Goodwill and Other Intangibles

9 Months Ended

Sep. 26, 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 $15 million for the 13 weeks ended September 26, 2026 and September 27, 2025, respectively, and $42 million for each of the 39 weeks ended September 26, 2026 and September 27, 2025.

Goodwill and other intangibles—net consisted of the following:


	September 26, 2026		December 27, 2025
Goodwill	$	5,796	$	5,794


Other intangibles—net
Customer relationships—amortizable:
Gross carrying amount	$	812	$	812
Accumulated amortization	(337)		(297)
Net carrying value	475		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	256		258
Total other intangibles—net	$	737	$	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. As a part of this assessment, no goodwill impairments were recognized for the 39 weeks ended September 26, 2026 or September 27, 2025. For the the 13 weeks ended and 39 weeks ended September 26, 2026, the Company determined that there were no future plans to utilize an acquired trademark - not amortizing, which resulted in a $2 million write-off. For the 39 weeks ended September 27, 2025, the Company recognized a write-off of $13 million of acquired brand names and trademarks - not amortizing, which had no future utilization plans.