Goodwill and Other Intangible Assets

12 Months Ended

Jul. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

5.	Goodwill and Other Intangible Assets

The Company recorded additions to goodwill in connection with its acquisitions. The following table presents the changes in the carrying amount of goodwill:


(In millions)	Performance Foodservice		PFG Customized		Vistar		Other		Total
Balance as of June 28, 2014	$	405.2	$	166.5	$	53.0	$	39.2	$	663.9
Acquisitions—current year		0.1		—		—		—		0.1

Balance as of June 27, 2015		405.3		166.5		53.0		39.2		664.0
Acquisitions—current year		—		—		10.0		—		10.0

Balance as of July 2, 2016	$	405.3	$	166.5	$	63.0	$	39.2	$	674.0

The following table presents the Company’s intangible assets by major category as of July 2, 2016 and June 27, 2015:


	As of July 2, 2016							As of June 27, 2015
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net		Range of Lives
Intangible assets with definite lives:
Customer relationships	$	394.6	$	(317.3	)	$	77.3	$	379.9	$	(293.9	)	$	86.0		4 – 11 years
Trade names and trademarks		90.9		(81.1	)		9.8		90.9		(68.4	)		22.5		4 – 9 years
Deferred financing costs		44.2		(32.7	)		11.5		37.3		(29.2	)		8.1		Debt term
Non-compete		14.9		(10.9	)		4.0		11.9		(9.0	)		2.9		2 – 5 years
Leases		12.5		(5.3	)		7.2		12.5		(4.6	)		7.9		Lease term
Technology		26.1		(26.1	)		—		26.1		(26.0	)		0.1		5 – 7 years

Total intangible assets with definite lives	$	583.2	$	(473.4	)	$	109.8	$	558.6	$	(431.1	)	$	127.5

Intangible assets with indefinite lives:
Goodwill	$	674.0	$	—		$	674.0	$	664.0	$	—		$	664.0		Indefinite
Trade names		39.5		—			39.5		39.5		—			39.5		Indefinite

Total intangible assets with indefinite lives	$	713.5	$	—		$	713.5	$	703.5	$	—		$	703.5

As discussed in Note 3—Recently Issued Accounting Pronouncements, the Company early adopted ASU 2015-03 during the fourth quarter of fiscal 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2016 presentation. As a result, $19.9 million of net deferred financing costs related to the Term Facility was reclassified from Other intangible assets, net to Long-term debt in our Consolidated Balance Sheets at June 27, 2015. The amortization expense below excludes $4.5 million amortization expense for both fiscal 2015 and fiscal 2014 related to deferred financing costs reclassified to Long-term debt as a result of adopting ASU 2015-03. The remaining balance of deferred financing costs within Other intangible assets, net relates to the Company’s ABL Facility entered into in May 2008.

For the intangible assets with definite lives, the Company recorded amortization expense of $42.3 million for fiscal 2016, $50.0 million for fiscal 2015, and $64.1 million for fiscal 2014. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:


(In millions)
2017	$	29.9
2018		18.0
2019		16.9
2020		13.3
2021		12.1
Thereafter		19.6

Total amortization expense	$	109.8

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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