Goodwill and Intangible Assets

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets:

Goodwill

At December 28, 2019 and December 29, 2018, the carrying amount of Goodwill in the accompanying consolidated balance sheets was $992.2 million and $990.2 million. The change in goodwill during 2019 and 2018 was $2.0 million and $4.1 million related to foreign currency translation.

Intangible Assets Other Than Goodwill

On December 23, 2019, we purchased the DieHard® brand for a cash purchase price of $200.0 million, exclusive of $1.5 million of capitalizable transaction costs. This purchase gives us the right to sell DieHard® batteries and enables us to extend the DieHard® brand into other automotive and vehicular categories. We granted the seller an exclusive royalty-free, perpetual license to develop, market, and sell DieHard® branded products in non-automotive categories. We accounted for this transaction as a purchase of an indefinite-lived intangible asset, which is included within the Brands, trademarks and tradenames category below, and is not subject to amortization.

Amortization expense was $31.7 million, $40.7 million and $47.4 million for 2019, 2018 and 2017. A summary of the composition of the gross carrying amounts and accumulated amortization of acquired intangible assets are presented in the following table:

	December 28, 2019							December 29, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortized intangible assets:
Customer relationships	$	350,352	$	(179,220	)	$	171,132	$	349,157	$	(148,889	)	$	200,268
Favorable leases (1)	—		—			—		27,139		(12,791		)	14,348
Non-compete and other	38,256		(37,318		)	938		37,875		(36,974		)	901
	388,608		(216,538		)	172,070		414,171		(198,654		)	215,517
Indefinite-lived intangible assets:
Brands, trademark and tradenames	537,686		—			537,686		335,076		—			335,076
Total intangible assets	$	926,294	$	(216,538	)	$	709,756	$	749,247	$	(198,654	)	$	550,593

⁽¹⁾  As a result of our adoption of ASU 2016-02 on December 30, 2018, favorable lease assets were derecognized through an opening adjustment to Operating lease right-of-use assets in the accompanying consolidated balance sheet.

Future Amortization Expense

The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 28, 2019:

Year	Amount
(in thousands)
2020	$	30,206
2021	30,104
2022	30,008
2023	27,099
2024	27,291
Thereafter	27,362
	$	172,070