| Goodwill and Other Intangible Assets |
5. Goodwill and Other Intangible Assets The Company recorded additions to goodwill in connection with its acquisitions. The goodwill is a result of expected synergies from combined operations of the acquisitions and the Company. The following table presents the changes in the carrying amount of goodwill:
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(In millions) |
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Foodservice |
|
|
Vistar |
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|
Convenience |
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|
Other |
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Total |
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Balance as of July 3, 2021 |
|
$ |
1,199.4 |
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|
$ |
93.9 |
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|
$ |
20.9 |
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|
$ |
40.5 |
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|
$ |
1,354.7 |
|
Acquisitions |
|
|
61.3 |
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|
|
— |
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|
|
863.2 |
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|
|
— |
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|
|
924.5 |
|
Balance as of July 2, 2022 |
|
|
1,260.7 |
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|
93.9 |
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|
|
884.1 |
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|
40.5 |
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|
|
2,279.2 |
|
Acquisitions—current year |
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— |
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|
— |
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|
|
— |
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|
|
22.1 |
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|
22.1 |
|
Impairments—current year |
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— |
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— |
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|
— |
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(1.3 |
) |
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(1.3 |
) |
Adjustments related to prior year acquisition (1) |
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1.0 |
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— |
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— |
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— |
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1.0 |
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Balance as of July 1, 2023 |
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$ |
1,261.7 |
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|
$ |
93.9 |
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|
$ |
884.1 |
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|
$ |
61.3 |
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|
$ |
2,301.0 |
|
(1)The fiscal 2023 adjustment related to prior year acquisition is the result of net working capital adjustments. The following table presents the Company’s intangible assets by major category as of July 1, 2023 and July 2, 2022:
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As of July 1, 2023 |
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As of July 2, 2022 |
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(In millions) |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
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Range of Lives |
Intangible assets with definite lives: |
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Customer relationships |
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$ |
1,568.2 |
|
|
$ |
(777.2 |
) |
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$ |
791.0 |
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|
$ |
1,562.1 |
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|
$ |
(659.8 |
) |
|
$ |
902.3 |
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4 – 12 years |
Trade names and trademarks |
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|
466.3 |
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|
|
(279.7 |
) |
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|
186.6 |
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458.2 |
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(220.4 |
) |
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|
237.8 |
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4 – 9 years |
Deferred financing costs |
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|
73.3 |
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(58.1 |
) |
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|
15.2 |
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73.2 |
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(53.3 |
) |
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19.9 |
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Debt term |
Non-compete |
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42.3 |
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(38.4 |
) |
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3.9 |
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38.1 |
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(36.0 |
) |
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2.1 |
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2 – 5 years |
Technology |
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|
36.2 |
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|
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(30.1 |
) |
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6.1 |
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36.2 |
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(28.3 |
) |
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|
7.9 |
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5 – 8 years |
Total intangible assets with definite lives |
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$ |
2,186.3 |
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|
$ |
(1,183.5 |
) |
|
$ |
1,002.8 |
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|
$ |
2,167.8 |
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|
$ |
(997.8 |
) |
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$ |
1,170.0 |
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Intangible assets with indefinite lives: |
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Goodwill |
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$ |
2,301.0 |
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|
$ |
— |
|
|
$ |
2,301.0 |
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|
$ |
2,279.2 |
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|
$ |
— |
|
|
$ |
2,279.2 |
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Indefinite |
Trade names |
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|
25.6 |
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— |
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|
25.6 |
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|
25.6 |
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— |
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|
25.6 |
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Indefinite |
Total intangible assets with indefinite lives |
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$ |
2,326.6 |
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$ |
— |
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|
$ |
2,326.6 |
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|
$ |
2,304.8 |
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|
$ |
— |
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|
$ |
2,304.8 |
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For the intangible assets with definite lives, the Company recorded amortization expense of $185.7 million for fiscal 2023, $187.5 million for fiscal 2022, and $130.4 million for fiscal 2021. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:
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(In millions) |
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2024 |
|
|
170.9 |
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2025 |
|
|
164.4 |
|
2026 |
|
|
159.3 |
|
2027 |
|
|
102.4 |
|
2028 |
|
|
91.8 |
|
Thereafter |
|
|
314.0 |
|
Total amortization expense |
|
$ |
1,002.8 |
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