(6)
Goodwill and Definite-lived Intangibles

Goodwill

In connection with the Company’s assessment of its operating segments, effective during the quarter ended June 30, 2025, the Company determined that its operating segments were also its reporting units and reallocated its PCB goodwill between A&D and Commercial based on the estimated relative fair values of the reporting units. In connection with the reallocation of goodwill, management performed a goodwill impairment assessment for each segment and concluded no impairment indicators existed as of June 30, 2025.

Goodwill by reportable segment was as follows:

 

 

A&D

 

 

Commercial

 

 

RF&S Components

 

 

Total

 

 

 

(In thousands)

 

As of December 29, 2025 and December 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

256,199

 

 

$

382,636

 

 

$

177,200

 

 

$

816,035

 

Accumulated impairment losses

 

 

 

 

 

 

 

 

(145,900

)

 

 

(145,900

)

 Carrying amount

 

$

256,199

 

 

$

382,636

 

 

$

31,300

 

 

$

670,135

 

In the fourth quarter of 2025, the Company performed its annual goodwill impairment test qualitatively and concluded that it was more likely than not that there was no impairment to goodwill.

Definite-lived Intangibles

The components of definite-lived intangibles were as follows:

 

 

 

Gross
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted
Average
Amortization
Period

 

 

 

(In thousands)

 

 

(In years)

 

As of December 29, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

323,500

 

 

$

(189,264

)

 

$

134,236

 

 

 

11.8

 

Technology

 

 

66,650

 

 

 

(45,964

)

 

 

20,686

 

 

 

8.2

 

Total

 

$

390,150

 

 

$

(235,228

)

 

$

154,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

323,500

 

 

$

(161,710

)

 

$

161,790

 

 

 

11.8

 

Technology

 

 

66,650

 

 

 

(36,621

)

 

 

30,029

 

 

 

8.2

 

Total

 

$

390,150

 

 

$

(198,331

)

 

$

191,819

 

 

 

 

Amortization expense was $36,897, $44,892, and $61,576 for the years ended December 29, 2025, December 30, 2024, and January 1, 2024, respectively. For the years ended December 29, 2025, December 30, 2024, and January 1, 2024, $9,343, $9,342, and $12,901, respectively, of amortization expense was included in cost of goods sold.

In connection with the finalization of acquired identifiable intangible asset valuation during the second quarter of 2023 related to the Company's acquisition in 2022 of Telephonics, the Company recorded amortization expense of $24,877 related to the acquired identifiable intangible assets during the year ended January 1, 2024. For the year ended January 1, 2024, $8,850 of amortization expense related to the acquired identifiable intangible assets was included in cost of goods sold.

Estimated aggregate amortization for definite-lived intangible assets for the next five years and thereafter is as follows:

 

 

 

(In thousands)

 

2026

 

$

36,897

 

2027

 

 

34,543

 

2028

 

 

30,997

 

2029

 

 

22,355

 

2030

 

 

18,178

 

Thereafter

 

 

11,952

 

Total

 

$

154,922

 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 27, 2024
2023Mar 3, 2023
2022Mar 1, 2022
2020Feb 22, 2021
2019Feb 26, 2020
2018Feb 26, 2019
2017Feb 24, 2017
2015Feb 25, 2016

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.