GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 25, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table reflects changes in the carrying amount of goodwill by reportable operating segment (in thousands):



	Staffing Services			Managed Services			Unallocated Goodwill			Total Company
Balance at December 26, 2014
Goodwill before impairment	$	128,449		$	—		$	159,616		$	288,065
Accumulated impairment loss	(46,210		)	—			—			(46,210		)
Goodwill, net	82,239			—			159,616			241,855

Allocated goodwill (1)	42,730			116,886			(159,616		)	—
Acquired goodwill (2)	39,102			—			—			39,102
Other (3)	—			(12,462		)	—			(12,462		)

Balance at December 25, 2015
Goodwill before impairment	210,281			104,424			—			314,705
Accumulated impairment loss	(46,210		)	—			—			(46,210		)
Goodwill, net	$	164,071		$	104,424		$	—		$	268,495

(1) Effective June 30, 2014, we acquired Seaton. The goodwill associated with the acquisition has been allocated to our reportable segments. For additional information regarding our segments see Note 18: Segment Information.

(2) Effective December 1, 2015, we acquired SIMOS. The goodwill associated with the acquisition has been assigned to our Staffing Services reportable segment based on our preliminary purchase price allocation. For additional information regarding our acquisition of SIMOS see Note 2: Acquisitions.

(3) Other is comprised of changes in the goodwill balance as a result of foreign currency translation.

Intangible assets

The following table reflects our purchased finite-lived intangible assets (in thousands):



	2015							2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets (1):
Customer relationships	$	161,376	$	(36,846	)	$	124,530	$	123,940	$	(22,195	)	$	101,745
Trade names/trademarks	5,179		(3,447		)	1,732		4,422		(2,878		)	1,544
Non-compete agreements	1,800		(1,177		)	623		1,800		(817		)	983
Technologies	17,310		(6,536		)	10,774		18,300		(2,212		)	16,088
Total finite-lived intangible assets	$	185,665	$	(48,006	)	$	137,659	$	148,462	$	(28,102	)	$	120,360


(1)	Excludes assets that are fully amortized.

Finite-lived intangible assets include customer relationships, trade name/trademarks, and technologies of $38.4 million, $0.8 million and $0.1 million, respectively, based on our preliminary purchase price allocation relating to our acquisition of SIMOS. Refer to Note 2: Acquisitions, for additional information regarding this acquisition.

Amortization expense of our finite-lived intangible assets was $19.9 million, $12.0 million, and $4.9 million for the years ended December 25, 2015, December 26, 2014, and December 27, 2013, respectively.

The following table provides the estimated future amortization of finite-lived intangible assets as of December 25, 2015 (in thousands):



2016	$	22,003
2017	19,664
2018	18,333
2019	15,971
2020	14,448
Thereafter	47,240
Total future amortization	$	137,659

We also held indefinite-lived trade names/trademarks of $16.2 million as of December 25, 2015 and December 26, 2014.

Subsequent to the issuance of our unaudited consolidated financial statements for the periods ended June 26, 2015 and September 25, 2015, we discovered an error related to the failure to translate our hrX subsidiary goodwill and intangible assets from the subsidiary’s functional currency of Australian dollars to our consolidated Company reporting currency of U.S. dollars in our consolidated financial statements.

For the period ended June 26, 2015, our goodwill and intangible assets were overstated by $10.7 million and $2.0 million, respectively, on the unaudited Consolidated Balance Sheets, which also resulted in a corresponding understatement of foreign currency translation adjustment and accumulative other comprehensive (loss) of $12.7 million in the unaudited Consolidated Statements of Operations and Comprehensive Income. For the period ended September 25, 2015, our goodwill and intangible assets were overstated by $14.6 million and $2.5 million, respectively, on the unaudited Consolidated Balance Sheets, which also resulted in a corresponding understatement of foreign currency translation adjustment and accumulative other comprehensive (loss) of $17.1 million in the unaudited Consolidated Statements of Operations and Comprehensive Income.

This error in our unaudited consolidated financial statements did not affect the unaudited Consolidated Statements of Operations and Comprehensive Income or Net income per common share. The error also resulted in goodwill and intangible assets being overstated in the notes to our unaudited consolidated financial statements for the periods ended June 26, 2015 and September 25, 2015.

We do not consider this error to be material to our previously issued unaudited consolidated financial statements. The hrX subsidiary goodwill and intangible assets have been appropriately translated to our reporting currency of U.S. dollars, and appropriately reported in the audited Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, and Consolidated Statements of Shareholders’ Equity for the period ended December 25, 2015.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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