Goodwill

6 Months Ended

Jun. 25, 2022

Goodwill.

Goodwill

5. Goodwill

Changes in the carrying value of Goodwill during the 26 weeks ended June 25, 2022 were as follows:

(In thousands)	Goodwill
Balance as of December 25, 2021		437,451
Impairment		(42,052)
Balance as of June 25, 2022	$	395,399

For the 13 weeks ended June 25, 2022, the Company identified the underperformance of the Birch Benders reporting unit as an indicator that required a quantitative assessment to be performed. The Company compared the estimated fair value of the Birch Benders reporting unit to the carrying value of its assets and liabilities, including goodwill. The fair value was established using generally accepted valuation methodologies, including discounted cash flow analysis and comparable public company analysis, both methods weighted equally. It was determined that the carrying value of the goodwill exceeded the Company’s estimate of the implied fair value of goodwill. As a result, the Company recorded an impairment charge for the full amount of goodwill, $42.1 million, for the 13 weeks ended June 25, 2022.

There were no impairment charges related to goodwill during the 13 weeks or 26 weeks ended June 26, 2021.