Goodwill And Other Intangible Assets

3 Months Ended

Mar. 27, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $45.5 million and $47.8 million as of March 27, 2016 and December 27, 2015, respectively.

The following table reflects the components of intangible assets as of March 27, 2016 and December 27, 2015:



		March 27, 2016				December 27, 2015
(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	$	76,187	$	62,855	$	75,649	$	61,095
Trade name	1 to 30	25,064		17,382		24,598		16,937
Patents, license agreements	3 to 14	55,574		52,437		55,053		51,422
Internal-use software	3 to 7	24,705		18,155		24,489		17,348
Other	2 to 6	6,943		6,889		6,968		6,896
Total amortized finite-lived intangible assets		188,473		157,718		186,757		153,698

Indefinite-lived intangible assets:
Trade name		14,718		—		14,718		—
Total identifiable intangible assets		$	203,191	$	157,718	$	201,475	$	153,698

Amortization expense for the three months ended March 27, 2016 and March 29, 2015 was $2.7 million and $2.7 million, respectively.

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



(amounts in thousands)
2016	⁽¹⁾	$	10,479
2017		$	9,389
2018		$	3,492
2019		$	2,480
2020		$	1,721


⁽¹⁾	The estimated amortization expense for the remainder of 2016 is anticipated to be $7.8 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 28, 2014	$	149,646		$	2,116	$	21,807		$	173,569
Translation adjustments	(7,233		)	—		(2,226		)	(9,459		)
Balance as of December 27, 2015	$	142,413		$	2,116	$	19,581		$	164,110
Translation adjustments	1,326			—		387			1,713
Balance as of March 27, 2016	$	143,739		$	2,116	$	19,968		$	165,823

The following table reflects the components of goodwill as of March 27, 2016 and December 27, 2015:



	March 27, 2016						December 27, 2015
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	176,928	$	33,189	$	143,739	$	175,602	$	33,189	$	142,413
Apparel Labeling Solutions	82,747		80,631		2,116		82,747		80,631		2,116
Retail Merchandising Solutions	111,364		91,396		19,968		110,977		91,396		19,581
Total goodwill	$	371,039	$	205,216	$	165,823	$	369,326	$	205,216	$	164,110

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 2015 and 2014 annual assessments did not result in an impairment charge.

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 were $0.1 million for the three months ended March 29, 2015.

- 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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