Hillman Solutions Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill amounts by operating segment are summarized as follows:



	Goodwill at		Acquisitions		Dispositions		Other⁽¹⁾		Goodwill at
	December 29, 2018		Acquisitions		Dispositions		Other⁽¹⁾		June 29, 2019
United States	$	772,213	$	—	$	—	$	921	$	773,134
Canada	27,938		—		—		1,176		29,114
Other	3,696		—		—		87		3,783
Total	$	803,847	$	—	$	—	$	2,184	$	806,031


(1)	These amounts relate to adjustments resulting from fluctuations in foreign currency exchange rates and adjustments to the opening balance sheet for the acquisitions of MinuteKey and Big Time Products. These acquisitions were completed in the third and fourth quarters of 2018, respectively.

Other intangibles, net, as of June 29, 2019 and December 29, 2018 consist of the following:



	Estimated Useful Life (Years)	June 29, 2019		December 29, 2018
Customer relationships	13-20	$	941,197	$	939,880
Trademarks - Indefinite	Indefinite	85,500		85,228
Trademarks - Other	5-15	26,700		26,700
Technology and patents	7-12	49,437		55,394
Intangible assets, gross		1,102,834		1,107,202
Less: Accumulated amortization		202,561		176,677
Other intangibles, net		$	900,273	$	930,525

The amortization expense for amortizable assets including the adjustments resulting from fluctuations in foreign currency exchange rates was $14,684 and $29,449 for the thirteen and twenty-six weeks ended June 29, 2019, respectively. Amortization expense for the thirteen and twenty-six weeks ended June 30, 2018 was $9,712 and $19,435, respectively.

The Company tests goodwill and indefinite-lived intangible assets for impairment annually. Impairment is also tested when events or changes in circumstances indicate that the carrying values of the assets may be greater than their fair values. During the thirteen and twenty-six weeks ended June 29, 2019 and the thirteen and twenty-six weeks ended June 30, 2018, the Company did not adjust goodwill to fair values as a result of any impairment analyses. In the thirteen and twenty-six weeks ended June 29, 2019, the Company recorded an impairment charge of $2,125 related to the loss on the disposal of our FastKey self-service key duplicating kiosks and related intangible assets. There were no such impairment charges taken in the thirteen and twenty-six weeks ended June 30, 2018.