Franchise Rights Acquired, Goodwill and Other Intangible Assets

3 Months Ended

Mar. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Franchise Rights Acquired, Goodwill and Other Intangible Assets

6.	Franchise Rights Acquired, Goodwill and Other Intangible Assets

Franchise rights acquired are due to acquisitions of the Company’s franchised territories as well as the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the three months ended March 30, 2019, the change in the carrying value of franchise rights acquired is due to the effect of exchange rate changes.

Goodwill primarily relates to the acquisition of the Company by The Kraft Heinz Company (successor to H.J. Heinz Company) in 1978 and the Company’s acquisitions of WW.com, Inc. (formerly known as WeightWatchers.com, Inc.) in 2005, the Company’s franchised territories and the majority interest in Vigilantes do Peso Marketing Ltda. For the three months ended March 30, 2019, the change in the carrying amount of goodwill was due to the effect of exchange rate changes as follows:

	North		Continental			United
	America		Europe			Kingdom		Other			Total
Balance as of December 29, 2018	$	138,156	$	7,242		$	1,178	$	5,943		$	152,519
Effect of exchange rate changes		852		(195	)		31		(35	)		653
Balance as of March 30, 2019	$	139,008	$	7,047		$	1,209	$	5,908		$	153,172

Finite-lived Intangible Assets

The carrying values of finite-lived intangible assets as of March 30, 2019 and December 29, 2018 were as follows:

	March 30, 2019				December 29, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Capitalized software costs	$	125,356	$	105,221	$	121,508	$	102,659
Website development costs		109,704		82,333		105,710		77,825
Trademarks		11,694		11,063		11,620		11,010
Other		13,985		4,258		13,967		4,149
Trademarks and other intangible assets	$	260,739	$	202,875	$	252,805	$	195,643
Franchise rights acquired		8,098		4,378		8,110		4,319
Total finite-lived intangible assets	$	268,837	$	207,253	$	260,915	$	199,962

Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $7,556 and $7,410 for the three months ended March 30, 2019 and March 31, 2018, respectively.

Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows:

Remainder of fiscal 2019	$	18,841
Fiscal 2020	$	19,365
Fiscal 2021	$	10,537
Fiscal 2022	$	2,041
Fiscal 2023 and thereafter	$	10,800