| Goodwill and Other Intangible Assets |
5. Goodwill and Other Intangible Assets The Company recorded additions to goodwill in connection with its acquisitions. The goodwill is a result of expected synergies from combined operations of the acquisitions and the Company. The following table presents the changes in the carrying amount of goodwill:
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(In millions) |
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Foodservice |
|
|
Convenience |
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|
Specialty |
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|
Other |
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Total |
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Balance as of June 29, 2024 |
|
$ |
1,300.9 |
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|
$ |
884.1 |
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|
$ |
133.4 |
|
|
$ |
99.9 |
|
|
$ |
2,418.3 |
|
Acquisitions |
|
|
1,052.5 |
|
|
|
11.2 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
1,066.8 |
|
Adjustments related to prior year acquisition (1) |
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|
— |
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|
|
— |
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|
|
— |
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|
|
(5.0 |
) |
|
|
(5.0 |
) |
Balance as of June 28, 2025 |
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|
2,353.4 |
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|
|
895.3 |
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|
|
133.4 |
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|
|
98.0 |
|
|
|
3,480.1 |
|
Acquisitions—current year |
|
|
82.6 |
|
|
|
— |
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|
|
— |
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|
|
— |
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|
|
82.6 |
|
Adjustments related to prior year acquisition (1) |
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|
2.3 |
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|
0.1 |
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|
|
— |
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(0.1 |
) |
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|
2.3 |
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Balance as of June 27, 2026 |
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$ |
2,438.3 |
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|
$ |
895.4 |
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|
$ |
133.4 |
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|
$ |
97.9 |
|
|
$ |
3,565.0 |
|
(1)The fiscal 2025 and 2026 adjustments relate to prior year acquisitions and are the result of net working capital adjustments and deferred tax adjustments. The following table presents the Company’s intangible assets by major category as of June 27, 2026 and June 28, 2025:
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As of June 27, 2026 |
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As of June 28, 2025 |
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(In millions) |
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Gross
Carrying
Amount |
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Accumulated
Amortization |
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Net |
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Gross
Carrying
Amount |
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|
Accumulated
Amortization |
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Net |
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|
Range of
Lives |
Intangible assets with definite lives: |
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Customer relationships |
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$ |
2,498.2 |
|
|
$ |
(1,240.0 |
) |
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$ |
1,258.2 |
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|
$ |
2,400.1 |
|
|
$ |
(1,065.5 |
) |
|
$ |
1,334.6 |
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|
4 – 12 years |
Trade names and trademarks |
|
$ |
745.0 |
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|
|
(507.5 |
) |
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|
237.5 |
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|
|
716.2 |
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|
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(422.9 |
) |
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|
293.3 |
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4 – 12 years |
Deferred financing costs |
|
$ |
97.9 |
|
|
|
(76.0 |
) |
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|
21.9 |
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|
97.9 |
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|
|
(69.2 |
) |
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|
28.7 |
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Debt term |
Non-compete |
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$ |
45.4 |
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|
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(44.7 |
) |
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|
0.7 |
|
|
|
45.4 |
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|
|
(41.6 |
) |
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|
3.8 |
|
|
2 – 5 years |
Technology |
|
$ |
36.2 |
|
|
|
(35.5 |
) |
|
|
0.7 |
|
|
|
36.2 |
|
|
|
(33.7 |
) |
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|
2.5 |
|
|
5 – 8 years |
Total intangible assets with definite lives |
|
$ |
3,422.7 |
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|
$ |
(1,903.7 |
) |
|
$ |
1,519.0 |
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|
$ |
3,295.8 |
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|
$ |
(1,632.9 |
) |
|
$ |
1,662.9 |
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|
|
Intangible assets with indefinite lives: |
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|
|
|
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Goodwill |
|
$ |
3,565.0 |
|
|
$ |
— |
|
|
$ |
3,565.0 |
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|
$ |
3,480.1 |
|
|
$ |
— |
|
|
$ |
3,480.1 |
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|
Indefinite |
Trade names |
|
|
25.6 |
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|
|
— |
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|
|
25.6 |
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|
|
25.6 |
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|
|
— |
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|
|
25.6 |
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Indefinite |
Total intangible assets with indefinite lives |
|
$ |
3,590.6 |
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|
$ |
— |
|
|
$ |
3,590.6 |
|
|
$ |
3,505.7 |
|
|
$ |
— |
|
|
$ |
3,505.7 |
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For the intangible assets with definite lives, the Company recorded amortization expense of $278.8 million for fiscal 2026, $269.1 million for fiscal 2025, and $206.3 million for fiscal 2024. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:
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(In millions) |
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|
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2027 |
|
|
237.0 |
|
2028 |
|
|
205.0 |
|
2029 |
|
|
203.6 |
|
2030 |
|
|
196.1 |
|
2031 |
|
|
189.0 |
|
Thereafter |
|
|
488.3 |
|
Total amortization expense |
|
$ |
1,519.0 |
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|