Goodwill and Other Intangible Assets

12 Months Ended

Apr. 25, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

In the fourth quarter, we completed our annual impairment test required under the provisions of the Intangibles — Goodwill and Other Topic of the FASB ASC. In addition, we are required to assess the carrying value of our goodwill and other indefinite lived intangible assets annually or whenever circumstances indicate that a decline in the carrying value may have occurred. No such impairment charges were recorded in the years presented on Consolidated Statements of Net Income. The carrying value of goodwill as of the end of fiscal 2014 and fiscal 2013 is $19,634, which is included within the BEF Foods segment. In fiscal 2013, we recognized goodwill related to the purchase of Kettle Creations for $18,067.

Intangible assets consist of Kettle Creations noncompetition agreements that are amortized over a 5-year life and the registered trade names that are not amortized, which are related to the BEF Foods segment. See Note 2 for detail related to the acquisition of Kettle Creations that contributed to the increase in intangible assets in fiscal 2013. Based on our definitive agreement to sell Mimi’s Café to Le Duff for $50,000 subsequent to our third quarter ended January 25, 2013, we determined that indicators of potential impairment were present during the fourth quarter of fiscal 2013. We performed a recoverability test and determined that probability-weighted undiscounted cash flows of the long-lived asset group were less than the carrying amount of the long-lived asset group that resulted in impairing the entire carrying value of Mimi’s Café restaurant concept and business trade name of $39,398. The intangible asset impairment is included in the "Income (loss) from discontinued operations, net of income taxes" line of the Consolidated Statements of Net Income for fiscal year 2013. See Note 3 for detail surrounding the sale and total impairment of Mimi’s Café long-lived assets.

Intangible assets are summarized below:



	BEF Foods
	Business Trade Name ⁽¹⁾		Noncompetition Agreements			Total
April 26, 2013, gross intangible carrying amount	$	—	$	—		$	—
Intangible acquired	2,761		783			3,544
Accumulated amortization	—		(117		)	(117		)
April 26, 2013, net intangible carrying amount	$	2,761	$	666		$	3,427

April 25, 2014, gross intangible carrying amount	$	2,761	$	783		$	3,544
Accumulated amortization	—		(274		)	$	(274	)
April 25, 2014, net intangible carrying amount	$	2,761	$	509		$	3,270


⁽¹⁾	These intangible assets are indefinite-lived

The amortization expense related to these intangible assets was $157 in fiscal 2014 and was $117 in fiscal 2013. Amortization expense related to intangible assets for the next three years is expected to be $157 each year, at which time the Kettle Creations definite-lived noncompetition agreements will be fully amortized.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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