Note 12 - Goodwill and Intangible Assets

9 Months Ended

Jun. 28, 2025

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 12 Goodwill and Intangible Assets

Intangible Assets

Our reportable segments are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverages segments as of June 28, 2025 and September 28, 2024 are as follows:

	June 28, 2025				September 28, 2024
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade names	$	85,424	$	-	$	85,424	$	-
Amortized intangible assets
Trade names		2,515		2,515		4,024		1,006
Franchise agreements		8,500		2,550		8,500		1,913
Customer relationships		23,550		14,151		23,550		12,369
Technology		23,110		6,920		23,110		5,170
License and rights		1,690		1,713		1,690		1,650
TOTAL FOOD SERVICE	$	144,789	$	27,849	$	146,298	$	22,108
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade names	$	11,938	$	-	$	11,938	$	-
TOTAL RETAIL SUPERMARKETS	$	11,938	$	-	$	11,938	$	-
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		36,100		-		36,100		-
Amortized intangible assets
Customer relationships		1,439		937		1,439		844
Licenses and rights		1,400		1,334		1,400		1,282
TOTAL FROZEN BEVERAGES	$	48,254	$	2,271	$	48,254	$	2,126
CONSOLIDATED	$	204,981	$	30,120	$	206,490	$	24,234

In connection with our quarterly triggering event analysis, we performed an impairment assessment for our amortizing trade name and determined that the carrying amount of the trade name exceeded its fair value as of June 28, 2025. As a result, the Company recorded an intangible asset impairment charge of $1.5 million in the third quarter of 2025. The intangible asset impairment charge is reflected in Intangible asset impairment charges in the Consolidated Statements of Earnings. The $1.5 million intangible asset impairment charge related to trade names in the Food Service segment.

Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 10 to 20 years and amortization expense is reflected throughout operating expenses. Aggregate amortization expense of intangible assets for the three months ended June 28, 2025 and June 29, 2024 was $1.9 million and $2.0 million, respectively. Aggregate amortization expense of intangible assets for the nine months ended June 28, 2025 and June 29, 2024 was $5.9 million and $5.2 million, respectively.

Estimated amortization expense for the next five fiscal years is approximately $1.4 million in 2025 (excluding the nine months ended June 28, 2025), $5.6 million in 2026, $4.7 million in 2027, and $4.3 million in both 2028 and 2029.

The weighted amortization period of the intangible assets, in total, is 10.0 years. The weighted amortization period by intangible asset class is 10 years for Technology, 10 years for Customer relationships, 20 years for Licenses & rights, and 10 years for Franchise agreements.

Goodwill          

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	June 28,		September 28,
	2025		2024
	(in thousands)
Food Service	$	124,426	$	124,426
Retail Supermarket		4,146		4,146
Frozen Beverages		56,498		56,498
Total goodwill	$	185,070	$	185,070