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Goodwill and Other Intangible Assets | 9 Months Ended
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Oct. 06, 2018
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 7. GOODWILL AND OTHER INTANGIBLE ASSETS The table below summarizes our goodwill and other intangible assets at October 6, 2018 and December 30, 2017, respectively, each of which is explained in additional detail below (amounts in thousands):
|  | October 6, 2018 |  |  | December 30, 2017 |
Goodwill |  | $ | 464,777 |  |  | $ | 464,777 |
Amortizable intangible assets, net of amortization |  |  | 515,924 |  |  |  | 535,842 |
Indefinite-lived intangible assets |  |  | 206,600 |  |  |  | 206,600 |
Total goodwill and other intangible assets |  | $ | 1,187,301 |  |  | $ | 1,207,219 |
There were no changes in the carrying amount of goodwill during the forty weeks ended October 6, 2018. As of October 6, 2018 and December 30, 2017, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):
|  | October 6, 2018 |  |  | December 30, 2017 |
Asset |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |  |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |
Trademarks |  | $ | 371,392 |  |  | $ | 42,404 |  |  | $ | 328,988 |  |  | $ | 371,392 |  |  | $ | 34,716 |  |  | $ | 336,676 |
Customer relationships |  |  | 281,621 |  |  |  | 96,299 |  |  |  | 185,322 |  |  |  | 281,621 |  |  |  | 84,280 |  |  |  | 197,341 |
Non-compete agreements |  |  | 4,874 |  |  |  | 4,874 |  |  |  | — |  |  |  | 4,874 |  |  |  | 4,874 |  |  |  | — |
Distributor relationships |  |  | 4,123 |  |  |  | 2,509 |  |  |  | 1,614 |  |  |  | 4,123 |  |  |  | 2,298 |  |  |  | 1,825 |
Total |  | $ | 662,010 |  |  | $ | 146,086 |  |  | $ | 515,924 |  |  | $ | 662,010 |  |  | $ | 126,168 |  |  | $ | 535,842 |
Aggregate amortization expense for the twelve and forty weeks ended October 6, 2018 and October 7, 2017 was as follows (amounts in thousands):
|  | Amortization Expense |
For the twelve weeks ended October 6, 2018 |  | $ | 5,975 |
For the twelve weeks ended October 7, 2017 |  | $ | 6,218 |
For the forty weeks ended October 6, 2018 |  | $ | 19,918 |
For the forty weeks ended October 7, 2017 |  | $ | 21,190 |
Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):
|  | Amortization of Intangibles |
Remainder of 2018 |  | $ | 5,892 |
2019 |  | $ | 25,288 |
2020 |  | $ | 24,795 |
2021 |  | $ | 24,234 |
2022 |  | $ | 23,643 |
There were $206.6 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 6, 2018 and December 30, 2017. These trademarks are classified as indefinite-lived because we believe they are well established brands, many older than forty years old, with a long history and well defined markets. In addition, we are continuing to use these brands both in their original markets and throughout our expansion territories. We believe these factors support an indefinite-life. We perform an annual impairment analysis, or on an interim basis if the facts and circumstances change, to determine if the trademarks are realizing their expected economic benefits. During the twelve and forty weeks ended October 7, 2017, the company recognized intangible asset impairments of $66.2 million that are recorded in the restructuring and related impairment charges line item of our Condensed Consolidated Statements of Operations. The company is currently undergoing an enterprise-wide business and operational review as discussed in Note 4, Restructuring Activities, above. The review included a brand rationalization study that impacted certain trademarks’ future use. The study was completed in the third quarter of fiscal 2017. The study concluded that brands should be classified as either national or regional and brands that did not fit into those categories were to be discontinued. National brands would have more marketing support than the de-emphasized remaining regional brands and in many cases, would shift sales from regional brands as certain regional brand bread products are discontinued. As a result of these actions, a triggering event occurred and we examined several trademarks for potential impairment. One of the trademarks was an indefinite-lived trademark asset and was tested by comparing the fair value of the brand to its carrying value. Three finite-lived trademark assets were tested using an undiscounted cash flow test. As a result of this test, the projected cash flows for these brands did not exceed the carrying value. The second step of the test determined the fair value of the asset and the difference between the fair value and the carrying value was recorded as an impairment. The impairment charge also consisted of six brands that either are being discontinued or will have limited future benefits to the company. These brands were fully impaired. All of these impairments were attributed to regional brands. Following the impairments, we evaluated the classification of the impaired indefinite-lived asset and determined that it should be reassigned as finite-lived with an estimated useful life of 30 years. The table below presents the impairments, by reporting segment, that were recognized during the twelve weeks ended October 7, 2017 (amounts in thousands):
|  | DSD Segment |  |  | Warehouse Segment |  |  | Total |
Indefinite-lived trademark asset impairments |  | $ | 18,500 |  |  | $ | — |  |  | $ | 18,500 |
Finite-lived trademark asset impairments |  |  | 36,612 |  |  |  | 11,135 |  |  |  | 47,747 |
Total |  | $ | 55,112 |  |  | $ | 11,135 |  |  | $ | 66,247 |

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