Goodwill And Other Intangible Assets

9 Months Ended

Sep. 27, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $55.8 million and $64.9 million as of September 27, 2015 and December 28, 2014, respectively.

The following table reflects the components of intangible assets as of September 27, 2015 and December 28, 2014:



		September 27, 2015				December 28, 2014
(amounts in thousands)	Amortizable Life (years)	Gross Amount		Gross Accumulated Amortization		Gross Amount		Gross Accumulated Amortization
Finite-lived intangible assets:
Customer lists	6 to 20	$	76,356	$	60,447	$	79,110	$	58,873
Trade name	1 to 30	25,045		17,101		27,172		18,031
Patents, license agreements	3 to 14	55,605		51,478		58,060		52,448
Internal-use software	3 to 7	23,744		16,553		24,034		14,758
Other	2 to 6	6,980		6,890		7,029		6,867
Total amortized finite-lived intangible assets		187,730		152,469		195,405		150,977

Indefinite-lived intangible assets:
Trade name		20,512		—		20,512		—
Total identifiable intangible assets		$	208,242	$	152,469	$	215,917	$	150,977

Amortization expense for the three and nine months ended September 27, 2015 was $2.7 million and $8.1 million, respectively.

Amortization expense for the three and nine months ended September 28, 2014 was $2.8 million and $8.4 million, respectively.

Estimated amortization expense for each of the five succeeding years is anticipated to be:



(amounts in thousands)
2015	⁽¹⁾	$	10,778
2016		$	10,391
2017		$	9,319
2018		$	3,435
2019		$	2,439


⁽¹⁾	The estimated amortization expense for the remainder of 2015 is anticipated to be $2.7 million.

The changes in the carrying amount of goodwill are as follows:



(amounts in thousands)	Merchandise Availability Solutions			Apparel Labeling Solutions		Retail Merchandising Solutions			Total
Balance as of December 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	(9,511		)	—		(2,784		)	(12,295		)
Balance as of December 28, 2014	$	149,646		$	2,116	$	21,807		$	173,569
Translation adjustments	(5,782		)	—		(1,801		)	(7,583		)
Balance as of September 27, 2015	$	143,864		$	2,116	$	20,006		$	165,986

The following table reflects the components of goodwill as of September 27, 2015 and December 28, 2014:



	September 27, 2015						December 28, 2014
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	177,916	$	34,052	$	143,864	$	192,303	$	42,657	$	149,646
Apparel Labeling Solutions	83,010		80,894		2,116		84,407		82,291		2,116
Retail Merchandising Solutions	112,998		92,992		20,006		124,127		102,320		21,807
Total goodwill	$	373,924	$	207,938	$	165,986	$	400,837	$	227,268	$	173,569

We perform an assessment of goodwill by comparing each individual reporting unit’s carrying amount of net assets, including goodwill, to their fair value at least annually during the October month-end close and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

The May 2011 acquisition of the Shore to Shore businesses included a purchase price payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount was subject to adjustment pending final determination of the 2010 performance and could have resulted in an additional purchase price payment of up to $6.3 million. In the third quarter of 2015, we engaged in discussions with the sellers regarding the possibility of reaching a settlement of this matter. On August 25, 2015, we entered into a settlement with the sellers. Pursuant to the settlement, the sellers received the $17.5 million in escrow, plus the earnings in the escrow account, in exchange for full and final resolution of this matter between the parties. As a result of this settlement, there is no final adjustment to the purchase price recognized through earnings and we are released from any and all claim or liability in connection with the final determination of the 2010 performance. Acquisition related costs incurred in connection with the transaction, including legal and other arbitration-related costs, are recognized within Acquisition Costs in the Consolidated Statement of Operations and are approximately $15 thousand and $0.1 million for the three and nine months ended September 27, 2015 compared to $0.3 million and $0.3 million for the three and nine months ended September 28, 2014, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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