GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table reflects changes in the carrying amount of goodwill during the period by reportable segments:



(in thousands)		PeopleReady			PeopleManagement			PeopleScout			Total company
Balance at	December 31, 2017
Goodwill before impairment		$	106,304		$	100,146		$	132,323		$	338,773
Accumulated impairment loss		(46,210		)	(50,700		)	(15,169		)	(112,079		)
Goodwill, net		60,094			49,446			117,154			226,694

Divested goodwill before impairment (1)		—			(19,054		)	—			(19,054		)
Divested accumulated impairment loss (1)		—			17,000			—			17,000
Acquired goodwill (2)		—			—			16,606			16,606
Foreign currency translation		—			—			(3,959		)	(3,959		)

Balance at	December 30, 2018
Goodwill before impairment		106,304			81,092			144,970			332,366
Accumulated impairment loss		(46,210		)	(33,700		)	(15,169		)	(95,079		)
Goodwill, net		60,094			47,392			129,801			237,287

Foreign currency translation		—			—			211			211

Balance at	December 29, 2019
Goodwill before impairment		106,304			81,092			145,181			332,577
Accumulated impairment loss		(46,210		)	(33,700		)	(15,169		)	(95,079		)
Goodwill, net		$	60,094		$	47,392		$	130,012		$	237,498


(1)	Effective March 12, 2018, we divested our PlaneTechs business. As a result of this divestiture, we eliminated the remaining goodwill balance of the PlaneTechs business, which was a part of our PeopleManagement reportable segment. For additional information, see Note 2: Acquisition and Divestiture.


(2)	Effective June 12, 2018, we acquired TMP through PeopleScout. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on the purchase price allocation. For additional information, see Note 2: Acquisition and Divestiture.

Intangible assets

Finite-lived intangible assets

The following table presents our purchased finite-lived intangible assets:



	December 29, 2019							December 30, 2018
(in thousands)	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Finite-lived intangible assets (1):
Customer relationships	$	149,299	$	(83,317	)	$	65,982	$	153,704	$	(70,887	)	$	82,817
Trade names/trademarks	2,052		(441		)	1,611		2,580		(1,069		)	1,511
Technologies	600		(520		)	80		9,800		(8,720		)	1,080
Total finite-lived intangible assets	$	151,951	$	(84,278	)	$	67,673	$	166,084	$	(80,676	)	$	85,408


(1)	Excludes assets that are fully amortized.

Amortization expense of our finite-lived intangible assets was $17.9 million, $20.8 million and $21.4 million for the years ended December 29, 2019, December 30, 2018 and December 31, 2017, respectively.

The following table provides the estimated future amortization of finite-lived intangible assets as of December 29, 2019:



(in thousands)
2020	$	15,885
2021	14,252
2022	13,381
2023	12,726
2024	10,319
Thereafter	1,110
Total future amortization	$	67,673

Indefinite-lived intangible assets

We also held indefinite-lived trade names/trademarks of $6.0 million as of December 29, 2019 and December 30, 2018.

Impairment tests

Based on our 2019 annual impairment test, the estimated fair value of our SIMOS reporting unit was in excess of its carrying value by approximately 10%. The current carrying value of goodwill for this reporting unit is $35 million. There are two key clients that individually account for more than 10% of revenue for the SIMOS reporting unit. For each client we service multiple sites. The loss of a key client, loss of a significant number of key sites, or a downturn in the economy could give rise to an impairment. Should any one of these events occur, we may need to record an impairment loss to goodwill for the amount by which the carrying value exceeds its fair value, not to exceed the total amount of goodwill. All other reporting units’ fair values were substantially in excess of their respective carrying values. Accordingly, there was no impairment loss recognized for the year ended December 29, 2019.

Effective December 30, 2019 (the first day of fiscal 2020), our SIMOS and Staff Management reporting units were combined into one reporting unit (On-site) due to common customers and contingent workers, similar nature of services and economic characteristics. Staff Management’s fair value was substantially in excess of its carrying value as of the annual impairment test by approximately 48% and there were no indicators of impairment during the interim period. Therefore, no interim impairment test was required for this reporting unit. Based on the annual impairment test for SIMOS, the estimated fair value was in excess of its carrying value by approximately 10%. Because the estimated fair value of goodwill for SIMOS was not substantially in excess of its carrying value, we tested the SIMOS reporting unit for impairment prior to the combination with Staff Management. The result of the most recent impairment test indicated the estimated fair value remains in excess of carrying value by approximately 7%. Therefore, no impairment loss was recognized.