5. Franchise Rights and Goodwill

Franchise rights and goodwill consisted of the following:

In Thousands	July 3, 2016		January 3, 2016		June 28, 2015
Franchise rights	$	533,040	$	527,540	$	527,540
Goodwill		139,756		117,954		111,591
Total franchise rights and goodwill	$	672,796	$	645,494	$	639,131

A reconciliation of the activity for franchise rights and goodwill for YTD 2015 and YTD 2016 follows:

In Thousands	Franchise rights		Goodwill			Total
Balance on December 28, 2014	$	520,672	$	106,220		$	626,892
YTD 2015 Expansion Territories		-		5,425			5,425
Asset Exchange Transaction		6,868		38			6,906
Measurement period adjustment		-		(92	)		(92	)
Balance on June 28, 2015	$	527,540	$	111,591		$	639,131

Balance on January 3, 2016	$	527,540	$	117,954		$	645,494
YTD 2016 Expansion Transactions		-		20,528			20,528
Asset Exchange Transaction		5,500		(682	)		4,818
Measurement period adjustment		-		1,956			1,956
Balance on July 3, 2016	$	533,040	$	139,756		$	672,796

The Company’s goodwill and franchise rights reside entirely within the Nonalcoholic Beverage segment. The Company performs its annual impairment test of franchise rights and goodwill as of the first day of the fourth quarter. During YTD 2016, the Company did not experience any triggering events or changes in circumstances that indicated the carrying amounts of the Company’s franchise rights or goodwill exceeded fair values.

In Q2 2016, the Company recorded $5.5 million in franchise rights for the Lexington Expansion Territory.