Goodwill and Other Intangible Assets

9 Months Ended

Sep. 25, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The amounts for goodwill and changes in the carrying value by segment for the nine months ended September 25, 2021 are as follows:


(in thousands)	Electronics		Automotive		Industrial		Total
Net book value of goodwill as of December 26, 2020
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)
Total	676,325		101,931		38,556		816,812
Changes during 2021:
Additions(a)	—		1,614		40,442		42,056

Currency translation	(9,530)		(2,165)		32		(11,663)
Net book value of goodwill as of September 25, 2021
Gross goodwill as of September 25, 2021	666,795		137,783		88,133		892,711
Accumulated impairment losses as of September 25, 2021	—		(36,403)		(9,103)		(45,506)
Total	$	666,795	$	101,380	$	79,030	$	847,205

(a) The additions primarily resulted from the acquisition of Hartland.

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 determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of September 25, 2021, the automotive sensors reporting unit had $9.5 million of remaining goodwill.

The components of other intangible assets as of September 25, 2021 and December 26, 2020 are as follows:


	As of September 25, 2021
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,354	$	2,230	$	8,124
Patents, licenses and software	142,606		99,834		42,772
Distribution network	43,601		40,306		3,295
Customer relationships, trademarks, and tradenames	399,655		158,080		241,575

Total	$	596,216	$	300,450	$	295,766


	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

During the three months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $10.4 million and $10.1 million, respectively. During the nine months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $31.6 million and $29.9 million, respectively.

The Company recognized a $0.3 million non-cash impairment charge in the first quarter of 2020 on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

During the nine months ended September 25, 2021, the Company recorded additions to intangible assets of $39.7 million, related to the Hartland acquisition, the components of which were as follows:


(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses and software	9.2	$	7,559

Customer relationships, trademarks, and tradenames	13.7	32,101
Total		$	39,660

Estimated annual amortization expense related to intangible assets with definite lives as of September 25, 2021 is as follows:


(in thousands)	Amount
2021	$	41,922
2022	40,761
2023	36,461
2024	33,038
2025	33,019
2026 and thereafter	142,173
Total	$	327,374