Goodwill and Other Intangibles

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

Goodwill includes the cost of acquired businesses in excess of the fair value of the tangible and other intangible net assets acquired. Other intangible assets include customer relationships, noncompete agreements, the brand names comprising the Company’s portfolio of exclusive brands, and trademarks. Brand names and trademarks are indefinite-lived intangible assets and, accordingly, are not subject to amortization, but are subject to impairment assessments as described below.

Customer relationships and noncompete agreements are intangible assets with definite lives and are carried at the acquired fair value, less accumulated amortization. Customer relationships and noncompete agreements are amortized over the estimated useful lives (which are 2 to 15 years). Amortization expense was $19 million and $10 million for the 13 weeks ended March 28, 2020 and March 30, 2019, respectively.

Goodwill and other intangibles—net consisted of the following:



	March 28, 2020			December 28, 2019
Goodwill	$	4,728		$	4,728
Other intangibles—net
Customer relationships—amortizable:
Gross carrying amount	$	767		$	789
Accumulated amortization	(112		)	(115		)
Net carrying value	655			674
Noncompete agreements—amortizable:
Gross carrying amount	3			3
Accumulated amortization	(2		)	(2		)
Net carrying value	1			1
Brand names and trademarks—not amortizing	292			292
Total other intangibles—net	$	948		$	967

The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually, or more frequently if events occur that indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, the Company’s policy is to assess for impairment as of the beginning of each fiscal third quarter. For intangible assets with definite lives, the Company

assesses impairment only if events occur that indicate that the carrying amount of an asset may not be recoverable. The Company completed its most recent annual impairment assessment for goodwill and indefinite-lived intangible assets as of June 30, 2019, the first day of the third quarter of fiscal year 2019, with no impairments noted.