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Goodwill and Other Intangible Assets
 12 Months Ended
Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The Company recorded additions to goodwill in connection with its acquisitions. The goodwill is a result of expected synergies from combined operations of the acquisitions and the Company. Goodwill as of July 3, 2021 and June 27, 2020 has been restated to reflect changes to the Company operating segments, as discussed further in Note 19. Segment Information. The following table presents the changes in the carrying amount of goodwill:

 

(In millions)

 

Foodservice

 

 

Vistar

 

 

Convenience

 

 

Other

 

 

Total

 

Balance as of June 27, 2020

 

$

1,202.9

 

 

$

90.0

 

 

$

20.9

 

 

$

39.2

 

 

$

1,353.0

 

Acquisitions

 

 

—

 

 

 

3.9

 

 

 

—

 

 

 

1.3

 

 

 

5.2

 

Adjustments related to prior year acquisition (1)

 

 

(3.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.5

)

Balance as of July 3, 2021

 

 

1,199.4

 

 

 

93.9

 

 

 

20.9

 

 

 

40.5

 

 

 

1,354.7

 

Acquisitions—current year

 

 

61.3

 

 

 

—

 

 

 

863.2

 

 

 

—

 

 

 

924.5

 

Balance as of July 2, 2022

 

$

1,260.7

 

 

$

93.9

 

 

$

884.1

 

 

$

40.5

 

 

$

2,279.2

 

 

 

(1)
The fiscal 2021 adjustment related to prior year acquisition is the result of net working capital adjustments.

The following table presents the Company’s intangible assets by major category as of July 2, 2022 and July 3, 2021:

 

 

 

As of July 2, 2022

 

 

As of July 3, 2021

(In millions)

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

 

Range of
Lives

Intangible assets with definite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

1,562.1

 

 

$

(659.8

)

 

$

902.3

 

 

$

1,154.1

 

 

$

(541.7

)

 

$

612.4

 

 

4 – 12 years

Trade names and trademarks

 

 

458.2

 

 

 

(220.4

)

 

 

237.8

 

 

 

298.6

 

 

 

(160.5

)

 

 

138.1

 

 

4 – 9 years

Deferred financing costs

 

 

73.2

 

 

 

(53.3

)

 

 

19.9

 

 

 

61.1

 

 

 

(48.9

)

 

 

12.2

 

 

Debt term

Non-compete

 

 

38.1

 

 

 

(36.0

)

 

 

2.1

 

 

 

38.1

 

 

 

(32.5

)

 

 

5.6

 

 

2 – 5 years

Technology

 

 

36.2

 

 

 

(28.3

)

 

 

7.9

 

 

 

29.2

 

 

 

(26.7

)

 

 

2.5

 

 

5 – 8 years

Total intangible assets with definite lives

 

$

2,167.8

 

 

$

(997.8

)

 

$

1,170.0

 

 

$

1,581.1

 

 

$

(810.3

)

 

$

770.8

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

2,279.2

 

 

$

—

 

 

$

2,279.2

 

 

$

1,354.7

 

 

$

—

 

 

$

1,354.7

 

 

Indefinite

Trade names

 

 

25.6

 

 

 

—

 

 

 

25.6

 

 

 

25.6

 

 

 

—

 

 

 

25.6

 

 

Indefinite

Total intangible assets with indefinite lives

 

$

2,304.8

 

 

$

—

 

 

$

2,304.8

 

 

$

1,380.3

 

 

$

—

 

 

$

1,380.3

 

 

 

 

For the intangible assets with definite lives, the Company recorded amortization expense of $187.5 million for fiscal 2022, $130.4 million for fiscal 2021, and $100.1 million for fiscal 2020. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:

 

(In millions)

 

 

 

2023

 

$

174.7

 

2024

 

 

167.8

 

2025

 

 

161.4

 

2026

 

 

157.0

 

2027

 

 

101.5

 

Thereafter

 

 

407.6

 

Total amortization expense

 

$

1,170.0