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Note 11 - Goodwill and Intangible Assets

3 Months Ended

Dec. 30, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 11

Goodwill and Intangible Assets

Intangible Assets

Our 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 Beverages segments as of December 30, 2023 and September 30, 2023 are as follows:

	December 30, 2023				September 30, 2023
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE

Indefinite lived intangible assets
Trade names	$	84,194	$	-	$	84,194	$	-

Amortized intangible assets
Non compete agreements		-		-		-		-
Franchise agreements		8,500		1,275		8,500		1,063
Customer relationships		22,900		10,653		22,900		10,080
Technology		23,110		3,452		23,110		2,879
License and rights		1,690		1,587		1,690		1,565
TOTAL FOOD SERVICE	$	140,394	$	16,967	$	140,394	$	15,587

RETAIL SUPERMARKETS

Indefinite lived intangible assets
Trade names	$	11,938	$	-	$	11,938	$	-

Amortized Intangible Assets
Trade names		-		-		-		-
Customer relationships		7,687		7,439		7,687		7,256
TOTAL RETAIL SUPERMARKETS	$	19,625	$	7,439	$	19,625	$	7,256

FROZEN BEVERAGES

Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		36,100		-		36,100		-

Amortized intangible assets
Customer relationships		1,439		725		1,439		689
Licenses and rights		1,400		1,229		1,400		1,212
TOTAL FROZEN BEVERAGES	$	48,254	$	1,954	$	48,254	$	1,901

CONSOLIDATED	$	208,273	$	26,360	$	208,273	$	24,744

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 30, 2023 and December 24, 2022 was $1.6 million and $1.7 million, respectively.

Estimated amortization expense for the next five fiscal years is approximately $4.7 million in 2024 (excluding the three months ended December 30, 2023), $5.6 million in 2025 and 2026, $4.6 million in 2027, and $4.2 million in 2028.

The weighted amortization period of the intangible assets, in total, is 10.4 years. The weighted amortization period by intangible asset class is 10 years for Technology, 10 years for Customer relationships, 20 years for Licenses & rights, and 10 years for Franchise agreements.

Goodwill

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

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
			(in thousands)
December 30, 2023	$	124,426	$	4,146	$	56,498	$	185,070

September 30, 2023	$	124,426	$	4,146	$	56,498	$	185,070