Company: UTZ
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001739566-25-000053
Chunk: 127

Company: Utz Brands, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 127
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Depreciation expense was $33.4 million for the fiscal year ended December 29, 2024, $40.5 million for the fiscal year ended December 31, 2023, and $47.8 million for the fiscal year ended January 1, 2023. Depreciation expense is classified in Cost of goods sold, and Selling, distribution, and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss). 

5.GOODWILL AND INTANGIBLE ASSETS, NET

A roll forward of goodwill is as follows:(in thousands) Balance as January 1, 2023$915,295 Balance as December 31, 2023915,295 Good Health and R.W. Garcia Sale, Note 2. Divestitures(44,600)Balance as December 29, 2024$870,695 Intangible assets, net, consisted of the following:(in thousands)As of December 29, 2024As of December 31, 2023Subject to amortization:Distributor/customer relationships$647,712 $677,930 Trademarks59,920 63,850 Amortizable assets, gross707,632 741,780 Accumulated amortization(151,878)(120,405)Amortizable assets, net555,754 621,375 Not subject to amortizationTrade names428,733 434,513 IO routes12,023 7,525 Intangible assets, net$996,510 $1,063,413 Previously, the Company was granted certain exclusive distribution rights for certain products manufactured by another manufacturer. During the fiscal year ended January 1, 2023, 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. 

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During the fiscal year ended December 29, 2024, the Company sold customer relationships and trademarks with carrying values of $26.0 million and $18.3 million, respectively, related to the Good Health and R.W. Garcia Sale. See Note 2. Divestitures, for further discussion. In addition, during the fiscal year ended December 29, 2024, the Company paid $9.2 million to purchase an indefinite life intangible right for