GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 28, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

(5) GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill by segment as of September 28, 2024 and December 30, 2023 was as follows:

	Infrastructure		Agriculture		Total
Gross balance as of December 30, 2023	$	478,663	$	323,683	$	802,346
Accumulated impairment losses		(49,382)		(120,000)		(169,382)
Balance as of December 30, 2023		429,281		203,683		632,964
Acquisition measurement period adjustment		—		331		331
Foreign currency translation		3,419		(289)		3,130
Balance as of September 28, 2024	$	432,700	$	203,725	$	636,425

	Infrastructure		Agriculture		Total
Gross balance as of September 28, 2024	$	482,082	$	323,725	$	805,807
Accumulated impairment losses		(49,382)		(120,000)		(169,382)
Balance as of September 28, 2024	$	432,700	$	203,725	$	636,425

In the third quarter of fiscal 2024, the Company performed its annual goodwill impairment assessment utilizing a quantitative test on all of its reporting units using a measurement date of September 1, 2024. The fair values of the reporting units were estimated using a discounted cash flow analysis which requires the Company to estimate the future cash flows as well as select a risk-adjusted discount rate to measure the present value of the anticipated cash flows. The estimated fair value of all reporting units exceeded their respective carrying value and no impairments were recorded for fiscal 2024.

In the third quarter of fiscal 2023, the Company recognized impairment charges of $120,000 and $1,915 in the Agriculture and Infrastructure segments, respectively, as a result of the Company’s annual goodwill impairment assessment as of September 2, 2023.

Other Intangible Assets

The components of other intangible assets as of September 28, 2024 and December 30, 2023 were as follows:

	September 28, 2024				December 30, 2023
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Amortizing intangible assets:
Customer relationships	$	234,987	$	167,652	$	233,852	$	157,873
Patents and proprietary technology		60,107		46,880		59,311		45,416
Trade names		2,870		1,369		2,870		1,056
Other		4,505		4,380		4,787		4,538
Non-amortizing intangible assets:
Trade names		59,690		—		58,750		—
	$	362,159	$	220,281	$	359,570	$	208,883

Amortizing intangible assets carry a remaining weighted-average life of approximately three years. Amortization expenses were $3,112 and $10,183 for the thirteen and thirty-nine weeks ended September 28, 2024, respectively, and $5,191 and $15,606 for the thirteen and thirty-nine weeks ended September 30, 2023, respectively. Based on amortizing intangible assets recognized in the Condensed Consolidated Balance Sheets as of September 28, 2024, amortization expense is estimated to average $10,273 for each of the next five fiscal years.

The Company’s indefinite-lived trade names were tested for impairment as of September 1, 2024. 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.

In the third quarter of fiscal 2023, the Company recognized an impairment charge of $1,656 within the Infrastructure segment as a result of the Company’s annual indefinite-lived trade name impairment assessment as of September 2, 2023. Additionally, in the third quarter of fiscal 2023, the Company recognized an impairment charge of $17,273 in the Agriculture segment for a certain amortizing proprietary technology intangible asset related to Prospera.