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Acquisition | 9 Months Ended
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Oct. 07, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisition | 4. ACQUISITION On February 17, 2023, the company completed the acquisition of the Papa Pita for total consideration of approximately $274.8 million, inclusive of a net working capital adjustment. Papa Pita is a manufacturer and distributor of bagels, tortillas, breads, buns, English muffins, and flat breads with one production facility in West Jordan, Utah and, prior to the acquisition, Papa Pita co-manufactured certain products for the company. Papa Pita has direct-store-delivery distribution in the western U.S., expanding our geographic reach. We incurred additional acquisition costs of $3.7 million during the forty weeks ended October 7, 2023. The company also recognized an immaterial $1.5 million goodwill measurement period adjustment related to the final net working capital amount during the second quarter of Fiscal 2023. These costs are reflected in the selling, distribution, and administrative expenses line item of the Condensed Consolidated Statements of Income (Loss). The following table summarizes the consideration paid for Papa Pita based on the fair value at the acquisition date. This table is based on preliminary valuations for the assets acquired (the company did no t acquire any cash) and liabilities assumed. The identifiable intangible assets, property and equipment, and certain financial assets and taxes are still under review. We will continue reviewing the final recognized amounts of identifiable assets acquired and liabilities assumed until the first quarter of Fiscal 2024 when the allocation will be final (amounts in thousands):
Fair Value of consideration transferred: |  |  |
Cash consideration paid |  | $ | 270,258 |
Working capital adjustments |  |  | 4,497 |
Total consideration |  | $ | 274,755 |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |
Property, plant, and equipment |  | $ | 104,118 |
Identifiable intangible assets |  |  | 27,100 |
Financial assets |  |  | 14,250 |
Liabilities assumed |  |  | (3,265 | )
Net recognized amounts of identifiable assets acquired |  |  | 142,203 |
Goodwill |  | $ | 132,552 |
The following table presents the acquired intangible assets subject to amortization (amounts in thousands, except amortization periods):
|  | Total |  |  | Weighted average amortization years |  |  | Amortization Method
Trademarks |  | $ | 4,600 |  |  |  | 20.0 |  |  | Straight-line
Customer relationships |  |  | 22,200 |  |  |  | 25.0 |  |  | Sum of year digits
Noncompete agreements |  |  | 300 |  |  |  | 4.0 |  |  | Straight-line
Total intangible assets |  | $ | 27,100 |  |  |  | 23.9 |  |  |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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