Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by segment were as follows:

(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Goodwill	$	192,316	$	8,854	$	21,652	$	222,822
Accumulated impairment charges	(40,552)		(8,853)		(2,087)		(51,492)
Balance at December 25, 2021:	151,764		1		19,565		171,330
Reductions (1)	(11,216)		—		—		(11,216)
Currency translation	(2,526)		—		—		(2,526)
Balance at December 31, 2022:	138,022		1		19,565		157,588
Reductions (2)	(7,007)		—		—		(7,007)
Currency translation	1,239		—		—		1,239
Balance at December 30, 2023:
Goodwill	172,806		8,854		21,652		203,312
Accumulated impairment charges	(40,552)		(8,853)		(2,087)		(51,492)
Goodwill, net	$	132,254	$	1	$	19,565	$	151,820
(1) Includes finalization of the purchase price allocation adjustment for Mueller Middle East of $11.2 million.
(2) Includes disposal of Heatlink Group business.

Reporting units with recorded goodwill include Domestic Piping Systems Group, B&K LLC, Great Lakes, European Operations, Jungwoo-Mueller, Mueller Middle East, Westermeyer, and Flex Duct.  Several factors give rise to goodwill in the Company’s acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired businesses.  With the exception of the Turbotec reporting unit, there were no impairment charges resulting from the 2023, 2022, or 2021 annual impairment tests as the estimated fair value of each of the reporting units exceeded its carrying value.  During the third quarter of 2021, the Company recognized an impairment charge of $2.1 million related to Turbotec, reported within the Climate segment.

Other Intangible Assets

The carrying amount of intangible assets at December 30, 2023 was as follows:

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	50,009	$	(17,535)	$	32,474
Non-compete agreements	2,325		(2,325)		—
Patents and technology	16,681		(8,119)		8,562
Trade names and licenses	12,092		(6,920)		5,172
Other	1,715		(1,715)		—
Other intangible assets	$	82,822	$	(36,614)	$	46,208

The carrying amount of intangible assets at December 31, 2022 was as follows:

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	53,156	$	(15,658)	$	37,498
Non-compete agreements	2,333		(2,333)		—
Patents and technology	18,032		(7,570)		10,462
Trade names and licenses	13,374		(6,697)		6,677
Other	1,676		(1,528)		148
Other intangible assets	$	88,571	$	(33,786)	$	54,785

Amortization expense for intangible assets was $5.0 million in 2023, $5.6 million in 2022, and $6.3 million in 2021.  Future amortization expense is estimated as follows:

(In thousands)	Amount
2024	$	4,623
2025	4,505
2026	4,357
2027	4,356
2028	4,117
Thereafter	24,250
Expected amortization expense	$	46,208