Performance Food Group Co Goodwill & Intangibles Disclosure
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:
(In millions) |
|
Foodservice |
|
|
Convenience |
|
|
Specialty |
|
|
Other |
|
|
Total |
|
|||||
Balance as of July 1, 2023 |
|
$ |
1,300.9 |
|
|
$ |
884.1 |
|
|
$ |
93.9 |
|
|
$ |
22.1 |
|
|
$ |
2,301.0 |
|
Acquisitions |
|
|
— |
|
|
|
— |
|
|
|
39.5 |
|
|
|
76.9 |
|
|
|
116.4 |
|
Adjustments related to prior year acquisition (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.9 |
|
|
|
0.9 |
|
Balance as of June 29, 2024 |
|
|
1,300.9 |
|
|
|
884.1 |
|
|
|
133.4 |
|
|
|
99.9 |
|
|
|
2,418.3 |
|
Acquisitions—current year |
|
|
1,052.5 |
|
|
|
11.2 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
1,066.8 |
|
Adjustments related to prior year acquisition (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5.0 |
) |
|
|
(5.0 |
) |
Balance as of June 28, 2025 |
|
$ |
2,353.4 |
|
|
$ |
895.3 |
|
|
$ |
133.4 |
|
|
$ |
98.0 |
|
|
$ |
3,480.1 |
|
The following table presents the Company’s intangible assets by major category as of June 28, 2025 and June 29, 2024:
|
|
As of June 28, 2025 |
|
|
As of June 29, 2024 |
|
|
|
||||||||||||||||||
(In millions) |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Range of |
||||||
Intangible assets with definite lives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer relationships |
|
$ |
2,400.1 |
|
|
$ |
(1,065.5 |
) |
|
$ |
1,334.6 |
|
|
$ |
1,680.6 |
|
|
$ |
(898.0 |
) |
|
$ |
782.6 |
|
|
4 – 12 years |
Trade names and trademarks |
|
$ |
716.2 |
|
|
|
(422.9 |
) |
|
|
293.3 |
|
|
|
483.5 |
|
|
|
(343.4 |
) |
|
|
140.1 |
|
|
4 – 12 years |
Deferred financing costs |
|
$ |
97.9 |
|
|
|
(69.2 |
) |
|
|
28.7 |
|
|
|
73.3 |
|
|
|
(62.8 |
) |
|
|
10.5 |
|
|
Debt term |
Non-compete |
|
$ |
45.4 |
|
|
|
(41.6 |
) |
|
|
3.8 |
|
|
|
48.4 |
|
|
|
(40.6 |
) |
|
|
7.8 |
|
|
2 – 5 years |
Technology |
|
$ |
36.2 |
|
|
|
(33.7 |
) |
|
|
2.5 |
|
|
|
36.7 |
|
|
|
(32.2 |
) |
|
|
4.5 |
|
|
5 – 8 years |
Total intangible assets with definite lives |
|
$ |
3,295.8 |
|
|
$ |
(1,632.9 |
) |
|
$ |
1,662.9 |
|
|
$ |
2,322.5 |
|
|
$ |
(1,377.0 |
) |
|
$ |
945.5 |
|
|
|
Intangible assets with indefinite lives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill |
|
$ |
3,480.1 |
|
|
$ |
— |
|
|
$ |
3,480.1 |
|
|
$ |
2,418.3 |
|
|
$ |
— |
|
|
$ |
2,418.3 |
|
|
Indefinite |
Trade names |
|
|
25.6 |
|
|
|
— |
|
|
|
25.6 |
|
|
|
25.6 |
|
|
|
— |
|
|
|
25.6 |
|
|
Indefinite |
Total intangible assets with indefinite lives |
|
$ |
3,505.7 |
|
|
$ |
— |
|
|
$ |
3,505.7 |
|
|
$ |
2,443.9 |
|
|
$ |
— |
|
|
$ |
2,443.9 |
|
|
|
For the intangible assets with definite lives, the Company recorded amortization expense of $269.1 million for fiscal 2025, $206.3 million for fiscal 2024, and $185.7 million for fiscal 2023. For the next five fiscal periods and thereafter, the estimated future amortization expense on intangible assets with definite lives are as follows:
(In millions) |
|
|
|
|
2026 |
|
|
273.2 |
|
2027 |
|
|
221.6 |
|
2028 |
|
|
189.9 |
|
2029 |
|
|
188.4 |
|
2030 |
|
|
181.0 |
|
Thereafter |
|
|
608.8 |
|
Total amortization expense |
|
$ |
1,662.9 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 13, 2025 | Showing above |
| 2024 | Aug 14, 2024 | |
| 2023 | Aug 16, 2023 | |
| 2022 | Aug 19, 2022 | |
| 2021 | Aug 24, 2021 | |
| 2020 | Aug 18, 2020 | |
| 2019 | Aug 16, 2019 | |
| 2018 | Aug 16, 2018 | |
| 2017 | Aug 25, 2017 | |
| 2016 | Aug 30, 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.