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Goodwill and Other Intangible Assets
 12 Months Ended
Jan. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following (in thousands):
January 1, 2022January 2, 2021
Goodwill$297,339 $292,434 
Definite-lived intangible assets147,627 139,863 
Indefinite-lived intangible assets26,536 26,599 
Total goodwill and other intangible assets$471,502 $458,896 
Goodwill
The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):
Workplace FurnishingsResidential Building ProductsTotal
Balance as of December 28, 2019   
Goodwill$128,677 $186,662 $315,339 
Accumulated impairment losses(44,376)(143)(44,519)
Net goodwill balance as of December 28, 2019$84,301 $186,519 $270,820 
Goodwill acquired during the year39,800 10,314 50,114 
Impairment losses(28,500)— (28,500)
Balance as of January 2, 2021   
Goodwill168,477 196,976 365,453 
Accumulated impairment losses(72,876)(143)(73,019)
Net goodwill balance as of January 2, 2021$95,601 $196,833 $292,434 
Goodwill acquired during the year / measurement period adjustments(6,211)16,866 10,655 
Impairment losses(5,750)— (5,750)
Balance as of January 1, 2022   
Goodwill162,266 213,842 376,108 
Accumulated impairment losses(78,626)(143)(78,769)
Net goodwill balance as of January 1, 2022$83,640 $213,699 $297,339 

Goodwill acquired in 2021 was the result of the Corporation's acquisition of residential building products companies. The decrease in workplace furnishings goodwill in 2021 was the result of the finalization of the acquisition accounting for DPG. See "Note 4. Acquisitions" for additional information.

In the fourth quarter of 2021, the Corporation recorded a pretax goodwill impairment charge of $5.8 million in connection with the decision to exit the Maxon office furniture brand. This action is consistent with the Corporation's broader business simplification efforts in the workplace furnishings segment. The Maxon reporting unit has no remaining goodwill.

Definite-lived intangible assets
The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Corporation’s Consolidated Balance Sheets (in thousands):
January 1, 2022January 2, 2021
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Software$196,754 $102,072 $94,682 $182,127 $78,619 $103,508 
Trademarks and trade names14,264 4,600 9,664 9,964 3,546 6,418 
Customer lists and other109,635 66,354 43,281 91,002 61,065 29,937 
Net definite-lived intangible assets$320,653 $173,026 $147,627 $283,093 $143,230 $139,863 

The table above includes the estimated fair values of software, trademarks and trade names, and customer lists and other identified intangible assets acquired through business combinations in 2021 and 2020. See "Note 4. Acquisitions" for additional information.
Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
202120202019
Capitalized software$23,649 $19,313 $18,130 
Other definite-lived intangibles$6,507 $4,950 $6,275 

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):
20222023202420252026
Amortization expense$29.9 $25.7 $21.4 $18.9 $16.6 

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 Consolidated Balance Sheets (in thousands):
January 1, 2022January 2, 2021
Trademarks and trade names$26,536 $26,599 

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. The Corporation also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist.

The Corporation elected to perform a qualitative assessment for purposes of its annual goodwill impairment testing in 2021. Based on this assessment, management concluded that it was more likely than not that the fair value of each reporting unit was greater than its carrying value. Therefore, no further quantitative testing was performed. Near the end of the fourth quarter, subsequent to the annual impairment testing, a triggering event occurred that was specific to the Maxon reporting unit, and which resulted in the impairment charge discussed herein.
The Corporation also elected to perform a qualitative assessment for purposes of its annual impairment testing for certain indefinite-lived intangible assets in 2021. Based on this assessment, management concluded that it was more likely than not that the fair value of the respective assets was greater than carrying value. Quantitative impairment testing was performed for the remaining indefinite-lived intangible assets, with no impairments identified. Additionally, there were no impairments identified with respect to long-lived assets in 2021.