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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 As of January 1, 2022, our intangible assets consist of goodwill and other intangible assets including customer relationships, noncompete agreements, and trade names. Goodwill Goodwill is the excess of the cost of an acquired entity over the fair value of tangible and intangible assets (including customer relationships, noncompete agreements, and trade names) acquired and liabilities assumed under acquisition accounting for business combinations. Goodwill is not subject to amortization but must be tested for impairment at least annually. This test requires us to assign goodwill to a reporting unit and to determine if the fair value of the reporting unit’s goodwill is less than its carrying amount. We evaluate goodwill for impairment as the first day of our fourth quarter, which was October 3, 2021 for fiscal 2021. We performed a quantitative analysis of our goodwill using a combined discounted cash flow and guideline public company approach. Based on our assessment, no impairment was indicated. In addition, we will evaluate the carrying value of goodwill for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amounts may be impaired. Such events and indicators may include, without limitation, significant declines in the industries in which our products are used, significant changes in capital market conditions, and significant changes in our market capitalization. No such indicators were present in fiscal 2021 and fiscal 2020. Definite-Lived Intangible Assets The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets at January 1, 2022 were as follows:
| Weighted Average Remaining Useful Lives |  | Gross Carrying Amounts |  | Accumulated Amortization | (1) | Net Carrying Amounts |
|  |  | (In thousands) |
Customer relationships | 8 |  | $ | 25,500 |  |  | $ | (12,492) |  |  | $ | 13,008 |  |
Noncompete agreements | 1 |  | 8,254 |  |  | (7,659) |  |  | 595 |  |
Trade names | — |  | 6,826 |  |  | (6,826) |  |  | — |  |
Total |  |  | $ | 40,580 |  |  | $ | (26,977) |  |  | $ | 13,603 |  |
(1) Intangible assets except customer relationships are amortized on straight line basis. Customer relationships are amortized on a double declining balance method. The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets at January 2, 2021 were as follows:
| Weighted Average Remaining Useful Lives |  | Gross Carrying Amounts |  | Accumulated Amortization | (1) | Net Carrying Amounts |
|  |  | (In thousands) |
Customer relationships | 9 |  | $ | 25,500 |  |  | $ | (9,926) |  |  | $ | 15,574 |  |
Noncompete agreements | 1 |  | 8,254 |  |  | (5,595) |  |  | 2,659 |  |
Trade names | 1 |  | 6,826 |  |  | (6,170) |  |  | 656 |  |
Total |  |  | $ | 40,580 |  |  | $ | (21,691) |  |  | $ | 18,889 |  |
(1) Intangible assets except customer relationships are amortized on straight line basis. Customer relationships are amortized on a double declining balance method. Amortization Expense Amortization expense for the definite-lived intangible assets was $5.3 million and $7.5 million for the years ended January 1, 2022, and January 2, 2021, respectively. Estimated annual amortization expense for definite-lived intangible assets over the next five fiscal years is as follows:
Fiscal Year Ended |  | Estimated Amortization
|  | (In thousands)
2022 |  | $ | 2,763 |
2023 |  | 1,807 |
2024 |  | 1,505 |
2025 |  | 1,423 |
2026 |  | 1,423 |

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