Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2023

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 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 (a)	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
Changes during 2023:
Additions (b)	3,879		—		93,937		97,816

Foreign currency translation adjustments	23,459		2,322		291		26,072
Gross goodwill as of December 30, 2023	936,505		237,115		179,117		1,352,737
Accumulated impairment losses as of December 30, 2023	—		(34,004)		(8,735)		(42,739)
Net goodwill as of December 30, 2023	$	936,505	$	203,111	$	170,382	$	1,309,998

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

(b) The additions resulted from the acquisitions of Western Automation and C&K.

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. There were no impairment charges recorded during the fiscal years of 2023, 2022 and 2021.

The components of intangible assets at December 30, 2023 and December 31, 2022 are as follows:


	As of December 30, 2023
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	17,621	$	2,786	$	14,835
Patents, licenses and software	275,337		163,799		111,538
Distribution network	43,210		43,210		—
Customer relationships, trademarks, and tradenames	689,244		209,481		479,763
Total	$	1,025,412	$	419,276	$	606,136


	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.

During the year ended December 30, 2023, the Company recorded additions to other intangible assets of $68.0 million related to Western Automation, the components of which were as follows:


	2023
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount

Patents, licenses and software	6.7	$	11,500
Customer relationships, trademarks, and tradenames	14.7	56,500
Total		$	68,000

For intangible assets with definite lives, the Company recorded amortization expense of $65.8 million, $55.7 million, and $42.7 million in 2023, 2022, and 2021, respectively.

Estimated annual amortization expense related to intangible assets with definite lives at December 30, 2023 is as follows:


(in thousands)	Amount
2024	$	63,673
2025	63,303
2026	52,311
2027	50,203
2028	49,583
2029 and thereafter	327,063
Total	$	606,136