Franchise Rights Acquired, Goodwill and Other Intangible Assets

3 Months Ended

Apr. 03, 2021

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 April 3, 2021, the change in the carrying value of franchise rights acquired was due to the franchisee acquisitions as described in Note 5 and 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 and the Company’s franchised territories. For the three months ended April 3, 2021, 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 January 2, 2021	$	145,071	$	7,792		$	1,268	$	1,486		$	155,617
Effect of exchange rate changes		515		(351	)		15		(15	)		164
Balance as of April 3, 2021	$	145,586	$	7,441		$	1,283	$	1,471		$	155,781

Finite-lived Intangible Assets

The carrying values of finite-lived intangible assets as of April 3, 2021 and January 2, 2021 were as follows:

	April 3, 2021				January 2, 2021
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Capitalized software costs	$	133,242	$	111,540	$	131,420	$	109,170
Website development costs		100,461		71,928		95,718		67,656
Trademarks		12,018		11,512		11,999		11,457
Other		14,055		5,328		14,093		5,238
Trademarks and other intangible assets	$	259,776	$	200,308	$	253,230	$	193,521
Franchise rights acquired		7,844		4,547		7,925		4,575
Total finite-lived intangible assets	$	267,620	$	204,855	$	261,155	$	198,096

Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $7,998 and $7,165 for the three months ended April 3, 2021 and March 28, 2020, respectively.

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

Remainder of fiscal 2021	$	21,633
Fiscal 2022	$	20,029
Fiscal 2023	$	9,876
Fiscal 2024	$	1,804
Fiscal 2025 and thereafter	$	9,423