Goodwill and Intangible Assets
Information regarding our goodwill and intangible assets as of December 28, 2024 was as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Trademarks | | $ | 58,400 | | | $ | (39,791) | | | $ | 18,609 | |
| | | | | | |
| Computer software | | 85,109 | | | (34,505) | | | 50,604 | |
| Total finite-lived intangible assets | | 143,509 | | | (74,296) | | | 69,213 | |
| Liquor licenses | | 9,565 | | | — | | | 9,565 | |
| Total intangible assets | | 153,074 | | | (74,296) | | | 78,778 | |
| Goodwill | | 782,734 | | | — | | | 782,734 | |
| Total goodwill and intangible assets | | $ | 935,808 | | | $ | (74,296) | | | $ | 861,512 | |
Information regarding our goodwill and intangible assets as of December 30, 2023 was as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Trademarks | | $ | 58,400 | | | $ | (35,897) | | | $ | 22,503 | |
| | | | | | |
| Computer software | | 69,643 | | | (22,600) | | | 47,043 | |
| Total finite-lived intangible assets | | 128,043 | | | (58,497) | | | 69,546 | |
| Liquor licenses | | 9,010 | | | — | | | 9,010 | |
| Total intangible assets | | 137,053 | | | (58,497) | | | 78,556 | |
| Goodwill | | 747,943 | | | — | | | 747,943 | |
| Total goodwill and intangible assets | | $ | 884,996 | | | $ | (58,497) | | | $ | 826,499 | |
The carrying amount of goodwill increased by $34.8 million for the fiscal year ended December 28, 2024 as a result of the acquisition of United Grocery Outlet. See NOTE 15—Business Combination for additional information. There were no changes in the carrying amount of goodwill for the fiscal years ended December 30, 2023 and December 31, 2022.
Amortization expense for finite-lived intangible assets was $15.7 million, $10.1 million, and $6.6 million for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.
The estimated future amortization expense related to finite-lived intangible assets as of December 28, 2024 is as follows (amounts in thousands):
| | | | | |
| Fiscal 2025 | $ | 18,101 | |
| Fiscal 2026 | 15,136 | |
| Fiscal 2027 | 10,896 | |
| Fiscal 2028 | 8,991 | |
| Fiscal 2029 | 6,446 | |
| Thereafter | 9,643 | |
| Total | $ | 69,213 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.