Goodwill, Trademarks and Other Intangibles

12 Months Ended

Dec. 31, 2016

Goodwill, Trademarks, and Other Intangible Assets

Goodwill, Trademarks and Other Intangibles

4. Goodwill, Trademarks, and Other Intangible Assets

Goodwill, trademarks and other intangibles, net, consisted of the following as of December 31, 2016 and December 26, 2015 (in thousands):


	Estimated	December 31,		December 26,
	Useful Life	2016		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
Sin In A Tin			222		222
Goodwill		$	14,985	$	23,286

Trademarks:
Inventure Foods		$	896	$	896
Rader Farms			1,070		1,070
Willamette Valley Fruit Company			740		740
Fresh Frozen Foods			2,330		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			(96)		(86)
Willamette Valley Fruit Company - Customer relationship, gross carrying amount	10 years		3,200		3,200
Willamette Valley Fruit Company - Customer relationship, accum. amortization			(1,120)		(800)
Trademarks and other intangibles, net		$	7,243	$	14,718

The trademarks, except for the Fresh Frozen Foods trademark, are deemed to have an indefinite useful life because they are expected to generate cash flows indefinitely. At December 31, 2016, in connection with the annual impairment test of the Fresh Frozen Foods trademark, it was determined that this trademark has a definite live of ten years. Therefore starting on January 1, 2017 the Fresh Frozen Foods trademark will be amortized over a ten year term. Amortization expense was $0.3 million, $0.5 million and $1.2 million for the fiscal years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively. As of December 31, 2016, we expect amortization expense on these intangible assets over the next five years to be as follows (in thousands):


	Amortization
Years Ending,	Expense
2017	$	324
2018		320
2019		320
2020		320
2021		320
Thereafter		480
Total	$	2,084

Goodwill and trademarks are reviewed for impairment annually in the fourth fiscal quarter, or more frequently if impairment indicators arise. Goodwill is required to be tested for impairment between the annual tests if an event occurs or circumstances change that more-likely-than-not reduces the fair value of a reporting unit below its carrying value. Intangible assets with indefinite lives are required to be tested for impairment between the annual tests if an event occurs or circumstances change indicating that the asset might be impaired.

In fiscal 2016, the Company recorded an impairment of goodwill related to the Fresh Frozen business of $8.3 million and an impairment of the Fresh Frozen Foods trademark of $7.1 million, due to continuing decreased net revenues since the product recall. In 2015, as a result of the product recall (see Note 2 “Product Recall”) we concluded that the intangible asset related to the acquired customer relationships of Fresh Frozen Foods was fully impaired and recorded an intangible asset impairment charge of $9.3 million. Other than the Fresh Frozen Foods trademarks and customer relationships, no impairments were determined through our testing for the years ended December 31, 2016 and December 26, 2015.

- 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.

+ References + Details