WeightWatchers 2003 Annual Report Download - page 69

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
4. Goodwill and Other Intangible Assets (Continued)
the H.J. Heinz Company in 1978. The balance in goodwill remained unchanged from December 29,
2001 to December 28, 2002. The goodwill balance increased during the fiscal year ended January 3,
2004 primarily due to a small foreign acquisition. Franchise rights acquired are due mainly to
acquisitions of the Company’s franchised territories. Prior to fiscal 2002, goodwill and other indefinite-
lived intangible assets were being amortized on a straight-line basis over periods ranging from 3 to
40 years. Amortization of goodwill and other indefinite-lived intangibles for the fiscal year ended
December 29, 2001 was $9,782.
Also, in accordance with SFAS No. 142, aggregate amortization expense for finite lived intangible
assets was recorded in the amounts of $1,062, $951 and $729 for the fiscal years ended January 3, 2004,
December 28, 2002 and December 29, 2001, respectively.
The carrying amount of amortized intangible assets as of January 3, 2004 and December 28, 2002
was as follows:
January 3, 2004 December 28, 2002
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Amount Amortization
Deferred software cost ......................... $1,879 $ 1,206 $ 1,260 $ 869
Trademarks ................................. 7,600 6,879 7,223 6,674
Non-compete agreement ........................ 1,200 875 1,200 575
Other ...................................... 4,003 3,268 3,985 3,197
$14,682 $12,228 $13,668 $11,315
Estimated amortization expense of finite lived intangible assets for the next five fiscal years is as
follows:
2004...................................................... $896
2005...................................................... $429
2006...................................................... $291
2007...................................................... $172
2008...................................................... $ 98
As required by SFAS No. 142, the results for the fiscal year ended December 29, 2001 have not
been restated. A reconciliation of net income, as if SFAS No. 142 had been adopted at the beginning of
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