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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
(Millions of Dollars) | Tools & Outdoor |  | Industrial |  |  | Total
Balance January 1, 2022 | $ | 5,973.7 |  |  | $ | 2,617.0 |  |  |  | $ | 8,590.7 |
Acquisitions | 90.5 |  |  | — |  |  |  | 90.5 |
Foreign currency translation and other | (124.5) |  |  | (54.0) |  |  |  | (178.5) |
Balance December 31, 2022 | $ | 5,939.7 |  |  | $ | 2,563.0 |  |  |  | $ | 8,502.7 |
Reclassification to assets held for sale | — |  |  | (540.5) |  |  |  | (540.5) |
Foreign currency translation and other | 36.6 |  |  | (2.9) |  |  |  | 33.7 |
Balance December 30, 2023 | $ | 5,976.3 |  |  | $ | 2,019.6 |  |  |  | $ | 7,995.9 |
As previously discussed, in December 2023, the Company entered into an agreement to sell its Infrastructure business. As a result, $540.5 million of goodwill was reclassified to assets held for sale as of December 30, 2023, and was included in the determination of the impairment charge recorded in the fourth quarter of 2023 to adjust the carrying amount of Infrastructure’s long-lived assets to its estimated fair value less selling costs. In 2022, $39.0 million of goodwill was allocated to the Oil & Gas business based on the relative fair value of the business disposed, and was included in the determination of the impairment charge recorded relating to the Oil & Gas business. Refer to Note T, Divestitures, for further discussion. As required by the Company's policy, the Company performed its annual goodwill impairment testing in the third quarter of 2023 and determined that the fair values of each of its reporting units exceeded their respective carrying amounts. The Company assessed the fair values of its three reporting units utilizing a discounted cash flow valuation model. The key assumptions used were discount rates and perpetual growth rates applied to cash flow projections. Also inherent in the discounted cash flow valuations were near-term revenue growth rates over the next six years. These assumptions contemplated business, market and overall economic conditions. As previously disclosed in the Company's Form 10-Q for the third quarter of 2023, the fair value of the Engineered Fastening reporting unit exceeded its carrying amount by 16%. In connection with the preparation of the Consolidated Financial Statements for the year ended December 30, 2023, the Company performed an updated impairment analysis with respect to the Engineered Fastening reporting unit, which included approximately $2.020 billion of goodwill at year-end. The key assumptions applied to the updated cash flow projections for the Engineered Fastening reporting unit included a 10.0% discount rate, near-term revenue growth rates over the next six years, which represented a compound annual growth rate of approximately 5%, and a 3% perpetual growth rate. Based on this analysis, it was determined that the fair value of the Engineering Fastening reporting unit exceeded its carrying amount by 22%. The increase in excess fair value is reflective of a slightly more favorable long-term outlook based on 2023 results and a lower carrying value driven by working capital reductions. Management remains confident in the long-term viability and success of the Engineered Fastening reporting unit, particularly given its market position, growth prospects, such as automotive electrification and the aerospace market recovery, and geographies served. INTANGIBLE ASSETS — Definite-lived intangible assets at December 30, 2023 and December 31, 2022 were as follows:
| 2023 |  | 2022
(Millions of Dollars) | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Amortized Intangible Assets — Definite-lived |  |  |  |  |  |  |
Patents and copyrights | $ | 26.2 |  |  | $ | (26.1) |  |  | $ | 25.8 |  |  | $ | (25.6) |
Trade names | 223.6 |  |  | (120.7) |  |  | 247.7 |  |  | (118.0) |
Customer relationships | 2,578.4 |  |  | (1,132.7) |  |  | 2,881.2 |  |  | (1,059.9) |
Other intangible assets | 130.2 |  |  | (125.7) |  |  | 129.6 |  |  | (122.0) |
Total | $ | 2,958.4 |  |  | $ | (1,405.2) |  |  | $ | 3,284.3 |  |  | $ | (1,325.5) |
Net intangible assets totaling $214.3 million were reclassified to assets held for sale as of December 30, 2023 related to the pending divestiture of the Infrastructure business. Indefinite-lived trade names totaled $2.396 billion at December 30, 2023 and $2.516 billion at December 31, 2022. The year-over-year change is primarily due to a $124.0 million pre-tax, non-cash impairment charge, as discussed below, partially offset by currency fluctuations. As required by the Company’s policy, the Company tested its indefinite-lived trade names for impairment during the third quarter of 2023 utilizing a discounted cash flow model. The key assumptions used included discount rates, royalty rates, and perpetual growth rates applied to the projected sales. With the exception of the Irwin and Troy-Bilt trade names discussed below, the Company determined that the fair values of its indefinite-lived trade names exceeded their respective carrying amounts. During the third quarter of 2023, as a result of new leadership within the Tools & Outdoor segment, the Company reviewed its brand portfolio resulting in a decision to shift prioritization and investment to its major brands, while leveraging certain of its specialty brands in a more focused manner. As a result of this shift in brand prioritization, the Company recognized a $124.0 million pre-tax, non-cash impairment charge related to the Irwin and Troy-Bilt trade names in the third quarter of 2023. Subsequent to this impairment charge, the carrying value of the Irwin and Troy-Bilt trade names totaled $113.0 million. The Company intends to continue utilizing these trade names, which accounted for less than 5% of 2023 net sales for the Tools & Outdoor segment, indefinitely in more focused product categories and end markets. Intangible assets amortization expense by segment was as follows:
(Millions of Dollars) | 2023 |  | 2022 |  | 2021
Tools & Outdoor | $ | 103.1 |  |  | $ | 108.1 |  |  | $ | 64.1 |
Industrial | 89.6 |  |  | 94.4 |  |  | 99.9 |
Discontinued Operations | — |  |  | — |  |  | 39.1 |
Consolidated | $ | 192.7 |  |  | $ | 202.5 |  |  | $ | 203.1 |
Future amortization expense in each of the next five years amounts to $163.7 million for 2024, $150.2 million for 2025, $142.3 million for 2026, $135.1 million for 2027, $131.3 million for 2028 and $830.6 million thereafter.

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