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Franchise Rights Acquired, Goodwill and Other Intangible Assets | 3 Months Ended
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Apr. 02, 2022
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 2, 2022, the change in the carrying value of franchise rights acquired was due to the effect of exchange rate changes and the Northern Ireland franchisee acquisition as described in Note 5. 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, LLC (formerly known as WW.com, Inc. and WeightWatchers.com, Inc.) in 2005 and the Company’s franchised territories. See Note 5 for additional information about acquisitions by the Company. For the three months ended April 2, 2022, the change in the carrying amount of goodwill was due to the Republic of Ireland franchisee and Northern Ireland franchisee acquisitions as described in Note 5 and 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 |
Goodwill acquired during the period |  |  | 2,153 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,153 |
Effect of exchange rate changes |  |  | 306 |  |  |  | (606 | ) |  |  | (14 | ) |  |  | (82 | ) |  |  | (396 | )
Balance as of January 1, 2022 |  | $ | 147,530 |  |  | $ | 7,186 |  |  | $ | 1,254 |  |  | $ | 1,404 |  |  | $ | 157,374 |
Goodwill acquired during the period |  |  | — |  |  |  | — |  |  |  | 5,936 |  |  |  | — |  |  |  | 5,936 |
Effect of exchange rate changes |  |  | 418 |  |  |  | (211 | ) |  |  | (210 | ) |  |  | 46 |  |  |  | 43 |
Balance as of April 2, 2022 |  | $ | 147,948 |  |  | $ | 6,975 |  |  | $ | 6,980 |  |  | $ | 1,450 |  |  | $ | 163,353 |
Finite-lived Intangible Assets The carrying values of finite-lived intangible assets as of April 2, 2022 and January 1, 2022 were as follows:
|  | April 2, 2022 |  |  | January 1, 2022 |
|  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Accumulated |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amortization |
Capitalized software costs |  | $ | 116,152 |  |  | $ | 97,682 |  |  | $ | 115,065 |  |  | $ | 94,771 |
Website development costs |  |  | 118,528 |  |  |  | 83,342 |  |  |  | 110,678 |  |  |  | 78,629 |
Trademarks |  |  | 12,126 |  |  |  | 11,730 |  |  |  | 12,116 |  |  |  | 11,677 |
Other |  |  | 13,992 |  |  |  | 5,776 |  |  |  | 14,021 |  |  |  | 5,677 |
Trademarks and other intangible assets |  | $ | 260,798 |  |  | $ | 198,530 |  |  | $ | 251,880 |  |  | $ | 190,754 |
Franchise rights acquired |  |  | 8,301 |  |  |  | 4,995 |  |  |  | 7,905 |  |  |  | 4,766 |
Total finite-lived intangible assets |  | $ | 269,099 |  |  | $ | 203,525 |  |  | $ | 259,785 |  |  | $ | 195,520 |
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $8,174 and $7,998 for the three months ended April 2, 2022 and April 3, 2021, respectively. Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter was as follows:
Remainder of fiscal 2022 |  | $ | 22,659 |
Fiscal 2023 |  | $ | 21,472 |
Fiscal 2024 |  | $ | 11,013 |
Fiscal 2025 |  | $ | 1,769 |
Fiscal 2026 and thereafter |  | $ | 8,661 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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