Goodwill and Other Intangible Assets

3 Months Ended

Apr. 02, 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 Condensed Consolidated Balance Sheets consisted of the following (in thousands):

	April 2, 2022		January 1, 2022
Goodwill	$	298,286	$	297,339
Definite-lived intangible assets	142,447		147,627
Indefinite-lived intangible assets	26,484		26,536
Total goodwill and other intangible assets	$	467,217	$	471,502

Goodwill

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

	Workplace Furnishings		Residential Building Products		Total
Balance as of January 1, 2022
Goodwill	$	162,266	$	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 / measurement period adjustments	—		947		947
Balance as of April 2, 2022
Goodwill	162,266		214,789		377,055
Accumulated impairment losses	(78,626)		(143)		(78,769)
Net goodwill balance as of April 2, 2022	$	83,640	$	214,646	$	298,286

See "Note 3. Acquisitions" for additional information regarding goodwill acquired and related adjustments.

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):

	April 2, 2022						January 1, 2022
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Software	$	198,720	$	107,597	$	91,123	$	196,754	$	102,072	$	94,682
Trademarks and trade names	14,264		4,927		9,337		14,264		4,600		9,664
Customer lists and other	109,493		67,506		41,987		109,635		66,354		43,281
Net definite-lived intangible assets	$	322,477	$	180,030	$	142,447	$	320,653	$	173,026	$	147,627

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
	April 2, 2022		April 3, 2021
Capitalized software	$	6,116	$	5,623
Other definite-lived intangibles	$	1,620	$	1,624

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 years is as follows (in millions):

	2022		2023		2024		2025		2026
Amortization expense	$	30.3	$	26.1	$	21.8	$	19.0	$	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 Condensed Consolidated Balance Sheets (in thousands):

	April 2, 2022		January 1, 2022
Trademarks and trade names	$	26,484	$	26,536

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.