Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill and intangible assets as of December 31, 2017 and December 31, 2016 were recognized as part of the purchase price allocation of the Business Combination as of the Closing Date. During the year ended December 31, 2017, the purchase price allocation for the Business Combination was adjusted, resulting in a $9.0 million decrease to goodwill as of December 31, 2017, the purchase price allocation for the business combination is considered final.

Activity of goodwill is presented below by reportable segment:



(In thousands)	Sweet Baked Goods			In-Store Bakery			Total
Balance as of December 31, 2015	$	56,992		$	—		$	56,992
Acquisition of Superior	—			24,227			24,227
Elimination of Predecessor goodwill	(56,992		)	(24,227		)	(81,219		)
Business combination	542,410			46,050			588,460
Balance as of December 31, 2016 (Successor)	542,410			46,050			588,460
Measurement period adjustments	(12,987		)	3,973			(9,014		)
Balance as of December 31, 2017 (Successor)	$	529,423		$	50,023		$	579,446

Intangible assets consist of the following:



(In thousands)	December 31, 2017			December 31, 2016
	(Successor)			(Successor)
Intangible assets with indefinite lives (trademarks and tradenames)	$	1,408,848		$	1,408,848
Intangible assets with definite lives (customer relationships)	542,011			542,011
Less accumulated amortization (customer relationships)	(27,771		)	(3,916		)
Intangible assets, net	$	1,923,088		$	1,946,943

Amortization expense was $23.9 million for the year ended December 31, 2017, and $3.9 million (Successor) and $1.2 million (Predecessor) for the periods from November 4, 2016 through December 31, 2016 and from January 1, 2016 through November 3, 2016, respectively, and $0.9 million (Predecessor) for the year ended December 31, 2015. The unamortized portion of customer relationships will be expensed over their remaining useful life, from 18 to 23 years. The weighted-average amortization period as of December 31, 2017 for customer relationships was 21.5 years. Future expected amortization expense is as follows:



(In thousands)
2018	$	23,977
2019	23,977
2020	23,977
2021	23,977
2022	23,977
2023 and thereafter	394,355

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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