Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies Goodwill (Tables)

v3.19.1
Summary of Significant Accounting Policies Goodwill (Tables)
12 Months Ended
Dec. 29, 2018
Goodwill [Line Items]  
Goodwill Disclosure [Text Block]
The Company has adopted ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If, after assessing the totality of events or circumstances, we determine that the fair value of a reporting unit is less than the carrying value, then we would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.
The Company’s annual impairment assessment is performed for its reporting units as of October 1. An independent appraiser assessed the value of the reporting units based on a discounted cash flow model and multiple of earnings. Assumptions critical to our fair value estimates under the discounted cash flow model include the discount rate, projected average revenue growth and projected long-term growth rates in the determination of terminal values. The results of the quantitative assessment in 2018, 2017, and 2016 indicated that the fair value of each reporting unit was in excess of its carrying value.
No impairment charges were recorded in the years ended December 29, 2018, December 30, 2017, or December 31, 2016.
Goodwill amounts by reporting unit are summarized as follows:
 
Goodwill at
 
 
 
 
 
 
 
Goodwill at
 
December 30, 2017
 
Acquisitions(1) 
 
Dispositions
 
Other(2)
 
December 29, 2018
United States (excl. recent acquisitions)
$
577,556

 
$

 
$

 
$

 
$
577,556

ST Fastening Systems
8,881

 

 

 
164

 
9,045

MinuteKey

 
58,289

 

 

 
58,289

Big Time Products

 
127,323

 

 

 
127,323

Canada (excl. recent acquisitions)
30,372

 

 

 
(2,434
)
 
27,938

MinuteKey Canada

 

 

 

 

Big Time Products Canada

 

 

 

 

Mexico (excl. recent acquisitions)
3,694

 

 

 
2

 
3,696

Big Time Products Mexico

 

 

 

 

Total
$
620,503

 
$
185,612

 
$

 
$
(2,268
)
 
$
803,847


(1)
See Note 5 - Acquisitions for additional information regarding the MinuteKEY and Big Time Products acquisitions.
(2)
The "Other" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada and Mexico reporting units and adjustments to the opening balance sheet for the acquisition of ST Fastening Systems ("STFS"). STFS was acquired in the fourth quarter of 2017.
Summary of Goodwill Amounts by Reporting Unit
Goodwill amounts by reporting unit are summarized as follows:
 
Goodwill at
 
 
 
 
 
 
 
Goodwill at
 
December 30, 2017
 
Acquisitions(1) 
 
Dispositions
 
Other(2)
 
December 29, 2018
United States (excl. recent acquisitions)
$
577,556

 
$

 
$

 
$

 
$
577,556

ST Fastening Systems
8,881

 

 

 
164

 
9,045

MinuteKey

 
58,289

 

 

 
58,289

Big Time Products

 
127,323

 

 

 
127,323

Canada (excl. recent acquisitions)
30,372

 

 

 
(2,434
)
 
27,938

MinuteKey Canada

 

 

 

 

Big Time Products Canada

 

 

 

 

Mexico (excl. recent acquisitions)
3,694

 

 

 
2

 
3,696

Big Time Products Mexico

 

 

 

 

Total
$
620,503

 
$
185,612

 
$

 
$
(2,268
)
 
$
803,847


(1)
See Note 5 - Acquisitions for additional information regarding the MinuteKEY and Big Time Products acquisitions.
(2)
The "Other" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada and Mexico reporting units and adjustments to the opening balance sheet for the acquisition of ST Fastening Systems ("STFS"). STFS was acquired in the fourth quarter of 2017.