to be as follows:



Fiscal Year	Amortization Expense
	(in thousands)
2015	$	21,116
2016	20,355
2017	18,501
2018	17,312
2019	14,306

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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