Goodwill and Intangible Assets

9 Months Ended

Jun. 23, 2012

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6.Goodwill and Intangible Assets

The following represents the change in the carrying amount of goodwill by segment for the thirty-nine weeks ended June 23, 2012 (in thousands):

	SCBU			KBU		CBU		Total
Balance at September 24, 2011	$	314,042		$	72,374	$	402,889	$	789,305
Reassignment of Timothy’s goodwill	(17,063		)			17,063		—
Foreign currency effect	—			—		1,892		1,892
Balance at June 23, 2012	$	296,979		$	72,374	$	421,844	$	791,197

Effective September 25, 2011, Timothy’s is included in the CBU segment.  Prior to September 25, 2011, Timothy’s was included in the SCBU segment.  This resulted in a re-assignment of goodwill of $17.1 million from the SCBU segment to the CBU segment using a relative fair value approach.  The amount of goodwill reassigned was determined based on the relative fair values of Timothy’s and SCBU.

The carrying value of goodwill is reviewed at least annually for possible impairment.  The Company last conducted its annual impairment test of goodwill as of September 24, 2011.  Goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  As a result of the decline in the Company’s share price, the Company assessed whether it was more likely than not the fair value of each reporting unit was less than its carrying amount and determined that it was more likely than not the fair value of each reporting unit was not reduced below its carrying amount.

Indefinite-lived intangible assets included in the CBU operating segment consist of the following (in thousands):

	June 23, 2012		September 24, 2011
Trade names	$	98,283	$	97,824

Intangible Assets Subject to Amortization

Definite-lived intangible assets consist of the following (in thousands):

		June 23, 2012					September 24, 2011
	Useful Life in Years	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Acquired technology	4-10	$	21,610	$	(15,004	)	$	21,609	$	(13,525	)
Customer and roaster agreements	8-11	27,266		(16,021		)	27,259		(13,723		)
Customer relationships	7-16	420,037		(68,296		)	418,901		(40,593		)
Trade names	9-11	37,650		(8,767		)	37,611		(5,919		)
Non-compete agreements	2-5	374		(339		)	374		(324		)
Total		$	506,937	$	(108,427	)	$	505,754	$	(74,084	)

Definite-lived intangible assets are amortized on a straight-line basis over the period of expected economic benefit.  Total amortization expense was $11.5 million and $11.8 million for the thirteen weeks ended June 23, 2012 and June 25, 2011, respectively.  Total amortization expense was $34.5 million and $29.6 million for the thirty-nine weeks ended June 23, 2012 and June 25, 2011, respectively.

The estimated aggregate amortization expense for the remainder of fiscal 2012, for each of the next five years and thereafter, is as follows (in thousands):

Remainder of 2012	$	11,350
2013	$	45,387
2014	$	44,761
2015	$	43,215
2016	$	42,510
2017	$	41,114
Thereafter	$	170,173