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Note 10

3 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Text Block]

Note 10

Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of December 28, 2019 and September 28, 2019 are as follows:

	December 28, 2019				September 28, 2019
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
			(in thousands)
FOOD SERVICE

Indefinite lived intangible assets
Trade names	$	10,408	$	-	$	10,408	$	-

Amortized intangible assets
Non compete agreements		670		519		858		665
Customer relationships		19,737		10,278		19,900		9,954
License and rights		1,690		1,249		1,690		1,227
TOTAL FOOD SERVICE	$	32,505	$	12,046	$	32,856	$	11,846

RETAIL SUPERMARKETS

Indefinite lived intangible assets
Trade names	$	12,750	$	-	$	12,750	$	-

Amortized Intangible Assets
Trade names		676		422		676		389
Customer relationships		7,907		4,546		7,979		4,421
TOTAL RETAIL SUPERMARKETS	$	21,333	$	4,968	$	21,405	$	4,810


FROZEN BEVERAGES

Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		28,100		-		6,900		-

Amortized intangible assets
Customer relationships		1,306		147		737		102
Licenses and rights		1,400		950		1,400		933
TOTAL FROZEN BEVERAGES	$	40,121	$	1,097	$	18,352	$	1,035

CONSOLIDATED	$	93,959	$	18,111	$	72,613	$	17,691

Fully amortized intangible assets have been removed from the December 28, 2019 amounts. Intangible assets of $21,769,000 were added in the frozen beverages segment from the acquisition of ICEE Distributors.

Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses. Aggregate amortization expense of intangible assets for the three months ended December 28, 2019 and December 29, 2018 was $843,000 and $855,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $3,100,000 in 2020, $2,500,000 in 2021, $2,300,000 in 2022, $2,300,000 in 2023 and $2,000,000 in 2024. The weighted amortization period of the intangible assets is 10.7 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

Food

Service

Retail

Supermarket

Frozen

Beverages

Total

(in thousands)

Balance at December 28, 2019
$ 61,189 $ 4,146 $ 54,149 $ 119,484

Balance at September 28, 2019
$ 61,189 $ 4,146 $ 37,176 $ 102,511

Goodwill of $16,973,000 was added in the frozen beverages segment from the acquisition of ICEE Distributors.