XML 26 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Goodwill and Intangible Assets
12 Months Ended
May 29, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The following table presents the changes in goodwill during fiscal 2022 and fiscal 2021 (in thousands):
 20222021
Balance at beginning of year$33,916 $33,916 
Impairment(20,035)— 
Balance at end of year$13,881 $33,916 

We have determined that the Eat Smart, Yucatan Foods, O, and Lifecore are the appropriate reporting units for testing goodwill for impairment. As disclosed in Note 1, an impairment charge of $5.2 million and $2.7 million in O and Yucatan Foods reporting units, respectively, was recorded during the year ended May 31, 2020. As disclosed in Note 1, an impairment charge of $32.1 million and $20.0 million in the Eat Smart and Yucatan Foods reporting units, respectively, was recorded during the year ended May 29, 2022. As of May 29, 2022, the Lifecore reporting unit had $13.9 million of goodwill.
Intangible Assets
As of May 29, 2022 and May 30, 2021, the Company's intangible assets consisted of the following (in thousands):
May 29, 2022May 30, 2021
 Amortization Period
(years)
Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Customer relationships
Lifecore12$3,700 $3,700 $3,700 $3,418 
Yucatan Foods (Curation Foods)1211,000 3,850 11,000 2,750 
Total customer relationships$14,700 $7,550 $14,700 $6,168 
Trademarks/tradenames
Lifecore$4,200 $— $4,200 $— 
O (Curation Foods)500 — 500 — 
Yucatan Foods (Curation Foods)3,700 — 12,400 — 
Total trademarks/tradenames$8,400 $— $17,100 $— 
Total intangible assets$23,100 7,550 $31,800 $6,168 

Amortization expense related to finite-lived intangible assets was $1.4 million, $1.4 million, and $1.5 million in fiscal 2022, 2021 and 2020, respectively.

The amortization expense for each year presented are as follows (in thousands):
Fiscal year 2023$1,100 
Fiscal year 20241,100 
Fiscal year 20251,100 
Fiscal year 20261,100 
Fiscal year 20271,100 
Total$5,500 
As discussed in Note 1, the Company recognized an impairment of the customer relationships in the Curation Foods business segment (in the O reporting unit) of $0.5 million during the year ended May 31, 2020. In addition, the Company recognized an impairment of the trademarks in the Curation Foods business segment for O and Yucatan Foods of $1.1 million and $3.5 million, respectively during the year ended May 31, 2020. As discussed in Note 1, the Company recognized an impairment of the trademarks in the Curation Foods business segment for Yucatan Foods of $8.7 million during the year ended May 29, 2022.