Goodwill and Other Intangibles

6 Months Ended

Jun. 27, 2026

Intangible Asset, Goodwill and Other [Abstract]

GOODWILL AND OTHER INTANGIBLES

Goodwill includes the cost of acquired businesses in excess of the fair value of the tangible and other intangible net assets acquired. Other intangible assets include customer relationships, noncompete agreements, amortizable trade names, the brand names comprising the Company’s portfolio of exclusive brands, and trademarks. Brand names and trademarks are indefinite-lived intangible assets and, accordingly, are not subject to amortization, but are subject to impairment assessments as described below.

Customer relationships, noncompete agreements and amortizable trade names are intangible assets with definite lives and are carried at the acquired fair value less accumulated amortization. Customer relationships, noncompete agreements, and amortizable trade names are amortized over their estimated useful lives (which range from 3 to 15 years). Amortization expense was $14 million and $13 million for the 13 weeks ended June 27, 2026 and June 28, 2025, respectively, and $28 million and $27 million for the 26 weeks ended June 27, 2026 and June 28, 2025, respectively.

Goodwill and other intangibles—net consisted of the following:


	June 27, 2026		December 27, 2025
Goodwill	$	5,796	$	5,794


Other intangibles—net
Customer relationships—amortizable:
Gross carrying amount	$	812	$	812
Accumulated amortization	(323)		(297)
Net carrying value	489		515
Trade names—amortizable:
Gross carrying amount	4		4
Accumulated amortization	(2)		(2)
Net carrying value	2		2
Noncompete agreements—amortizable:
Gross carrying amount	8		8
Accumulated amortization	(4)		(2)
Net carrying value	4		6
Brand names and trademarks—not amortizing	258		258
Total other intangibles—net	$	753	$	781

The Company assesses for impairment of intangible assets with definite lives only if events occur that indicate that the carrying amount of an intangible asset may not be recoverable. The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually, or more frequently if events occur that indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, the Company’s policy is to assess for impairment as of the beginning of each fiscal third quarter. No impairments were recognized for the 26 weeks ended June 27, 2026 and June 28, 2025.