Goodwill and Other Intangible Assets

4 Months Ended

Apr. 22, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes our goodwill and other intangible assets at April 22, 2023 and December 31, 2022, respectively, each of which is explained in additional detail below (amounts in thousands):

	April 22, 2023		December 31, 2022
Goodwill	$	676,274	$	545,244
Amortizable intangible assets, net		555,159		537,281
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,358,533	$	1,209,625

The changes in the carrying amount of goodwill during the first quarter of Fiscal 2023, during which time we completed the acquisition of Papa Pita, are as follows (amounts in thousands):

	Total
Balance as of December 31, 2022	$	545,244
Acquisition		131,030
Balance as of April 22, 2023	$	676,274

On February 17, 2023, the company completed the acquisition of Papa Pita for total consideration of approximately $273.5 million, inclusive of a preliminary net working capital adjustment. The acquisition included several amortizable intangible assets which total $27.1 million and are included in the table below. See Note 4, Acquisition, for details of the assets and the respective amortization period by category.

As of April 22, 2023 and December 31, 2022, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):

	April 22, 2023						December 31, 2022
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	481,715	$	97,285	$	384,430	$	477,115	$	92,763	$	384,352
Customer relationships		340,221		172,565		167,656		318,021		167,688		150,333
Non-compete agreements		5,454		5,132		322		5,154		5,114		40
Distributor relationships		4,123		3,757		366		4,123		3,673		450
Distributor routes held and used		3,750		1,365		2,385		3,249		1,143		2,106
Total	$	835,263	$	280,104	$	555,159	$	807,662	$	270,381	$	537,281

Aggregate amortization expense for the sixteen weeks ended April 22, 2023 and April 23, 2022 was as follows (amounts in thousands):

	Amortization Expense
For the sixteen weeks ended April 22, 2023	$	9,723
For the sixteen weeks ended April 23, 2022	$	9,749

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

	Amortization of Intangibles
Remainder of 2023	$	22,719
2024	$	32,160
2025	$	31,378
2026	$	29,227
2027	$	27,374

There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at April 22, 2023 and December 31, 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.