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Acquisition | 12 Months Ended
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Dec. 28, 2019
Business Combinations [Abstract] |
Acquisition |
Note 1 0. | Acquisition
On December 14, 2018, the company completed the acquisition of 100% of the outstanding membership interests of Canyon, a leading gluten-free bread baker, from its members for total consideration of $205.2 million, including a $5.0 million earn-out recorded as contingent consideration. We believe the acquisition of Canyon strengthens our position as the second-largest baker in the U.S. by giving us access to the fast-growing gluten-free bread category. The acquisition has been accounted for as a business combination. Canyon’s sales and results of operations were immaterial for fiscal 2018. The total goodwill recorded for this acquisition was $80.5 million and it is deductible for tax purposes. During fiscal 2018, the company incurred $4.5 million of acquisition-related costs for Canyon. This table is based on the valuations for the assets acquired, liabilities assumed, and the allocated intangible assets and goodwill. The acquisition-related costs were recorded in the selling, distribution and administrative expense line item in our Consolidated Statements of Income. The following table summarizes the consideration paid for Canyon based on the fair value at the acquisition date (amounts in thousands):
Fair value of consideration transferred: |  |  |  |
Cash consideration paid |  | $ | 200,208 |
Working capital adjustments |  |  | 314 |
Contingent consideration |  |  | 4,700 |
Total consideration |  | $ | 205,222 |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |  |
Property, plant, and equipment |  | $ | 42,165 |
Identifiable intangible assets |  |  | 78,380 |
Financial assets |  |  | 4,210 |
Net recognized amounts of identifiable assets acquired |  |  | 124,755 |
Goodwill |  | $ | 80,467 |
Property, plant and equipment in the table above includes real property and machinery and equipment The following table presents the acquired intangible assets subject to amortization (amounts in thousands, except amortization periods):
|  | Total |  |  | Weighted average amortization years |  |  | Attribution Method
Trademarks |  | $ | 41,700 |  |  |  | 40.0 |  |  | Straight-line
Customer relationships |  |  | 36,400 |  |  |  | 25.0 |  |  | Sum of year digits
Noncompete agreements |  |  | 280 |  |  |  | 1.7 |  |  | Straight-line
|  | $ | 78,380 |  |  |  | 32.9 |  |  |
The fair value of trade receivables was $3.6 million. The gross amount of the receivables were $3.7 million with $0.1 million determined to be uncollectible. We did not acquire any other class of receivables as a result of the Canyon acquisition. Acquisition pro formas We determined that the consolidated results of operations for Canyon were immaterial in the aggregate and the pro forma financial statements were not required for fiscal 2018.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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