8.Distribution Agreements, Net

Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following:

(in thousands)	April 1, 2018			December 31, 2017
Distribution agreements at cost	$	939,527		$	939,527
Less: Accumulated amortization		(32,127	)		(26,175	)
Distribution agreements, net	$	907,400		$	913,352

A reconciliation of the activity for distribution agreements, net for the first quarter of 2018 and the first quarter of 2017 is as follows:

	First Quarter
(in thousands)	2018			2017
Beginning balance - distribution agreements, net	$	913,352		$	234,988
Conversion to distribution rights from franchise rights⁽¹⁾		-			533,040
System Transformation Transactions acquisitions		-			28,200
Other distribution agreements		-			44
Additional accumulated amortization		(5,952	)		(1,710	)
Ending balance - distribution agreements, net	$	907,400		$	794,562

⁽¹⁾

In connection with the closing of the March 2017 Transactions, the Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement (as amended, the “CBA”) on March 31, 2017, and concurrently converted the Company’s franchise rights within the territories in which the Company distributed Coca‑Cola products prior to beginning the System Transformation to distribution agreements, net on the consolidated condensed financial statements. Prior to this conversion, the Company’s franchise rights resided entirely within the Nonalcoholic Beverages segment.