Goodwill and Other Intangible Assets

6 Months Ended

Jun. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The table below summarizes amortizable definite-lived intangible assets as of June 28, 2014 and December 28, 2013, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets:




(In thousands)	June 28, 2014		December 28, 2013
Patents	$	18,905	$	18,905
Less: accumulated amortization	18,704		18,685
Net patents	201		220
Software	74,428		52,778
Less: accumulated amortization	16,079		14,380
Net software	58,349		38,398
Customer lists and other	110,851		110,609
Less: accumulated amortization	58,010		54,592
Net customer lists and other	52,841		56,017
Net intangible assets	$	111,391	$	94,635

Aggregate amortization expense for the six months ended June 28, 2014 and June 29, 2013 was $5.1 million and $5.1 million, respectively. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows:



(In millions)	2014		2015		2016		2017		2018
Amortization Expense	$	10.1	$	13.8	$	13.1	$	12.1	$	11.9

As events such as potential acquisitions, dispositions or impairments occur in the future, these amounts may change.

The Corporation also owns trademarks and trade names with a net carrying amount of $41.0 million. The trademarks and trade names are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely.

The changes in the carrying amount of goodwill since December 28, 2013 are as follows by reporting segment:



(In thousands)	Office Furniture			Hearth Products			Total
Balance as of December 28, 2013
Goodwill	$	149,969		$	166,188		$	316,157
Accumulated impairment losses	(29,359		)	(143		)	(29,502		)
	120,610			166,045			286,655
Goodwill acquired	—			—			—
Impairment Losses	(8,884		)	—			(8,884		)
Foreign currency translation adjustments	354			—			354
Balance as of June 28, 2014
Goodwill	150,323			166,188			316,511
Accumulated impairment losses	(38,243		)	(143		)	(38,386		)
	$	112,080		$	166,045		$	278,125

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions.

The tentative decision, pending negotiation and consultation with the union, was made during the quarter ended June 28, 2014 to close a facility and exit a product line at one of the recently acquired reporting units within the office furniture segment. These decisions, along with slower order growth than projected in the second quarter, were considered a triggering event and, accordingly, the Corporation tested long-lived assets and goodwill at that reporting unit for impairment. The Corporation estimated the fair value of the reporting unit using a discounted cash flow approach along with a market multiple approach. The estimated fair value was below the carrying value indicating a potential impairment existed. The Corporation performed the second step of the test which requires a fair value assessment of all assets and liabilities of the reporting unit to calculate an implied goodwill amount. This resulted in an $8.9 million goodwill impairment charge during the quarter.

- 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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