Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands):



	March 31, 2018		December 30, 2017
Goodwill	$	279,480	$	279,505
Definite-lived intangible assets	178,078		182,186
Indefinite-lived intangible assets	29,153		29,201
Total goodwill and other intangible assets	$	486,711	$	490,892

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 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

Foreign currency translation adjustment	(25		)	—			(25		)

Balance as of March 31, 2018
Goodwill	137,820			183,199			321,019
Accumulated impairment losses	(41,396		)	(143		)	(41,539		)
Net goodwill balance as of March 31, 2018	$	96,424		$	183,056		$	279,480

Definite-lived intangible assets

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands):



	March 31, 2018						December 30, 2017
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	40	$	28	$	12	$	40	$	26	$	14
Software	168,612		38,690		129,922		167,105		34,792		132,313
Trademarks and trade names	7,564		2,226		5,338		7,564		2,061		5,503
Customer lists and other	105,871		63,065		42,806		106,090		61,734		44,356
Net definite-lived intangible assets	$	282,087	$	104,009	$	178,078	$	280,799	$	98,613	$	182,186

Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows (in thousands):



	Three Months Ended
	March 31, 2018		April 1, 2017
Capitalized software	$	4,167	$	1,340
Other definite-lived intangibles	$	1,688	$	1,774

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	$	23.1	$	22.1	$	21.2	$	20.2	$	18.3

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 Condensed Consolidated Balance Sheets (in thousands):



	March 31, 2018		December 30, 2017
Trademarks and trade names	$	29,153	$	29,201

Impairment Analysis

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter or whenever indicators of impairment exist.

- 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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