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Goodwill and Intangible Assets, Net
 12 Months Ended
Jan. 03, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
The Company tests goodwill and non-amortizing intangible assets at least annually for possible impairment. Accordingly, the Company completes the annual testing of impairment for goodwill and non-amortizing intangible assets on the later of January 1 or the first day of each fiscal year. In addition to its annual test, the Company regularly evaluates whether events or circumstances have occurred that may indicate a potential impairment of goodwill or non-amortizing intangible assets.
The process of testing goodwill for impairment involves the determination of the fair value of the applicable reporting units. The test consists of the comparison of the fair value to the carrying value of the reporting unit to determine if the carrying value exceeds the fair value. If the carrying value of the reporting unit exceeds its fair value, an impairment loss in an amount equal to that excess is recognized up to the amount of goodwill. The Company performed its annual impairment testing for its reporting units as of January 1, 2020, its annual impairment testing date for fiscal year 2020. The Company concluded based on the first step of the process that there was no goodwill impairment, and the fair value exceeded the carrying value by more than 20% for each reporting unit, except for the Meizheng Group reporting unit. The fair value of the Meizheng Group reporting unit approximated its carrying value given that the reporting unit was a relatively new acquisition.
At January 4, 2021, the Tulip reporting unit, which had a goodwill balance of $77.8 million at January 3, 2021, had a fair value that was between 10% and 20% more than its carrying value. Tulip is at increased risk of an impairment charge given its ongoing weakness due to the impact of COVID-19. Despite the increased risk associated with this reporting unit, the Company does not believe there will be a significant change in the key estimates or assumptions driving the fair value of this reporting unit that would lead to a material impairment charge. While the Company believes that its estimates of current value are reasonable, if actual results differ from the estimates and judgments used, including such items as future cash flows and the volatility inherent in markets which the Company serves, impairment charges against the carrying value of those assets could be required in the future.
Non-amortizing intangibles are also subject to an annual impairment test. The Company consistently employed the relief from royalty model to estimate the current fair value when testing for impairment of non-amortizing intangible asset. The impairment test consists of a comparison of the fair value of the non-amortizing intangible asset with its carrying amount. If the carrying amount of a non-amortizing intangible asset exceeds its fair value, an impairment loss in an amount equal to that excess is recognized up to the amount of the amortizing intangible asset. In addition, the Company evaluates the remaining useful life of our non-amortizing intangible asset at least annually to determine whether events or circumstances continue to support an indefinite useful life. If events or circumstances indicate that the useful life of our non-amortizing intangible asset is no longer indefinite, the asset will be tested for impairment. This intangible asset will then be amortized prospectively over its estimated remaining useful life and accounted for in the same manner as other intangible assets that are subject to amortization.
The changes in the carrying amount of goodwill for fiscal years 2020 and 2019 are as follows:
Discovery & Analytical Solutions DiagnosticsConsolidated
(In thousands)
Balance at December 30, 2018$1,334,992 $1,617,616 $2,952,608 
Foreign currency translation(8,559)(9,725)(18,284)
Acquisitions, earnouts and other172,387 4,516 176,903 
Balance at December 29, 20191,498,820 1,612,407 3,111,227 
Foreign currency translation58,086 62,596 120,682 
Acquisitions, earnouts and other198,981 16,224 215,205 
Balance at January 3, 2021$1,755,887 $1,691,227 $3,447,114 
Identifiable intangible asset balances at January 3, 2021 by category and segment were as follows:
 
Discovery & Analytical Solutions DiagnosticsConsolidated
(In thousands)
Patents$28,146 $2,709 $30,855 
Less: Accumulated amortization(27,933)(507)(28,440)
Net patents213 2,202 2,415 
Trade names and trademarks51,143 47,518 98,661 
Less: Accumulated amortization(31,859)(16,947)(48,806)
Net trade names and trademarks19,284 30,571 49,855 
Licenses50,468 8,232 58,700 
Less: Accumulated amortization(49,317)(3,135)(52,452)
Net licenses1,151 5,097 6,248 
Core technology456,607 333,192 789,799 
Less: Accumulated amortization(232,648)(166,344)(398,992)
Net core technology223,959 166,848 390,807 
Customer relationships475,748 881,912 1,357,660 
Less: Accumulated amortization(239,428)(283,392)(522,820)
Net customer relationships236,320 598,520 834,840 
IPR&D10,944 — 10,944 
Net amortizable intangible assets491,871 803,238 1,295,109 
Non-amortizing intangible asset:
Trade name70,584 — 70,584 
Total$562,455 $803,238 $1,365,693 
Identifiable intangible asset balances at December 29, 2019 by category and segment were as follows:
 
Discovery & Analytical Solutions DiagnosticsConsolidated
(In thousands)
Patents$28,122 $2,709 $30,831 
Less: Accumulated amortization(27,142)(281)(27,423)
Net patents980 2,428 3,408 
Trade names and trademarks39,859 48,138 87,997 
Less: Accumulated amortization(23,632)(16,663)(40,295)
Net trade names and trademarks16,227 31,475 47,702 
Licenses50,393 8,103 58,496 
Less: Accumulated amortization(47,607)(2,126)(49,733)
Net licenses2,786 5,977 8,763 
Core technology390,116 298,973 689,089 
Less: Accumulated amortization(205,263)(115,663)(320,926)
Net core technology184,853 183,310 368,163 
Customer relationships313,898 847,628 1,161,526 
Less: Accumulated amortization(156,967)(221,221)(378,188)
Net customer relationships156,931 626,407 783,338 
IPR&D— 1,328 1,328 
Net amortizable intangible assets361,777 850,925 1,212,702 
Non-amortizing intangible asset:
Trade name70,584 — 70,584 
Total$432,361 $850,925 $1,283,286 
 
Total amortization expense related to definite-lived intangible assets was $192.6 million in fiscal year 2020, $164.3 million in fiscal year 2019 and $135.9 million in fiscal year 2018. Estimated amortization expense related to definite-lived intangible assets for each of the next five years is $211.0 million in fiscal year 2021, $191.4 million in fiscal year 2022, $164.0 million in fiscal year 2023, $139.9 million in fiscal year 2024, and $111.9 million in fiscal year 2025.