GOODWILL AND INTANGIBLE ASSETS, NET

6 Months Ended

Jul. 03, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

A rollforward of goodwill is as follows:


(in thousands)
Balance as of January 2, 2022	$	915,438
RW Garcia acquisition adjustment	52


Balance as of July 3, 2022	$	915,490

Intangible assets, net, consisted of the following:


(in thousands)	As of July 3, 2022		As of January 2, 2022
Subject to amortization:
Distributor/customer relationships	$	677,930	$	677,930
Technology	—		43
Trademarks	63,850		63,850
Master distribution rights	—		2,221
Amortizable assets, gross	741,780		744,044
Accumulated amortization	(63,903)		(45,224)
Amortizable assets, net	677,877		698,820
Not subject to amortization:
Trade names	434,513		434,513
Route assets	7,764		9,176
Intangible assets, net	$	1,120,154	$	1,142,509

Previously, the Company was granted certain exclusive distribution rights for certain products manufactured by another manufacturer. During the first fiscal quarter of 2022 the Company shifted the relationship with that manufacturer and converted that shelf space to Company-branded products. As a result, the Company recorded impairment expense of $2.0 million and the amortizable master distribution rights decreased by $2.2 million. There were no other significant changes to intangible assets during the twenty-six weeks ended July 3, 2022 other than those which arise from the normal course of business of buying and selling of Company-owned route assets and amortization.

Amortization of the distributor/customer relationships, technology, and trade names amounted to $9.4 million and $8.9 million for the thirteen weeks ended July 3, 2022 and July 4, 2021, respectively, and $18.8 million and $18.3 million for the twenty-six weeks ended July 3, 2022 and July 4, 2021, respectively. The expense related to the amortization of intangibles is classified in administrative expenses on the consolidated statements of operations and comprehensive income (loss).