Goodwill and Other Intangible Assets

6 Months Ended

Jul. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

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


	July 3, 2021		January 2, 2021
Goodwill	$	287,938	$	292,434
Definite-lived intangible assets	137,107		139,863
Indefinite-lived intangible assets	26,579		26,599
Total goodwill and other intangible assets	$	451,624	$	458,896

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 January 2, 2021
Goodwill	$	168,477	$	196,976	$	365,453
Accumulated impairment losses	(72,876)		(143)		(73,019)
Net goodwill balance as of January 2, 2021	95,601		196,833		292,434

Goodwill acquired / measurement period adjustments	(5,716)		1,220		(4,496)



Balance as of July 3, 2021
Goodwill	162,761		198,196		360,957
Accumulated impairment losses	(72,876)		(143)		(73,019)
Net goodwill balance as of July 3, 2021	$	89,885	$	198,053	$	287,938

See "Note 3. Acquisitions" for additional information regarding goodwill acquired and related adjustments 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):


	July 3, 2021						January 2, 2021
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net

Software	$	190,355	$	90,046	$	100,309	$	182,127	$	78,619	$	103,508
Trademarks and trade names	11,764		4,073		7,691		9,964		3,546		6,418
Customer lists and other	92,847		63,740		29,107		91,002		61,065		29,937
Net definite-lived intangible assets	$	294,966	$	157,859	$	137,107	$	283,093	$	143,230	$	139,863

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
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Capitalized software	$	5,804	$	4,828	$	11,427	$	9,378
Other definite-lived intangibles	$	1,630	$	1,152	$	3,255	$	2,675

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):


	2021		2022		2023		2024		2025
Amortization expense	$	29.4	$	26.3	$	22.2	$	18.4	$	17.2

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):


	July 3, 2021		January 2, 2021
Trademarks and trade names	$	26,579	$	26,599

The 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.