XML 41 R13.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and Intangible Assets
12 Months Ended
Mar. 28, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6.

Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At March 28, 2020 and March 30, 2019, the Company had goodwill of $173.5 million and $173.4 million, respectively. The change in the goodwill balance during the period was a result of the finalization of the purchase price allocation related to the Exchange. Goodwill is allocated to reporting units included in the U.S. Factory-built Housing segment, which include the Company’s U.S. manufacturing and retail operations.

Intangible Assets

The components of amortizable intangible assets were as follows:

(Dollars in thousands)

 

March 28, 2020

 

 

March 30, 2019

 

 

 

Customer

Relationships

 

 

Trade

Names

 

 

Total

 

 

Customer

Relationships

 

 

Trade

Names

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

48,370

 

 

$

13,068

 

 

$

61,438

 

 

$

48,782

 

 

$

13,173

 

 

$

61,955

 

Accumulated amortization

 

 

(13,118

)

 

 

(4,963

)

 

 

(18,081

)

 

 

(9,052

)

 

 

(3,967

)

 

 

(13,019

)

Amortizable intangibles, net

 

$

35,252

 

 

$

8,105

 

 

$

43,357

 

 

$

39,730

 

 

$

9,206

 

 

$

48,936

 

Weighted average remaining amortization period, in years

 

 

7.3

 

 

 

6.2

 

 

 

7.1

 

 

 

8.2

 

 

 

7.1

 

 

 

8.0

 

 

The Company recognized customer relationships of $43.1 million and trade names of $9.0 million related to the Exchange. The fair value of the customer relationship intangible asset was estimated using the multi-period excess earnings method of the income approach. The fair value of the customer relationship intangible asset was determined based on estimates and assumptions of projected cash flows attributable to the acquired customer relationships, the annual attrition rate of existing customer relationships, the contributory asset charges attributable to the assets that support the customer relationships, such as: (i) net working capital; (ii) property, plant, and equipment; (iii) trade names; and (iv) workforce, with the economic life and the discount rate as determined at the time of the final valuation. The fair value of the trade names intangible asset was estimated using the relief-from-royalty method of the income approach. The fair value of the trade names intangible asset was determined based on estimates and assumptions of the expected life of the intangible asset, the royalty rate, and the discount rate that reflects the level of risk associated with the future cash flows, as determined at the time of the final valuation.

 

 

Amortization of intangible assets for the fiscal years ended March 28, 2020, March 30, 2019, and March 31, 2018 was $5.4 million, $4.8 million, and $0.5 million respectively. Estimated amortization expense of intangible assets over the next five years is estimated to be (dollars in thousands):

 

Fiscal 2021

 

$

5,443

 

Fiscal 2022

 

 

5,443

 

Fiscal 2023

 

 

5,326

 

Fiscal 2024

 

 

5,278

 

Fiscal 2025

 

 

5,278