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Goodwill
9 Months Ended
Dec. 29, 2019
Goodwill  
Goodwill

Note 3. Goodwill

 

During the third quarter of fiscal 2020, the Company recorded $2.6 million of non-cash goodwill impairment. Due to the lower than expected results through the first nine months of fiscal 2020, the Company performed an interim quantitative goodwill impairment assessment, which included an analysis of new information related to macroeconomic, industry and company specific events and trends. During this analysis, the Company determined that potential impairment indicators existed related to the retail segment based on the continued decline in sales and profitability in the retail segment, including the transition of the Company’s largest retail customer during the first quarter of fiscal 2020. The Company conducted a quantitative impairment analysis using various valuation techniques, with the primary technique being a discounted cash flow or income approach, under which the Company estimated the present value of the report unit’s future cash flows.