Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

4. GOODWILL AND INTANGIBLE ASSETS, NET

The following table summarizes changes in goodwill by segment during the fiscal years ended December 31, 2022 and January 1, 2022 (amounts in thousands):


	PDS			HHH			MS			Total
Balance at January 2, 2021, net (1)	$	1,062,318		$	111,599		$	142,468		$	1,316,385
Additions		215,645			419,585			-			635,230
Measurement adjustments		76			1,591			-			1,667
Impairments		(117,702	)		-			-			(117,702	)
Balance at January 1, 2022, net (2)		1,160,337			532,775			142,468			1,835,580
Additions		-			920			-			920
Measurement adjustments		(1,388	)		(78	)		-			(1,466	)
Impairments		(261,221	)		(382,293	)		(31,832	)		(675,346	)
Balance at December 31, 2022, net (3)	$	897,728		$	151,324		$	110,636		$	1,159,688

(1) Goodwill balance is net of $153.4 million accumulated impairment losses for PDS and $88.0 million losses for MS.
(2) Goodwill balance is net of $346.8 million of accumulated impairment losses for PDS and $88.0 million of losses for MS. 
(3) Goodwill balance is net of $608.0 million of accumulated impairment losses for PDS, $119.8 million of losses for MS, and $382.3 million losses for HHH.

See Note 2 – Summary of Significant Accounting Policies, Goodwill for details on goodwill impairment.

Additions to goodwill for the fiscal year ended January 1, 2022 related to the acquisitions of Doctor's Choice, Accredited, and Comfort Care, all of which were completed during the fiscal year ended January 1, 2022. Measurement period adjustments in the fiscal year ended December 31, 2022 in the table above resulted from finalizing the purchase price allocations of acquisitions completed during fiscal year ended January 1, 2022. Measurement period adjustments in the fiscal year ended January 1, 2022 in the table above resulted from finalizing the purchase price allocations of acquisitions completed during fiscal year ended January 2, 2021. Purchase price allocations were final for all acquisitions as of December 31, 2022.

The following tables summarize the changes in intangible assets for the fiscal years ended December 31, 2022 and January 1, 2022 (amounts in thousands):


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Total
Definitive-lived intangible assets:
Trade names	$	20,161	$	(20,050	)	$	-		$	111
Non-compete agreements		7,265		(7,265	)		-			-
Internal-use software		11,911		(4,235	)		-			7,676
Total definitive-lived intangible assets		39,337		(31,550	)		-			7,787
Indefinite-lived intangible assets:
Licenses		93,867		-			(5,791	)		88,076
Total indefinite-lived intangible assets		93,867		-			(5,791	)		88,076
Total intangible assets	$	133,204	$	(31,550	)	$	(5,791	)	$	95,863


	January 1, 2022
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Total
Definitive-lived intangible assets:
Trade names	$	20,161	$	(15,932	)	$	-		$	4,229
Non-compete agreements		7,265		(7,265	)		-			-
Internal-use software		11,377		(2,358	)		-			9,019
Total definitive-lived intangible assets		38,803		(25,555	)		-			13,248
Indefinite-lived intangible assets:
Licenses		93,696		-			(4,093	)		89,603
Total indefinite-lived intangible assets		93,696		-			(4,093	)		89,603
Total intangible assets	$	132,499	$	(25,555	)	$	(4,093	)	$	102,851

Amortization expense related to the Company’s intangible assets was $6.0 million and $4.6 million for the fiscal years ended December 31, 2022 and January 1, 2022, respectively. Included in the amounts above was amortization expense of internal-use software of $1.9 million and $1.2 million for the fiscal years ended December 31, 2022 and January 1, 2022, respectively. License impairment recorded in the fiscal year ended December 31, 2022 of $0.9 million and $0.8 million was related to the PDS and HHH segments, respectively.

The estimated aggregate amortization expense related to intangible assets for each of the next five years subsequent to December 31, 2022 and thereafter is as follows (amounts in thousands):


Year Ending	Definitive-lived
December 30, 2023	$	2,270
December 28, 2024		1,218
January 3, 2026		713
January 2, 2027		713
January 1, 2028		713
Thereafter		2,160
Total		7,787