GOODWILL AND INTANGIBLE ASSETS, NETA roll forward of goodwill is as follows:
| | | | | | | | |
| (in millions) | | |
| | |
| | |
Balance as December 29, 2024(1) | | 865.2 | |
| | |
| Balance as of December 28, 2025 | | $ | 865.2 | |
(1) Reflects the correction related to the purchase accounting for our 2020 Business combination. See Note 1. Operations and Summary of Significant Accounting Policies - Revision of Prior Period Financial Information.
Intangible assets, net, consisted of the following:
| | | | | | | | | | | | | | |
| (in millions) | | As of December 28, 2025 | | As of December 29, 2024 |
| Subject to amortization: | | | | |
| Distributor/customer relationships | | $ | 647.7 | | | $ | 647.7 | |
| | | | |
| Trademarks | | 59.9 | | | 59.9 | |
| | | | |
| Amortizable assets, gross | | 707.6 | | | 707.6 | |
| Accumulated amortization | | (187.9) | | | (151.8) | |
| Amortizable assets, net | | 519.7 | | | 555.8 | |
| Not subject to amortization | | | | |
| Trade names | | 428.7 | | | 428.7 | |
| Route assets | | 15.5 | | | 12.0 | |
| Intangible assets, net | | $ | 963.9 | | | $ | 996.5 | |
During the fiscal year ended December 29, 2024, the Company paid $9.2 million to purchase an indefinite life intangible right for use of a third-party brand name. This intangible asset is classified as an indefinite life trade name. There were no other significant changes to intangible assets during the fiscal years ended December 28, 2025 and December 29, 2024 other than those which arise from the normal course of business from the buying and selling of Company-owned route assets and amortization.
Amortization of the distributor/customer relationships, technology, and trademarks amounted to $36.1 million for the fiscal year ended December 28, 2025, $36.3 million for the fiscal year ended December 29, 2024, and $37.7 million for the fiscal year ended December 31, 2023.
Amortization expense is classified in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss). Estimated future amortization expense is as follows:
| | | | | | | | |
| (in millions) | | As of December 28, 2025 |
| 2026 | | $ | 36.1 | |
| 2027 | | 36.1 | |
| 2028 | | 36.1 | |
| 2029 | | 36.1 | |
| 2030 | | 36.1 | |
| Thereafter | | 339.2 | |
| Total | | $ | 519.7 | |
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.