XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Other Intangible Assets | 6 Months Ended
--- | ---
Jun. 27, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands):
| June 27, 2020 |  | December 28, 2019
Goodwill | $ | 259,777 |  |  | $ | 270,820 |
Definite-lived intangible assets | 129,938 |  |  | 146,040 |
Indefinite-lived intangible assets | 26,602 |  |  | 28,849 |
Total goodwill and other intangible assets | $ | 416,317 |  |  | $ | 445,709 |
Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):
| Workplace Furnishings |  | Residential Building Products |  | Total
Balance as of December 28, 2019 |  |  |  |  |
Goodwill | $ | 128,677 |  |  | $ | 186,662 |  |  | $ | 315,339 |
Accumulated impairment losses | (44,376) |  |  | (143) |  |  | (44,519) |
Net goodwill balance as of December 28, 2019 | 84,301 |  |  | 186,519 |  |  | 270,820 |
Goodwill acquired | — |  |  | 10,537 |  |  | 10,537 |
Impairment losses | (21,607) |  |  | — |  |  | (21,607) |
Foreign currency translation adjustment | 27 |  |  | — |  |  | 27 |
Balance as of June 27, 2020 |  |  |  |  |
Goodwill | 128,704 |  |  | 197,199 |  |  | 325,903 |
Accumulated impairment losses | (65,983) |  |  | (143) |  |  | (66,126) |
Net goodwill balance as of June 27, 2020 | $ | 62,721 |  |  | $ | 197,056 |  |  | $ | 259,777 |
In the first quarter of 2020, the Corporation recorded goodwill impairment charges of $14.1 million and $7.5 million, respectively, related to two reporting units in the workplace furnishings segment. See "Note 3. Acquisitions" for additional information regarding goodwill acquired in the year-to-date period. 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):
| June 27, 2020 |  |  |  |  |  | December 28, 2019 |  |  |  |
| Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Patents | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 40 |  |  | $ | 40 |  |  | $ | — |
Software | 173,293 |  |  | 68,686 |  |  | 104,607 |  |  | 176,836 |  |  | 67,541 |  |  | 109,295 |
Trademarks and trade names | 6,564 |  |  | 3,274 |  |  | 3,290 |  |  | 7,564 |  |  | 3,381 |  |  | 4,183 |
Customer lists and other | 81,110 |  |  | 59,069 |  |  | 22,041 |  |  | 104,004 |  |  | 71,442 |  |  | 32,562 |
Net definite-lived intangible assets | $ | 260,967 |  |  | $ | 131,029 |  |  | $ | 129,938 |  |  | $ | 288,444 |  |  | $ | 142,404 |  |  | $ | 146,040 |
In the first quarter of 2020, the Corporation recorded impairment charges of $0.6 million and $8.2 million, related to definite-lived tradenames and customer lists, respectively, in the workplace furnishings segment. 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 |  |  |  | Six Months Ended |  |
| June 27, 2020 |  | June 29, 2019 |  | June 27, 2020 |  | June 29, 2019
Capitalized software | $ | 4,828 |  |  | $ | 4,612 |  |  | $ | 9,378 |  |  | $ | 9,207 |
Other definite-lived intangibles | $ | 1,152 |  |  | $ | 1,570 |  |  | $ | 2,675 |  |  | $ | 3,145 |
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 years is as follows (in millions):
|  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024
Amortization expense |  | $ | 24.0 |  |  | $ | 23.1 |  |  | $ | 20.1 |  |  | $ | 16.8 |  |  | $ | 15.1 |
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):
| June 27, 2020 |  | December 28, 2019
Trademarks and trade names | $ | 26,602 |  |  | $ | 28,849 |
In the first quarter of 2020, the Corporation recorded an impairment charge of $2.3 million, related to an indefinite-lived tradename in the workplace furnishings segment. The remaining immaterial change in the indefinite-lived intangible assets balances shown above is related to foreign currency translation impacts. 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. The Corporation also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist. In the first quarter of 2020, the Corporation determined that a triggering event occurred, resulting in quantitative impairment tests performed over the goodwill, indefinite-lived intangible assets, and long-lived asset groups related to three reporting units in the workplace furnishings segment. This determination was made considering the reduced sales and profitability projections for these reporting units, driven by the COVID-19 pandemic and related economic disruption. The resulting impairment charges recorded in the first quarter of 2020, as described in the preceding sections, are reflected in "Impairment and restructuring charges" in the Condensed Consolidated Statements of Comprehensive Income. For further information, refer to "Note 5. Goodwill and Other Intangible Assets" included in the Corporation's Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2020. No additional triggering events occurred and no impairment charges were recorded during the second quarter of 2020.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration