Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangibles, Net

v3.22.2.2
Goodwill and Other Intangibles, Net
12 Months Ended
Oct. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles, Net

Note 4—Goodwill and Other Intangibles, Net

Goodwill

The following table details the changes in goodwill (in thousands):

 

 

October 1, 2022

 

 

October 2, 2021

 

Balance at beginning of the year

 

$

101,114

 

 

$

93,295

 

Acquisitions, net of measurement period adjustments

 

 

72,399

 

 

 

7,819

 

Balance at the end of the year

 

$

173,513

 

 

$

101,114

 

Other Intangible Assets

Other intangible assets consisted of the following as of October 1, 2022 (in thousands, except weighted average remaining useful life):

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

11.0

 

 

$

24,440

 

 

$

(5,907

)

 

$

18,533

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

9,350

 

 

 

 

 

 

9,350

 

Non-compete agreements

 

 

6.5

 

 

 

8,683

 

 

 

(7,379

)

 

 

1,304

 

Consumer relationships

 

 

7.9

 

 

 

24,100

 

 

 

(13,339

)

 

 

10,761

 

Other intangibles

 

 

6.2

 

 

 

6,620

 

 

 

(6,380

)

 

 

240

 

Total

 

 

 

 

$

73,193

 

 

$

(33,005

)

 

$

40,188

 

 

Other intangible assets consisted of the following as of October 2, 2021 (in thousands, except weighted average remaining useful life):

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

6.6

 

 

$

5,940

 

 

$

(5,274

)

 

$

666

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

17,750

 

 

 

 

 

 

17,750

 

Non-compete agreements

 

 

7.5

 

 

 

8,633

 

 

 

(7,123

)

 

 

1,510

 

Consumer relationships

 

 

6.4

 

 

 

19,000

 

 

 

(11,688

)

 

 

7,312

 

Other intangibles

 

 

7.0

 

 

 

6,620

 

 

 

(5,952

)

 

 

668

 

Total

 

 

 

 

$

57,943

 

 

$

(30,037

)

 

$

27,906

 

Other intangible assets consisted of the following as of October 3, 2020 (in thousands, except weighted average remaining useful life):

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

3.6

 

 

$

5,540

 

 

$

(5,139

)

 

$

401

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

17,750

 

 

 

 

 

 

17,750

 

Non-compete agreements

 

 

8.3

 

 

 

8,633

 

 

 

(6,872

)

 

 

1,761

 

Consumer relationships

 

 

6.1

 

 

 

17,200

 

 

 

(10,118

)

 

 

7,082

 

Other intangibles

 

 

7.4

 

 

 

6,584

 

 

 

(5,687

)

 

 

897

 

Total

 

 

 

 

$

55,707

 

 

$

(27,816

)

 

$

27,891

 

Amortization expense was $3.0 million, $2.2 million, and $2.6 million in fiscal 2022, 2021, and 2020, respectively. No impairment of goodwill or other intangible assets was recorded during fiscal 2022, 2021, and 2020.

In the fourth quarter of fiscal 2022, an $8.4 million indefinite-lived trade name intangible asset was reclassified to a finite-lived intangible asset due to a change in the way the asset will be utilized in the future. Prior to reclassifying the trade name to a finite-lived intangible asset, the Company tested it for impairment and determined that the fair value of the asset exceeded the carrying value. This trade name was assigned a 10-year estimated useful life and will be amortized over its useful life on a prospective basis.

The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our consolidated balance sheet as of October 1, 2022 (in thousands):

 

 

Amount

 

2023

 

$

3,507

 

2024

 

 

2,868

 

2025

 

 

2,772

 

2026

 

 

2,525

 

2027

 

 

2,402

 

Thereafter

 

 

16,764

 

Total

 

$

30,838