Goodwill and Purchased Intangible Assets

12 Months Ended

Jan. 01, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

6. 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 2021 and concluded that no impairment charge was required.

Goodwill

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

Balance at December 31, 2019	$	307,148
Goodwill adjustments (Note 3)		(516	)
Balance at December 26, 2020		306,632
Goodwill from Inspectrology acquisition (Note 3)		9,179
Balance at January 1, 2022	$	315,811

Purchased Intangible Assets

Purchased intangible assets as of January 1, 2022 and December 26, 2020 are as follows:

	Gross Carrying Amount		Accumulated Amortization		Net
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
December 26, 2020
Finite-lived intangible assets:
Developed technology	$	326,877	$	110,851	$	216,026
Customer and distributor relationships		69,261		20,654		48,607
Trademarks and trade names		12,461		5,337		7,124
Total finite-lived intangible assets		408,599		136,842		271,757
In-process research and development		46,600		—		46,600
Total identifiable intangible assets	$	455,199	$	136,842	$	318,357

Intangible asset amortization expense amounted to $51,366, $53,746 and $10,445 for the years ended January 1, 2022, December 26, 2020 and December 31, 2019, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expenses are $55,273 for 2022, $54,798 for 2023, $49,113 for 2024, $32,563 for 2025, and $31,370 for 2026.