Goodwill and Other Intangible Assets

12 Months Ended

Dec. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The amounts for goodwill and changes in the carrying value by segment are as follows:


(in thousands)	Electronics		Automotive		Industrial		Total
Gross goodwill as of December 29, 2018	$	656,039	$	132,332	$	46,830	$	835,201
Accumulated impairment losses as of December 29, 2018	—		—		(8,486)		(8,486)
Net goodwill as of December 29, 2018	$	656,039	$	132,332	$	38,344	$	826,715
Changes during 2019:
Foreign currency translation adjustments	(5,243)		(1,011)		128		(6,126)
Gross goodwill as of December 28, 2019	650,796		131,321		47,266		829,383
Accumulated impairment losses as of December 28, 2019	—		—		(8,794)		(8,794)
Net goodwill as of December 28, 2019	$	650,796	$	131,321	$	38,472	$	820,589

Changes during 2020:
Impairments	—		(33,841)		—		(33,841)
Foreign currency translation adjustments	25,529		4,451		84		30,064
Gross goodwill as of December 26, 2020	676,325		138,354		47,551		862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Net goodwill as of December 26, 2020	$	676,325	$	101,931	$	38,556	$	816,812

The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Automotive segment. The goodwill impairment charge was due to reductions in the estimated fair value for the automotive sensors reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. These lower future expectations were driven by projected extended declines in end market demand due to the COVID-19 pandemic. In addition, during the second quarter of 2020, certain customers notified the Company of their decision to delay future programs along with a customer canceling their existing program. The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of December 26, 2020, the automotive sensors reporting unit had $9.8 million of remaining goodwill.

The components of intangible assets at December 26, 2020 and December 28, 2019 are as follows:


	As of December 26, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,280	$	2,007	$	8,273
Patents, licenses and software	$	137,210	$	92,868	$	44,342
Distribution network	43,910		38,980		4,930
Customer relationships, trademarks, and tradenames	372,064		137,722		234,342
Total	$	563,464	$	271,577	$	291,887


	As of December 28, 2019
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,649	$	1,730	$	7,919
Patents, licenses and software	$	131,164	$	78,828	$	52,336
Distribution network	43,239		36,163		7,076
Customer relationships, trademarks, and tradenames	360,534		106,618		253,916
Total	$	544,586	$	223,339	$	321,247

During the year ended December 29, 2018, the Company recorded additions to other intangible assets of $212.7 million, for acquisitions during 2018, the components of which were as follows:


	2018
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount
Patents, licenses and software	8.0	$	51,500
Customer relationships, trademarks, and tradenames	17.2	148,800
Order backlog	1.0	12,420
Total		$	212,720

For intangible assets with definite lives, the Company recorded amortization expense of $40.0 million, $40.0 million, and $52.2 million in 2020, 2019, and 2018, respectively.

Estimated annual amortization expense related to intangible assets with definite lives at December 26, 2020 is as follows:


(in thousands)	Amount
2021	$	38,858
2022	37,851
2023	33,279
2024	30,121
2025	29,689
2026 and thereafter	122,089
Total	$	291,887