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

Annual report pursuant to Section 13 and 15(d)

Note G - Intangible Assets

Note G - Intangible Assets

12 Months Ended

Jan. 02, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE G—INTANGIBLE ASSETS

The Company performed its annual goodwill impairment test during the third quarter of 2020. The Company performed a qualitative assessment of each reporting unit and determined that it 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 2020.

The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2020. The Company performed a qualitative assessment of the indefinite-lived intangible assets and determined that it 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 2020.

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

	*January 2,*		*December 28,*
	*2021*		*2019*

Balance at beginning of year:
Gross goodwill	$	16,636	$	16,815
Goodwill as of beginning of year		16,636		16,815

Currency translation adjustment		731		(179	)

Balance as of end of year
Gross goodwill		17,367		16,636
Goodwill as of end of year	$	17,367	$	16,636

Intangible assets consists of the following:

	*As of January 2, 2021*
								*Weighted-average*
	*Gross carrying*		*Accumulated*			*Net carrying*		*amortization*
	*amount*		*amortization*			*amount*		*period (years)*

Amortized intangible assets
Trade name and trademarks	$	4,062	$	(4,062	)	$	0		10
Product formulas		9,188		(6,096	)		3,092		8

Indefinite-lived intangible assets
Direct sales license		27,704					27,704

	$	40,954				$	30,796

Estimated Amortization Expense:

2021	$	1,167
2022		1,167
2023		700
2024		47
2025		11

	$	3,092

	*As of December 28, 2019*
								*Weighted-average*
	*Gross carrying*		*Accumulated*			*Net carrying*		*amortization*
	*amount*		*amortization*			*amount*		*period (years)*

Amortized intangible assets
Trade name and trademarks	$	3,791	$	(3,548	)	$	243		10
Product formulas		8,360		(4,621	)		3,739		8

Indefinite-lived intangible assets
Direct sales license		25,858					25,858

	$	38,009				$	29,840

Aggregate amortization of intangible assets was $1,326, $1,442, and $1,505, for the years ended 2020, 2019, and 2018, respectively.