WeightWatchers 2004 Annual Report Download - page 77

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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)
subsidiaries. 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. The balance in franchise rights acquired increased during the year
ended January 1, 2005 primarily due to the acquisitions of our Washington, D.C. area and Fort Worth
franchises. The balance in franchise rights acquired increased during the year ended January 3, 2004
primarily due to the acquisitions of Dallas/New Mexico and the WW Group.
Also, in accordance with SFAS No. 142, aggregate amortization expense for finite lived intangible
assets was recorded in the amounts of $2,274 (including $1,061 for amortization of intangible assets of
WeightWatchers.com), $1,062 and $950 for the fiscal years ended January 1, 2005, January 3, 2004 and
December 28, 2002, respectively.
The carrying amount of amortized intangible assets as of January 1, 2005 and January 3, 2004 was
as follows:
January 1, 2005 January 3, 2004
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Amount Amortization
Deferred software costs ........... $ 5,050 $ 3,035 $ 1,879 $ 1,206
Trademarks .................... 7,811 7,098 7,600 6,879
Non-compete agreement ........... 1,200 1,175 1,200 875
Web site development costs ........ 6,815 4,624 — —
Other ........................ 4,108 3,331 4,003 3,268
$24,984 $19,263 $14,682 $12,228
Estimated amortization expense of existing finite lived intangible assets for the next five fiscal years
is as follows:
2005 ..................................................... $3,012
2006 ..................................................... $1,449
2007 ..................................................... $ 427
2008 ..................................................... $ 146
2009 ..................................................... $ 95
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