Goodwill and Other Intangibles

12 Months Ended

Jul. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows:



	Broadline			SYGMA			Other			Total
	(In thousands)
Carrying amount as of June 28, 2014	$	1,175,493		$	32,609		$	742,570		$	1,950,672
Goodwill acquired during year	79,802			—			8,408			88,210
Currency translation/other	(78,524		)	—			(541		)	(79,065		)
Carrying amount as of June 27, 2015	$	1,176,771		$	32,609		$	750,437		$	1,959,817
Goodwill acquired during year	44,250			—			131,967			176,217
Currency translation/other	(14,176		)	(2		)	(195		)	(14,373		)
Carrying amount as of July 2, 2016	$	1,206,845		$	32,607		$	882,209		$	2,121,661

Amortizable intangible assets acquired during fiscal 2016 were $63.5 million, with a weighted-average amortization period of 9.6 years. Amortizable intangible assets acquired during fiscal 2016 by category were customer relationships, non-compete and other of $59.6 million, $3.4 million and $0.6 million, respectively, with a weighted-average amortization period of 10.0 years, 5.0 years and 3.3 years, respectively.

Fully amortized intangible assets have been removed in the period fully amortized in the table below, which presents the company’s amortizable intangible assets in total by category as follows:



	Jul. 2, 2016							Jun. 27, 2015
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
	(In thousands)
Customer relationships	$	265,441	$	(126,194	)	$	139,247	$	236,916	$	(130,506	)	$	106,410
Non-compete agreements	36,405		(21,312		)	15,093		33,436		(14,525		)	18,911
Trademarks	10,753		(5,363		)	5,390		10,768		(4,117		)	6,651
Other	13,622		(7,786		)	5,836		13,437		(4,871		)	8,566
Total amortizable intangible assets	$	326,221	$	(160,655	)	$	165,566	$	294,557	$	(154,019	)	$	140,538

The table below presents the company’s indefinite-lived intangible assets by category as follows:



	Jul. 2, 2016		Jun. 27, 2015
	(In thousands)
Trademarks	$	40,929	$	13,304
Licenses	966		966
Total indefinite-lived intangible assets	$	41,895	$	14,271

Amortization expense for 2016, 2015 and 2014 was $37.3 million, $40.0 million and $42.2 million, respectively. The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of July 2, 2016 is shown below:



	Amount
	(In thousands)
2017	$	39,993
2018	33,566
2019	23,431
2020	18,997
2021	16,005

- 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