XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.5.0.2

GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended
--- | ---
Oct. 08, 2016
Goodwill And Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The table below summarizes our goodwill and other intangible assets at October 8, 2016 and January 2, 2016, respectively, each of which is explained in additional detail below (amounts in thousands):
|  | October 8, 2016 |  |  | January 2, 2016 |
Goodwill |  | $ | 465,578 |  |  | $ | 464,926 |
Amortizable intangible assets, net of amortization |  |  | 442,487 |  |  |  | 461,466 |
Indefinite-lived intangible assets |  |  | 414,000 |  |  |  | 414,000 |
Total goodwill and other intangible assets |  | $ | 1,322,065 |  |  | $ | 1,340,392 |
The changes in the carrying amount of goodwill, by segment, during the forty weeks ended October 8, 2016 are as followings (amounts in thousands):
|  | DSD Segment |  |  | Warehouse Segment |  |  | Total |
Outstanding at January 2, 2016 |  | $ | 424,408 |  |  | $ | 40,518 |  |  | $ | 464,926 |
Change in goodwill related to acquisitions |  |  | 155 |  |  |  | 497 |  |  |  | 652 |
Outstanding at October 8, 2016 |  | $ | 424,563 |  |  | $ | 41,015 |  |  | $ | 465,578 |
The table below presents the changes to goodwill by acquisition from January 2, 2016 to October 8, 2016 (amounts in thousands):
|  | DKB |  |  | Alpine |  |  | Total |
Working capital adjustments |  | $ | 60 |  |  | $ | 497 |  |  | $ | 557 |
Acquisition-related tax adjustments |  |  | (315 | ) |  |  | — |  |  |  | (315 | )
Adjustment to property, plant and equipment |  |  | 410 |  |  |  | — |  |  |  | 410 |
Change in goodwill |  | $ | 155 |  |  | $ | 497 |  |  | $ | 652 |
As of October 8, 2016 and January 2, 2016, the company had the following amounts related to amortizable intangible assets (amounts in thousands):
|  | October 8, 2016 |  |  | January 2, 2016 |
Asset |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |  |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |
Trademarks |  | $ | 246,327 |  |  | $ | 23,492 |  |  | $ | 222,835 |  |  | $ | 246,327 |  |  | $ | 18,037 |  |  | $ | 228,290 |
Customer relationships |  |  | 281,621 |  |  |  | 64,410 |  |  |  | 217,211 |  |  |  | 281,621 |  |  |  | 51,650 |  |  |  | 229,971 |
Non-compete agreements |  |  | 4,874 |  |  |  | 4,596 |  |  |  | 278 |  |  |  | 4,874 |  |  |  | 4,043 |  |  |  | 831 |
Distributor relationships |  |  | 4,123 |  |  |  | 1,960 |  |  |  | 2,163 |  |  |  | 4,123 |  |  |  | 1,749 |  |  |  | 2,374 |
Total |  | $ | 536,945 |  |  | $ | 94,458 |  |  | $ | 442,487 |  |  | $ | 536,945 |  |  | $ | 75,479 |  |  | $ | 461,466 |
Aggregate amortization expense for the twelve and forty weeks ended October 8, 2016 and October 10, 2015 was as follows (amounts in thousands):
|  | Amortization Expense |
For the twelve weeks ended October 8, 2016 |  | $ | 5,586 |
For the twelve weeks ended October 10, 2015 |  | $ | 3,359 |
For the forty weeks ended October 8, 2016 |  | $ | 18,979 |
For the forty weeks ended October 10, 2015 |  | $ | 9,644 |
There are $414.0 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 8, 2016 and January 2, 2016. These trademarks are classified as indefinite-lived because we believe they are well established brands, many older than forty years old, with a long history and well defined markets. In addition, we are continuing to use these brands both in their original markets and throughout our expansion territories. We believe these factors support an indefinite-life assignment. We perform an annual impairment analysis, or on interim basis if the facts and circumstances change, to determine if the trademarks are realizing the expected economic benefits. During the fourth quarter of our fiscal 2015, we reviewed our long-term strategy for all of our organic bread brands due to the acquisitions of the DKB and Alpine organic brands in our third and fourth quarter, respectively, of fiscal 2015. We previously acquired the Barowsky’s brand, which included certain organic products, in fiscal 2012. We originally intended to distribute that brand nationally throughout the territories in our DSD Segment. As a result of our strategic review, the DKB brand will be distributed through our DSD Segment and the Alpine brand will be distributed through our Warehouse Segment. Accordingly, the Barowsky’s brand will remain primarily a regional bread brand for the northeast. Since the Barowsky’s brand will not be used as originally intended, we examined the indefinite-life assignment and determined that it is appropriate to begin amortizing this brand. Beginning in our fourth quarter of fiscal 2015, we began amortizing the Barowsky’s brand over a 35 year straight-line attribution period. Because this change in strategy still reflects that the estimated fair value exceeds the carrying value, an impairment charge was not applicable. We continue to monitor this and all of our finite-lived intangible assets for changes in the facts and circumstances that could impact the fair value. Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):
|  | Amortization of Intangibles |
Remainder of 2016 |  | $ | 5,519 |
2017 |  | $ | 23,578 |
2018 |  | $ | 22,878 |
2019 |  | $ | 22,385 |
2020 |  | $ | 21,893 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration