Goodwill and Other Intangible Assets

12 Months Ended

Dec. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Note 11. Goodwill and Other Intangible Assets

The table below summarizes our goodwill and other intangible assets as of December 28, 2024 and December 30, 2023, respectively, each of which is explained in additional detail below (amounts in thousands):


	December 28, 2024		December 30, 2023
Goodwill	$	679,896	$	677,796
Amortizable intangible assets, net of amortization		499,269		530,642
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,306,265	$	1,335,538

The changes in the carrying amount of goodwill during Fiscal 2024, during which time we finalized the purchase accounting for the acquisition of Papa Pita, are as follows (amounts in thousands):


	Total
Balance as of December 30, 2023	$	677,796
Measurement period adjustment (see Note 7, Acquisition)		2,100
Balance as of December 28, 2024	$	679,896

On February 17, 2023, the company completed the acquisition of Papa Pita for total consideration of $274.8 million, inclusive of a net working capital adjustment payment. The acquisition included several amortizable intangible assets which total $27.1 million and are included in the table below. See Note 7, Acquisition, for details of the assets and the respective amortization period by category.

Goodwill was not impaired in Fiscal 2024, 2023, or 2022.

As of December 28, 2024 and December 30, 2023, the company had the following amounts related to amortizable intangible assets (amounts in thousands):


	December 28, 2024						December 30, 2023
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	481,715	$	122,432	$	359,283	$	481,715	$	107,562	$	374,153
Customer relationships		340,221		200,549		139,672		340,221		184,222		155,999
Non-compete agreements		5,454		5,281		173		5,454		5,206		248
Distributor relationships		4,123		3,982		141		4,123		3,881		242
Total	$	831,513	$	332,244	$	499,269	$	831,513	$	300,871	$	530,642

In Fiscal 2020, the company reclassified certain California distribution rights from held for sale to held and used. In conjunction with the agreement to settle the California distributor-related litigation, reached in Fiscal 2023, the company fully impaired these distribution rights and recorded a charge of $2.3 million in the selling, distribution, and administrative expenses line item of the Consolidated Statements of Income during Fiscal 2023. See Note 24, Commitments and Contingencies, for details of this settlement.

As of December 28, 2024 and December 30, 2023, 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.

Amortization expense

Amortization expense for Fiscal 2024, 2023, and 2022 was as follows (amounts in thousands):


	Amortization expense
Fiscal 2024	$	31,371
Fiscal 2023	$	32,218
Fiscal 2022	$	31,752

Estimated amortization of intangibles for Fiscal 2025 and the next four years thereafter is as follows (amounts in thousands):


Fiscal year	Amortization of Intangibles
2025	$	30,747
2026	$	28,891
2027	$	27,241
2028	$	25,611
2029	$	23,411