GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

12 Months Ended

Dec. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

Goodwill

Results from our annual goodwill impairment test in the fourth quarter of 2023 indicated that no impairment occurred during 2023. The assumptions used in our assessment were primarily based on Level 3 inputs.

Changes in the net carrying amount of goodwill for 2023 and 2022 by reportable segment are shown below:


(In millions)	Materials Group		Solutions Group		Total
Goodwill as of January 1, 2022	$	645.5	$	1,236.0	$	1,881.5
Acquisitions(1)	—		16.3		16.3
Acquisition adjustment(2)	—		(.5)		(.5)
Translation adjustments	(26.8)		(8.1)		(34.9)
Goodwill as of December 31, 2022	618.7		1,243.7		1,862.4
Acquisitions(3)	—		135.0		135.0

Translation adjustments	12.0		4.2		16.2

Goodwill as of December 30, 2023	$	630.7	$	1,382.9	$	2,013.6

(1)Goodwill acquired related to the 2022 Acquisitions. We expect the recognized goodwill related to the 2022 Acquisitions not to be deductible for income tax purposes.

(2)Measurement period adjustment related to the finalization of the purchase price allocation for the Vestcom acquisition.

(3)Goodwill acquired related to the 2023 Acquisitions. We expect substantially all of the recognized goodwill related to the 2023 Acquisitions not to be deductible for income tax purposes.

The carrying amounts of goodwill at December 30, 2023 and December 31, 2022 were net of accumulated impairment losses of $820 million recognized in fiscal year 2009 by our Solutions Group reportable segment.

Indefinite-Lived Intangible Assets

Results from our annual indefinite-lived intangible assets impairment test in the fourth quarter indicated that no impairment occurred in 2023. The carrying value of indefinite-lived intangible assets resulting from business acquisitions, consisting of trade names and trademarks, was $155.3 million and $154.7 million at December 30, 2023 and December 31, 2022, respectively.

Finite-Lived Intangible Assets

In connection with the 2023 Acquisitions, we acquired approximately $94 million of identifiable finite-lived intangible assets, which consisted of customer relationships, patented and other developed technology, and trade names and trademarks. We utilized the income approach to estimate the fair value of acquired identifiable intangibles, primarily using Level 3 inputs. We applied significant judgment in determining the fair value of intangible assets, which included our estimates and assumptions with respect to estimated future revenue and related profit margins, customer retention rates, technology migration curves, royalty rates, discount rates and economic lives assigned to the acquired intangible assets.

The table below summarizes the amounts and weighted average useful lives of the intangible assets associated with the 2023 Acquisitions as of the acquisition date.


	Amount (in millions)		Weighted average amortization period (in years)
Customer relationships	$	68.8	11
Patented and other developed technology	22.2		7
Trade names and trademarks	3.0		6

In connection with the 2022 Acquisitions, we acquired approximately $21 million of identifiable finite-lived intangible assets, which consisted of patented and other developed technology as well as customer relationships.

Refer to Note 2, “Business Acquisitions,” for more information.

The table below sets forth our finite-lived intangible assets resulting from business acquisitions at December 30, 2023 and December 31, 2022, which continue to be amortized.


	2023						2022
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	922.5	$	383.7	$	538.8	$	852.2	$	330.1	$	522.1
Patented and other developed technology	278.3		130.2		148.1		261.9		104.3		157.6
Trade names and trademarks	17.4		11.7		5.7		14.4		10.3		4.1
Other intangibles	3.2		2.0		1.2		3.2		1.4		1.8
Total	$	1,221.4	$	527.6	$	693.8	$	1,131.7	$	446.1	$	685.6

Amortization expense for finite-lived intangible assets resulting from business acquisitions was $86.3 million for 2023, $81.8 million for 2022 and $44.6 million for 2021.

We expect estimated amortization expense for finite-lived intangible assets resulting from business acquisitions for each of the next five fiscal years and thereafter to be as follows:


(In millions)	Estimated Amortization Expense
2024	$	89.7
2025	88.9
2026	85.9
2027	85.4
2028	78.0
2029 and thereafter	265.9