Coca-Cola Consolidated, Inc. Goodwill & Intangibles Disclosure
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11. |
Goodwill |
A reconciliation of the activity for goodwill in 2019 and 2018 is as follows:
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|
|
Fiscal Year |
|
|||||
|
(in thousands) |
|
2019 |
|
|
2018 |
|
||
|
Beginning balance - goodwill |
|
$ |
165,903 |
|
|
$ |
169,316 |
|
|
Measurement period adjustments(1) |
|
|
- |
|
|
|
(3,413 |
) |
|
Ending balance - goodwill |
|
$ |
165,903 |
|
|
$ |
165,903 |
|
|
(1) |
Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for distribution territories acquired or exchanged by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. |
The Company’s goodwill resides entirely within the Nonalcoholic Beverages segment. The Company performed its annual impairment test of goodwill as of the first day of the fourth quarter during both 2019 and 2018 and determined there was no impairment of the carrying value of these assets.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2019 | Feb 25, 2020 | Showing above |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 14, 2017 | |
| 2016 | Mar 18, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.