6.Goodwill

A reconciliation of the activity for goodwill for the first half of 2017 and the first half of 2016 is as follows:

(in thousands)	Goodwill
Balance on January 1, 2017	$	144,586
YTD 2017 Expansion Transactions		15,076
Measurement period adjustment		765
Balance on July 2, 2017	$	160,427

Balance on January 3, 2016	$	117,954
Q1 and Q2 2016 Expansion Transactions⁽¹⁾		20,528
Lexington Expansion Territory adjustment		(682	)
Measurement period adjustment		1,956
Balance on July 3, 2016	$	139,756

⁽¹⁾ The 2016 Expansion Transactions completed during the first half of 2016 are the “Q1 and Q2 2016 Expansion Transactions.”

The Company’s goodwill resides entirely within the Nonalcoholic Beverage segment. The Company performs its annual impairment test of goodwill as of the first day of the fourth quarter of each fiscal year. During the first half of 2017, the Company did not experience any triggering events or changes in circumstances indicating the carrying amounts of the Company’s goodwill exceeded fair values.