Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 9. Goodwill and Other Intangible Assets

The table below summarizes our goodwill and other intangible assets at December 31, 2022 and January 1, 2022, respectively, each of which is explained in additional detail below (amounts in thousands):


	December 31, 2022		January 1, 2022
Goodwill	$	545,244	$	545,244
Amortizable intangible assets, net of amortization		537,281		568,332
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,209,625	$	1,240,676

Goodwill was not impaired in Fiscal 2022, 2021, or 2020.

As of December 31, 2022 and January 1, 2022, the company had the following amounts related to amortizable intangible assets (amounts in thousands):


	December 31, 2022						January 1, 2022
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	477,115	$	92,763	$	384,352	$	477,115	$	78,124	$	398,991
Customer relationships		318,021		167,688		150,333		318,021		151,496		166,525
Non-compete agreements		5,154		5,114		40		5,154		5,074		80
Distributor relationships		4,123		3,673		450		4,123		3,398		725
Distributor routes held and used		3,249		1,143		2,106		2,548		537		2,011
Total	$	807,662	$	270,381	$	537,281	$	806,961	$	238,629	$	568,332

The company acquired trademarks for $10.2 million during the second quarter of Fiscal 2021. These trademarks are being amortized over their estimated useful life.

As of December 31, 2022 and January 1, 2022, there was $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill. These trademarks are classified as indefinite-lived because there is no foreseeable limit to the period over which the asset is expected to contribute to our cash flows. They are well established brands with a long history and well-defined markets. In addition, we are continuing to use these brands both in their original markets and throughout our expansion territories. We believe these factors support an indefinite-life assignment with an annual impairment analysis to determine if the trademarks are realizing their expected economic benefits.

Fiscal 2020 restructuring and related impairment charges

In order to optimize sales and production of our organic products, the company decided to cease using the Alpine Valley finite-lived trademark, resulting in a $4.6 million impairment charge in the second quarter of Fiscal 2020. In the fourth quarter of Fiscal 2020, an additional $1.3 million impairment charge was recognized at the time the company decided to cease using another one of its regional brands. These costs are recorded in the restructuring and related impairment charges line item on our Consolidated Statements of Income.

Amortization expense

Amortization expense for Fiscal 2022, 2021, and 2020 was as follows (amounts in thousands):


	Amortization expense
Fiscal 2022	$	31,752
Fiscal 2021	$	30,857
Fiscal 2020	$	30,704

Estimated amortization of intangibles for Fiscal 2023 and the next four years thereafter is as follows (amounts in thousands):


Fiscal year	Amortization of Intangibles
2023	$	30,794
2024	$	30,098
2025	$	29,385
2026	$	27,303
2027	$	25,583