Goodwill and Intangible Assets

12 Months Ended

Jun. 27, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 – GOODWILL AND INTANGIBLE ASSETS

Intangible assets subject to amortization consist of the following:


	June 27, 2024			June 29, 2023
Customer relationships	$	21,350		$	21,350
Brand names		17,070			17,070
Product formulas		850			—
Non-compete agreements		300			300
Total intangible assets, gross		39,570			38,720
Less accumulated amortization:
Customer relationships		(20,680	)		(19,834	)
Brand names		(12,668	)		(11,955	)
Product formulas		(121	)		—
Non-compete agreements		(279	)		(273	)
Total accumulated amortization		(33,748	)		(32,062	)
Net intangible assets	$	5,822		$	6,658

Customer relationships relate to the Just the Cheese brand acquisition completed in fiscal 2023, 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 are fully amortized. 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 is fully amortized. The remainder of the brand name relates to Just the Cheese brand acquisition completed in fiscal 2023 and the OVH acquisition, which is fully amortized. Product formulas relate to the Lakeville Acquisition completed in fiscal 2024.

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, 2024		Year Ended June 29, 2023		Year Ended June 30, 2022
Amortization of intangible assets	$	1,686	$	1,767	$	1,896

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


Fiscal Year Ending
June 26, 2025	$	1,374
June 25, 2026		1,038
June 24, 2027		863
June 29, 2028		685
June 28, 2029		496

Our net goodwill at June 30, 2022 was comprised of $9,650 from the Squirrel Brand acquisition completed in fiscal 2018. Our net goodwill at June 27, 2024 includes an additional $2,100 from the Just the Cheese brand acquisition completed in fiscal 2023. The changes in the carrying amount of goodwill during the two fiscal years ended June 27, 2024 are as follows:


Gross goodwill balance at June 30, 2022	$	18,416
Accumulated impairment losses		(8,766	)
Net balance at June 30, 2022		9,650
Goodwill acquired during fiscal 2023		2,100
Net balance at June 29, 2023		11,750
Goodwill acquired during fiscal 2024		—
Net balance at June 27, 2024	$	11,750