Note 10

6 Months Ended

Mar. 25, 2017

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 10 Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of

March

25,

2017

and

September

24,

2016

are as follows:

	March 25, 2017				September 24, 2016
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	16,240	$	-	$	14,150	$	-
Amortized intangible assets
Non compete agreements		852		147		122		93
Customer relationships		49,491		33,415		35,491		31,895
License and rights		1,690		1,017		1,690		974
TOTAL FOOD SERVICE	$	68,273	$	34,579	$	51,453	$	32,962
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	6,557	$	-	$	7,206	$	-
Amortized Intangible Assets
Trade Names		649		65		-		-
Customer relationships		7,979		2,422		7,979		2,021
TOTAL RETAIL SUPERMARKETS	$	15,185	$	2,487	$	15,185	$	2,021
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Customer relationships		200		38		200		28
Licenses and rights		1,400		759		1,400		723
TOTAL FROZEN BEVERAGES	$	10,915	$	797	$	10,915	$	751
CONSOLIDATED	$	94,373	$	37,863	$	77,553	$	35,734

Fully amortized intangible assets were removed from the above table during the current quarter for

March

25,

2017

and

September

24,2016.

Trade names of

$649,000

that were classified as indefinite lived intangible assets at

September

24,

2016

were reclassified to amortized intangible assets at

March

25,

2017

because of our current expectation that moderately declining product sales under that trade name are likely to continue. We have assigned a finite life of

five

years to that trade name.

Amortized intangible assets are being amortized by the straight-line method over periods ranging from

3

to

20

years and amortization expense is reflected throughout operating expenses. Intangible assets of

$16,820,000

were acquired in the

three

and

six

months ended

March

25,

2017

in the Hill & Valley acquisition in our food service segment. There were

no

intangible assets acquired in the

six

months ended

March

26,

2016.

Aggregate amortization expense of intangible assets for the

three

months ended

March

25,

2017

and

March

26,

2016

was

$1,021,000

and

$1,328,000,

respectively and for the

six

months ended

March

25,

2017

and

March

26,

2016

was

$2,129,000

and

$2,657,000,

respectively.

Estimated amortization expense including the estimated impact from the Hill & Valley purchase described in Note

13

for the next

five

fiscal years is approximately

$3,900,000

in

2017,

$3,500,000

in

2018,

$3,400,000

in

2019,

$3,200,000

in

2020

and

$2,500,000

in

2021.

The weighted average amortization period of the intangible assets is

10.6

years.

Goodwill 

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	Food Service		Retail Supermarket		Frozen Beverages		Total
	(in thousands)
Balance at March 25, 2017	$	60,365	$	3,670	$	35,940	$	99,975
Balance at September 24, 2016	$	46,832	$	3,670	$	35,940	$	86,442

Goodwill of

$13,533,360

was acquired in the Hill & Valley acquisition in our food service segment in the

three

and

six

months ended

March

25,

2017

and

no

n

e was acquired in the

three

and 

six

months ended

March

26,

2016.