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Goodwill and Other Intangible Assets
12 Months Ended
Jun. 29, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

5.

Goodwill and Other Intangible Assets

The Company recorded additions to goodwill in connection with its acquisitions. The goodwill is a result of expected synergies from combined operations of the acquisitions and the Company. The following table presents the changes in the carrying amount of goodwill:

 

(In millions)

 

Foodservice

 

 

Vistar

 

 

Other

 

 

Total

 

Balance as of July 1, 2017

 

$

614.5

 

 

$

64.9

 

 

$

39.2

 

 

$

718.6

 

Acquisitions—current year

 

 

 

 

 

21.3

 

 

 

 

 

 

21.3

 

Adjustment related to prior year acquisitions

 

 

0.6

 

 

 

 

 

 

 

 

 

0.6

 

Balance as of June 30, 2018

 

 

615.1

 

 

 

86.2

 

 

 

39.2

 

 

 

740.5

 

Acquisitions—current year

 

 

0.6

 

 

 

24.9

 

 

 

-

 

 

 

25.5

 

Adjustment related to prior year acquisitions

 

 

-

 

 

 

(0.2

)

 

 

-

 

 

 

(0.2

)

Balance as of June 29, 2019

 

$

615.7

 

 

$

110.9

 

 

$

39.2

 

 

$

765.8

 

 

The fiscal 2019 and fiscal 2018 adjustments related to prior year acquisitions are the result of net working capital adjustments.

The following table presents the Company’s intangible assets by major category as of June 29, 2019 and June 30, 2018:

 

 

 

As of June 29, 2019

 

 

As of June 30, 2018

(In millions)

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net

 

 

Range of

Lives

Intangible assets with definite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

506.0

 

 

$

(389.5

)

 

$

116.5

 

 

$

477.3

 

 

$

(360.4

)

 

$

116.9

 

 

4 – 11 years

Trade names and trademarks

 

 

123.7

 

 

 

(100.4

)

 

 

23.3

 

 

 

106.0

 

 

 

(95.4

)

 

$

10.6

 

 

4 – 9 years

Deferred financing costs

 

 

51.0

 

 

 

(40.7

)

 

 

10.3

 

 

 

45.5

 

 

 

(38.0

)

 

$

7.5

 

 

Debt term

Non-compete

 

 

35.8

 

 

 

(22.5

)

 

 

13.3

 

 

 

31.2

 

 

 

(17.8

)

 

$

13.4

 

 

2 – 5 years

Leases

 

 

12.5

 

 

 

(7.2

)

 

 

5.3

 

 

 

12.5

 

 

 

(6.6

)

 

$

5.9

 

 

Lease term

Technology

 

 

26.1

 

 

 

(26.1

)

 

 

 

 

 

26.1

 

 

 

(26.1

)

 

 

 

 

5 – 7 years

Total intangible assets with definite lives

 

$

755.1

 

 

$

(586.4

)

 

$

168.7

 

 

$

698.6

 

 

$

(544.3

)

 

$

154.3

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

765.8

 

 

$

 

 

$

765.8

 

 

$

740.5

 

 

$

 

 

$

740.5

 

 

Indefinite

Trade names

 

 

25.6

 

 

 

 

 

 

25.6

 

 

 

39.5

 

 

 

 

 

 

39.5

 

 

Indefinite

Total intangible assets with indefinite lives

 

$

791.4

 

 

$

 

 

$

791.4

 

 

$

780.0

 

 

$

 

 

$

780.0

 

 

 

 

For the intangible assets with definite lives, the Company recorded amortization expense of $42.1 million for fiscal 2019, $33.3 million for fiscal 2018, and $37.7 million for fiscal 2017. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:

 

(In millions)

 

 

 

 

2020

 

$

37.7

 

2021

 

 

37.9

 

2022

 

 

33.9

 

2023

 

 

21.8

 

2024

 

 

16.3

 

Thereafter

 

 

21.1

 

Total amortization expense

 

$

168.7