Goodwill and Other Intangible Assets

9 Months Ended

Oct. 08, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

5. GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes our goodwill and other intangible assets at October 8, 2022 and January 1, 2022, respectively, each of which is explained in additional detail below (amounts in thousands):

	October 8, 2022		January 1, 2022
Goodwill	$	545,244	$	545,244
Amortizable intangible assets, net		544,618		568,332
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,216,962	$	1,240,676

As of October 8, 2022 and January 1, 2022, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):

	October 8, 2022						January 1, 2022
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	477,115	$	89,385	$	387,730	$	477,115	$	78,124	$	398,991
Customer relationships		318,021		163,954		154,067		318,021		151,496		166,525
Non-compete agreements		5,154		5,105		49		5,154		5,074		80
Distributor relationships		4,123		3,609		514		4,123		3,398		725
Distributor routes held and used		3,249		991		2,258		2,548		537		2,011
Total	$	807,662	$	263,044	$	544,618	$	806,961	$	238,629	$	568,332

Aggregate amortization expense for the twelve and forty weeks ended October 8, 2022 and October 9, 2021 was as follows (amounts in thousands):

	Amortization Expense
For the twelve weeks ended October 8, 2022	$	7,334
For the twelve weeks ended October 9, 2021	$	7,223
For the forty weeks ended October 8, 2022	$	24,415
For the forty weeks ended October 9, 2021	$	23,545

Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):

	Amortization of Intangibles
Remainder of 2022	$	7,248
2023	$	30,794
2024	$	30,098
2025	$	29,387
2026	$	27,302

There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 8, 2022 and January 1, 2022. These trademarks are classified as indefinite-lived because we believe they are well established brands with a long history and well-defined markets. We believe these factors support an indefinite life. We perform an annual impairment analysis, or on an interim basis if the facts and circumstances change, to determine if the trademarks are realizing their expected economic benefits.