8.Distribution Agreements, Net

Distribution agreements, net, which have an estimated useful life of 20 to 40 years, consisted of the following:

(in thousands)	October 1, 2017		January 1, 2017
Distribution agreements at cost	$	812,370	$	242,486
Less: Balance held for sale		63,321		-
Less: Accumulated amortization		19,272		7,498
Distribution agreements, net	$	729,777	$	234,988

A reconciliation of the activity for distribution agreements, net for the first three quarters of 2017 and the first three quarters of 2016 is as follows:

	First Three Quarters
(in thousands)	2017			2016
Beginning balance - distribution agreements, net	$	234,988		$	129,786
Expansion Transactions		36,800			22,750
Conversion to distribution rights from franchise rights		533,040			-
Other distribution agreements		44			1,696
Additional accumulated amortization		(11,774	)		(2,899	)
Balance held for sale		(63,321	)		-
Ending balance - distribution agreements, net	$	729,777		$	151,333

There was $63.3 million of distribution agreements, net related to territory exchanges and acquisitions that closed on October 2, 2017, which was classified as held for sale as of October 1, 2017. Refer to Note 24 for additional information.

Concurrent with its entrance into the Final CBA in the first quarter of 2017, the Company converted its franchise rights for the Legacy Territories to distribution rights, with an estimated useful life of 40 years.