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. 30, 2017

NOTE F – INTANGIBLE ASSETS

The Company performed its annual goodwill impairment test during the third quarter of 2017. 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 2017.

The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2017. 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 2017.

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



	December 31,	December 30,
	2016	2017

Balance at beginning of year:
Gross goodwill	$ 17,432	$ 16,715
Accumulated impairment losses	-	-
Net goodwill as of beginning of year	17,432	16,715

Goodwill acquired during the year	-	-
Impairment loss	-	-
Currency translation adjustment	(717)	702

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

NOTE F – INTANGIBLE ASSETS – CONTINUED

Intangible assets consists of the following:



	As of December 31, 2016
				Weighted-average
	Gross carrying	Accumulated	Net carrying	amortization
	amount	amortization	amount	period (years)

Amortized intangible assets
Trade name and trademarks	$ 3,820	$ (2,440)	$ 1,380	10
Product formulas	8,424	(1,512)	6,912	8

Indefinite-lived intangible assets
Direct sales license	26,057		26,057

	$ 38,301		$ 34,349


	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


Estimated Amortization Expense:

2018	$ 1,533
2019	1,533
2020	1,376
2021	1,125
2022	1,125
Thereafter	632

	$ 7,324

Aggregate amortization of intangible assets was $900, $1,500, and $1,480, for the years ended 2015, 2016, and 2017, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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