Goodwill and Other Intangible Assets

3 Months Ended

Mar. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands):

	March 30, 2019		December 29, 2018
Goodwill	$	270,774	$	270,788
Definite-lived intangible assets	159,014		163,714
Indefinite-lived intangible assets	28,762		28,788
Total goodwill and other intangible assets	$	458,550	$	463,290

Goodwill

The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):

	Office Furniture			Hearth Products			Total
Balance as of December 29, 2018
Goodwill	$	128,645		$	186,662		$	315,307
Accumulated impairment losses	(44,376		)	(143		)	(44,519		)
Net goodwill balance as of December 29, 2018	84,269			186,519			270,788
Foreign currency translation adjustment	(14		)	—			(14		)
Balance as of March 30, 2019
Goodwill	128,631			186,662			315,293
Accumulated impairment losses	(44,376		)	(143		)	(44,519		)
Net goodwill balance as of March 30, 2019	$	84,255		$	186,519		$	270,774

Definite-lived intangible assets

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	March 30, 2019						December 29, 2018
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	40	$	36	$	4	$	40	$	34	$	6
Software	171,756		54,156		117,600		170,274		49,561		120,713
Trademarks and trade names	7,564		2,886		4,678		7,564		2,721		4,843
Customer lists and other	103,768		67,036		36,732		103,840		65,688		38,152
Net definite-lived intangible assets	$	283,128	$	124,114	$	159,014	$	281,718	$	118,004	$	163,714

Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows (in thousands):

	Three Months Ended
	March 30, 2019		March 31, 2018
Capitalized software	$	4,595	$	4,167
Other definite-lived intangibles	$	1,574	$	1,688

The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. 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):

	2019		2020		2021		2022		2023
Amortization expense	$	24.1	$	22.8	$	21.6	$	19.2	$	16.9

Indefinite-lived intangible assets

The Corporation also owns certain intangible assets, which are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	March 30, 2019		December 29, 2018
Trademarks and trade names	$	28,762	$	28,788

The immaterial change in the indefinite-lived intangible assets balances shown above is related to foreign currency translation impacts.

Impairment Analysis

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.