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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | H. Goodwill and Intangible Assets The Company has recorded intangible assets with indefinite lives and goodwill for which impairment testing is required at least annually or more frequently if events or circumstances indicate that these assets might be impaired. The Company performs its annual impairment tests and re-evaluates the useful lives of other intangible assets with indefinite lives at the annual impairment test measurement date in the third quarter of each fiscal year or when circumstances arise that indicate a possible impairment or change in useful life might exist. Goodwill. No impairment of goodwill was recorded in any period. Intangible assets. The Company's annual impairment testing occurs as of September 1 each year. During fiscal 2024, the Company evaluated the continuing negative trends of the Dogfish Head brand, including declining sales resulting from increased competition and updated its long-term financial forecasts for the Dogfish Head brand. These updated forecasts for the brand included reductions in revenues from the continuing negative trends in the brands’ beer products and the overall slowing craft beer industry sector and flat revenue projections from the brands’ canned cocktail products. As a result of performing this assessment, the Dogfish Head trademark asset with a carrying value of $55.6 million was written down to its estimated fair value of $14.4 million, resulting in an impairment of $41.2 million which was recorded during the third quarter of 2024. As a result of the continued declining trends in the brand, the Company re-assessed the remaining useful life of the trademark asset and changed the remaining useful life from an indefinite life to a 10 year life at the end of the third quarter of 2024. Additionally, during the third quarter of 2024, an impairment of $1.4 million was recorded on other intangible assets. During fiscal 2023, an impairment of $15.8 million was recorded to reduce the carrying value of the Dogfish Head trademark asset from $71.4 million to $55.6 million. The Company’s intangible assets were as follows as of:
|  |  |  | December 28, 2024 |  |  | December 30, 2023 |
|  | Estimated Useful |  | Gross Carrying |  |  | Accumulated |  |  | Net Book |  |  | Gross Carrying |  |  | Accumulated |  |  | Net Book |
|  | Life (Years) |  | Value |  |  | Amortization |  |  | Value |  |  | Value |  |  | Amortization |  |  | Value |
|  |  |  |  |  |  |  |  |  | (in thousands) |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 15 |  | $ | 3,800 |  |  | $ | (1,394 | ) |  | $ | 2,406 |  |  | $ | 3,800 |  |  | $ | (1,140 | ) |  | $ | 2,660 |
Trademarks |  | 10* |  |  | 14,400 |  |  |  | (360 | ) |  |  | 14,040 |  |  |  | 56,984 |  |  |  | — |  |  |  | 56,984 |
Total intangible assets |  |  |  | $ | 18,200 |  |  | $ | (1,754 | ) |  | $ | 16,446 |  |  | $ | 60,784 |  |  | $ | (1,140 | ) |  | $ | 59,644 |
*During the 2024 annual intangible impairment testing the Company changed the remaining useful life of the Dogfish Head trademark intangible asset to 10 years. A mortization expense was approximately $613,000 and $253,000 in fiscal 2024 and 2023, respectively. The Company expects to record amortization expense as follows over the subsequent years:
Fiscal Year |  | Amount (in thousands) |
2025 |  | $ | 1,693 |
2026 |  |  | 1,693 |
2027 |  |  | 1,693 |
2028 |  |  | 1,693 |
2029 |  |  | 1,693 |
Thereafter |  |  | 7,981 |
Total amortization to be recorded |  | $ | 16,446 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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