Sleep Number Corp Goodwill & Intangibles Disclosure
(5) Goodwill and Intangible Assets, Net
Goodwill and Indefinite-Lived Intangible Assets
Goodwill was $64 million at December 28, 2019 and December 29, 2018. Indefinite-lived trade name/trademarks totaled $1.4 million at December 28, 2019 and December 29, 2018.
Definite-Lived Intangible Assets
The gross carrying amount of our developed technologies was $19 million at December 28, 2019 and December 29, 2018. Accumulated amortization was $11 million and $9 million at December 28, 2019 and December 29, 2018, respectively.
Amortization expense in 2019, 2018 and 2017 for definite-lived intangible assets was $2 million, $2 million and $3 million, respectively. Annual amortization for definite-lived intangible assets for subsequent years are as follows (in thousands):
|
2020 |
|
$ |
2,213 |
|
|
2021 |
|
|
2,181 |
|
|
2022 |
|
|
2,181 |
|
|
2023 |
|
|
1,209 |
|
|
2024 |
|
|
— |
|
|
Thereafter |
|
|
— |
|
|
Total future amortization for definite-lived intangible assets |
|
$ |
7,784 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2019 | Feb 25, 2020 | Showing above |
| 2016 | Feb 24, 2017 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.