Goodwill and intangible assets

9 Months Ended

Oct. 01, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The components of goodwill and other intangible assets are as follows:

Goodwill:



	Global Ceramic segment			Flooring NA segment		Flooring ROW segment		Total
Balance as of December 31, 2015
Goodwill	$	1,472,757		867,916		1,280,117		3,620,790
Accumulated impairment losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	$	940,827		524,862		827,676		2,293,365

Goodwill recognized or adjusted during the period	$	—		1,848		1,158		3,006
Currency translation during the period	12,417			—		23,033		35,450

Balance as of October 1, 2016
Goodwill	1,485,174			869,764		1,304,308		3,659,246
Accumulated impairment losses	(531,930		)	(343,054	)	(452,441	)	(1,327,425	)
	$	953,244		526,710		851,867		2,331,821

Intangible assets not subject to amortization:

During the third quarter of 2016, the Company determined that it needed to simplify the branding strategy in the Flooring NA segment by consolidating products under the Mohawk Group brands and discontinuing the Lees brand. This resulted in the Company writing off the full value of the Lees tradename and recording an impairment charge of $47,905 in selling, general and administrative expenses in the consolidated statements of operations.



	Tradenames
Balance as of December 31, 2015	$	632,349
Intangible assets impaired during the period	(47,905		)
Currency translation during the period	14,751
Balance as of October 1, 2016	$	599,195

Intangible assets subject to amortization:



Gross carrying amounts:	Customer relationships		Patents	Other		Total
Balance as of December 31, 2015	$	588,716	243,258	6,790		838,764
Intangible assets recognized or adjusted during the period	—		—	—		—
Currency translation during the period	6,527		6,779	(804	)	12,502
Balance as of October 1, 2016	$	595,243	250,037	5,986		851,266

Accumulated amortization:	Customer relationships		Patents	Other		Total
Balance as of December 31, 2015	$	317,593	216,273	706		534,572
Amortization during the period	19,975		9,446	18		29,439
Currency translation during the period	3,990		6,103	(358	)	9,735
Balance as of October 1, 2016	$	341,558	231,822	366		573,746

Intangible assets subject to amortization, net	$	253,685	18,215	5,620		277,520



	Three Months Ended			Nine Months Ended
	October 1, 2016		October 3, 2015	October 1, 2016	October 3, 2015
Amortization expense	$	10,381	9,378	29,439	20,748

- 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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