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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill primarily relates to the Energy segment and the acquisitions within this segment of E3, Inc., Lime Energy, NAM, Integral Analytics and Abacus Resource Management Company (“Abacus”) and substantially all of the assets of Onsite Energy, The Weidt Group, Genesys and 360 Energy Engineers, LLC (“360 Energy”). The remaining goodwill relates to the Engineering and Consulting reporting segment and the acquisition within this segment of Economists LLC. The changes in the carrying value of goodwill by reporting unit were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​ | Additional | ​ | Additions / | ​ | December 30,
​ |  | 2021 |  | Purchase Cost |  | Adjustments |  | 2022
​ | ​ | (in thousands)
Reporting Unit: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Energy | ​ | $ | 129,375 | ​ | $ | — | ​ | $ | — | ​ | $ | 129,375
Engineering and Consulting | ​ | ​ | 749 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 749
​ | ​ | $ | 130,124 | ​ | $ | — | ​ | $ | — | ​ | $ | 130,124
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | January 1, | ​ | Additional | ​ | Additions / | ​ | December 31,
​ |  | 2021 |  | Purchase Cost |  | Adjustments |  | 2021
​ | ​ | (in thousands)
Reporting Unit: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Energy | ​ | $ | 129,375 | ​ | $ | — | ​ | $ | — | ​ | $ | 129,375
Engineering and Consulting | ​ | ​ | 749 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 749
​ | ​ | $ | 130,124 | ​ | $ | — | ​ | $ | — | ​ | $ | 130,124
​ The Company tests its goodwill at least annually for possible impairment. The Company completes its annual testing of goodwill as of the last day of the first month of its fourth fiscal quarter each year to determine whether there is impairment. In addition to the Company’s annual test, it regularly evaluates whether events and circumstances have occurred that may indicate a potential impairment of goodwill. During a brief period in the fiscal quarter ended December 30, 2022, the Company’s market capitalization based upon its stock price temporarily fluctuated below book value. The fair value of the Company using a market capitalization approach based on the Company’s share price would also include a control premium not reflected in the share price based on recent transactions that have occurred in the Company’s industry. This indicative fair value exceeded the Company’s book value; therefore, the Company does not believe it is more likely than not that goodwill was impaired. No impairment was recorded in any year during the three-year period ended December 30, 2022. The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives, included in other intangible assets, net in the accompanying consolidated balance sheets, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 30, 2022 | ​ | December 31, 2021 | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Gross | ​ | Accumulated | ​ | Gross | ​ | Accumulated | ​ | Amortization
​ |  | Amount |  | Amortization |  | Amount |  | Amortization |  | Period
​ | ​ | (in thousands) | ​ | (in years)
Finite: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Backlog | ​ | $ | 7,944 | ​ | $ | 7,944 | ​ | $ | 7,944 | ​ | $ | 7,222 | ​ | 1.0
Tradename | ​ |  | 15,911 | ​ |  | 10,990 | ​ |  | 15,911 | ​ |  | 8,997 |  | 2.5 | ​ | - | ​ | 6.0
Non-compete agreements | ​ | ​ | 1,420 | ​ | ​ | 1,420 | ​ | ​ | 1,420 | ​ | ​ | 1,413 | ​ | 4.0 | ​ | - | ​ | 5.0
Developed technology | ​ | ​ | 15,810 | ​ | ​ | 11,871 | ​ | ​ | 15,500 | ​ | ​ | 8,950 | ​ | 8.0
Customer relationships | ​ | ​ | 58,149 | ​ | ​ | 25,523 | ​ | ​ | 58,149 | ​ | ​ | 19,939 | ​ | 5.0 | ​ | - | ​ | 8.0
Total finite intangible assets | ​ | ​ | 99,234 | ​ | ​ | 57,748 | ​ | ​ | 98,924 | ​ | ​ | 46,521 | ​ | ​ | ​ | ​ | ​ | ​
In-process research and technology (1) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 310 | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | ​
Total intangible assets | ​ | $ | 99,234 | ​ | $ | 57,748 | ​ | $ | 99,234 | ​ | $ | 46,521 | ​ | ​ | ​ | ​ | ​ | ​
| (1) | In-process research and technology is not amortized until put into use.
During the twelve months ended December 30, 2022, the Company reclassified $0.3 million of in-process research and technology to developed technology and commenced amortization over its estimated useful life. At the time of acquisition, the Company estimates the fair value of the acquired identifiable intangible assets based upon the facts and circumstances related to the particular intangible asset. Inherent in such estimates are judgments and estimates of future revenue, profitability, cash flows and appropriate discount rates for any present value calculations. The Company preliminarily estimates the value of the acquired identifiable intangible assets and then finalizes the estimated fair values during the purchase allocation period, which does not extend beyond 12 months from the date of acquisition. The Company’s amortization expense for acquired identifiable intangible assets with finite useful lives was $11.2 million, $11.5 million, and $13.7 million for the fiscal years 2022, 2021 and 2020, respectively. Estimated amortization expense for acquired identifiable intangible assets for fiscal year 2023 and the succeeding years is as follows: ​
​ | ​ | ​ | ​
​ | ​ | ​ | Future Intangible Asset
​ | ​ | ​ | Amortization expense
​ | ​ | ​ | (in thousands)
Fiscal year: | ​ | ​ | ​
2023 | ​ | $ | 9,928
2024 | ​ |  | 6,806
2025 | ​ |  | 6,235
2026 | ​ | ​ | 5,513
2027 | ​ | ​ | 5,513
Thereafter | ​ | ​ | 7,491
​ | ​ | $ | 41,486
​ ​

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- 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 https://asc.fasb.org/topic&trid=2144416 + Details
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