Goodwill and Other Intangible Assets

9 Months Ended

Oct. 09, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

6. GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes our goodwill and other intangible assets at October 9, 2021 and January 2, 2021, respectively, each of which is explained in additional detail below (amounts in thousands):

	October 9, 2021		January 2, 2021
Goodwill	$	545,244	$	545,244
Amortizable intangible assets, net		575,328		587,818
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,247,672	$	1,260,162

As of October 9, 2021 and January 2, 2021, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):

	October 9, 2021						January 2, 2021
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	477,115	$	74,744	$	402,371	$	466,915	$	64,426	$	402,489
Customer relationships		318,021		147,751		170,270		318,021		135,068		182,953
Non-compete agreements		5,154		5,065		89		5,154		5,034		120
Distributor relationships		4,123		3,334		789		4,123		3,123		1,000
Distributor routes held and used		2,232		423		1,809		1,377		121		1,256
Total	$	806,645	$	231,317	$	575,328	$	795,590	$	207,772	$	587,818

Aggregate amortization expense for the twelve and forty weeks ended October 9, 2021 and October 3, 2020 was as follows (amounts in thousands):

	Amortization Expense
For the twelve weeks ended October 9, 2021	$	7,223
For the twelve weeks ended October 3, 2020	$	7,042
For the forty weeks ended October 9, 2021	$	23,545
For the forty weeks ended October 3, 2020	$	23,700

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

	Amortization of Intangibles
Remainder of 2021	$	7,327
2022	$	31,472
2023	$	30,591
2024	$	29,896
2025	$	29,184

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.

There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 9, 2021 and January 2, 2021. 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.