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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 | Note 4 – Goodwill and Other Intangible Assets The Company has two reporting units, Wholesale and Retail. Changes in the carrying amount of goodwill were as follows:
(In thousands) | Wholesale |  |  | Retail |  |  | Total |
Balance at January 1, 2022 | $ |  | 181,035 |  |  | $ |  | — |  |  | $ |  | 181,035 |
Acquisitions |  |  | — |  |  |  |  | 1,125 |  |  |  |  | 1,125 |
Balance at December 31, 2022 and December 30, 2023 | $ |  | 181,035 |  |  | $ |  | 1,125 |  |  | $ |  | 182,160 |
The Company reviews goodwill and other intangible assets for impairment annually, during the fourth quarter of each year, and more frequently if circumstances indicate impairment is more likely than not to have occurred. Testing goodwill and other intangible assets for impairment requires management to make significant estimates about the Company’s future performance, cash flows, and other assumptions that can be affected by potential changes in economic, industry or market conditions, business operations, competition, or the Company’s stock price and market capitalization. During the Company's 2023 annual impairment review within the Wholesale reporting unit, projected cash flows were discounted based on a weighted average cost of capital ("WACC") of 9.6%. This WACC was developed from adjusted market-based and company specific factors, current interest rates, equity risk premiums, and other market-based expectations regarding expected investment returns. The development of the WACC requires estimates of an equity rate of return and a debt rate of return, which are specific to the industry in which the Wholesale reporting unit operates. The Company concluded that the fair value of the Wholesale reporting unit was substantially in excess of its carrying value in the annual review. The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets:
|  |  | December 30, 2023 |  |  | December 31, 2022 |
|  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |
|  |  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Accumulated |
(In thousands) |  |  | Amount |  |  | Amortization |  |  | Amount |  |  | Amortization |
Non-compete agreements |  |  |  | $ |  | 3,545 |  |  | $ |  | 3,190 |  |  | $ |  | 3,545 |  |  | $ |  | 2,621 |
Pharmacy customer prescription lists |  |  |  |  |  | 3,869 |  |  |  |  | 2,853 |  |  |  |  | 4,168 |  |  |  |  | 2,598 |
Customer relationships |  |  |  |  |  | 57,937 |  |  |  |  | 26,146 |  |  |  |  | 57,937 |  |  |  |  | 22,484 |
Franchise fees |  |  |  |  |  | 1,209 |  |  |  |  | 661 |  |  |  |  | 1,165 |  |  |  |  | 598 |
Total |  |  |  | $ |  | 66,560 |  |  | $ |  | 32,850 |  |  | $ |  | 66,815 |  |  | $ |  | 28,301 |
The weighted average amortization periods for amortizable intangible assets as of December 30, 2023 are as follows:
Non-compete agreements |  |  |  |  |  |  |  |  |  |  | 6.4 years |
Pharmacy customer prescription lists |  |  |  |  |  |  |  |  |  |  | 8.1 years |
Customer relationships |  |  |  |  |  |  |  |  |  |  | 16.4 years |
Franchise fees |  |  |  |  |  |  |  |  |  |  | 10.0 years |
Amortization expense for intangible assets was $4.9 million, $5.0 million and $5.2 million for 2023, 2022 and 2021, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows:
(In thousands) | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |
Amortization expense | $ |  | 4,587 |  |  | $ |  | 4,190 |  |  | $ |  | 3,675 |  |  | $ |  | 3,653 |  |  | $ |  | 3,645 |
The Company has indefinite-lived intangible assets that are not amortized, consisting primarily of indefinite-lived trade names and liquor licenses, totaling $67.8 million as of both December 30, 2023 and December 31, 2022. Indefinite lived intangible assets are tested for impairment at least annually, and as needed if an indicator of potential impairment exists. A qualitative assessment was performed to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the qualitative assessment supports that it is more likely than not that the fair value of the indefinite lived intangible asset exceeds its carrying value, a quantitative impairment test is not required. If the qualitative assessment does not support the fair value of the indefinite lived intangible asset, then a quantitative assessment is performed. Indefinite lived intangible assets are measured at fair value using Level 3 inputs under the fair value hierarchy, as further described in Note 7. The fair value of indefinite lived intangible assets is determined by estimating the amount and timing of net future cash flows generated from the use of the asset, generally using estimated revenue growth rates and profitability rates and, in the case of the relief-from-royalty methodology, royalty rates. Future cash flows are discounted based on the WACC of the reporting unit in which the asset resides, determined using current interest rates, equity risk premiums, and other market-based expectations regarding expected investment returns, as well as estimates of industry-specific equity and debt rates of return. The Company concluded that it is more likely than not that the fair value of the indefinite lived intangible assets exceed their carrying value during the annual qualitative assessment.

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