XML 23 R11.htm IDEA: XBRL DOCUMENT

Note 5 - Goodwill and Other Intangible Assets

6 Months Ended

Jul. 02, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

5.	GOODWILL AND OTHER INTANGIBLE ASSETS

The following presents changes to goodwill for the period indicated:

	For the twenty-six weeks ended
	July 2, 2023
Balance on December 31, 2022		418,121
Measurement period adjustments		935
Balance on July 2, 2023	$	419,056

Goodwill represents the premium paid over the fair value of the net tangible and identifiable intangible assets acquired in the Company's business combinations. The measurement period for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, not to exceed 12 months. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

No impairment charges were incurred during the 13-week and 26-week periods ended July 2, 2023 and July 3, 2022. Potential changes in our costs and operating structure, the implementation of synergies, and overall performance in the automotive aftermarket industry, could negatively impact our near-term cash-flow projections and could trigger a potential impairment of the Company's goodwill and / or indefinite-lived intangible assets. In addition, failure to execute the Company's strategic plans as well as increases in weighted average costs of capital could negatively impact the fair value of the reporting unit and increase the risk of future impairment charges.

Intangible assets consisted of the following:

	July 2, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	269,950	$	(49,949	)	$	220,001
Tradenames		13,775		(5,206	)		8,569
Technology		26,676		(12,742	)		13,934
Total finite-lived intangible assets	$	310,401	$	(67,897	)	$	242,504

Indefinite-lived intangible assets:
Tradenames	$	175,109		—		$	175,109

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	269,950	$	(44,178	)	$	225,772
Tradenames		13,775		(4,843	)		8,932
Technology		26,676		(11,523	)		15,153
Total finite-lived intangible assets	$	310,401	$	(60,544	)	$	249,857

Indefinite-lived intangible assets:
Tradenames	$	174,998		—		$	174,998

The following outlines the estimated future amortization expense related to intangible assets held as of July 2, 2023:

2023 (excluding the twenty-six weeks ended July 2, 2023)	$	7,204
2024		13,744
2025		13,714
2026		13,608
2027		13,493
Thereafter		180,741
Total	$	242,504