Goodwill and Other Intangible Assets

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business.

In fiscal 2017, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2017. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated.

In fiscal 2018, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2018. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated.

In fiscal 2019, the Company performed a qualitative assessment to determine whether the two-step quantitative impairment test was necessary. The Oil Business reporting unit had zero goodwill throughout fiscal 2019. Based on the qualitative assessment, the Company concluded it is more likely than not that the fair value of the Environmental Services reporting unit is greater than its carrying amount including goodwill, and therefore the two-step quantitative test was not necessary and no impairment was indicated.

The following table shows changes to our goodwill balances by segment during the years ended December 29, 2018, and December 28, 2019:

(thousands)	Oil Business		Environmental Services		Total
Goodwill at December 30, 2017
Gross carrying amount	3,952		31,580		35,532
Accumulated impairment loss	(3,952)		—		(3,952)
Net book value at December 30, 2017	$	—	$	31,580	$	31,580
Acquisitions	—		2,543		2,543
Goodwill at December 29, 2018
Gross carrying amount	3,952		34,123		38,075
Accumulated impairment loss	(3,952)		—		(3,952)
Net book value at December 29, 2018	$	—	$	34,123	$	34,123
Acquisitions	—		639		—
Measurement period adjustments	—		(1,765)		—
Goodwill at December 28, 2019
Gross carrying amount	3,952		32,997		36,949
Accumulated impairment loss	(3,952)		—		(3,952)
Net book value at December 28, 2019	$	—	$	32,997	$	32,997

Following is a summary of software and other intangible assets:

	December 28, 2019						December 29, 2018
(thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer & supplier relationships	$	25,551	$	13,886	$	11,665	$	23,686	$	11,445	$	12,241
Software	8,093		4,887		3,206		5,040		4,094		946
Patents, formulae, and licenses	1,769		774		995		1,769		708		1,061
Non-compete agreements	3,603		3,068		535		2,937		2,904		33
Other	1,702		1,211		491		1,442		1,042		400
Total software and intangible assets	$	40,718	$	23,826	$	16,892	$	34,874	$	20,193	$	14,681

Amortization expense was $3.6 million, $3.1 million, and $3.3 million for fiscal 2019, 2018, and 2017, respectively.

The weighted average useful lives of customer and supplier relationships are as follows:

Intangible asset	Weighted average useful life (years)
Patents, formulae, & licenses	15
Customer and supplier relationships	11
Software	9
Non-compete agreements	5
Other intangibles	7

The estimated amortization expense for each of the five succeeding fiscal years is as follows:

Fiscal Year	Amortization Expense (millions)
2020	$3.3
2021	$3.2
2022	$2.9
2023	$2.4
2024	$0.9

The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, disposal of intangible assets, accelerated amortization of intangible assets, adjustment to purchase price allocations for assets acquired, and other events. No impairment of software or other intangible assets was recorded in fiscal 2019, 2018, or 2017.