Goodwill and Other Intangible Assets

12 Months Ended

Jan. 02, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Note 3 – Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill were as follows:

				Food
(In thousands)	Retail			Distribution		Total
Balance at December 28, 2013:
Goodwill	$	254,438		$	131,348	$	385,786
Accumulated impairment charges		(86,600	)		—		(86,600	)
Goodwill, net		167,838			131,348		299,186

Other		(1,906	)		—		(1,906	)

Balance at January 3, 2015:
Goodwill		252,532			131,348		383,880
Accumulated impairment charges		(86,600	)		—		(86,600	)
Goodwill, net		165,932			131,348		297,280

Acquisition (Dan's)		24,603			1,019		25,622

Balance at January 2, 2016:
Goodwill		277,135			132,367		409,502
Accumulated impairment charges		(86,600	)		—		(86,600	)
Goodwill, net	$	190,535		$	132,367	$	322,902

The following table reflects the components of amortized intangible assets, included in “Other assets, net” on the consolidated balance sheets:

	January 2, 2016				January 3, 2015
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
(In thousands)	Amount		Amortization		Amount		Amortization
Non-compete agreements	$	1,306	$	725	$	2,528	$	1,836
Favorable leases		8,744		3,248		8,408		2,718
Pharmacy customer prescription lists		7,887		3,441		16,494		10,574
Customer relationships		17,542		1,308		12,100		684
Trade names		1,068		86		1,218		461
Franchise fees and other		559		205		514		184
Total	$	37,106	$	9,013	$	41,262	$	16,457

The weighted average amortization period for amortizable intangible assets is as follows:

Non-compete agreements		5.0 years
Favorable leases		15.7 years
Pharmacy customer prescription lists		7.4 years
Customer relationships		20.0 years
Trade names		7.0 years
Franchise fees and other		8.5 years

Amortization expense for intangible assets was $3.3 million, $3.7 million and $2.1 million for the fiscal years ended January 2, 2016 and January 3, 2015 and the 39-week period ended December 28, 2013, respectively.

Estimated amortization expense for each of the five succeeding fiscal years is as follows:

	Amortization
(In thousands)	Expense
Fiscal Year
2016	$	2,921
2017		2,813
2018		2,585
2019		2,466
2020		2,069

Indefinite-lived intangible assets that are not amortized, consisting primarily of trade names and licenses for the sale of alcoholic beverages, totaled $35.1 million and $33.0 million as of January 2, 2016 and January 3, 2015, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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