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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following (in thousands):
| December 30, 2017 |  | December 31, 2016
Goodwill | $ | 279,505 |  |  | $ | 290,699 |
Definite-lived intangible assets | 182,186 |  |  | 182,666 |
Indefinite-lived intangible assets | 29,201 |  |  | 38,054 |
| $ | 490,892 |  |  | $ | 511,419 |
Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):
| Office Furniture |  | Hearth Products |  | Total
Balance as of January 2, 2016 |  |  |  |  |
Goodwill | $ | 121,964 |  |  | $ | 183,199 |  |  | $ | 305,163 |
Accumulated impairment losses | (27,370 | ) |  | (143 | ) |  | (27,513 | )
Net goodwill balance as of January 2, 2016 | 94,594 |  |  | 183,056 |  |  | 277,650 |
Goodwill acquired during the year | 15,928 |  |  | — |  |  | 15,928 |
Impairment losses | (2,876 | ) |  | — |  |  | (2,876 | )
Foreign currency translation adjustment | (3 | ) |  | — |  |  | (3 | )
Balance as of December 31, 2016 |  |  |  |  |  |  |  |
Goodwill | 137,889 |  |  | 183,199 |  |  | 321,088 |
Accumulated impairment losses | (30,246 | ) |  | (143 | ) |  | (30,389 | )
Net goodwill balance as of December 31, 2016 | 107,643 |  |  | 183,056 |  |  | 290,699 |
Goodwill acquired during the year | — |  |  | — |  |  | — |
Impairment losses | (11,150 | ) |  | — |  |  | (11,150 | )
Foreign currency translation adjustment | (44 | ) |  | — |  |  | (44 | )
Balance as of December 30, 2017 |  |  |  |  |  |  |  |
Goodwill | 137,845 |  |  | 183,199 |  |  | 321,044 |
Accumulated impairment losses | (41,396 | ) |  | (143 | ) |  | (41,539 | )
Net goodwill balance as of December 30, 2017 | $ | 96,449 |  |  | $ | 183,056 |  |  | $ | 279,505 |
The increases in goodwill relate to completed acquisitions. See "Note 4. Acquisitions and Divestitures" in the Notes to Consolidated Financial Statements for further information. The decreases in goodwill in the office furniture segment were due to impairment charges, which are described below. Paoli - On December 6, 2017, the Corporation made the decision to discontinue the Paoli office furniture brand. The manufacturing of Paoli branded products will cease in the first quarter of 2018. The Corporation made this decision as part of continued efforts to drive efficiency and simplification, delivering increased value to its shareholders. As a result of this decision, the Corporation recorded a $6.3 million goodwill impairment charge, an $8.3 million impairment charge related to an indefinite-lived trade name, and a $1.5 million impairment charge related to a definite-lived customer list. These impairment charges reduced the total amount of Paoli's goodwill and other intangible assets to $0 on the Consolidated Balance Sheets as of December 30, 2017. Annual Goodwill Impairment Assessment - As a result of the required annual impairment assessment performed in the fourth quarter of 2017, the Corporation determined the fair value of a reporting unit within the office furniture segment was below its carrying value. The decline in the estimated fair value of this reporting unit was primarily driven by reducing long-term margin expectations for the reporting unit. The projections used in the impairment model reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, investments required for operational transformation, and other expectations about the anticipated short-term and long-term operating results of the reporting unit. The Corporation assumed a discount rate of 13.5 percent, near term growth rates ranging from 7 percent to 10 percent, and a terminal growth rate of 3 percent. Based on the quantitative analysis, the Corporation recorded a $4.8 million goodwill impairment charge in 2017. There was $19.6 million net goodwill remaining in the reporting unit as of December 30, 2017. Holding other assumptions constant, a 100 basis point increase in the discount rate would result in a $3.3 million decrease in the estimated fair value of the reporting unit. Holding other assumptions constant, a 100 basis point decrease in the long-term growth rate would result in a $1.4 million decrease in the estimated fair value of the reporting unit. Prior to the goodwill impairment assessment, the Corporation completed a qualitative review of long-lived assets for all asset groups to determine if events or changes in circumstances indicated that the carrying amount of each asset group may not be recoverable (if a "triggering event" existed). Based on this review, the Corporation tested the recoverability of the long-lived assets, other than goodwill and indefinite-lived intangible assets, in certain asset groups where a triggering event existed, and found no impairments, except for the $1.5 million impairment charge to remove the Paoli definite-lived customer list asset, based on the closure of this office furniture brand. Based on the results of the annual impairment test, the Corporation concluded that no other goodwill impairment existed apart from the impairment charges discussed above. For all other reporting units included in the annual quantitative impairment test, the estimated fair value is significantly in excess of the carrying value. Definite-lived intangible assets The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Corporation’s Consolidated Balance Sheets (in thousands):
|  | December 30, 2017 |  | December 31, 2016
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Patents |  | $ | 40 |  |  | $ | 26 |  |  | $ | 14 |  |  | $ | 18,645 |  |  | $ | 18,623 |  |  | $ | 22 |
Software |  | 167,105 |  |  | 34,792 |  |  | 132,313 |  |  | 149,587 |  |  | 25,792 |  |  | 123,795 |
Trademarks and trade names |  | 7,564 |  |  | 2,061 |  |  | 5,503 |  |  | 7,564 |  |  | 1,401 |  |  | 6,163 |
Customer lists and other |  | 106,090 |  |  | 61,734 |  |  | 44,356 |  |  | 117,789 |  |  | 65,103 |  |  | 52,686 |
Net definite lived intangible assets |  | $ | 280,799 |  |  | $ | 98,613 |  |  | $ | 182,186 |  |  | $ | 293,585 |  |  | $ | 110,919 |  |  | $ | 182,666 |
Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
| 2017 |  |  | 2016 |  |  | 2015 |
Capitalized software | $ | 9,389 |  |  | $ | 4,722 |  |  | $ | 3,482 |
Other definite-lived intangibles | $ | 6,989 |  |  | $ | 7,055 |  |  | $ | 7,570 |
Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows (in millions):
| 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |
Amortization expense | $ | 23.0 |  |  | $ | 21.9 |  |  | $ | 21.0 |  |  | $ | 20.2 |  |  | $ | 17.2 |
The occurrence of events such as acquisitions, dispositions, or impairments in the future may result in changes to amounts. Indefinite-lived intangible assets The Corporation also owns certain intangible assets, which are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Consolidated Balance Sheets (in thousands):
| December 30, 2017 |  | December 31, 2016
Trademarks and trade names | $ | 29,201 |  |  | $ | 38,054 |
In the fourth quarter of 2017, the Corporation recorded an impairment charge of $8.3 million to remove the Paoli trade name asset, based on the closure of this office furniture brand. As a result of the required annual impairment assessment performed in the fourth quarter of 2017, the Corporation did not record any other impairment charges related to indefinite-lived intangible assets. Sale and License of an Intangible Asset In the third quarter of 2017, the Corporation recorded a $6.0 million nonrecurring gain from the sale and license of an intangible asset, which had a zero carrying value. This nonrecurring gain is reflected in "(Gain) loss on sale, disposal, and license of assets" in the Consolidated Statements of Comprehensive Income.

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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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