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. 01, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE G—INTANGIBLE ASSETS

The Company performed its annual goodwill impairment test during the third quarter of 2021. 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 2021.

The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2021. 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 2021.

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

	*January 1,*		*January 2,*
	*2022*		*2021*

Balance at beginning of year:
Gross goodwill	$	17,367	$	16,636
Goodwill as of beginning of year		17,367		16,636

Currency translation adjustment		301		731

Balance as of end of year
Gross goodwill		17,668		17,367
Goodwill as of end of year	$	17,668	$	17,367

Intangible assets consist of the following:

	*As of January 1, 2022*
								*Weighted-average*
	*Gross carrying*		*Accumulated*			*Net carrying*		*amortization*
	*amount*		*amortization*			*amount*		*period (years)*

Amortized intangible assets
Trade name and trademarks	$	4,173	$	(4,173	)	$	-		10
Product formulas		9,440		(7,462	)		1,978		8

Indefinite-lived intangible assets
Direct sales license		28,464					28,464

	$	42,077				$	30,442

Estimated Amortization Expense:

2022	$	1,199
2023		719
2024		48
2025		12

	$	1,978

	*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	)	$	-		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

Aggregate amortization of intangible assets was $1,182, $1,326, and $1,442 for the years ended 2021, 2020, and 2019, respectively.