Note 12 - Goodwill and Intangible Assets

6 Months Ended

Mar. 25, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 12 Goodwill and Intangible Assets

Our 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 Beverages segments as of March 25, 2023 and September 24, 2022 are as follows:

	March 25, 2023				September 24, 2022
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade names	$	85,872	$	-	$	85,872	$	-
Amortized intangible assets
Non-compete agreements		-		-		670		670
Franchise agreements		8,500		638		8,500		212
Customer relationships		22,900		9,044		22,900		7,790
Technology		23,110		1,735		23,110		576
License and rights		1,690		1,523		1,690		1,481
TOTAL FOOD SERVICE	$	142,072	$	12,940	$	142,742	$	10,729
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade names	$	11,938	$	-	$	11,938	$	-
Amortized intangible Assets
Trade names		-		-		649		649
Customer relationships		7,688		6,871		7,907		6,693
TOTAL RETAIL SUPERMARKETS	$	19,626	$	6,871	$	20,494	$	7,342
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		36,100		-		36,100		-
Amortized intangible assets
Customer relationships		1,439		617		1,439		545
Licenses and rights		1,400		1,177		1,400		1,142
TOTAL FROZEN BEVERAGES	$	48,254	$	1,794	$	48,254	$	1,687
CONSOLIDATED	$	209,952	$	21,605	$	211,490	$	19,758

Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses. Aggregate amortization expense of intangible assets for the three months ended March 25, 2023 and March 26, 2022 was $1.7 million and $0.6 million, respectively. Aggregate amortization expense of intangible assets for the six months ended March 25, 2023 and March 26, 2022 was $3.4 million and $1.2 million, respectively.

Estimated amortization expense for the next five fiscal years is approximately $3.3 million in 2023 (excluding the six months ended March 25, 2023), $6.2 million in 2024, $5.6 million in 2025, and 2026, and $4.6 million in 2027.

The weighted amortization period of the intangible assets, in total, is 10.4 years. The weighted amortization period by intangible asset class is 10 years for Technology, 10 years for Customer relationships, 20 years for Licenses & rights, and 10 years for Franchise agreements.

Goodwill

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

Goodwill and Intangible Assets

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
			(in thousands)
March 25, 2023	$	124,426	$	4,146	$	56,498	$	185,070
September 24, 2022	$	123,776	$	4,146	$	56,498	$	184,420