USANA Health Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets

Intangible Assets

12 Months Ended

Dec. 29, 2018

NOTE G – INTANGIBLE ASSETS

The Company performed its annual goodwill impairment test during the third quarter of 2018. The Company performed a qualitative assessment of each reporting unit and determined that is was not more-likely-than-not that the fair value of any reporting unit was less than its carrying amount. As a result, no impairments of goodwill were recognized in 2018.

The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2018. The Company performed a qualitative assessment of the indefinite-lived intangible assets and determined that is was not more-likely-than-not that the fair value of any indefinite-lived intangible asset was less than the carrying amount. As a result, no impairments of indefinite-lived intangible assets were recognized in 2018.

The changes in the carrying amount of goodwill are as follows:



	December 30,	December 29,
	2017	2018

Balance at beginning of year:
Gross goodwill	$ 16,715	$ 17,417
Accumulated impairment losses	-	-
Net goodwill as of beginning of year	16,715	17,417

Goodwill acquired during the year	-	-
Impairment loss	-	-
Currency translation adjustment	702	(602)

Balance as of end of year
Gross goodwill	17,417	16,815
Accumulated impairment losses	-	-
Net goodwill as of end of year	$ 17,417	$ 16,815

NOTE G – INTANGIBLE ASSETS – CONTINUED

Intangible assets consists of the following:



	As of December 30, 2017
				Weighted-average
	Gross carrying	Accumulated	Net carrying	amortization
	amount	amortization	amount	period (years)

Amortized intangible assets
Trade name and trademarks	$ 4,080	$ (3,010)	$ 1,070	10
Product formulas	8,998	(2,744)	6,254	8

Indefinite-lived intangible assets
Direct sales license	27,830		27,830

	$ 40,908		$ 35,154


	As of December 29, 2018
				Weighted-average
	Gross carrying	Accumulated	Net carrying	amortization
	amount	amortization	amount	period (years)

Amortized intangible assets
Trade name and trademarks	$ 3,858	$ (3,226)	$ 632	10
Product formulas	8,506	(3,637)	4,869	8

Indefinite-lived intangible assets
Direct sales license	26,310		26,310

	$ 38,674		$ 31,811

Estimated Amortization Expense:

2019	$ 1,449
2020	1,301
2021	1,063
2022	1,063
2023	625

	$ 5,501

Aggregate amortization of intangible assets was $1,500, $1,480, and $1,505, for the years ended 2016, 2017, and 2018, respectively.