WeightWatchers 2007 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
The Company performed its annual impairment review of goodwill and other indefinite-lived intangible
assets as of December 29, 2007 and December 30, 2006 and determined that no impairment existed. Goodwill is
due mainly to the acquisition of the Company by Heinz in 1978 and the aforementioned acquisition of WW.com.
For the year ended December 29, 2007, the change in goodwill is due to foreign currency fluctuations. Franchise
rights acquired are due mainly to acquisitions of the Company’s franchised territories. For the year ended
December 29, 2007, franchise rights acquired increased due to the franchise acquisitions described in Note 3, as
well as foreign currency fluctuations.
Aggregate amortization expense for finite lived intangible assets was recorded in the amounts of $8,335,
$5,025 and $4,206 for the fiscal years ended December 29, 2007, December 30, 2006 and December 31, 2005,
respectively.
The carrying amount of finite lived intangible assets as of December 29, 2007 and December 30, 2006 was
as follows:
December 29, 2007 December 30, 2006
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Capitalized software costs .................. $28,067 $10,516 $19,361 $ 6,372
Trademarks .............................. 8,540 7,937 8,393 7,647
Website development costs ................. 19,970 11,673 15,081 8,900
Other ................................... 5,741 4,650 5,317 4,206
$62,318 $34,776 $48,152 $27,125
Estimated amortization expense of existing finite lived intangible assets for the next five fiscal years is as
follows:
2008 .............................................. $9,534
2009 .............................................. $7,724
2010 .............................................. $4,960
2011 .............................................. $3,041
2012 .............................................. $ 583
5. Property and Equipment
The components of property and equipment were:
December 29,
2007
December 30,
2006
Leasehold improvements ...................................... $14,869 $ 11,240
Equipment ................................................. 63,996 56,050
78,865 67,290
Less: Accumulated depreciation and amortization .................. (41,216) (36,257)
$ 37,649 $ 31,033
F-15