Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

Goodwill and Purchased Intangible Assets:

Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and considers other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. The Company performed its annual assessment in the fourth quarter of fiscal 2022 and concluded that no impairment charge was required.

Goodwill

The changes in the carrying amount of goodwill are as follows:


Balance at December 26, 2020	$	306,632
Goodwill from Inspectrology acquisition		9,179
Balance at January 1, 2022		315,811
Goodwill adjustment		—
Balance at December 31, 2022	$	315,811

Purchased Intangible Assets

Purchased intangible assets as of December 31, 2022 and January 1, 2022 are as follows:


	Gross Carrying Amount		Accumulated Amortization		Net
December 31, 2022
Finite-lived intangible assets:
Developed technology	$	378,197	$	205,386	$	172,811
Customer and distributor relationships		73,321		30,195		43,126
Trademarks and trade names		14,171		7,911		6,260
Total identifiable intangible assets	$	465,689	$	243,492	$	222,197

January 1, 2022
Finite-lived intangible assets:
Developed technology	$	377,997	$	155,976	$	222,021
Customer and distributor relationships		73,321		25,608		47,713
Trademarks and trade names		14,171		6,624		7,547
Total identifiable intangible assets	$	465,489	$	188,208	$	277,281

Intangible asset amortization expense amounted to $55,284, $51,366 and $53,746 for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expenses are $54,823 for 2023, $49,137 for 2024, $32,587 for 2025, $31,394 for 2026 and $23,173 for 2027.