GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

(4) GOODWILL AND INTANGIBLE ASSETS

Intangible Assets

The components of intangible assets as of July 1, 2023 and December 31, 2022 were as follows:

	July 1, 2023				December 31, 2022
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Amortizing intangible assets:
Customer relationships	$	221,299	$	151,454	$	222,716	$	145,502
Patents & proprietary technology		58,785		25,475		58,404		21,291
Trade names		2,850		848		2,850		645
Other		4,757		4,434		2,462		2,164
Non-amortizing intangible assets:
Trade names		60,248		—		59,785		—
	$	347,939	$	182,211	$	346,217	$	169,602

Amortizing intangible assets carry a remaining weighted average life of approximately 12 years. Amortization expense was $5,225 and $10,415 for the thirteen and twenty-six weeks ended July 1, 2023, respectively, and $5,531 and $11,380 for the thirteen and twenty-six weeks ended June 25, 2022, respectively. Based on amortizing intangible assets recognized in the Condensed Consolidated Balance Sheets as of July 1, 2023, amortization expense is estimated to average $13,293 for each of the next five fiscal years.

The useful lives assigned to finite-lived amortizing intangible assets included consideration of factors such as the Company’s past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset, and the Company’s expected use of the intangible asset.

In its determination of the non-amortizing intangible assets as indefinite-lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological, and competitive factors that may impact the useful life or value of the intangible asset, and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized.

The Company’s trade names were tested for impairment as of August 27, 2022. The values of each trade name were determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired.

Goodwill

The carrying amount of goodwill by segment as of July 1, 2023 and December 31, 2022 was as follows:

	Infrastructure		Agriculture		Total
Gross balance at December 31, 2022	$	473,551	$	313,777	$	787,328
Accumulated impairment losses		(47,467)		—		(47,467)
Balance at December 31, 2022		426,084		313,777		739,861
Divestiture		—		(160)		(160)
Foreign currency translation		4,166		404		4,570
Balance at July 1, 2023	$	430,250	$	314,021	$	744,271

	Infrastructure		Agriculture		Total
Gross balance at July 1, 2023	$	477,717	$	314,021	$	791,738
Accumulated impairment losses		(47,467)		—		(47,467)
Balance at July 1, 2023	$	430,250	$	314,021	$	744,271

The Company’s annual impairment test of goodwill was performed as of August 27, 2022, using primarily the discounted cash flow method. The estimated fair value of all the Company’s reporting units exceeded their respective carrying value, so no goodwill impairments were recorded. During fiscal 2023, no goodwill impairments have been recorded.