Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

4. GOODWILL AND INTANGIBLE ASSETS, NET

The following table summarizes changes in goodwill by segment during the fiscal years ended December 30, 2023 and December 31, 2022 (amounts in thousands):


	PDS			HHH			MS			Total
Goodwill:
Balance at January 1, 2022, net (1)		1,160,337			532,775			142,468			1,835,580
Additions		-			920			-			920
Measurement adjustments		(1,388	)		(78	)		-			(1,466	)
Impairments		(261,221	)		(382,293	)		(31,832	)		(675,346	)
Balance at December 31, 2022, net (2)		897,728			151,324			110,636			1,159,688
Impairments		-			(105,136	)		-			(105,136	)
Balance at December 30, 2023, net (3)		897,728			46,188			110,636			1,054,552

        (1) Goodwill balance is net of $346.8 million of accumulated impairment losses for PDS and $88.0 million of losses for MS.
(2) Goodwill balance is net of accumulated impairment losses of $608.0 million for PDS, $119.8 million for MS, and $382.3 million for HHH.
(3) Goodwill balance is net of accumulated impairment losses of $608.0 million for PDS, $119.8 million for MS, and $487.4 million for HHH.

See Note 2 – Summary of Significant Accounting Policies, Goodwill for details on goodwill impairment.

Measurement period adjustments in the fiscal year ended December 31, 2022 in the table above resulted from finalizing the purchase price allocations of acquisitions completed during fiscal year ended January 1, 2022. Purchase price allocations were final for all acquisitions as of December 31, 2022.

The following tables summarize the changes in intangible assets for the fiscal years ended December 30, 2023 and December 31, 2022 (amounts in thousands):


	December 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Total
Definitive-lived intangible assets:
Trade names	$	20,161	$	(20,161	)	$	-		$	-
Non-compete agreements		7,265		(7,265	)		-		$	-
Internal-use software		11,653		(6,107	)		-			5,546
Total definitive-lived intangible assets		39,079		(33,533	)		-			5,546
Indefinite-lived intangible assets:
Licenses		97,123		-			(8,659	)		88,464
Total indefinite-lived intangible assets		97,123		-			(8,659	)		88,464
Total intangible assets	$	136,202	$	(33,533	)	$	(8,659	)	$	94,010


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Total
Definitive-lived intangible assets:
Trade names	$	20,161	$	(20,050	)	$	-		$	111
Non-compete agreements		7,265		(7,265	)		-			-
Internal-use software		11,911		(4,235	)		-			7,676
Total definitive-lived intangible assets		39,337		(31,550	)		-			7,787
Indefinite-lived intangible assets:
Licenses		93,867		-			(5,791	)		88,076
Total indefinite-lived intangible assets		93,867		-			(5,791	)		88,076
Total intangible assets	$	133,204	$	(31,550	)	$	(5,791	)	$	95,863

Amortization expense related to the Company’s intangible assets was $2.0 million and $6.0 million for the fiscal years ended December 30, 2023 and December 31, 2022, respectively. Included in the amounts above was amortization expense of internal-use software of $1.9 million for both of the fiscal years ended December 30, 2023 and December 31, 2022. License impairment recorded in the fiscal year ended December 30, 2023 of $0.8 million and $2.1 million was related to the PDS and HHH segments, respectively.

The estimated aggregate amortization expense related to intangible assets for each of the next five years subsequent to December 30, 2023 and thereafter is as follows (amounts in thousands):


Year Ending	Definitive-lived
December 28, 2024	$	1,218
January 3, 2026		713
January 2, 2027		713
January 1, 2028		713
December 30, 2028		713
Thereafter		1,476
Total		5,546