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Balance Sheet Information and Other
 6 Months Ended
Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information and Other
Note 6: Balance Sheet Information and Other

Goodwill
Goodwill is tested for impairment annually on the first day of the fourth quarter or more frequently if events or changes in circumstances (each, a "triggering event") would more-likely-than-not reduce the carrying value of goodwill below its fair value. During the second quarter of 2022, the Company determined that one of its reporting units within ASG, representing less than 3.0 percent of the Company's consolidated revenue for 2021, incurred a partial impairment of goodwill due to the Company’s focus on its long-term product mix into its strategic markets. This event resulted in a more-likely-than-not expectation of selling or disposing of the reporting unit.

The Company determined that a market approach was the most appropriate method to evaluate the recoverability of the carrying value of the net assets of the reporting unit. For the quarter ended July 1, 2022, management performed an event-triggered impairment analysis and a goodwill impairment charge of $115.0 million was recorded under the caption ‘Goodwill and intangible asset impairment’ within the Consolidated Statements of Operations and Comprehensive Income. If further steps are undertaken to dispose of the reporting unit (or if the long-term business outlook of the reporting unit is adversely affected by economic conditions or other factors) it could result in additional impairments in the future.

Changes in the goodwill balance from December 31, 2021 to July 1, 2022 related to the ASG reporting unit impairment and the divestiture of the Belgium and South Portland, Maine manufacturing facilities and were as follows (in millions):

Net balance as of December 31, 2021$1,937.5 
Goodwill impairment(115.0)
Goodwill disposed(7.1)
Net balance as of July 1, 2022$1,815.4 

Inventory

Details of Inventory included in the Company’s Consolidated Balance Sheets is as follows (in millions):
As of
July 1, 2022December 31, 2021
Inventories:
Raw materials$198.0 $174.2 
Work in process1,009.2 888.9 
Finished goods356.0 316.4 
$1,563.2 $1,379.5 
Defined Benefit Plans

The Company recognizes the aggregate amount of all over-funded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. As of July 1, 2022, the net assets for the over-funded plans totaled $13.1 million. The total accrued pension liability for underfunded plans was $105.6 million, of which the current portion of $0.3 million was classified as accrued expenses and other current liabilities. As of December 31, 2021, the net funded status for all the plans was a liability of $103.9 million, of which the current portion of $0.2 million was classified as accrued expenses and other current liabilities.


The components of the net periodic pension expense were as follows (in millions):
Quarters EndedSix Months Ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Service cost$2.2 $3.0 $4.4 $6.1 
Interest cost1.0 1.1 2.1 2.2 
Expected return on plan assets(1.1)(1.6)(2.3)(3.3)
Curtailment loss— — — 1.9 
Total net periodic pension cost$2.1 $2.5 $4.2 $6.9 

Leases

Operating lease arrangements are comprised primarily of real estate and equipment agreements. The components of lease expense were as follows (in millions):
Quarters EndedSix Months Ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Operating lease$11.7 $9.8 $22.9 $19.7 
Variable lease4.1 1.0 5.7 1.9 
Short-term lease0.8 0.5 1.2 1.2 
Total lease expense$16.6 $11.3 $29.8 $22.8 

The ROU assets and lease liabilities recognized in the Consolidated Balance Sheets are as follows (in millions):
As of
July 1, 2022December 31, 2021
Operating lease liabilities included in:
Accrued expenses and other current liabilities$31.1 $32.5 
Other long-term liabilities214.3 142.4 
Total$245.4 $174.9 
Operating ROU assets included in:
Other assets$234.3 $170.1 
Financing lease liabilities included in:
Accrued expenses and other current liabilities$13.5 $12.7 
Other long-term liabilities22.2 10.2 
Total$35.7 $22.9 
Financing ROU assets included in:
Other assets$47.0 $22.3 

As of July 1, 2022, the weighted-average remaining lease-terms were 10.6 years and 19.8 years and the weighted-average discount rates were 4.6% and 6.0% for operating and financing leases, respectively.
New Leases

During the second quarter of 2022, the Company entered into leases and related agreements to lease space for a new corporate headquarters in Arizona and new office space in California. The Company recorded cumulative ROU assets and liabilities of $70.7 million.

Supplemental Disclosure of Cash Flow Information

Certain of the Company's cash and non-cash activities were as follows (in millions):
Six Months Ended
July 1, 2022July 2, 2021
Non-cash investing activities:
Capital expenditures in accounts payable and other long-term liabilities$259.9 $160.0 
Operating ROU assets obtained in exchange of lease liabilities88.1 11.0 
Cash paid for:
Interest expense$35.6 $52.6 
Income taxes202.8 43.7 
Operating lease payments in operating cash flows22.5 20.8 

Reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions)
As of
July 1, 2022December 31, 2021July 2, 2021December 31, 2020
Consolidated Balance Sheets:
Cash and cash equivalents$1,791.6 $1,352.6 $1,091.1 $1,080.7 
Restricted cash (included in other current assets)18.0 20.1 1.4 0.8 
Restricted cash (included in other non-current assets)5.0 5.0 — — 
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows$1,814.6 $1,377.7 $1,092.5 $1,081.5 

As of July 1, 2022, $15.0 million of the restricted cash balance was held in escrow relating to the acquisition of GTAT and will be released to the former stockholders of GTAT upon satisfaction of certain outstanding items contained in the acquisition agreement.