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Goodwill and Intangible Assets
9 Months Ended
Oct. 04, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets:

Goodwill

The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts.
 
October 4,
2014
 
December 28,
2013
 
October 5,
2013
 
(40 weeks ended)
 
(52 weeks ended)
 
(40 weeks ended)
Goodwill, beginning of period
$
199,835

 
$
76,389

 
$
76,389

Acquisitions
798,043

 
123,446

 
123,446

Changes in foreign currency exchange rates
(163
)
 

 

 
 
 
 
 
 
Goodwill, end of period
$
997,715

 
$
199,835

 
$
199,835


As discussed in Note 3, Acquisition, on January 2, 2014, the Company acquired GPI in an all-cash transaction which resulted in the addition of $797,391 of goodwill. During the forty weeks ended October 4, 2014, the Company also added $652 of goodwill associated with the acquisition of nine stores. On December 31, 2012, the Company acquired B.W.P. Distributors, Inc. ("BWP") in an all-cash transaction which resulted in the addition of $123,446 of goodwill.

Intangible Assets Other Than Goodwill

The Company recorded an increase to intangible assets of $757,453 during the forty weeks ended October 4, 2014 related to the acquisition of GPI and nine independent stores. The increase included customer relationships of $330,293 which will be amortized over 12 years, non-competes totaling $50,695 which will be amortized over 5 years and favorable leases of $56,465 which are amortized over the life of the leases at a weighted average of 4.5 years. The increase also includes indefinite-life intangibles of $320,000 from acquired brands.

The Company recorded an increase to intangible assets of $31,245 during the forty weeks ended October 5, 2013 related to the acquisition of BWP. The increase included Customer Relationships of $26,045 which will be amortized over 12 years and other intangible assets totaling $5,200 which will be amortized over a weighted average of 3.4 years.

The gross and net carrying amounts of acquired intangible assets as of October 4, 2014, December 28, 2013 and October 5, 2013 are comprised of the following:

 
Acquired Intangible Assets
 
 
 
Subject to Amortization
 
Not Subject to Amortization
 
Total Intangible Assets
(excluding goodwill)
 
Customer
Relationships
 
Acquired Technology
 
Favorable Leases
 
Non-Compete and Other
 
Brands, Trademark and
Tradenames
 
Gross:
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount at December 28, 2013
$
33,601

 
$
8,850

 
$

 
$
6,085

 
$
20,550

 
$
69,086

Additions
330,293

 

 
56,465

 
50,695

 
320,000

 
757,453

Effect of exchange rate changes on intangibles
(212
)
 

 
9

 

 
84

 
(119
)
Gross carrying amount at October 4, 2014
$
363,682

 
$
8,850

 
$
56,474

 
$
56,780

 
$
340,634

 
$
826,420

 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount at December 29, 2012
$
9,800

 
$
8,850

 
$

 
$
885

 
$
20,550

 
$
40,085

Additions
26,045

 

 

 
5,200

 

 
31,245

Gross carrying amount at October 5, 2013
$
35,845

 
$
8,850

 
$

 
$
6,085

 
$
20,550

 
$
71,330

 
 
 
 
 
 
 
 
 
 
 
 
Net:
 

 
 
 
 
 
 

 
 

 
 

Net book value at December 28, 2013
$
23,292

 
$
2,469

 
$

 
$
3,561

 
$
20,550

 
$
49,872

Additions
330,293

 

 
56,465

 
50,695

 
320,000

 
757,453

2014 amortization
(23,353
)
 
(2,027
)
 
(9,220
)
 
(9,268
)
 

 
(43,868
)
Effect of exchange rate changes on intangibles
(212
)
 

 
9

 

 
84

 
(119
)
Net carrying amount at October 4, 2014
$
330,020

 
$
442

 
$
47,254

 
$
44,988

 
$
340,634

 
$
763,338

 
 
 
 
 
 
 
 
 
 
 
 
Net book value at December 29, 2012
$
2,658

 
$
5,419

 
$

 
$
218

 
$
20,550

 
$
28,845

Additions
26,045

 

 

 
5,200

 

 
31,245

2013 amortization
(2,429
)
 
(2,269
)
 

 
(1,429
)
 

 
(6,127
)
Net carrying amount at October 5, 2013
$
26,274

 
$
3,150

 
$

 
$
3,989

 
$
20,550

 
$
53,963

 
Future Amortization Expense

The table below shows expected amortization expense for the next five years for acquired intangible assets recorded as of October 4, 2014:

Fiscal Year
 
Amount
Remainder of 2014
 
$
12,701

2015
 
52,234

2016
 
48,413

2017
 
46,060

2018
 
43,176

Thereafter
 
220,120