Goodwill and Intangible Assets

12 Months Ended

Jun. 27, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 – GOODWILL AND INTANGIBLE ASSETS

Intangible assets subject to amortization consist of the following:


	June 27, 2019			June 28, 2018
Customer relationships	$	21,100		$	21,100
Non-compete agreements		270			270
Brand names		16,990			16,990

Total intangible assets, gross		38,360			38,360

Less accumulated amortization:
Customer relationships		(14,466	)		(12,182	)
Non-compete agreements		(86	)		(32	)
Brand names		(9,182	)		(8,492	)

Total accumulated amortization		(23,734	)		(20,706	)

Net intangible assets	$	14,626		$	17,654

Customer relationships relate to the Squirrel Brand acquisition completed in fiscal 2018 and the Orchard Valley Harvest (“OVH”) acquisition completed in fiscal 2010. The customer relationships resulting from the OVH acquisition were fully amortized in fiscal 2017. The brand names consist primarily of the

Squirrel Brand

and

Southern Style Nuts

brand names acquired in fiscal 2018 and the

Fisher

brand name, which we acquired in a 1995 acquisition. The

Fisher

brand name was fully amortized in fiscal 2011. The remainder of the brand name relates to the OVH acquisition, which was fully amortized in fiscal 2015.

Total amortization expense related to intangible assets, which is classified in administrative expense in the Consolidated Statement of Comprehensive Income, was as follows for the last three fiscal years:


	Year ended June 27, 2019		Year ended June 28, 2018		Year ended June 29, 2017
Amortization of intangible assets	$	3,028	$	2,016	$	1,369

Expected amortization expense the next five fiscal years is as follows:


Fiscal year ending
June 25, 2020			2,501
June 24, 2021			2,165
June 30, 2022			1,896
June 29, 2023			1,657
June 27, 2024			1,414

Our net goodwill of $9,650 relates entirely to the Squirrel Brand acquisition completed in fiscal 2018. The changes in the carrying amount of goodwill during the two fiscal years ended June 27, 2019 are as follows:


Gross goodwill balance at June 30, 2017	$	8,766
Accumulated impairment losses		(8,766	)
Net balance at June 30, 2017		—
Goodwill acquired during fiscal 2018		9,650
Balance at June 27, 2019	$	9,650