Goodwill and Other Intangible Assets

4 Months Ended

Apr. 20, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes our goodwill and other intangible assets at April 20, 2024 and December 30, 2023, respectively, each of which is explained in additional detail below (amounts in thousands):


	April 20, 2024		December 30, 2023
Goodwill	$	679,896	$	677,796
Amortizable intangible assets, net		520,926		530,642
Indefinite-lived intangible assets		127,100		127,100
Total goodwill and other intangible assets	$	1,327,922	$	1,335,538

The changes in the carrying amount of goodwill during the sixteen weeks ended April 20, 2024, during which time we finalized the purchase accounting for the acquisition of Papa Pita, are as follows (amounts in thousands):


	Total
Balance as of December 30, 2023	$	677,796
Measurement period adjustment (see Note 4, Acquisition)		2,100
Balance as of April 20, 2024	$	679,896

On February 17, 2023, the company completed the acquisition of Papa Pita for total consideration of $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 April 20, 2024 and December 30, 2023, respectively, the company had the following amounts related to amortizable intangible assets (amounts in thousands):


	April 20, 2024						December 30, 2023
Asset	Cost		Accumulated Amortization		Net Value		Cost		Accumulated Amortization		Net Value
Trademarks	$	481,715	$	112,137	$	369,578	$	481,715	$	107,562	$	374,153
Customer relationships		340,221		189,309		150,912		340,221		184,222		155,999
Non-compete agreements		5,454		5,229		225		5,454		5,206		248
Distributor relationships		4,123		3,912		211		4,123		3,881		242
Total	$	831,513	$	310,587	$	520,926	$	831,513	$	300,871	$	530,642

Aggregate amortization expense for the sixteen weeks ended April 20, 2024 and April 22, 2023 was as follows (amounts in thousands):


	Amortization Expense
For the sixteen weeks ended April 20, 2024	$	9,716
For the sixteen weeks ended April 22, 2023	$	9,723

Estimated amortization of intangibles for each of the next five years is as follows (amounts in thousands):


	Amortization of Intangibles
Remainder of 2024	$	21,691
2025	$	30,747
2026	$	28,891
2027	$	27,242
2028	$	25,610

There were $127.1 million of indefinite-lived intangible trademark assets separately identified from goodwill at April 20, 2024 and December 30, 2023. 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.