Goodwill and Other Intangible Assets

12 Months Ended

Dec. 26, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table provides a rollforward of the Company’s goodwill:



				Adjustments to Goodwill											Adjustments to Goodwill
	December 28, 2013			Acquisitions		Transfers			Foreign Exchange			December 27, 2014			Acquisitions		Foreign Exchange			December 26, 2015
	(in thousands)
RMS	$	83,551		$	—	$	(23,172	)	$	(1,183	)	$	59,196		$	—	$	(1,029	)	$	58,167
DSA	1,152,150			102,171		(9,196		)	(10,823		)	1,234,302			22,146		(4,398		)	1,252,050
Manufacturing	—			—		32,368			211			32,579			105,567		(4,534		)	133,612
Gross carrying amount	1,235,701											1,326,077								1,443,829
DSA - Accumulated impairment loss	(1,005,000		)	—		—			—			(1,005,000		)	—		—			(1,005,000		)
Goodwill	$	230,701										$	321,077							$	438,829

In the second quarter of 2014, the Company revised its reportable segments to align with the view of the business following its acquisition of Argenta and BioFocus. See Note 1, "Description of Business and Summary of Significant Accounting Policies." As a result of this reorganization, goodwill was allocated from the Company's prior reportable segments to new reportable segments, as shown in the preceding table within "transfers." The allocation was based on the fair value of each business group within its original reporting unit relative to the fair value of that reporting unit. In addition, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Based on the Company’s step one goodwill impairment test for the fiscal years 2015, 2014 and 2013, the fair value of each reporting unit exceeded the reporting unit’s book value and, therefore, goodwill was not impaired.

Intangible Assets, Net

The following table displays the gross carrying amount and accumulated amortization of intangible assets, net by major class:



	December 26, 2015							December 27, 2014
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(in thousands)
Backlog	$	50,568	$	(50,554	)	$	14	$	8,728	$	(6,636	)	$	2,092
Technology⁽¹⁾	60,350		(5,911		)	54,439		13,474		(4,166		)	9,308
Trademarks and trade names	11,495		(5,944		)	5,551		6,603		(5,314		)	1,289
Other identifiable intangible assets	14,711		(7,285		)	7,426		5,169		(3,822		)	1,347
Definite-lived other intangible assets, net	137,124		(69,694		)	67,430		33,974		(19,938		)	14,036
Indefinite-lived intangibles ⁽¹⁾						—							3,438
Total other intangible assets, net						67,430							17,474
Client relationships	396,537		(183,163		)	213,374		379,339		(217,938		)	161,401
Total intangible assets, net						$	280,804						$	178,875
⁽¹⁾During the fourth quarter of 2015, certain intangible assets with a carrying value of $3.4 million that were previously assigned indefinite lives have been assigned definite lives of 20 years. The Company recorded an immaterial amount of amortization expense on these intangible assets during the fiscal year 2015.

Amortization expense of definite-lived intangible assets, including client relationships, for the fiscal years 2015, 2014 and 2013 was $24.2 million, $26.0 million and $17.8 million, respectively. Estimated amortization expense for intangible assets for each of the next five fiscal years is expected to be as follows:



Fiscal Year	Amortization Expense
	(in thousands)
2016	$	26,835
2017	26,678
2018	24,434
2019	21,617
2020	21,293

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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