Franchise Rights Acquired, Goodwill and Other Intangible Assets

3 Months Ended

Apr. 01, 2023

Goodwill And Intangible Assets Disclosure [Abstract]

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 1, 2023, the change in the carrying value of franchise rights acquired was 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, 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 1, 2023, the change in the carrying amount of goodwill was due to the effect of exchange rate changes as follows:


	North America			International			Total
Balance as of January 1, 2022	$	147,530		$	9,844		$	157,374
Goodwill acquired during the period		—			5,936			5,936
Goodwill impairment		(1,101	)		(2,023	)		(3,124	)
Effect of exchange rate changes		(2,862	)		(1,326	)		(4,188	)
Balance as of December 31, 2022	$	143,567		$	12,431		$	155,998
Effect of exchange rate changes		101			112			213
Balance as of April 1, 2023	$	143,668		$	12,543		$	156,211

Finite-lived Intangible Assets

The carrying values of finite-lived intangible assets as of April 1, 2023 and December 31, 2022 were as follows:


	April 1, 2023				December 31, 2022
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Capitalized software costs	$	107,948	$	96,914	$	107,229	$	94,375
Website development costs		142,524		97,332		133,818		91,482
Trademarks		12,171		11,928		12,162		11,882
Other		13,973		6,264		13,961		6,125
Trademarks and other intangible assets	$	276,616	$	212,438	$	267,170	$	203,864
Franchise rights acquired		8,207		5,218		8,164		5,101
Total finite-lived intangible assets	$	284,823	$	217,656	$	275,334	$	208,965

Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $8,519 and $8,174 for the three months ended April 1, 2023 and April 2, 2022, respectively.

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


Remainder of fiscal 2023	$	23,730
Fiscal 2024	$	22,678
Fiscal 2025	$	11,276
Fiscal 2026	$	1,588
Fiscal 2027	$	724
Fiscal 2028	$	709
Thereafter	$	6,462