Goodwill and Other Intangible Assets

12 Months Ended

Jan. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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


(in thousands)	Electronics		Transportation		Industrial		Total
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
Changes during 2021:
Additions (a)	—		96,307		38,502		134,809

Foreign currency translation adjustments	(16,080)		(6,106)		179		(22,007)
Gross goodwill as of January 1, 2022	660,245		228,555		86,232		975,032
Accumulated impairment losses as of January 1, 2022	—		(36,177)		(9,065)		(45,242)
Net goodwill as of January 1, 2022	$	660,245	$	192,378	$	77,167	$	929,790

(a) The additions primarily resulted from the acquisitions of Carling and 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 Transportation 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 January 1, 2022, the automotive sensors reporting unit had $9.2 million of remaining goodwill.

The components of intangible assets at January 1, 2022 and December 26, 2020 are as follows:


	As of January 1, 2022
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	19,542	$	1,906	$	17,636
Patents, licenses and software	164,556		101,307		63,249
Distribution network	43,361		40,591		2,770
Customer relationships, trademarks, and tradenames	487,710		164,239		323,471
Total	$	715,169	$	308,043	$	407,126


	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 year ended January 1, 2022, the Company recorded additions to other intangible assets of $165.6 million, for acquisitions during 2021, the components of which were as follows:


	2021
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount
Land use rights	50	$	9,590
Patents, developed technology	9.8	$	31,659
Customer relationships, trademarks, and tradenames	13.0	124,301
Total		$	165,550

For intangible assets with definite lives, the Company recorded amortization expense of $42.7 million, $40.0 million, and $40.0 million in 2021, 2020, and 2019, respectively.

Estimated annual amortization expense related to intangible assets with definite lives at January 1, 2022 is as follows:


(in thousands)	Amount
2022	$	50,035
2023	45,569
2024	42,151
2025	41,776
2026	33,245
2027 and thereafter	194,350
Total	$	407,126