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Goodwill and Other Intangible Assets | 12 Months Ended
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Jan. 01, 2022
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):
| January 1, 2022 |  | January 2, 2021
Goodwill | $ | 297,339 |  |  | $ | 292,434 |
Definite-lived intangible assets | 147,627 |  |  | 139,863 |
Indefinite-lived intangible assets | 26,536 |  |  | 26,599 |
Total goodwill and other intangible assets | $ | 471,502 |  |  | $ | 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 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 during the year | 39,800 |  |  | 10,314 |  |  | 50,114 |
Impairment losses | (28,500) |  |  | — |  |  | (28,500) |
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 during the year / measurement period adjustments | (6,211) |  |  | 16,866 |  |  | 10,655 |
Impairment losses | (5,750) |  |  | — |  |  | (5,750) |
Balance as of January 1, 2022 |  |  |  |  |
Goodwill | 162,266 |  |  | 213,842 |  |  | 376,108 |
Accumulated impairment losses | (78,626) |  |  | (143) |  |  | (78,769) |
Net goodwill balance as of January 1, 2022 | $ | 83,640 |  |  | $ | 213,699 |  |  | $ | 297,339 |
Goodwill acquired in 2021 was the result of the Corporation's acquisition of residential building products companies. The decrease in workplace furnishings goodwill in 2021 was the result of the finalization of the acquisition accounting for DPG. See "Note 4. Acquisitions" for additional information. In the fourth quarter of 2021, the Corporation recorded a pretax goodwill impairment charge of $5.8 million in connection with the decision to exit the Maxon office furniture brand. This action is consistent with the Corporation's broader business simplification efforts in the workplace furnishings segment. The Maxon reporting unit has no remaining goodwill. 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):
|  | January 1, 2022 |  | January 2, 2021
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Software |  | $ | 196,754 |  |  | $ | 102,072 |  |  | $ | 94,682 |  |  | $ | 182,127 |  |  | $ | 78,619 |  |  | $ | 103,508 |
Trademarks and trade names |  | 14,264 |  |  | 4,600 |  |  | 9,664 |  |  | 9,964 |  |  | 3,546 |  |  | 6,418 |
Customer lists and other |  | 109,635 |  |  | 66,354 |  |  | 43,281 |  |  | 91,002 |  |  | 61,065 |  |  | 29,937 |
Net definite-lived intangible assets |  | $ | 320,653 |  |  | $ | 173,026 |  |  | $ | 147,627 |  |  | $ | 283,093 |  |  | $ | 143,230 |  |  | $ | 139,863 |
The table above includes the estimated fair values of software, trademarks and trade names, and customer lists and other identified intangible assets acquired through business combinations in 2021 and 2020. See "Note 4. Acquisitions" for additional information. Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Capitalized software | $ | 23,649 |  |  | $ | 19,313 |  |  | $ | 18,130 |
Other definite-lived intangibles | $ | 6,507 |  |  | $ | 4,950 |  |  | $ | 6,275 |
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):
| 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026
Amortization expense | $ | 29.9 |  |  | $ | 25.7 |  |  | $ | 21.4 |  |  | $ | 18.9 |  |  | $ | 16.6 |
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):
| January 1, 2022 |  | January 2, 2021
Trademarks and trade names | $ | 26,536 |  |  | $ | 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. The Corporation elected to perform a qualitative assessment for purposes of its annual goodwill impairment testing in 2021. Based on this assessment, management concluded that it was more likely than not that the fair value of each reporting unit was greater than its carrying value. Therefore, no further quantitative testing was performed. Near the end of the fourth quarter, subsequent to the annual impairment testing, a triggering event occurred that was specific to the Maxon reporting unit, and which resulted in the impairment charge discussed herein. The Corporation also elected to perform a qualitative assessment for purposes of its annual impairment testing for certain indefinite-lived intangible assets in 2021. Based on this assessment, management concluded that it was more likely than not that the fair value of the respective assets was greater than carrying value. Quantitative impairment testing was performed for the remaining indefinite-lived intangible assets, with no impairments identified. Additionally, there were no impairments identified with respect to long-lived assets in 2021.

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