Goodwill and Other Intangible Assets

6 Months Ended

Jul. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The table below summarizes amortizable definite-lived intangible assets as of July 2, 2016 and January 2, 2016, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets:



	July 2, 2016						January 2, 2016
(In thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	18,645	$	18,619	$	26	$	18,645	$	18,615	$	30
Software	137,442		23,219		114,223		122,892		21,193		101,699
Trademarks and trade names	7,564		1,058		6,506		6,564		753		5,811
Customer lists and other	117,084		61,592		55,492		105,586		60,063		45,523
Net definite lived intangible assets	$	280,735	$	104,488	$	176,247	$	253,687	$	100,624	$	153,063

Aggregate amortization expense for the three months ended July 2, 2016 and July 4, 2015 was $2.9 million and $2.7 million, respectively. Aggregate amortization expense for the six months ended July 2, 2016 and July 4, 2015 was $5.3 million and $5.5 million, respectively. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows:



(In millions)	2016		2017		2018		2019		2020
Amortization expense	$	11.3	$	17.8	$	18.0	$	17.1	$	16.7

As events such as acquisitions, dispositions or impairments occur in the future, these amounts may change.

The Corporation also owns certain trademarks and trade names with a net carrying amount of $40.9 million and $41.0 million as of July 2, 2016 and January 2, 2016, respectively. These trademarks and trade names, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets, are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely.

The changes in the carrying amount of goodwill since January 2, 2016 are as follows by reporting segment:



(In thousands)	Office Furniture			Hearth Products			Total
Balance as of January 2, 2016
Goodwill	$	149,718		$	183,199		$	332,917
Accumulated impairment losses	(55,124		)	(143		)	(55,267		)
Net goodwill balance as of January 2, 2016	94,594			183,056			277,650
Goodwill acquired	15,365			—			15,365
Foreign currency translation adjustments	(6		)	—			(6		)
Balance as of July 2, 2016
Goodwill	165,077			183,199			348,276
Accumulated impairment losses	(55,124		)	(143		)	(55,267		)
Net goodwill balance as of July 2, 2016	$	109,953		$	183,056		$	293,009

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions.

- 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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