Goodwill and Intangible Assets

3 Months Ended

Apr. 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the three months ended April 2, 2021 are as follows:

(In thousands)
Balance at December 31, 2020	$	339,702
Adjustments to preliminary purchase price allocation of Zenetex	(19,717)
Adjustments to preliminary purchase price allocation of HHB	(4,584)
Balance at April 2, 2021	$	315,401

The Company tests goodwill for impairment on the first day of the Company's fourth fiscal quarter each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Identifiable intangible assets consist of the following:

	April 2, 2021						December 31, 2020
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contract backlogs and recompetes	$	74,400	$	(8,665)	$	65,735	$	48,800	$	(6,645)	$	42,155
Customer contracts	7,200		(2,500)		4,700		7,200		(2,133)		5,067
Trade names and other	1,244		(425)		819		1,243		(360)		883
Balance	$	82,844	$	(11,590)	$	71,254	$	57,243	$	(9,138)	$	48,105

Identifiable intangible asset amortization expense was $2.5 million and $1.0 million for the three months ended April 2, 2021 and April 3, 2020, respectively. As of April 2, 2021, the remaining average intangible asset amortization period was 9.9 years.

The estimated amortization expense for the next five years is as follows (in thousands):

Period	Amortization
2021 (excluding the three months ended April 2, 2021)	$	7,328
2022	$	8,257
2023	$	8,157
2024	$	7,050
2025	$	6,253
After 2025	$	34,209