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Note 4 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 30, 2017
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill and Other Intangible Assets The amounts for goodwill and changes in the carrying value by segment are as follows:
(in thousands) |  | Electronics |  |  | Automotive |  |  | Industrial |  |  | Total |
As of January 2, 2016 |  | $ | 58,246 |  |  | $ | 80,262 |  |  | $ | 51,259 |  |  | $ | 189,767 |
Additions (a) |  |  | 162,172 |  |  |  | 70,762 |  |  |  | — |  |  |  | 232,934 |
Impairments ( b ) |  |  | — |  |  |  | — |  |  |  | (8,794 | ) |  |  | (8,794 | )
A djustments ( c ) |  |  | (4,653 | ) |  |  | (6,439 | ) |  |  | 729 |  |  |  | (10,363 | )
As of December 31, 2016 |  | $ | 215,765 |  |  | $ | 144,585 |  |  | $ | 43,194 |  |  | $ | 403,544 |
Additions ( d ) |  |  | 36,716 |  |  |  | — |  |  |  | — |  |  |  | 36,716 |
Adjustments ( e ) |  |  | 26,478 |  |  |  | (8,756 | ) |  |  | (4,568 | ) |  |  | 13,154 |
As of December 30, 2017 |  | $ | 278,959 |  |  | $ | 135,829 |  |  | $ | 38,626 |  |  | $ | 453,414 |
| (a) | The 2016 additions resulted primarily from the acquisitions of PolySwitch, ON and Menber’s.
| ( b) | The 2016 impairments in the Industrial segment was due to the $8.8 million impairment of Custom Products reporting unit goodwill.
| ( c) | Adjustments in 2016 reflect the impact of changes in foreign exchange rates.
| ( d) | The 2017 additions resulted from the acquisitions of U.S. Sensor and Monolith.
| (e) | Adjustments in 2017 reflect adjustments to reclass goodwill by segment as well as the impact of changes in foreign exchange rates. The impact of the reclassification was an increase in goodwill to the Electronics segment of $21.6 million and a decrease of goodwill of $16.8 million and $4.8 million to the Automotive segment and the Industrial segment, respectively.
Due to negative events in the potash market in 2016, management revisited its long-term projections and conducted a step one goodwill impairment analysis for its Custom Products reporting unit in the third quarter of 2016. The reporting unit failed the step one test and management conducted a step two analysis. The fair value of the unit was estimated using the expected present value of future cash flows over a seven -year forecast period and appraisal of certain assets. As a result, the Company recognized a charge for goodwill impairment of $8.8 million as it wrote off the entire goodwill balance. The components of other intangible assets at December 30, 2017 and December 31, 2016 are as follows:
|  | As of December 30, 2017 |
(in thousands) |  | Weighted Average Useful Life |  |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Book Value |
Patents, licenses and software |  | 11.4 |  |  | $ | 141,520 |  |  | $ | 59,609 |  |  | $ | 81,911 |
Distribution network |  | 12.1 |  |  |  | 46,233 |  |  |  | 33,361 |  |  |  | 12,872 |
Customer relationships, trademarks and tradenames |  | 15.6 |  |  |  | 162,679 |  |  |  | 53,612 |  |  |  | 109,067 |
Total |  |  |  |  | $ | 350,432 |  |  | $ | 146,582 |  |  | $ | 203,850 |
|  | As of December 31, 2016 |
(in thousands) |  | Weighted Average Useful Life |  |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Book Value |
Patents, licenses and software |  | 11.4 |  |  | $ | 131,611 |  |  | $ | 48,004 |  |  | $ | 83,607 |
Distribution network |  | 12.1 |  |  |  | 49,150 |  |  |  | 30,155 |  |  |  | 18,995 |
Customer relationships, trademarks and tradenames |  | 14.4 |  |  |  | 150,887 |  |  |  | 40,463 |  |  |  | 110,424 |
Total |  |  |  |  | $ | 331,648 |  |  | $ | 118,622 |  |  | $ | 213,026 |
During the year ended December 31, 2016, the Company recognized non-cash impairment charges totaling $6.0 million, of which $2.2 million related to the impairment of certain customer relationship intangib le assets in the Custom Products reporting unit within the Industrial segment and $3.8 million related to the impairment of the Custom Products tradename. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships while the tradename impairment resulted from lower expectations of future cash flows of the Custom Products reporting unit. During the years ended December 30, 2017 and December 31, 2016, the Company recorded additions to other intangible assets of $11.0 million and $144.4 million, respectively, for acquisitions during those years, the components of which were as follows:
|  | 2017 |  |  | 2016 |
(in thousands) |  | Weighted Average Useful Life |  |  | Amount |  |  | Weighted Average Useful Life |  |  | Amount |
Patents, licenses and software |  | 9.6 |  |  | $ | 7,810 |  |  | 9.6 |  |  | $ | 65,449 |
Customer relationships, trademarks and tradenames |  | 9.0 |  |  |  | 3,220 |  |  | 13.5 |  |  |  | 78,919 |
Total |  |  |  |  | $ | 11,030 |  |  |  |  |  | $ | 144,368 |
For intangible assets with definite lives, the Company recorded amortization expense of $24.7 million, $19.3 million, and $11.9 million in 2017, 2016, and 2015, respectively. Estimated amortization expense related to intangible assets with definite lives at December 30, 2017 is as follows:
(in thousands ) |  | Amount |
2018 |  | $ | 25,689 |
2019 |  |  | 25,528 |
2020 |  |  | 24,879 |
2021 |  |  | 23,093 |
2022 |  |  | 22,058 |
2023 and thereafter |  |  | 82,603 |
|  | $ | 203,850 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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