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Goodwill and Other Intangible Assets | 9 Months Ended
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Oct. 07, 2023
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 7, 2023 and December 31, 2022, respectively, each of which is explained in additional detail below (amounts in thousands):
|  | October 7, 2023 |  |  | December 31, 2022 |
Goodwill |  | $ | 677,796 |  |  | $ | 545,244 |
Amortizable intangible assets, net |  |  | 537,968 |  |  |  | 537,281 |
Indefinite-lived intangible assets |  |  | 127,100 |  |  |  | 127,100 |
Total goodwill and other intangible assets |  | $ | 1,342,864 |  |  | $ | 1,209,625 |
The changes in the carrying amount of goodwill during the forty weeks ended October 7, 2023, during which time we completed the acquisition of Papa Pita, are as follows (amounts in thousands):
|  | Total |
Balance as of December 31, 2022 |  | $ | 545,244 |
Acquisition |  |  | 132,552 |
Balance as of October 7, 2023 |  | $ | 677,796 |
On February 17, 2023, the company completed the acquisition of Papa Pita for total consideration of approximately $274.8 million, inclusive of a net working capital adjustment payment. The acquisition included several amortizable intangible assets which total $27.1 million and are included in the table below. See Note 4, Acquisition, for details of the assets and the respective amortization period by category. As of October 7, 2023 and December 31, 2022, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):
|  | October 7, 2023 |  |  | December 31, 2022 |
Asset |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |  |  | Cost |  |  | Accumulated Amortization |  |  | Net Value |
Trademarks |  | $ | 481,715 |  |  | $ | 104,131 |  |  | $ | 377,584 |  |  | $ | 477,115 |  |  | $ | 92,763 |  |  | $ | 384,352 |
Customer relationships |  |  | 340,221 |  |  |  | 180,378 |  |  |  | 159,843 |  |  |  | 318,021 |  |  |  | 167,688 |  |  |  | 150,333 |
Non-compete agreements |  |  | 5,454 |  |  |  | 5,179 |  |  |  | 275 |  |  |  | 5,154 |  |  |  | 5,114 |  |  |  | 40 |
Distributor relationships |  |  | 4,123 |  |  |  | 3,857 |  |  |  | 266 |  |  |  | 4,123 |  |  |  | 3,673 |  |  |  | 450 |
Distributor routes held and used |  |  | 4,040 |  |  |  | 4,040 |  |  |  | — |  |  |  | 3,249 |  |  |  | 1,143 |  |  |  | 2,106 |
Total |  | $ | 835,553 |  |  | $ | 297,585 |  |  | $ | 537,968 |  |  | $ | 807,662 |  |  | $ | 270,381 |  |  | $ | 537,281 |
Aggregate amortization expense for the twelve and forty weeks ended October 7, 2023 and October 8, 2022 was as follows (amounts in thousands):
|  | Amortization Expense |
For the twelve weeks ended October 7, 2023 |  | $ | 7,572 |
For the twelve weeks ended October 8, 2022 |  | $ | 7,334 |
For the forty weeks ended October 7, 2023 |  | $ | 24,891 |
For the forty weeks ended October 8, 2022 |  | $ | 24,415 |
Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):
|  | Amortization of Intangibles |
Remainder of 2023 |  | $ | 7,336 |
2024 |  | $ | 31,409 |
2025 |  | $ | 30,746 |
2026 |  | $ | 28,891 |
2027 |  | $ | 27,242 |
There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at October 7, 2023 and December 31, 2022. These trademarks are classified as indefinite-lived because we believe they are well established brands with a long history and well-defined markets. 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. Additionally, the company fully impaired the California distribution rights classified as held and used and recorded a charge of $2.3 million in the selling, distribution, and administrative expenses of the Condensed Consolidated Statements of Income (Loss) during the twelve weeks ended October 7, 2023.

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