Franchise Rights Acquired, Goodwill and Other Intangible Assets

3 Months Ended

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