Annual report pursuant to Section 13 and 15(d)

Note G - Intangible Assets

v3.20.4
Note G - Intangible Assets
12 Months Ended
Jan. 02, 2021
Notes to Financial Statements  
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.