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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 29, 2018
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 29, 2018 |  | December 30, 2017
Goodwill | $ | 270,788 |  |  | $ | 279,505 |
Definite-lived intangible assets | 163,714 |  |  | 182,186 |
Indefinite-lived intangible assets | 28,788 |  |  | 29,201 |
Total goodwill and other intangible assets | $ | 463,290 |  |  | $ | 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 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 |
Impairment losses | (4,838 | ) |  | — |  |  | (4,838 | )
Foreign currency translation adjustment | (44 | ) |  | — |  |  | (44 | )
Impairment loss due to closure of an office furniture brand | (6,312 | ) |  | — |  |  | (6,312 | )
Balance as of December 30, 2017 |  |  |  |  |  |  |  |
Goodwill | 128,657 |  |  | 183,199 |  |  | 311,856 |
Accumulated impairment losses | (32,208 | ) |  | (143 | ) |  | (32,351 | )
Net goodwill balance as of December 30, 2017 | 96,449 |  |  | 183,056 |  |  | 279,505 |
Goodwill acquired during the year | — |  |  | 3,463 |  |  | 3,463 |
Impairment losses | (12,168 | ) |  | — |  |  | (12,168 | )
Foreign currency translation adjustment | (12 | ) |  | — |  |  | (12 | )
Balance as of December 29, 2018 |  |  |  |  |  |  |  |
Goodwill | 128,645 |  |  | 186,662 |  |  | 315,307 |
Accumulated impairment losses | (44,376 | ) |  | (143 | ) |  | (44,519 | )
Net goodwill balance as of December 29, 2018 | $ | 84,269 |  |  | $ | 186,519 |  |  | $ | 270,788 |
The increases in goodwill relate to completed acquisitions. See "Note 5. 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. 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 29, 2018 |  | December 30, 2017
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Patents |  | $ | 40 |  |  | $ | 34 |  |  | $ | 6 |  |  | $ | 40 |  |  | $ | 26 |  |  | $ | 14 |
Software |  | 170,274 |  |  | 49,561 |  |  | 120,713 |  |  | 167,105 |  |  | 34,792 |  |  | 132,313 |
Trademarks and trade names |  | 7,564 |  |  | 2,721 |  |  | 4,843 |  |  | 7,564 |  |  | 2,061 |  |  | 5,503 |
Customer lists and other |  | 103,840 |  |  | 65,688 |  |  | 38,152 |  |  | 106,090 |  |  | 61,734 |  |  | 44,356 |
Net definite-lived intangible assets |  | $ | 281,718 |  |  | $ | 118,004 |  |  | $ | 163,714 |  |  | $ | 280,799 |  |  | $ | 98,613 |  |  | $ | 182,186 |
Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
| 2018 |  |  | 2017 |  |  | 2016 |
Capitalized software | $ | 17,109 |  |  | $ | 9,389 |  |  | $ | 4,722 |
Other definite-lived intangibles | $ | 6,615 |  |  | $ | 6,989 |  |  | $ | 7,055 |
The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. 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):
| 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |
Amortization expense | $ | 23.8 |  |  | $ | 22.9 |  |  | $ | 21.6 |  |  | $ | 19.2 |  |  | $ | 16.9 |
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 29, 2018 |  | December 30, 2017
Trademarks and trade names | $ | 28,788 |  |  | $ | 29,201 |
As a result of the required annual impairment assessment performed in the fourth quarter of 2018, the Corporation did not record any 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. Impairment Analysis As a result of the required annual impairment assessment performed in the fourth quarter of 2018, the Corporation determined the fair value of a reporting unit within the office furniture segment was below its carrying value. This reporting unit had triggering events in both the second and third quarters of 2018 due to lower projected operating results, and was tested with interim quantitative impairment tests that resulted in no impairment either time. In the fourth quarter of 2018, a further decline in the estimated fair value of this reporting unit was primarily driven by reduced long-term margin expectations and resulted in an impairment. The projections used in the impairment model reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, investments required for product enhancements, and other expectations about the anticipated short-term and long-term operating results of the reporting unit. The Corporation assumed a discount rate of 14 percent, near term growth rates ranging from 1 percent to 6 percent, and a terminal growth rate of 3 percent. Based on the quantitative analysis, the Corporation recorded a $12.2 million goodwill impairment charge in 2018, which is reflected in "Goodwill and Other Intangible Assets" in the Corporation's Consolidated Balance Sheets. There was $7.5 million net goodwill remaining in the reporting unit as of December 29, 2018. Holding other assumptions constant, a 100 basis point increase in the discount rate would result in a $2.3 million decrease in the estimated fair value of the reporting unit. Holding other assumptions constant, a 50 basis point decrease in the long-term growth rate would result in a $0.5 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 a certain asset groups where a triggering events existed, and found no impairments. Trigger events were noted in these certain asset groups in the second and third quarters of 2018 and no impairments were found. 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.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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