Distribution Agreements, Net

12 Months Ended

Dec. 29, 2019

Distribution Agreements [Member]

Other Identifiable Intangible Assets Net

12. Distribution Agreements, Net

Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following:

(in thousands)	December 29, 2019		December 30, 2018
Distribution agreements at cost	$	950,549	$	950,559
Less: Accumulated amortization		74,453		50,176
Distribution agreements, net	$	876,096	$	900,383

A reconciliation of the activity for distribution agreements, net in 2019 and 2018 is as follows:

	Fiscal Year
(in thousands)	2019			2018
Beginning balance - distribution agreements, net	$	900,383		$	913,352
Other distribution agreements		(10	)		6,332
Measurement period adjustments(1)		-			4,700
Additional accumulated amortization		(24,277	)		(24,001	)
Ending balance - distribution agreements, net	$	876,096		$	900,383

^{(1) Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for distribution territories acquired or exchanged by the Company in October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. The adjustments to amortization expense associated with these measurement period adjustments were not material to the consolidated financial statements.}

Assuming no impairment of distribution agreements, net, amortization expense in future years based upon recorded amounts as of December 29, 2019 will be $24.3 million for each fiscal year 2020 through 2024.