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Goodwill and Other Intangible Assets | 6 Months Ended
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Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In connection with our past merger and acquisition activity, we acquired certain intangible assets. As of July 2, 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. As of July 2, 2022, goodwill was $47.8 million. 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 during the fourth quarter of each fiscal year. In addition, we will evaluate the carrying value for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amount 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 during the second quarter of fiscal 2022. Our one reporting unit has a fair value that exceeds its carrying value as of July 2, 2022. Definite-Lived Intangible Assets On July 2, 2022, the gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets were as follows:
Intangible Asset | Weighted Average Remaining Useful Lives (Years) |  | Gross Carrying Amounts |  | Accumulated Amortization(1) |  | Net Carrying Amounts |
|  |  | (In thousands) |
Customer relationships | 8 |  | $ | 25,500 |  |  | $ | (13,589) |  |  | $ | 11,911 |  |
Noncompete agreements | — |  |  | 8,254 |  |  | (8,254) |  |  | — |  |
Trade names | — |  |  | 6,826 |  |  | (6,826) |  |  | — |  |
Total |  |  | $ | 40,580 |  |  | $ | (28,669) |  |  | $ | 11,911 |  |
(1) Intangible assets, except customer relationships, are amortized on a straight-line basis. Customer relationships are amortized on a double declining balance method. Amortization Expense Amortization expense for our definite-lived intangible assets was $0.6 million and $1.7 million for the three and six month periods ended July 2, 2022, respectively. For the three and six month periods ended July 3, 2021, amortization expense was $1.2 million and $3.1 million, respectively. Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2022 and the next five fiscal years is as follows:
Fiscal Year |  | Estimated Amortization
|  | (In thousands)
2022 |  | $ | 1,025 |
2023 |  | 1,807 |
2024 |  | 1,505 |
2025 |  | 1,423 |
2026 |  | 1,423 |
2027 |  | 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 https://asc.fasb.org/topic&trid=2144416 + Details
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