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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As of December 30, 2023 and December 31, 2022, our intangible assets consist of goodwill and other intangible assets including customer relationships, noncompete agreements, and trade names. Goodwill Goodwill is the excess of the cost of an acquired entity over the fair value of tangible and intangible assets (including customer relationships, noncompete agreements, and trade names) acquired and liabilities assumed under the acquisition method accounting for business combinations. The Company’s goodwill as of December 30, 2023 originated as follows: $47.8 million from the 2018 acquisition of Cedar Creek and $7.6 million from the 2022 acquisition of Vandermeer. Goodwill is not subject to amortization but must be tested for impairment at least annually at the reporting unit level. Since the Company operates within a single reporting unit, goodwill is evaluated at the enterprise level. The Company evaluates goodwill for impairment as of the first day of its fiscal fourth quarter, which was October 1, 2023 for fiscal 2023. The annual assessment for fiscal 2023 utilized a quantitative approach and was performed by the Company with the assistance of a independent third-party expert. Based on this assessment, the Company concluded that its goodwill was not impaired and therefore no impairment charge was needed. The Company completed its annual assessment of goodwill in the fourth quarter of fiscal 2022 using a qualitative approach. Based on the qualitative analysis performed in fiscal 2022, the Company noted no changes that were reasonably likely to cause the fair value of the enterprise to be less than its carrying value and therefore concluded that goodwill was not impaired. In addition, the Company must evaluate the carrying value of goodwill for impairment between annual impairment tests if an event occurs or circumstances change that would indicate that the carrying amount of goodwill may be impaired. Such events and indicators may include significant declines in the industries in which the Company’s products are used, significant changes in capital market conditions, and significant changes in the Company’s market capitalization. No such indicators were identified in fiscal 2023 or fiscal 2022. The following table provides information related to the carrying amount of the Company’s goodwill:
|  | Total Carrying Amount
|  | (In thousands)
Balance as of January 1, 2022 |  | $ | 47,772 |
Business combination |  | 7,600 |
Balance as of December 31, 2022 |  | $ | 55,372 |
Balance as of December 30, 2023 |  | $ | 55,372 |
Definite-Lived Intangible Assets The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets as of December 30, 2023 were as follows:
| Weighted Average Remaining Useful Lives |  | Gross Carrying Amounts |  | Accumulated Amortization(1) |  | Net Carrying Amounts |
|  |  | ($ amounts in thousands) |
Customer relationships | 9 |  | $ | 48,500 |  |  | $ | (18,816) |  |  | $ | 29,684 |  |
Non-compete agreements | 4 |  | 8,954 |  |  | (8,429) |  |  | 525 |  |
Trade names | 2 |  | 7,826 |  |  | (7,243) |  |  | 583 |  |
Total |  |  | $ | 65,280 |  |  | $ | (34,488) |  |  | $ | 30,792 |  |
(1) Intangible assets except customer relationships are amortized on straight line basis. Certain of our customer relationships are amortized on a double declining balance method and certain others are amortized on a straight line basis. The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets as of December 31, 2022 were as follows:
| Weighted Average Remaining Useful Lives |  | Gross Carrying Amounts |  | Accumulated Amortization(1) |  | Net Carrying Amounts |
|  |  | ($ amounts in thousands) |
Customer relationships | 10 |  | $ | 48,500 |  |  | $ | (15,093) |  |  | $ | 33,407 |  |
Non-compete agreements | 5 |  | 8,954 |  |  | (8,289) |  |  | 665 |  |
Trade names | 3 |  | 7,826 |  |  | (6,909) |  |  | 917 |  |
Total |  |  | $ | 65,280 |  |  | $ | (30,291) |  |  | $ | 34,989 |  |
(1) Intangible assets except customer relationships are amortized on straight line basis. Customer relationships are amortized on a double declining balance method. Definite-lived intangible assets are subject to impairment testing if events or circumstances occur that indicate the carrying amounts may be impaired. No such indicators were present in fiscal 2023 and fiscal 2022. Amortization Expense Amortization expense for the definite-lived intangible assets was $4.2 million, $3.4 million, and $5.3 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Estimated annual amortization expense for definite-lived intangible assets over the next five fiscal years is as follows:
Fiscal Year Ended |  | Estimated Amortization
|  | (In thousands)
2024 |  | $ | 3,930 |
2025 |  | 3,765 |
2026 |  | 3,471 |
2027 |  | 3,340 |
2028 |  | 3,340 |

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