Goodwill, Trademarks and Other Intangibles

3 Months Ended

Mar. 26, 2016

Goodwill, Trademarks, and Other Intangible Assets

Goodwill, Trademarks and Other Intangibles

4.Goodwill, Trademarks and Other Intangibles

Goodwill, trademarks and other intangibles, net, consisted of the following as of March 26, 2016 and December 26, 2015 (in thousands):

	Estimated Useful Life	March 26, 2016			December 26, 2015
Goodwill:
Inventure Foods		$	5,986		$	5,986
Rader Farms		5,630			5,630
Willamette Valley Fruit Company		3,147			3,147
Fresh Frozen Foods		8,301			8,301
Sin In A Tin		222			222

Total Goodwill		$	23,286		$	23,286


Trademarks:
Inventure Foods		$	896		$	896
Rader Farms		1,070			1,070
Willamette Valley Fruit Company		740			740
Fresh Frozen Foods		9,475			9,475
Sin In A Tin		123			123

Other intangibles:
Rader Farms - Customer relationship, gross carrying amount	10 years	100			100
Rader Farms - Customer relationship, accum. amortization		(88		)	(86		)
Willamette Valley Fruit Company - Customer relationship, gross carrying amount	10 years	3,200			3,200
Willamette Valley Fruit Company - Customer relationship, accum. amortization		(880		)	(800		)

Total trademarks and other intangibles, net		$	14,636		$	14,718

Our amortization expense related to these intangibles was $82,000 and $0.3 million for the quarters ended March 26, 2016 and March 28, 2015, respectively. The trademarks are deemed to have an indefinite useful life because they are expected to generate cash flows indefinitely.

Goodwill and trademarks are reviewed for impairment annually in the fourth fiscal quarter, or more frequently if impairment indicators arise. As a result of the product recall (See “Note 2 - Product Recall”), the Company reviewed the Fresh Frozen Foods goodwill and intangible assets for impairment as of March 28, 2015. Our analysis included a review of the forecasted future cash flows of the Fresh Frozen business, including the estimated cash outflows directly related to the product recall. Based on our review, we concluded that the intangible asset related to the acquired customer relationships of Fresh Frozen Foods was fully impaired. Accordingly, the Company recorded an intangible asset impairment charge of $9.3 million, which represents the unamortized balance as of March 28, 2015. We believe the carrying values of our remaining goodwill and intangible assets are appropriate as of March 26, 2016.

- 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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