WeightWatchers 2011 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2011 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Asia’s minority equity interest by Weight Watchers Asia, the Company owns 100% of the China Joint Venture
and no longer accounts for a non-controlling interest in the China Joint Venture. The noncontrolling interest that
had been reflected on the Company’s balance sheet was reclassified to retained earnings.
4. Goodwill and Other Intangible Assets
The Company performed its annual impairment review of goodwill and other indefinite-lived intangible
assets as of December 31, 2011 and January 1, 2011 and determined that no impairment existed. Goodwill is due
mainly to the acquisition of the Company by H.J. Heinz Company (“Heinz”) in 1978 and the acquisition of
WW.com in 2005. For the year ended December 31, 2011, the change in goodwill is due to the closing of the
Company’s Finland business and foreign currency fluctuations. Franchise rights acquired are due to acquisitions
of the Company’s franchised territories. For the year ended December 31, 2011, franchise rights acquired
decreased due to foreign currency fluctuations.
The Company’s goodwill by reportable segment at the end of fiscal 2011 and fiscal 2010 was $23,812 and
$25,225, respectively, related to the WWI segment and $26,200 related to the WW.com segment for both years,
totaling $50,012 and $51,425, respectively.
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $16,545,
$14,894, and $13,664 for the fiscal years ended December 31, 2011, January 1, 2011 and January 2, 2010,
respectively.
The carrying amount of finite-lived intangible assets as of December 31, 2011 and January 1, 2011 was as
follows:
December 31, 2011 January 1, 2011
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Capitalized software costs ............................ 67,223 $44,003 $ 52,293 $34,423
Trademarks ........................................ 10,006 9,276 9,813 8,952
Website development costs ........................... 43,987 30,747 35,245 24,350
Other ............................................. 7,033 6,762 7,033 6,697
$128,249 $90,788 $104,384 $74,422
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as
follows:
2012 ............................................................. $14,630
2013 ............................................................. $11,466
2014 ............................................................. $ 7,355
2015 ............................................................. $ 3,241
2016 ............................................................. $ 665
F-12