7.Goodwill

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

(in thousands)	Goodwill
Balance on January 1, 2017	$	144,586
YTD 2017 Expansion Transactions		19,035
Measurement period adjustment		1,807
Balance held for sale		(12,727	)
Balance on October 1, 2017	$	152,701

Balance on January 3, 2016	$	117,954
Q1, Q2 and Q3 2016 Expansion Transactions⁽¹⁾		22,031
Lexington Asset Exchange Transaction		(682	)
Measurement period adjustment		1,968
Balance on October 2, 2016	$	141,271

⁽¹⁾ The 2016 Expansion Transactions completed during the first three quarters of 2016 are the “Q1, Q2 and Q3 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. There was $12.7 million of goodwill related to territory exchanges and acquisitions that closed on October 2, 2017, which was classified as held for sale as of October 1, 2017 and will be omitted from the Company’s annual impairment test of goodwill. Refer to Note 24 for additional information. During the first three quarters of 2017, the Company did not experience any additional triggering events or changes in circumstances indicating the carrying amounts of the Company’s goodwill exceeded fair values.