XML 35 R13.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and intangible assets
 3 Months Ended
Mar. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets

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, 2019
 
 
 
 
 
 
 
Goodwill
$
1,583,576

 
874,198

 
1,439,678

 
3,897,452

Accumulated impairment losses
(531,930
)
 
(343,054
)
 
(452,441
)
 
(1,327,425
)
 
1,051,646

 
531,144

 
987,237

 
2,570,027

 
 
 
 
 
 
 
 
Goodwill recognized during the period
—

 
—

 
(9,642
)
 
(9,642
)
Currency translation during the period
(23,930
)
 
—

 
(16,476
)
 
(40,406
)
 
 
 
 
 
 
 
 
Balance as of March 28, 2020
 
 
 
 
 
 
 
Goodwill
1,559,646

 
874,198

 
1,413,560

 
3,847,404

Accumulated impairment losses
(531,930
)
 
(343,054
)
 
(452,441
)
 
(1,327,425
)
 
$
1,027,716

 
531,144

 
961,119

 
2,519,979



Intangible assets not subject to amortization:
    
 
Tradenames
Balance as of December 31, 2019
$
702,732

Currency translation during the period
(23,829
)
Balance as of March 28, 2020
$
678,903


 

Intangible assets subject to amortization:

Gross carrying amounts:
Customer
relationships
 
Patents
 
Other
 
Total
Balance as of December 31, 2019
$
645,206

 
249,100

 
6,631

 
900,937

Intangible assets recognized during the period
12,789

 
—

 
—

 
12,789

Currency translation during the period
(9,387
)
 
(1,471
)
 
(204
)
 
(11,062
)
Balance as of March 28, 2020
$
648,608

 
247,629

 
6,427

 
902,664

 
 
 
 
 
 
 
 
Accumulated amortization:
Customer
relationships
 
Patents
 
Other
 
Total
Balance as of December 31, 2019
$
426,765

 
246,872

 
1,153

 
674,790

Amortization during the period
6,324

 
510

 
42

 
6,876

Currency translation during the period
(2,670
)
 
(1,445
)
 
(7
)
 
(4,122
)
Balance as of March 28, 2020
$
430,419

 
245,937

 
1,188

 
677,544

 
 
 
 
 
 
 
 
Intangible assets subject to amortization, net
$
218,189

 
1,692

 
5,239

 
225,120


 
Three Months Ended
 
March 28,
2020
 
March 30,
2019
Amortization expense
$
6,876

 
6,729




Mohawk performs its annual testing of goodwill and indefinite lived intangibles in the fourth quarter of each year and no impairment was indicated for 2019. In 2019 the Company also concluded that in general, a decline in estimated after tax cash flows greater than approximately 19% to 39% or an increase of approximately 15% to 45% in WACC or a significant or prolonged decline in market capitalization could result in an additional indication of impairment.

As a result of the recent economic impact from COVID-19, the Company performed a qualitative assessment of whether the fair value of any of its reporting units or indefinite-lived intangible assets was more likely than not less than its carrying amount at March 28, 2020. The Company concluded neither goodwill nor any of its indefinite-lived intangible assets were impaired at March 28, 2020.  However, while we have concluded that neither goodwill nor any of its indefinite-lived intangible assets were impaired during the quarter ended March 28, 2020, a prolonged pandemic could impact the Company’s assumptions utilized in the determination of the estimated fair values of the Company’s reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment.  Hence, the Company continues to monitor the economic impact of COVID-19 and may be required to reassess impairment of goodwill or indefinite-lived intangible assets in future interim periods.