Note 4 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

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

(in thousands)	Electronics			Automotive			Industrial			Total
As of January 2, 2016	$	58,246		$	80,262		$	51,259		$	189,767
Additions (a)		162,172			70,762			—			232,934
Impairments ( b )		—			—			(8,794	)		(8,794	)
A djustments ( c )		(4,653	)		(6,439	)		729			(10,363	)
As of December 31, 2016	$	215,765		$	144,585		$	43,194		$	403,544
Additions ( d )		36,716			—			—			36,716
Adjustments ( e )		26,478			(8,756	)		(4,568	)		13,154
As of December 30, 2017	$	278,959		$	135,829		$	38,626		$	453,414

(a)

The

2016

additions resulted primarily from the acquisitions of PolySwitch, ON and Menber’s.

(

The

2016

impairments in the Industrial segment was due to the

$8.8

million impairment of Custom Products reporting unit goodwill.

(

Adjustments in

2016

reflect the impact of changes in foreign exchange rates.

	( d)	The 2017 additions resulted from the acquisitions of U.S. Sensor and Monolith.

	(e)	Adjustments in 2017 reflect adjustments to reclass goodwill by segment as well as the impact of changes in foreign exchange rates. The impact of the reclassification was an increase in goodwill to the Electronics segment of $21.6 million and a decrease of goodwill of $16.8 million and $4.8 million to the Automotive segment and the Industrial segment, respectively.

Due to negative events in the potash market in

2016,

management revisited its long-term projections and conducted a step

one

goodwill impairment analysis for its

Custom Products reporting unit in the

third

quarter of

2016.

The reporting unit failed the step

one

test and management conducted a step

two

analysis. The fair value of the unit was estimated using the expected present value of future cash flows over a

seven

-year forecast period and appraisal of certain assets. As a result, the Company recognized a charge for goodwill impairment of

$8.8

million as it wrote off the entire goodwill balance.

The

components of other intangible assets at

December 30, 2017

and

December 31, 2016

are as follows:

	As of December 30, 2017
(in thousands)	Weighted Average Useful Life	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	141,520	$	59,609	$	81,911
Distribution network	12.1		46,233		33,361		12,872
Customer relationships, trademarks and tradenames	15.6		162,679		53,612		109,067
Total		$	350,432	$	146,582	$	203,850

	As of December 31, 2016
(in thousands)	Weighted Average Useful Life	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	131,611	$	48,004	$	83,607
Distribution network	12.1		49,150		30,155		18,995
Customer relationships, trademarks and tradenames	14.4		150,887		40,463		110,424
Total		$	331,648	$	118,622	$	213,026

During the year ended

December 31, 2016,

the Company recognized non-cash impairment charges totaling

$6.0

million, of which

$2.2

million related to the impairment of certain customer relationship intangib

le assets in the Custom Products reporting unit within the Industrial segment and

$3.8

million related to the impairment of the Custom Products tradename. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships while the tradename impairment resulted from lower expectations of future cash flows of the Custom Products reporting unit.

During the years ended

December 30, 2017

and

December 31, 2016,

the Company recorded additions to other intangible assets of

$11.0

million and

$144.4

million, respectively, for acquisitions during those years, the components of which were as follows:

	2017			2016
(in thousands)	Weighted Average Useful Life	Amount		Weighted Average Useful Life	Amount
Patents, licenses and software	9.6	$	7,810	9.6	$	65,449
Customer relationships, trademarks and tradenames	9.0		3,220	13.5		78,919
Total		$	11,030		$	144,368

For intangible assets with definite lives, the Company recorded amortization expense of

$24.7

million,

$19.3

million, and

$11.9

million in

2017,

2016,

and

2015,

respectively.

Estimated amortization expense related to intangible assets with definite lives at

December 30, 2017

is as follows:

(in thousands )	Amount
2018	$	25,689
2019		25,528
2020		24,879
2021		23,093
2022		22,058
2023 and thereafter		82,603
	$	203,850

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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