Goodwill and Other Intangible Assets

12 Months Ended

Dec. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill as of the years ended 2013 and 2012 by reportable segment are as follows (in thousands):



	Envelope		Print			Label and Packaging			Total
Balance as of the year ended 2011	$	23,433	$	45,814		$	117,575		$	186,822
Acquisitions, net	—		644			—			644
Foreign currency translation	—		(191		)	140			(51		)
Balance as of the year ended 2012	23,433		$	46,267		$	117,715		$	187,415
Acquisitions, net	—		—			92			92
Foreign currency translation	—		(691		)	(380		)	(1,071		)
Balance as of the year ended 2013	$	23,433	$	45,576		$	117,427		$	186,436

The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. The Company's valuation of all of its reporting units was performed using the income approach in which the Company utilized a discounted cash flow analysis to determine the present value of expected future cash flows of each reporting unit. The Company performed a market approach analysis in order to support the reasonableness of the fair value determined under the income approach.

The estimated fair value for each of the Company's reporting units, as of the year ended 2013, exceeded the respective carrying values of each reporting unit. As a result, it was concluded that the goodwill assigned to each reporting unit, as of December 28, 2013, was not impaired. Additionally, there were no goodwill impairments recorded in the years ended 2012 and 2011.

Other intangible assets are as follows (in thousands):



		2013										2012
	Weighted Average Remaining Amortization Period (Years)	Gross Carrying Amount		Accumulated Impairment Charges			Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment Charges			Accumulated Amortization			Net Carrying Amount
Intangible assets with definite lives:
Customer relationships	9	$	144,898	$	(27,234	)	$	(53,682	)	$	63,982	$	159,296	$	(27,234	)	$	(62,055	)	$	70,007
Trademarks and trade names	20	77,754		(55,367		)	(6,734		)	15,653		20,701		—			(5,938		)	14,763
Leasehold interest	19	3,780		—			(55		)	3,725		—		—			—			—
Patents	10	3,528		—			(3,039		)	489		3,528		—			(2,839		)	689
Non-compete agreements		140		—			(140		)	—		510		—			(510		)	—
Subtotal	12	230,100		(82,601		)	(63,650		)	83,849		184,035		(27,234		)	(71,342		)	85,459

Intangible assets with indefinite lives:
Trademarks		84,900		—			—			84,900		141,740		(22,000		)	—			119,740
Total		$	315,000	$	(82,601	)	$	(63,650	)	$	168,749	$	325,775	$	(49,234	)	$	(71,342	)	$	205,199

Annual amortization expense of intangible assets for the next five years is estimated to be as follows (in thousands):



	Annual Estimated Expense
2014	$	11,855
2015	9,707
2016	7,857
2017	7,265
2018	7,143

Sale of Intangible Asset

In 2012, the Company received proceeds of $5.7 million related to the buyout of a royalty agreement by a third party and certain other intellectual property. Prior to its sale, the royalty agreement was accounted for as an intangible asset in the Company's consolidated balance sheet. As a result of these transactions, the Company recorded a gain of $2.8 million in other (income) expense, net in its consolidated statement of operations.

Asset Impairments

During the fourth quarter of 2013, the Company made the decision to retire certain trade names during 2014 as a result of rebranding the Company's print and packaging business lines. Accordingly, based on its evaluation using a relief from royalty and other discounted cash flow methodologies, the Company concluded that those trade name assets were impaired. An impairment charge of $33.4 million was recorded to reduce their carrying value to their estimated fair value. Those trade names have a remaining carrying value of $1.9 million as of the year ended 2013, which will be amortized over their remaining useful life of less than one year. There were no intangible asset impairments in the years ended 2012 or 2011.

- 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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