GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Jan. 01, 2022

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

Schedule of changes in net carrying amount of goodwill

Changes in the net carrying amount of goodwill for 2021 and 2020 by reportable segment were as follows: 

(In millions)	Label and Graphic Materials			Retail Branding and Information Solutions			Industrial and Healthcare Materials			Total
Goodwill as of December 28, 2019	$	407.8		$	349.3		$	173.7		$	930.8
Acquisitions(1)		45.8			112.7			–			158.5
Translation adjustments		27.3			9.8			10.0			47.1
Goodwill as of January 2, 2021		480.9		$	471.8		$	183.7		$	1,136.4
Acquisitions(2)		–			774.5			6.9			781.4
Acquisition adjustment(3)		1.2			–			–			1.2
Translation adjustments		(25.7	)		(10.3	)		(1.5	)		(37.5	)
Goodwill as of January 1, 2022	$	456.4		$	1,236.0		$	189.1		$	1,881.5

(1) Goodwill acquired in 2020 related to the acquisitions of Smartrac, which is included in our RBIS reportable segment, and ACPO, which is included in our LGM reportable segment. We expect the recognized goodwill related to the Smartrac acquisition not to be deductible for income tax purposes and the recognized goodwill related to the ACPO acquisition to be deductible for income tax purposes.

(2) Goodwill acquired related to the acquisitions of Vestcom, JDC and ZippyYum. We expect nearly all of the recognized goodwill related to the Vestcom and JDC acquisitions not to be deductible for income tax purposes and the recognized goodwill related to the ZippyYum acquisition to be deductible for income tax purposes.

(3) Measurement period adjustment related to the finalization of the purchase price allocation for the acquisition of ACPO completed in December 2020.

Summary of the amounts and useful lives of finite-lived intangible assets

The table below summarizes the amounts and useful lives of these intangible assets as of the acquisition date.

	Amount (in millions)		Amortization period (in years)
Customer relationships	$	492.0		12
Patented and other developed technology		100.4		7

The table below summarizes the amounts and weighted average useful lives of these intangible assets as of the acquisition date.

	Amount (in millions)		Weighted average amortization period (in years)
Patented and other developed technology	$	62.5		11
Customer relationships		41.4		7
Trade names and trademarks		2.2		5

Schedule of finite-lived intangible assets

	2021						2020
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	862.5	$	277.2	$	585.3	$	373.3	$	254.1	$	119.2
Patented and other developed technology		247.7		84.7		163.0		147.3		69.8		77.5
Trade names and trademarks		14.8		9.7		5.1		28.2		22.2		6.0
Other intangibles		3.2		.8		2.4		.2		.2		–
Total	$	1,128.2	$	372.4	$	755.8	$	549.0	$	346.3	$	202.7

Estimated amortization expense for finite lived intangible assets

(In millions)	Estimated Amortization Expense
2022	$	43.5
2023		42.5
2024		40.8
2025		40.0
2026		36.9