During the three months ended July 4, 2026, the Company identified a potential impairment indicator within its Hiya reporting unit related to current lower-than-expected financial performance and changes in the near-term forecast. As such, the Company performed a quantitative impairment analysis. Based on the results of this analysis, the Company concluded that the estimated fair value of its Hiya reporting unit was less than its carrying value. The fair value of the Hiya reporting unit was determined using a combination of an income approach, which estimates fair value based upon projected financial information discounted to present values, and a market approach based on guideline public companies.

These methods involve the use of significant estimates, assumptions, and judgments by management. The principal assumptions used in this analysis consisted of management’s best estimates of future financial results including revenue growth rates and profitability margins, an appropriate discount rate to apply to projected cash flows, and selection and weighting of market multiples. The impairment resulted primarily from changes to projected financial information, as well as adjustments to market multiples and discount rates to reflect current facts and circumstances.

As a result, the Company recorded a non-cash goodwill impairment charge of $29,137 for the Hiya reporting unit during the second quarter of 2026, included in the “Goodwill impairment” line item of the condensed consolidated statements of comprehensive income. For all other reporting units, the Company identified no indicators that it was more likely than not that their fair values were less than their carrying values.


	Core Nutritional		Hiya		Rise		Total
Balance as of January 3, 2026(1)
Gross goodwill	$	16,670	$	127,374	$	445	$	144,489
Accumulated impairment losses	(6,527)		—		—		(6,527)
Net goodwill as of January 3, 2026	10,143		127,374		445		137,962

Currency translation adjustment	165		—		—		165

Balance as of April 4, 2026
Gross goodwill	16,835		127,374		445		144,654
Accumulated impairment losses	(6,527)		—		—		(6,527)
Net goodwill as of April 4, 2026	10,308		127,374		445		138,127

Impairment	—		(29,137)		—		(29,137)
Currency translation adjustment	151		—		—		151

Balance as of July 4, 2026
Gross goodwill	16,986		127,374		445		144,805
Accumulated impairment losses	(6,527)		(29,137)		—		(35,664)
Net goodwill as of July 4, 2026	$	10,459	$	98,237	$	445	$	109,141

(1)January 3, 2026 reflects the recast of previously reported goodwill by reportable segment to conform to the Company's reorganized reportable segments, effective January 4, 2026, See Note A and Note K.