Goodwill, Customer Relationships, Finite-Lived and Indefinite-Lived Trademarks, and Other Intangible Assets

4 Months Ended

Apr. 19, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Customer Relationships, Finite-Lived and Indefinite-Lived Trademarks, and Other Intangible Assets

8. GOODWILL, CUSTOMER RELATIONSHIPS, FINITE-LIVED AND INDEFINITE-LIVED TRADEMARKS, AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill during the sixteen weeks ended April 19, 2025, during which time we completed the acquisition of Simple Mills, are as follows (amounts in thousands):

	Total
Balance as of December 28, 2024	$	679,896
Acquisition (see Note 5, Acquisition)		386,887
Balance as of April 19, 2025	$	1,066,783

On February 21, 2025, the company completed the acquisition of Simple Mills for total consideration of approximately $848.5 million. The acquisition included an amortizable intangible asset of $173.1 million and is included in the customer relationships line in the table below. See Note 5, Acquisition, for details of the assets and the respective amortization period by category.

As of April 19, 2025 and December 28, 2024, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):

	April 19, 2025						December 28, 2024
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	481,715	$	127,002	$	354,713	$	481,715	$	122,432	$	359,283
Customer relationships		513,321		206,505		306,816		340,221		200,549		139,672
Non-compete agreements		5,454		5,304		150		5,454		5,281		173
Distributor relationships		4,123		4,014		109		4,123		3,982		141
Total	$	1,004,613	$	342,825	$	661,788	$	831,513	$	332,244	$	499,269

Aggregate amortization expense for the sixteen weeks ended April 19, 2025 and April 20, 2024 was as follows (amounts in thousands):

	Amortization Expense
For the sixteen weeks ended April 19, 2025	$	10,581
For the sixteen weeks ended April 20, 2024	$	9,716

Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):

	Amortization of Intangibles
Remainder of 2025	$	30,435
2026	$	41,797
2027	$	39,614
2028	$	37,452
2029	$	34,719

There were $461.4 million and $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at April 19, 2025 and December 28, 2024, respectively. The increase was due to the trademark acquired in the Simple Mills acquisition. These trademarks are classified as indefinite-lived because we believe they are well-established brands with a long history and well-defined markets. We believe these factors support an indefinite life. We perform an annual impairment analysis, or on an interim basis if the facts and circumstances change, to determine if the trademarks are realizing their expected economic benefits.