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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 28, 2019
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
Note 9. | Goodwill and Other Intangible Assets
The table below summarizes our goodwill and other intangible assets at December 28, 2019 and December 29, 2018, respectively, each of which is explained in additional detail below (amounts in thousands):
|  | December 28, 2019 |  |  | December 29, 2018 |
Goodwill |  | $ | 545,244 |  |  | $ | 545,379 |
Amortizable intangible assets, net of amortization |  |  | 623,107 |  |  |  | 588,329 |
Indefinite-lived intangible assets |  |  | 127,100 |  |  |  | 206,600 |
Total goodwill and other intangible assets |  | $ | 1,295,451 |  |  | $ | 1,340,308 |
The changes in the carrying amount of goodwill during fiscal 2018 and fiscal 2019, are as follows (amounts in thousands):
|  | Total |
Balance as of December 30, 2017 |  | $ | 464,777 |
Change in goodwill related to acquisition |  |  | 80,602 |
Balance as of December 29, 2018 |  | $ | 545,379 |
Change in goodwill related to acquisition |  |  | (135 | )
Balance as of December 28, 2019 |  | $ | 545,244 |
Goodwill decreased $0.1 million during fiscal 2019 due to changes in working capital, property, plant, and equipment, and financial assets related to the Canyon Bakehouse, LLC (“Canyon”) acquisition discussed in Note 10, Acquisition, which was acquired in fiscal 2018. Changes in goodwill during fiscal 2018 related to the Canyon acquisition. Goodwill was not impaired in fiscal years 2019, 2018, or 2017. As of December 28, 2019 and December 29, 2018, the company had the following amounts related to amortizable intangible assets (amounts in thousands):
|  | December 28, 2019 |  |  | December 29, 2018 |
Asset |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |  |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |
Trademarks |  | $ | 477,193 |  |  | $ | 55,746 |  |  | $ | 421,447 |  |  | $ | 413,092 |  |  | $ | 44,711 |  |  | $ | 368,381 |
Customer relationships |  |  | 318,021 |  |  |  | 117,836 |  |  |  | 200,185 |  |  |  | 318,021 |  |  |  | 99,904 |  |  |  | 218,117 |
Non-compete agreements |  |  | 5,154 |  |  |  | 4,954 |  |  |  | 200 |  |  |  | 5,154 |  |  |  | 4,874 |  |  |  | 280 |
Distributor relationships |  |  | 4,123 |  |  |  | 2,848 |  |  |  | 1,275 |  |  |  | 4,123 |  |  |  | 2,572 |  |  |  | 1,551 |
Total |  | $ | 804,491 |  |  | $ | 181,384 |  |  | $ | 623,107 |  |  | $ | 740,390 |  |  | $ | 152,061 |  |  | $ | 588,329 |
As of December 28, 2019 and December 29, 2018, there was $127.1 million and $206.6 million, respectively, of indefinite-lived intangible trademark assets separately identified from goodwill. These trademarks are classified as indefinite-lived because there is no foreseeable limit to the period over which the asset is expected to contribute to our cash flows. They are well established brands 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 with an annual impairment analysis to determine if the trademarks are realizing their expected economic benefits. Fiscal 2019 restructuring and related impairment charges During fiscal 2019, the company recognized intangible asset impairments of $15.4 million that are recorded in the restructuring and related impairment charges line item of our Consolidated Statements of Income. The impairments are a result of a brand rationalization study that impacted certain trademarks’ future use. The study was completed in the fourth quarter of fiscal 2019. The study concluded that certain products of our regional brands were to be discontinued or converted to one of our national brands. As a result of these actions, a triggering event occurred, and we examined several trademarks for potential impairment. One of the trademarks was an indefinite-lived trademark asset and was tested by comparing the fair value of the brand to its carrying value. Based on this analysis the indefinite-lived trademark was not impaired, however, the company has evaluated the classification of this asset and determined that it should be recognized as finite-lived as of December 28, 2019 with an estimated useful life of 33 years that will begin amortizing at the beginning of fiscal 2020. Three finite-lived trademark assets were tested using an undiscounted cash flow test. As a result of this test, the projected cash flows for two of the finite-lived brands did not exceed the carrying value. One of the finite-lived brands was not considered impaired using the undiscounted cash flow test. The second step of the test determined the fair value of the asset and the difference between the fair value and the carrying value was recorded as an impairment for the two finite-lived trademark assets that failed step one. The impairment charge also consisted of one brand that has limited future benefits to the company and was fully impaired. All of these impairments were attributed to regional brands. Fiscal 2018 restructuring and related impairment charges There were no goodwill or other intangible asset impairments recorded as a result of the restructuring during fiscal 2018. Fiscal 2017 restructuring and related impairment charges During fiscal 2017, the company recognized intangible asset impairments of $66.2 million that are recorded in the restructuring and related impairment charges line item of our Consolidated Statements of Income. The company is continually undergoing an enterprise-wide business and operational review as discussed in Note 5, Restructuring Activities. The first review included a brand rationalization study that impacted certain trademarks’ future use. The study was substantially completed in the third quarter of fiscal 2017. The study concluded that our brands should be classified as either national or regional and brands that did not fit into those categories were to be discontinued. National brands would have more marketing support than the de-emphasized remaining regional brands and, in many cases, would shift sales from regional brands as certain regional brand bread products are discontinued. As a result of these actions, a triggering event occurred, and we examined several trademarks for potential impairment. One of the trademarks was an indefinite-lived trademark asset and was tested by comparing the fair value of the brand to its carrying value. Three finite-lived trademark assets were tested using an undiscounted cash flow test. As a result of this test, the projected cash flows for these brands did not exceed the carrying value. The second step of the test determined the fair value of the asset and the difference between the fair value and the carrying value was recorded as an impairment. The impairment charge also consisted of six brands that either are being discontinued or will have limited future benefits to the company. These brands were fully impaired. All of these impairments were attributed to regional brands. Following the impairments, we evaluated the classification of the impaired indefinite-lived asset and determined that it should be reassigned as finite-lived with an estimated useful life of 30 years. The table below presents the restructuring impairment charges for fiscal 2017 (amounts in thousands):
|  | Total |
Indefinite-lived intangible assets |  | $ | 18,500 |
Finite-lived intangible assets |  |  | 47,747 |
Restructuring impairment charges |  | $ | 66,247 |
Amortization expense Amortization expense for fiscal years 2019, 2018, and 2017 was as follows (amounts in thousands):
|  | Amortization expense |
Fiscal 2019 |  | $ | 29,323 |
Fiscal 2018 |  | $ | 25,892 |
Fiscal 2017 |  | $ | 27,274 |
Estimated amortization of intangibles for fiscal 2020 and the next four years thereafter is as follows (amounts in thousands):
Fiscal year |  | Amortization of Intangibles |
2020 |  | $ | 30,792 |
2021 |  | $ | 30,148 |
2022 |  | $ | 29,599 |
2023 |  | $ | 28,718 |
2024 |  | $ | 28,022 |

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