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Distribution Agreements, Net (Tables) - Distribution Agreements [Member]
 12 Months Ended
Dec. 31, 2017
Other Identifiable Intangible Assets Net

Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following:

 

(in thousands)

 

December 31, 2017

 

 

January 1, 2017

 

Distribution agreements at cost

 

$

939,527

 

 

$

242,486

 

Less: Accumulated amortization

 

 

26,175

 

 

 

7,498

 

Distribution agreements, net

 

$

913,352

 

 

$

234,988

 

 
Reconciliation of Activity for Other Identifiable Intangible Assets Net

A reconciliation of the activity for distribution agreements, net for 2017 and 2016 is as follows:

 

 

 

Fiscal Year

 

(in thousands)

 

2017

 

 

2016

 

Beginning balance - distribution agreements, net

 

$

234,988

 

 

$

129,786

 

Conversion to distribution rights from franchise rights

 

 

533,040

 

 

 

-

 

System Transformation Transactions acquisitions(1)

 

 

213,000

 

 

 

86,650

 

October 2017 Divestitures

 

 

(65,043

)

 

 

-

 

Measurement period adjustment(2)

 

 

16,000

 

 

 

-

 

Glacéau Distribution Agreement

 

 

-

 

 

 

21,032

 

Other distribution agreements

 

 

44

 

 

 

1,695

 

Additional accumulated amortization

 

 

(18,677

)

 

 

(4,175

)

Ending balance - distribution agreements, net

 

$

913,352

 

 

$

234,988

 

 

(1)  System Transformation Transactions acquisitions includes an increase of $51.5 million in 2017 from the opening balance sheets for the Expansion Territories and Expansion Facilities acquired in the System Transformation during 2017, as disclosed in the financial statements in the Company’s filed periodic reports. These adjustments are for post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for each System Transformation Transaction. The adjustments to amortization expense associated with these measurement period adjustments were not material to the consolidated financial statements.

(2)  Measurement period adjustment relates to post-closing adjustments made in accordance with the terms and conditions of the September 2016 Distribution APA and the September 2016 Manufacturing APA for the October 2016 Transactions. The adjustments to amortization expense associated with this measurement period adjustment were not material to the consolidated financial statements.