Note 10

3 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Goodwill and 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

December 30, 2017

and

September 30, 2017

are as follows:

	December 30, 2017				September 30, 2017
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	16,628	$	-	$	16,628	$	-
Amortized intangible assets
Non compete agreements		980		302		980		263
Customer relationships		20,510		7,011		20,510		6,476
License and rights		1,690		1,080		1,690		1,058
TOTAL FOOD SERVICE	$	39,808	$	8,393	$	39,808	$	7,797
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	6,557	$	-	$	6,557	$	-
Amortized Intangible Assets
Trade names		649		130		649		130
Customer relationships		7,979		3,022		7,979		2,822
TOTAL RETAIL SUPERMARKETS	$	15,185	$	3,152	$	15,185	$	2,952
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Distribution rights		6,900		-		6,900		-
Amortized intangible assets
Customer relationships		257		56		257		50
Licenses and rights		1,400		811		1,400		794
TOTAL FROZEN BEVERAGES	$	17,872	$	867	$	17,872	$	844
CONSOLIDATED	$	72,865	$	12,412	$	72,865	$	11,593

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. In last year’s fiscal year, intangible assets of

$6,957,000

were acquired in an ICEE distributor acquisition in our frozen beverage segment, intangible assets of

$15,760,000

were acquired in the Hill & Valley acquisition in our food service segment and intangible assets fo

$576,000

were acquired in the Labriola Baking acquisition, also in our food service segment. Aggregate amortization expense of intangible assets for the

three

months ended

December 30, 2017

and

December 24, 2016

was

$819,000

and

$1,108,000,

respectively.

Estimated amortization expense for the next

five

fiscal years is approximately

$3,500,000

in

2018,

$3,400,000

in

2019,

$3,000,000

in

2020,

$2,400,000

in

2021

and

$2,300,000

in

2022.

The weighted amortization period of the intangible assets is

10.8

years.

Goodwill

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

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
	(in thousands)
Balance at December 30, 2017	$	61,665	$	3,670	$	37,176	$	102,511
Balance at September 30, 2017	$	61,665	$	3,670	$	37,176	$	102,511

In last year

’s fiscal year, goodwill of

$1,236,000

was acquired in an ICEE distributor acquisition in our frozen beverage segment, goodwill of

$14,175,000

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

$658,000

was acquired in our Labriola Baking acquisition, also in our food service segment.