Central Garden & Pet Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Other Intangible Assets

Other Intangible Assets

9 Months Ended

Jun. 27, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

6.	Other Intangible Assets

The following table summarizes the components of gross and net acquired intangible assets:


	Gross		Accumulated Amortization			Impairment			Net Carrying Value
			(in millions)
June 27, 2015
Marketing-related intangible assets – amortizable	$	14.1	$	(10.4	)	$	0		$	3.7
Marketing-related intangible assets – nonamortizable		59.6		0			(16.9	)		42.7

Total		73.7		(10.4	)		(16.9	)		46.4

Customer-related intangible assets – amortizable		43.3		(21.8	)		0			21.5

Other acquired intangible assets – amortizable		19.3		(10.0	)		0			9.3
Other acquired intangible assets – nonamortizable		7.8		0			(1.2	)		6.6

Total		27.1		(10.0	)		(1.2	)		15.9

Total other intangible assets	$	144.1	$	(42.2	)	$	(18.1	)	$	83.8


	Gross		Accumulated Amortization			Impairment			Net Carrying Value
			(in millions)

June 28, 2014
Marketing-related intangible assets – amortizable	$	12.5	$	(9.6	)	$	0		$	2.9
Marketing-related intangible assets – nonamortizable		59.6		0			(16.9	)		42.7

Total		72.1		(9.6	)		(16.9	)		45.6

Customer-related intangible assets – amortizable		42.8		(19.6	)		0			23.2

Other acquired intangible assets – amortizable		16.6		(8.5	)		0			8.1
Other acquired intangible assets – nonamortizable		1.2		0			(1.2	)		0

Total		17.8		(8.5	)		(1.2	)		8.1

Total other intangible assets	$	132.7	$	(37.7	)	$	(18.1	)	$	76.9


	Gross		Accumulated Amortization			Impairment			Net Carrying Value
			(in millions)
September 27, 2014
Marketing-related intangible assets – amortizable	$	15.5	$	(9.9	)	$	0		$	5.6
Marketing-related intangible assets – nonamortizable		59.6		0			(16.9	)		42.7

Total		75.1		(9.9	)		(16.9	)		48.3

Customer-related intangible assets – amortizable		42.8		(20.2	)		0			22.6

Other acquired intangible assets – amortizable		19.4		(8.8	)		0			10.6
Other acquired intangible assets – nonamortizable		7.7		0			(1.2	)		6.5

Total		27.1		(8.8	)		(1.2	)		17.1

Total other intangible assets	$	145.0	$	(38.9	)	$	(18.1	)	$	88.0

Other acquired intangible assets include contract-based and technology-based intangible assets.

The Company evaluates long-lived assets, including amortizable and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company evaluates indefinite-lived intangible assets on an annual basis. In fiscal 2014, the Company tested its indefinite-lived intangible assets and no impairment was indicated. Other factors indicating the carrying value of the Company’s amortizable intangible assets may not be recoverable were not present in fiscal 2014 or during the nine months ended June 27, 2015, and accordingly, no impairment testing was performed on these assets.

The Company amortizes its acquired intangible assets with definite lives over periods ranging from 1 to 25 years; over weighted average remaining lives of eight years for marketing-related intangibles, 15 years for customer-related intangibles and 14 years for other acquired intangibles. Amortization expense for intangibles subject to amortization was approximately $1.4 million and $1.0 million for the three month periods ended June 27, 2015 and June 28, 2014, respectively and $3.3 million and $3.0 million for the nine months ended June 27, 2015 and June 28, 2014, respectively, and is classified within operating expenses in the condensed consolidated statements of operations. Estimated annual amortization expense related to acquired intangible assets in each of the succeeding five years is estimated to be approximately $4 million to $5 million per year from fiscal 2015 through fiscal 2019.