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Note J - Goodwill and Intangible Assets
3 Months Ended
Jun. 27, 2021
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE J - GOODWILL AND INTANGIBLE ASSETS

 

The Company has continued to monitor the economic uncertainty as a result of COVID-19 and has determined that the impact of COVID-19 was a triggering event that required the Company to perform a quantitative interim goodwill impairment test. Based on the quantitative test performed, management determined that the Company’s goodwill has not been impaired as of June 27, 2021 and, as a result, no impairment charge was recorded for the thirteen week periods ended June 27, 2021 and June 28, 2020.

 

The Company’s definite-lived intangible asset consists of trademarks, tradenames and other intellectual property in connection with its Arthur Treacher’s co-branding agreements. The Company reviews its definite-lived intangible asset for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company determined that the impact of COVID-19 on its business was a sufficient indicator that the carrying value may not be recoverable. The Company tested for recoverability of its definite-lived intangible asset based on the projected undiscounted cash flows to be derived from such co-branding agreements, which has a remaining useful life based upon the term of its agreements. Based on the quantitative test performed, the Company determined that the definite-lived intangible asset was recoverable and no impairment charge was recorded for the thirteen week periods ended June 27, 2021 and June 28, 2020.