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Note B - Acquisitions

12 Months Ended

Sep. 26, 2020

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE B – ACQUISITIONS

On October 1, 2019, we acquired the assets of ICEE Distributors LLC, based in Bossier City, Louisiana. ICEE Distributors does business in Arkansas, Louisiana and Texas with annual sales of approximately $13 million. Sales and operating income of ICEE Distributors were $11.4 million and $3.6 million for the year ended September 26, 2020.

On February 4, 2020, we acquired the assets of BAMA ICEE, based in Birmingham, Alabama does business in Alabama and Georgia with annual sales of approximately $3.5 million. Sales and operating income of BAMA ICEE were $1.7 million and $630,000 for the year ended September 26, 2020.

The purchase price allocations for these two acquisitions are as follows:

		(in thousands)
		ICEE				BAMA				Total
		Distributors				ICEE
Accounts Receivable, net		$	721			$	71			$	792
Inventories			866				77				943
Property, plant & equipment, net			4,851				1,722				6,573
Customer Relationships			569				133				702
Distribution rights			22,400				6,800				29,200
Goodwill			15,773				3,549				19,322
Accounts Payable			(210	)			(110	)			(320	)
Purchase Price		$	44,970			$	12,242			$	57,212

The goodwill and intangible assets acquired in the business combinations are recorded at estimated fair value.  To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input). The goodwill recognized is attributable to the assembled workforce of each acquired business and certain other strategic intangible assets that do not meet the requirements for recognition separate and apart from goodwill.   Acquisition costs of $76,000 are included in other general expense for the year ended September 26, 2020.

Our unaudited proforma results, giving effect to these acquisitions and assuming an acquisition date of September 30, 2018, would have been:

		Fiscal Year Ended
		September 26,				September 28,
		2020				2019
Net Sales		$	1,022,838			$	1,201,804
Net Earnings		$	18,303			$	96,945

X

- 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

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