Goodwill and Other Intangible Assets

6 Months Ended

Jun. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The amounts for goodwill and changes in the carrying value by segment for the six months ended June 27, 2020 are as follows:


(in thousands)	Electronics		Automotive		Industrial		Total
As of December 28, 2019	$	650,796	$	131,321	$	38,472	$	820,589

Impairments	—		(33,841)		—		(33,841)
Currency translation	860		128		(135)		853
As of June 27, 2020	$	651,656	$	97,608	$	38,337	$	787,601

The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For the three months ended June 27, 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Automotive segment. The goodwill impairment charge was due to reductions in the estimated fair value for the automotive sensors reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. These lower future expectations were driven by projected extended declines in end market demand due to the COVID-19 pandemic. In addition, during the second quarter of 2020, certain customers notified the Company of their decision to delay future programs along with a customer canceling their existing program. The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of June 27, 2020, the automotive sensors reporting unit had $9.1 million of remaining goodwill.

The components of other intangible assets as of June 27, 2020 and December 28, 2019 are as follows:


	As of June 27, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,584	$	1,800	$	7,784
Patents, licenses and software	131,055		$	83,989	$	47,066
Distribution network	43,272		37,302		5,970
Customer relationships, trademarks, and tradenames	360,769		119,928		240,841

Total	$	544,680	$	243,019	$	301,661


	As of December 28, 2019
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,649	$	1,730	$	7,919
Patents, licenses and software	131,164		78,828		52,336
Distribution network	43,239		36,163		7,076
Customer relationships, trademarks, and tradenames	360,534		106,618		253,916
Total	$	544,586	$	223,339	$	321,247

During the three months ended June 27, 2020 and June 29, 2019, the Company recorded amortization expense of $9.8 million and $10.0 million, respectively. During six months ended June 27, 2020, the Company recorded amortization expense of $19.8 million and $20.2 million, respectively.

During the six months ended June 27, 2020, the Company recognized a $0.3 million non-cash impairment charge on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

Estimated annual amortization expense related to intangible assets with definite lives as of June 27, 2020 is as follows:


(in thousands)	Amount
2020	$	39,200
2021	37,811
2022	36,846
2023	32,135
2024	29,356
2025 and thereafter	145,511
Total	$	320,859