XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 28, 2024
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:
| December 28, 2024 |  | December 30, 2023
Goodwill, net | $ | 442.1 |  |  | $ | 441.0 |
Definite-lived intangible assets, net | 133.1 |  |  | 161.7 |
Indefinite-lived intangible assets | 49.1 |  |  | 49.1 |
Total goodwill and other intangible assets, net | $ | 624.3 |  |  | $ | 651.9 |
Goodwill The changes in the carrying amount of goodwill, by reportable segment, are as follows:
| Workplace Furnishings |  | Residential Building Products |  | Total
Balance as of December 31, 2022 |  |  |  |  |
Goodwill | $ | 148.7 |  |  | $ | 222.4 |  |  | $ | 371.1 |
Accumulated impairment losses | (65.0) |  |  | (0.1) |  |  | (65.2) |
Net goodwill balance as of December 31, 2022 | $ | 83.6 |  |  | $ | 222.3 |  |  | $ | 305.9 |
Goodwill acquired / measurement period adjustments | 162.7 |  |  | — |  |  | 162.7 |
Impairment losses | (27.6) |  |  | — |  |  | (27.6) |
Goodwill disposed | (14.1) |  |  | — |  |  | (14.1) |
Accumulated impairment losses disposed | 14.1 |  |  | — |  |  | 14.1 |
Balance as of December 30, 2023 |  |  |  |  |
Goodwill | 297.2 |  |  | 222.4 |  |  | 519.6 |
Accumulated impairment losses | (78.5) |  |  | (0.1) |  |  | (78.6) |
Net goodwill balance as of December 30, 2023 | $ | 218.7 |  |  | $ | 222.3 |  |  | $ | 441.0 |
Goodwill measurement period adjustments | 1.1 |  |  | — |  |  | 1.1 |
Balance as of December 28, 2024 |  |  |  |  |
Goodwill | 298.3 |  |  | 222.4 |  |  | 520.7 |
Accumulated impairment losses | (78.5) |  |  | (0.1) |  |  | (78.6) |
Net goodwill balance as of December 28, 2024 | $ | 219.8 |  |  | $ | 222.3 |  |  | $ | 442.1 |
Current year goodwill measurement period adjustments and prior year goodwill acquired and measurement period adjustments relate to the acquisition of Kimball International. The measurement period was closed during the second quarter of 2024. See "Note 4. Acquisitions and Divestitures" for additional information. Prior year goodwill and accumulated impairment disposed relates to the closure of the OFM business. See Impairment Analysis section below for additional information regarding the goodwill impairment recorded in 2023. Definite-lived intangible assets The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets, net" in the Consolidated Balance Sheets:
|  | December 28, 2024 |  | December 30, 2023
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Software |  | $ | 189.3 |  |  | $ | 151.3 |  |  | $ | 38.0 |  |  | $ | 199.6 |  |  | $ | 143.4 |  |  | $ | 56.2 |
Trademarks and trade names |  | 17.9 |  |  | 8.3 |  |  | 9.5 |  |  | 18.1 |  |  | 7.3 |  |  | 10.8 |
Customer lists and other |  | 139.7 |  |  | 54.3 |  |  | 85.5 |  |  | 143.9 |  |  | 49.2 |  |  | 94.7 |
Net definite-lived intangible assets |  | $ | 346.9 |  |  | $ | 213.9 |  |  | $ | 133.1 |  |  | $ | 361.6 |  |  | $ | 199.8 |  |  | $ | 161.7 |
Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows:
| 2024 |  | 2023 |  | 2022
Capitalized software | $ | 20.4 |  |  | $ | 21.6 |  |  | $ | 24.4 |
Other definite-lived intangibles | $ | 10.5 |  |  | $ | 8.5 |  |  | $ | 6.5 |
The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. Over the next several years amortization expense is expected to decline due primarily to the completion of the amortization of the Corporation’s Business Systems Transformation investment. 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:
| 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029
Amortization expense | $ | 28.4 |  |  | $ | 23.5 |  |  | $ | 17.2 |  |  | $ | 9.0 |  |  | $ | 8.9 |
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, net" in the Consolidated Balance Sheets:
| December 28, 2024 |  | December 30, 2023
Trademarks and trade names | $ | 49.1 |  |  | $ | 49.1 |
In the fourth quarter of 2023, the Corporation recorded an impairment charge of $3.4 million related to an indefinite-lived trade name in the workplace furnishings segment. See Impairment Analysis section below for additional information. Impairment Analysis The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter (using a valuation date as of the start of the Corporation's 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. 2024 In 2024 the Corporation elected to perform a quantitative assessment for purposes of its annual goodwill and indefinite-lived trade name impairment testing. All reporting units and trade names tested were determined to have fair values that exceeded the respective carrying values, and thus no impairment charges were recorded. 2023 The Corporation elected to perform a qualitative assessment for purposes of its annual goodwill and indefinite-lived trade name impairment testing in 2023. Based on these assessments, management concluded that for the majority of reporting units and trade names, it was more likely than not that the fair value was greater than carrying value and no quantitative testing was necessary. For a small workplace furnishings reporting unit, management concluded that a quantitative assessment was required. For the quantitative goodwill impairment testing, management utilized a combination of both a discounted cash flows approach and market approaches. As a result of the impairment testing in 2023, this reporting unit was determined to have a carrying value in excess of its fair value, resulting in a pretax goodwill impairment charge of $27.6 million. This reporting unit has remaining goodwill of $6.0 million. The driver of the impairment was a reduction in the short-to mid-term financial forecast for this business as a result of softening market demand tied to macroeconomic conditions. Projections used in the impairment model reflected management’s assumptions, which are those of a market participant, regarding revenue growth rates, economic and market trends, cost structure, investments required in support of strategic initiatives, and other expectations about the anticipated short-term and long-term operating results of the reporting unit (Level 3 measurements). For this reporting unit, the Corporation assumed a discount rate of approximately 14 percent, near-term growth rates ranging from -13 percent to +10 percent, and a terminal growth rate of 3 percent. For a small workplace furnishings business trade name, management concluded that a quantitative assessment was required. As a result of the quantitative impairment testing in 2023, management concluded that a pretax impairment charge of $3.4 million was required related to this indefinite-lived intangible asset. The drivers of the impairment include a reduced sales outlook for this business and a decline in the estimated royalty rate. The valuation assessment of this trade name is considered a Level 3 measurement that utilized a relief-from-royalty discounted cash flows approach. Key inputs and assumptions involved in the quantitative testing included estimated near-term growth rates ranging from -2 percent to +5 percent, a long-term growth rate of 3 percent, a royalty rate of 1 percent, and a discount rate of 16 percent. See "Note 17. Restructuring and Impairment" for more information regarding goodwill, intangible asset, and long-lived asset impairments in recent prior years.

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://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration