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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in goodwill were as follows:
(In millions) | North America |  | EMEA |  | China |  | Other |  | Total
Balance at January 1, 2023 | $ | 1,547.7 |  |  | $ | 358.6 |  |  | $ | 118.1 |  |  | $ | 452.4 |  |  | $ | 2,476.8 |
Reallocation of goodwill (1) | 204.9 |  |  | 212.6 |  |  | (32.2) |  |  | (385.3) |  |  | — |
Purchase accounting adjustments | (9.4) |  |  | (4.1) |  |  | (1.3) |  |  | (5.1) |  |  | (19.9) |
Foreign currency translation (1) | 0.7 |  |  | 15.3 |  |  | 1.1 |  |  | 18.0 |  |  | 35.1 |
Balance at December 31, 2023 | $ | 1,743.9 |  |  | $ | 582.4 |  |  | $ | 85.7 |  |  | $ | 80.0 |  |  | $ | 2,492.0 |
Impairment charge | (1,743.9) |  |  | — |  |  | (17.3) |  |  | (61.4) |  |  | (1,822.6) |
Foreign currency translation | — |  |  | (16.4) |  |  | (1.8) |  |  | (1.7) |  |  | (19.9) |
Balance at December 29, 2024 | $ | — |  |  | $ | 566.0 |  |  | $ | 66.6 |  |  | $ | 16.9 |  |  | $ | 649.5 |
(1) During the fourth quarter of 2023, management identified an incorrect allocation of goodwill arising from the Combinations. The reallocation solely impacts the translation of foreign exchange on goodwill reflected through the cumulative translation adjustments. An out-of-period adjustment was included in fiscal year ended 2023 to increase goodwill and decrease AOCI by $15.5 million. The adjustment was not material to the previously reported Consolidated Financial Statements of the Company. Intangible assets consisted of the following:
|  |  | December 29, 2024 |  | December 31, 2023
Description | Weighted-average useful life (years) |  | Gross assets |  | Accumulated amortization |  | Net |  | Gross assets |  | Accumulated amortization |  | Net
Purchased technology | 14.7 |  | $ | 999.5 |  |  | $ | (249.6) |  |  | $ | 749.9 |  |  | $ | 1,000.4 |  |  | $ | (184.3) |  |  | $ | 816.1 |
Customer relationships | 20.0 |  | 2,027.1 |  |  | (366.8) |  |  | 1,660.3 |  |  | 2,029.0 |  |  | (259.5) |  |  | 1,769.5 |
License agreements | 6.7 |  | 3.1 |  |  | (3.1) |  |  | — |  |  | 3.1 |  |  | (3.1) |  |  | — |
Patent and trademark costs | 14.7 |  | 401.3 |  |  | (87.6) |  |  | 313.7 |  |  | 401.6 |  |  | (60.1) |  |  | 341.5 |
Software development costs | 5.4 |  | 22.7 |  |  | (11.0) |  |  | 11.7 |  |  | 15.5 |  |  | (8.3) |  |  | 7.2 |
Total intangible assets |  |  | $ | 3,453.7 |  |  | $ | (718.1) |  |  | $ | 2,735.6 |  |  | $ | 3,449.6 |  |  | $ | (515.3) |  |  | $ | 2,934.3 |
Interim impairment assessment During the first quarter of 2024, the Company concluded that (i) the sustained decline in the Company’s stock price and market capitalization that occurred during the first quarter of 2024, (ii) the faster than expected decline in COVID-19 and flu markets, and (iii) the delay in the timing of expected commercialization for Savanna were triggering events requiring an interim goodwill impairment assessment for all reporting units. Based on the Company’s interim goodwill impairment assessment in the first quarter of 2024, the Company concluded that the North America reporting unit’s carrying value exceeded its estimated fair value. As a result, the Company recorded a non-cash goodwill impairment charge of $1.7 billion in the first quarter of 2024 for the North America reporting unit, which represented a full impairment of the goodwill allocated to the North America reporting unit. The decline in the estimated fair value of the North America reporting unit and the resulting impairment were primarily driven by revised short-term and mid-term forecasts for revenue and EBITDA expectations in North America. Annual impairment assessment During the fourth quarter of 2024, the Company conducted its annual goodwill impairment test for all reporting units pursuant to its policy. The Company bypassed the qualitative assessment and proceeded directly to the quantitative goodwill impairment test for all reporting units as of the beginning of the fiscal fourth quarter. Based on the Company’s annual goodwill impairment assessment in the fourth quarter of 2024, the Company concluded that the China and JPAC reporting units’ carrying values exceeded their respective estimated fair values. As a result, the Company recorded non-cash goodwill impairment charges of $17.3 million and $61.4 million in the fourth quarter of 2024 for the China and JPAC reporting units, respectively, which represented a full impairment of the goodwill allocated to the JPAC reporting unit. The estimated fair values of the EMEA and Latin America reporting units as of the annual impairment assessment date exceeded their respective carrying values. The excess of the estimated fair value over carrying value (expressed as a percentage of carrying value for the respective reporting unit) was approximately 8% and 45%, respectively. Due to the significant excess of fair value over carrying value of these reporting units, they are less sensitive to changes in forecast assumptions. To evaluate the sensitivity of the fair value calculations used in the interim goodwill impairment test for the EMEA and Latin America reporting units, the Company applied a hypothetical 5% decrease to the fair value of each reporting unit and compared that hypothetical value to the reporting unit’s carrying value. Based on this hypothetical 5% decrease, the excess of the estimated fair value over carrying value (expressed as a percentage of carrying value for the respective reporting unit) was approximately 3% and 37% for the EMEA and Latin America reporting units, respectively. The quantitative goodwill impairment assessment for all reporting units consisted of a fair value calculation that combines an income approach, using a discounted cash flow method, and a market approach, using the guideline public company method. The quantitative goodwill impairment assessment requires the application of a number of significant assumptions, including estimates of future revenue growth rates, EBITDA margins, discount rates and market multiples. The projected future revenue growth rates and EBITDA margins, and the resulting projected cash flows are based on historical experience and internal annual operating plans reviewed by management, extrapolated over the forecast period. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting units. Market multiples are based on the guideline public company method using comparable publicly traded company multiples of revenue and EBITDA for a group of benchmark companies. The Company believes the assumptions that were used in the quantitative goodwill impairment assessment are reasonable and consistent with assumptions that would be used by other marketplace participants. The Company also reviews long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Given the indications of possible impairment that occurred during the first quarter and fourth quarter of 2024, the Company tested its North America long-lived asset group for recoverability and impairment as of March 31, 2024 and its China and JPAC long-lived asset groups for recoverability and impairment as of December 29, 2024. Recoverability of long-lived assets is measured by a comparison of the carrying value of an asset group to future undiscounted net cash flows expected to be generated by the asset group. The undiscounted cash flows for the North America, China and JPAC long-lived asset groups were above the carrying value and the Company determined that the long-lived asset groups were recoverable, and no impairment existed as of March 31, 2024 for North America and as of December 29, 2024 for China and JPAC. Amortization expense related to the capitalized software costs was $2.7 million, $0.6 million and $0.9 million for fiscal years ended 2024, 2023 and 2022, respectively. Amortization expense (including capitalized software costs) was $203.4 million, $204.8 million and $132.5 million for fiscal years ended 2024, 2023 and 2022, respectively. The expected future annual amortization expense of the Company’s finite-lived intangible assets held as of December 29, 2024 is as follows:
(In millions) |
2025 | $ | 189.8 |
2026 | 189.1 |
2027 | 187.1 |
2028 | 181.8 |
2029 | 180.6 |

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