Goodwill and Other Intangible Assets

9 Months Ended

Oct. 03, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

6. GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes our goodwill and other intangible assets at October 3, 2020 and December 28, 2019, respectively, each of which is explained in additional detail below (amounts in thousands):

	October 3, 2020		December 28, 2019
Goodwill	$	545,244	$	545,244
Amortizable intangible assets, net of amortization		595,894		623,107
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,268,238	$	1,295,451

As of October 3, 2020 and December 28, 2019, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):

	October 3, 2020						December 28, 2019
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	472,557	$	65,791	$	406,766	$	477,193	$	55,746	$	421,447
Customer relationships		318,021		131,161		186,860		318,021		117,836		200,185
Non-compete agreements		5,154		5,015		139		5,154		4,954		200
Distributor relationships		4,123		3,060		1,063		4,123		2,848		1,275
Distributor routes held and used		1,123		57		1,066		—		—		—
Total	$	800,978	$	205,084	$	595,894	$	804,491	$	181,384	$	623,107

Aggregate amortization expense for the twelve and forty weeks ended October 3, 2020 and October 5, 2019 was as follows (amounts in thousands):

	Amortization Expense
For the twelve weeks ended October 3, 2020	$	7,042
For the twelve weeks ended October 5, 2019	$	6,767
For the forty weeks ended October 3, 2020	$	23,700
For the forty weeks ended October 5, 2019	$	22,556

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

	Amortization of Intangibles
Remainder of 2020	$	6,974
2021	$	29,881
2022	$	29,332
2023	$	28,451
2024	$	27,756

There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 3, 2020 and December 28, 2019. These trademarks are classified as indefinite-lived because we believe 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. 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.

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. The impairment charge is recorded in the restructuring and related impairment charges line item of our Condensed Consolidated Statements of Income.