Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The amounts for goodwill and changes in the carrying value by segment are as follows:


(in thousands)	Electronics		Transportation		Industrial		Total
Gross goodwill as of December 26, 2020	$	676,325	$	138,354	$	47,551	$	862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Net goodwill as of December 26, 2020	$	676,325	$	101,931	$	38,556	$	816,812
Changes during 2021:
Additions (a)	—		96,307		38,502		$	134,809

Foreign currency translation adjustments	(16,080)		(6,106)		179		(22,007)
Gross goodwill as of January 1, 2022	660,245		228,555		86,232		975,032
Accumulated impairment losses as of January 1, 2022	—		(36,177)		(9,065)		(45,242)
Net goodwill as of January 1, 2022	$	660,245	$	192,378	$	77,167	$	929,790
Changes during 2022:
Additions (b)	270,245		14,886		—		285,131

Foreign currency translation adjustments	(21,323)		(8,648)		(1,343)		(31,314)
Gross goodwill as of December 31, 2022	909,167		234,793		84,889		1,228,849
Accumulated impairment losses as of December 31, 2022			(33,401)		(8,526)		(41,927)
Net goodwill as of December 31, 2022	$	909,167	$	201,392	$	76,363	$	1,186,922

(a) The additions resulted from the acquisitions of Carling and Hartland.

(b) The additions resulted from the acquisitions of C&K, Embed and Carling.

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.

During the second quarter of 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 Transportation 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.

The components of intangible assets at December 31, 2022 and January 1, 2022 are as follows:


	As of December 31, 2022
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	17,938	$	2,299	$	15,639
Patents, licenses and software	259,603		140,208		119,395
Distribution network	41,733		40,955		778
Customer relationships, trademarks, and tradenames	623,721		165,563		458,158
Total	$	942,995	$	349,025	$	593,970

The Company reclassified $50.3 million and $31.1 million of gross carrying value and accumulated amortization, respectively, from customer relationships, trademarks and tradenames to patents, licenses and software as of December 31, 2022. This reclassification had no consolidated financial impact on net book value of intangible assets.


	As of January 1, 2022
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	19,542	$	1,906	$	17,636
Patents, licenses and software	164,556		101,307		63,249
Distribution network	43,361		40,591		2,770
Customer relationships, trademarks, and tradenames	487,710		164,239		323,471
Total	$	715,169	$	308,043	$	407,126

During the year ended December 31, 2022, the Company recorded additions to other intangible assets of $254.7 million related to the C&K acquisition, the components of which were as follows:


	2022
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount

Patents, developed technology	12.0	$	55,700
Customer relationships, trademarks, and tradenames	17.4	199,000
Total		$	254,700

For intangible assets with definite lives, the Company recorded amortization expense of $55.7 million, $42.7 million, and $40.0 million in 2022, 2021, and 2020, respectively.

During the fourth quarter of 2022, the Company recorded a $2.9 million non-cash impairment charge for certain acquired technology and patent intangible assets due to a change in use and projected cash flows within the Electronics segment.

Estimated annual amortization expense related to intangible assets with definite lives at December 31, 2022 is as follows:


(in thousands)	Amount
2023	$	60,274
2024	56,965
2025	56,602
2026	46,115
2027	44,209
2028 and thereafter	329,805
Total	$	593,970