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Goodwill and Identifiable Intangible Assets | 12 Months Ended
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Dec. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Identifiable Intangible Assets | 6. Goodwill and Identifiable Intangible Assets We had goodwill of $1,906.8 million and $1,640.7 million as of December 30, 2023 and December 31, 2022, respectively. The change in the net carrying amount of goodwill by segment was as follows:
(In millions) |  | Water |  |  |  | Outdoors |  |  | Security |  |  | Total Goodwill |
Balance at December 31, 2021(a) |  | $ | 814.1 |  |  |  | $ | 627.7 |  |  | $ | 97.1 |  |  | $ | 1,538.9 |
2022 translation adjustments |  |  | (9.4 | ) |  |  |  | — |  |  |  | (0.8 | ) |  |  | (10.2 | )
Acquisition-related adjustments |  |  | 88.7 |  |  |  |  | 23.3 |  |  |  | — |  |  |  | 112.0 |
Balance at December 31, 2022(a) |  | $ | 893.4 |  |  |  | $ | 651.0 |  |  | $ | 96.3 |  |  | $ | 1,640.7 |
2023 translation adjustments |  |  | 8.1 |  |  |  |  | — |  |  |  | 0.4 |  |  |  | 8.5 |
Acquisition-related adjustments |  |  | 227.8 |  |  |  |  | 0.1 |  |  |  | 29.7 |  |  |  | 257.6 |
Balance at December 30, 2023(a) |  | $ | 1,129.3 |  |  |  | $ | 651.1 |  |  | $ | 126.4 |  |  | $ | 1,906.8 |
(a) Net of accumulated impairment losses of $399.5 million in the Outdoors segment. The gross carrying value and accumulated amortization by class of intangible assets as of December 30, 2023 and December 31, 2022 were as follows:
| As of December 30, 2023 |  | As of December 31, 2022 |
(In millions) | Gross Carrying Amounts |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amounts |  | Accumulated Amortization |  | Net Book Value |
Indefinite-lived tradenames | $ | 520.1 |  | $ | — |  | $ | 520.1 |  | $ | 478.1 |  | $ | — |  | $ | 478.1 |
Amortizable intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Tradenames |  | 58.4 |  |  | (9.3 | ) |  | 49.1 |  |  | 47.5 |  |  | (6.8 | ) |  | 40.7 |
Customer and contractual relationships |  | 1,017.3 |  |  | (289.4 | ) |  | 727.9 |  |  | 662.6 |  |  | (239.6 | ) |  | 423.0 |
Patents/proprietary technology |  | 138.2 |  |  | (80.6 | ) |  | 57.6 |  |  | 128.5 |  |  | (69.5 | ) |  | 59.0 |
Total |  | 1,213.9 |  |  | (379.3 | ) |  | 834.6 |  |  | 838.6 |  |  | (315.9 | ) |  | 522.7 |
Total identifiable intangibles | $ | 1,734.0 |  | $ | (379.3 | ) | $ | 1,354.7 |  | $ | 1,316.7 |  | $ | (315.9 | ) | $ | 1,000.8 |
We had identifiable intangible assets, principally tradenames and customer relationships net of accumulated amortization, of $1,354.7 million and $1,000.8 million as of December 30, 2023 and December 31, 2022, respectively. The $417.3 million increase in gross identifiable intangible assets was primarily due to the acquisition the ASSA Businesses and foreign translation adjustments. Amortizable intangible assets, principally customer relationships, are subject to amortization on a straight-line basis over their estimated useful life, ranging from 5 to 30 years, based on the assessment of a number of factors that may impact useful life, which include customer attrition rates and other relevant factors. We expect to record intangible amortization of approximately $72.0 million in 2024, $72.0 million in 2025, $71.0 million in 2026, $69.0 million in 2027 and $62.0 million in 2028. During the fourth quarter of 2023, a reduction of revenue growth expectations, which were finalized during our annual planning process, led us to conclude that it was more likely than not that two indefinite-lived tradenames within our Outdoors segment were impaired. As a result of impairment tests performed, we recorded pre-tax impairment charges of $28.0 million and $5.5 million, respectively, related to the two indefinite-lived tradenames. As of December 30, 2023, the carrying values of these tradenames were $83.0 million and $12.5 million, respectively. The fair values of the impaired tradenames were measured using the relief-from-royalty approach, which estimates the present value of royalty income that could be hypothetically earned by licensing the tradename to a third party over its remaining useful life. Some of the more significant assumptions inherent in estimating the fair values include forecasted revenue growth rates, assumed royalty rates, and market-participant discount rates that reflect the level of risk associated with the tradenames’ future revenues and profitability. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates and management plans. These assumptions represent level 3 inputs of the fair value hierarchy (refer to Note 10, "Fair Value Measurements"). The significant assumptions used to estimate the fair value of the tradenames impaired during the year ended December 30, 2023 were as follows:
|  | 2023 |
Unobservable Input |  | Minimum |  |  | Maximum |  |  | Weighted Average(a) |
Discount rates |  |  | 13.0 | % |  |  | 14.5 | % |  |  | 14.3 | %
Royalty rates(b) |  |  | 2.5 | % |  |  | 3.5 | % |  |  | 3.4 | %
Long-term revenue growth rates(c) |  |  | 2.0 | % |  |  | 3.0 | % |  |  | 2.1 | %
(a) Weighted by the relative fair value of the tradenames that were tested quantitatively. (b) Represents estimated percentage of sales a market-participant would pay to license the impaired tradenames. (c) Selected long-term revenue growth rate within 10-year projection period of the impaired tradenames. As of December 30, 2023, the fair values of two Outdoors tradenames were equal to their carrying value of $83.0 million and $12.5 million, respectively. A reduction in the estimated fair value of any of our tradenames could trigger impairment charges in future periods. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: lower than forecasted revenues, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and a decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets.

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