Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 24, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Goodwill as of September 24, 2021, and December 25, 2020, was $581,136 and $559,735, respectively. Goodwill increased by $21,402 in 2021 due to the acquisition of Access Networks. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for more information regarding Access Networks. There were no changes to goodwill during the year ended December 25, 2020.

The Company tests goodwill and identifiable indefinite lived intangible assets for impairment annually as of the end of the third quarter of each fiscal year, or more frequently upon the occurrence of certain events or substantive changes in

circumstances that indicate impairment is more likely than not. Management qualitatively assessed goodwill to determine whether testing was necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy, and changes in the composition and carrying amounts of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative assessment is then performed. For indefinite lived intangible assets, the Company conducted an impairment assessment of indefinite lived intangible assets using discounted cash flow models. These models include assumptions we believe are consistent with those a market participant would use. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess.

The Company performed annual impairment tests for goodwill and indefinite lived intangible assets at September 24, 2021, and September 25, 2020 and concluded there was no impairment.

As of September 24, 2021, and December 25, 2020, other intangible assets, net, consisted of the following:


		September 24, 2021
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	5 – 25 years	$	509,162	$	(89,471)	$	419,691
Technology	5 – 15 years	95,078		(34,267)		60,811
Trade names – definite	2 – 10 years	57,660		(15,241)		42,419
Trade names – indefinite	indefinite	76,564		—		76,564
Total intangible assets		$	738,464	$	(138,979)	$	599,485


		December 25, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	5 – 25 years	$	494,333	$	(70,060)	$	424,273
Technology	5 – 15 years	95,078		(22,406)		72,672
Trade names – definite	2 – 10 years	54,360		(10,253)		44,107
Trade names – indefinite	indefinite	76,564		—		76,564
Total intangible assets		$	720,335	$	(102,719)	$	617,616

Total amortization expense for intangible assets for the three months ended September 24, 2021, and September 25, 2020, was $12,293 and $11,872, respectively. Total amortization expense for intangible assets for the nine months ended September 24, 2021, and September 25, 2020, was $36,260 and $35,619, respectively. The weighted-average useful life remaining for amortizing definite lived intangible assets was approximately 15.4 years as of September 24, 2021.

As of September 24, 2021, the estimated amortization expense for intangible assets for the next five fiscal years and thereafter are as follows:


Remainder of 2021	$	12,293
2022	48,321
2023	47,183
2024	40,681
2025	33,065
2026 and thereafter	341,378
Total	$	522,921