Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 01, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WW | |
Entity Registrant Name | WW INTERNATIONAL, INC. | |
Entity Central Index Key | 0000105319 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 70,526,717 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16769 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 11-6040273 | |
Entity Address, Address Line One | 675 Avenue of the Americas | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10010 | |
City Area Code | 212 | |
Local Phone Number | 589-2700 | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 188,291 | $ 153,794 |
Receivables (net of allowances: October 1, 2022 - $1,693 and January 1, 2022 - $1,726) | 28,192 | 29,321 |
Inventories | 26,394 | 30,566 |
Prepaid income taxes | 14,721 | 30,478 |
Prepaid expenses and other current assets | 32,161 | 27,014 |
TOTAL CURRENT ASSETS | 289,759 | 271,173 |
Property and equipment, net | 30,112 | 37,219 |
Operating lease assets | 79,911 | 89,902 |
Franchise rights acquired | 440,515 | 785,195 |
Goodwill | 156,155 | 157,374 |
Other intangible assets, net | 62,952 | 61,126 |
Deferred income taxes | 15,772 | 11,259 |
Other noncurrent assets | 17,659 | 15,686 |
TOTAL ASSETS | 1,092,835 | 1,428,934 |
CURRENT LIABILITIES | ||
Portion of operating lease liabilities due within one year | 18,457 | 20,297 |
Accounts payable | 17,384 | 22,444 |
Salaries and wages payable | 64,047 | 57,401 |
Accrued marketing and advertising | 10,277 | 15,904 |
Accrued interest | 10,848 | 5,085 |
Other accrued liabilities | 37,318 | 45,728 |
Derivative payable | 14,670 | |
Income taxes payable | 1,850 | 1,748 |
Deferred revenue | 39,772 | 45,855 |
TOTAL CURRENT LIABILITIES | 199,953 | 229,132 |
Long-term debt, net | 1,421,239 | 1,418,104 |
Long-term operating lease liabilities | 70,848 | 78,157 |
Deferred income taxes | 58,293 | 157,718 |
Other | 2,005 | 2,227 |
TOTAL LIABILITIES | 1,752,338 | 1,885,338 |
TOTAL DEFICIT | ||
Common stock, $0 par value; 1,000,000 shares authorized; 122,052 shares issued at October 1, 2022 and 122,052 shares issued at January 1, 2022 | 0 | 0 |
Treasury stock, at cost, 51,667 shares at October 1, 2022 and 51,988 shares at January 1, 2022 | (3,106,098) | (3,120,149) |
Retained earnings | 2,457,912 | 2,682,349 |
Accumulated other comprehensive loss | (11,317) | (18,604) |
TOTAL DEFICIT | (659,503) | (456,404) |
TOTAL LIABILITIES AND TOTAL DEFICIT | $ 1,092,835 | $ 1,428,934 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 1,693 | $ 1,726 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 122,052,000 | 122,052,000 |
Treasury stock, shares | 51,667,000 | 51,988,000 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenues, net | $ 249,718 | $ 293,497 | $ 816,932 | $ 936,672 |
Cost of revenues | 97,367 | 115,460 | 321,521 | 379,174 |
Gross profit | 152,351 | 178,037 | 495,411 | 557,498 |
Marketing expenses | 35,696 | 34,569 | 195,123 | 208,656 |
Selling, general and administrative expenses | 58,443 | 63,745 | 193,320 | 206,615 |
Franchise rights acquired and goodwill impairments | 312,741 | 339,161 | ||
Operating (loss) income | (254,529) | 79,723 | (232,193) | 142,227 |
Interest expense | 20,912 | 19,283 | 58,837 | 68,699 |
Other expense, net | 1,344 | 764 | 3,303 | 908 |
Early extinguishment of debt | 29,169 | |||
(Loss) income before income taxes | (276,785) | 59,676 | (294,333) | 43,451 |
(Benefit from) provision for income taxes | (70,749) | 13,346 | (75,431) | 6,488 |
Net (loss) Income | $ (206,036) | $ 46,330 | $ (218,902) | $ 36,963 |
(Net loss) earnings per share | ||||
Basic | $ (2.93) | $ 0.66 | $ (3.12) | $ 0.53 |
Diluted | $ (2.93) | $ 0.65 | $ (3.12) | $ 0.52 |
Weighted average common shares outstanding | ||||
Basic | 70,383 | 69,875 | 70,258 | 69,516 |
Diluted | 70,383 | 70,860 | 70,258 | 70,866 |
Subscription | ||||
Revenues, net | $ 220,746 | $ 262,401 | $ 718,122 | $ 815,092 |
Cost of revenues | 73,541 | 90,280 | 243,710 | 285,209 |
Product and Other | ||||
Revenues, net | 28,972 | 31,096 | 98,810 | 121,580 |
Cost of revenues | $ 23,826 | $ 25,180 | $ 77,811 | $ 93,965 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (206,036) | $ 46,330 | $ (218,902) | $ 36,963 |
Other comprehensive (loss) gain: | ||||
Foreign currency translation loss | (9,552) | (4,877) | (18,018) | (3,140) |
Income tax benefit on foreign currency translation loss | 2,406 | 1,229 | 4,530 | 791 |
Foreign currency translation loss, net of taxes | (7,146) | (3,648) | (13,488) | (2,349) |
Gain on derivatives | 8,590 | 1,891 | 27,748 | 8,617 |
Income tax expense on gain on derivatives | (2,159) | (477) | (6,973) | (2,171) |
Gain on derivatives, net of taxes | 6,431 | 1,414 | 20,775 | 6,446 |
Total other comprehensive (loss) gain | (715) | (2,234) | 7,287 | 4,097 |
Comprehensive (loss) income | $ (206,751) | $ 44,096 | $ (211,615) | $ 41,060 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance at Jan. 02, 2021 | $ (548,211) | $ 0 | $ (3,140,903) | $ (25,149) | $ 2,617,841 |
Beginning balance (in shares) at Jan. 02, 2021 | 121,470 | 52,497 | |||
Comprehensive (loss) income | 41,060 | 4,097 | 36,963 | ||
Issuance of treasury stock under stock plans | (4,873) | $ 13,608 | (18,481) | ||
Issuance of treasury stock under stock plans (in shares) | (336) | ||||
Compensation expense on share-based awards | 16,596 | 16,596 | |||
Issuance of common stock | 4,051 | 4,051 | |||
Issuance of common stock (in shares) | 582 | ||||
Ending balance at Oct. 02, 2021 | (491,377) | $ 0 | $ (3,127,295) | (21,052) | 2,656,970 |
Ending balance (in shares) at Oct. 02, 2021 | 122,052 | 52,161 | |||
Beginning balance at Jul. 03, 2021 | (537,897) | $ 0 | $ (3,129,329) | (18,818) | 2,610,250 |
Beginning balance (in shares) at Jul. 03, 2021 | 122,052 | 52,211 | |||
Comprehensive (loss) income | 44,096 | (2,234) | 46,330 | ||
Issuance of treasury stock under stock plans | (980) | $ 2,034 | (3,014) | ||
Issuance of treasury stock under stock plans (in shares) | (50) | ||||
Compensation expense on share-based awards | 3,404 | 3,404 | |||
Ending balance at Oct. 02, 2021 | (491,377) | $ 0 | $ (3,127,295) | (21,052) | 2,656,970 |
Ending balance (in shares) at Oct. 02, 2021 | 122,052 | 52,161 | |||
Beginning balance at Jan. 01, 2022 | (456,404) | $ 0 | $ (3,120,149) | (18,604) | 2,682,349 |
Beginning balance (in shares) at Jan. 01, 2022 | 122,052 | 51,988 | |||
Comprehensive (loss) income | (211,615) | 7,287 | (218,902) | ||
Issuance of treasury stock under stock plans | (1,846) | $ 14,051 | (15,897) | ||
Issuance of treasury stock under stock plans (in shares) | (321) | ||||
Compensation expense on share-based awards | 10,362 | 10,362 | |||
Ending balance at Oct. 01, 2022 | (659,503) | $ 0 | $ (3,106,098) | (11,317) | 2,457,912 |
Ending balance (in shares) at Oct. 01, 2022 | 122,052 | 51,667 | |||
Beginning balance at Jul. 02, 2022 | (456,108) | $ 0 | $ (3,107,324) | (10,602) | 2,661,818 |
Beginning balance (in shares) at Jul. 02, 2022 | 122,052 | 51,691 | |||
Comprehensive (loss) income | (206,751) | (715) | (206,036) | ||
Issuance of treasury stock under stock plans | (20) | $ 1,226 | (1,246) | ||
Issuance of treasury stock under stock plans (in shares) | (24) | ||||
Compensation expense on share-based awards | 3,376 | 3,376 | |||
Ending balance at Oct. 01, 2022 | $ (659,503) | $ 0 | $ (3,106,098) | $ (11,317) | $ 2,457,912 |
Ending balance (in shares) at Oct. 01, 2022 | 122,052 | 51,667 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Operating activities: | ||
Net (loss) income | $ (218,902) | $ 36,963 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depreciation and amortization | 33,371 | 37,222 |
Amortization of deferred financing costs and debt discount | 3,763 | 4,835 |
Impairment of franchise rights acquired and goodwill | 339,161 | |
Impairment of intangible and long-lived assets | 2,088 | 421 |
Share-based compensation expense | 10,362 | 16,596 |
Deferred tax benefit | (107,879) | (10,788) |
Allowance for doubtful accounts | 54 | (91) |
Reserve for inventory obsolescence | 4,712 | 5,805 |
Foreign currency exchange rate loss | 3,562 | 553 |
Early extinguishment of debt | 29,169 | |
Changes in cash due to: | ||
Receivables | (9,760) | 3,785 |
Inventories | (725) | 8,390 |
Prepaid expenses | 17,613 | 2,585 |
Accounts payable | (3,634) | (7,197) |
Accrued liabilities | 15,390 | 4,440 |
Deferred revenue | (3,576) | 208 |
Other long term assets and liabilities, net | (4,662) | (2,001) |
Income taxes | (392) | (5,522) |
Cash provided by operating activities | 80,546 | 125,373 |
Investing activities: | ||
Capital expenditures | (1,756) | (1,947) |
Capitalized software expenditures | (27,584) | (27,204) |
Cash paid for acquisitions | (4,350) | (12,833) |
Other items, net | (29) | (1,593) |
Cash used for investing activities | (33,719) | (43,577) |
Financing activities: | ||
Net (payments) borrowings on revolver | 0 | 0 |
Proceeds from long term debt | 1,500,000 | |
Financing costs and debt discount | (36,985) | |
Payments on long-term debt | (1,511,500) | |
Taxes paid related to net share settlement of equity awards | (1,938) | (5,328) |
Proceeds from stock options exercised | 4,469 | |
Cash paid for acquisitions | (113) | (6,450) |
Other items, net | (86) | (116) |
Cash used for financing activities | (2,137) | (55,910) |
Effect of exchange rate changes on cash and cash equivalents | (10,193) | (3,543) |
Net increase in cash and cash equivalents | 34,497 | 22,343 |
Cash and cash equivalents, beginning of period | 153,794 | 165,887 |
Cash and cash equivalents, end of period | $ 188,291 | $ 188,230 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated financial statements include the accounts of WW International, Inc. and all of its subsidiaries. The terms “Company” and “WW” as used throughout these notes are used to indicate WW International, Inc. and all of its operations consolidated for purposes of its financial statements. The Company’s “Digital” business refers to providing subscriptions to the Company’s digital product offerings, including Personal Coaching + Digital and Digital 360 as applicable. The Company’s “Workshops + Digital” business refers to providing unlimited access to the Company’s workshops combined with the Company’s digital subscription product offerings to commitment plan subscribers, including former Digital 360 members as applicable. It also includes the provision of access to workshops for members who do not subscribe to commitment plans, including the Company’s “pay-as-you-go” members. In the second quarter of fiscal 2022, the Company ceased offering its Digital 360 product. More than a majority of associated members were transitioned from the Company’s Digital business to its Workshops + Digital business during the second quarter of fiscal 2022, with a de minimis number transitioning during the beginning of the third quarter of fiscal 2022. The cessation of this product offering and these transitions of former Digital 360 members at the then-current pricing for such product impacted the number of End of Period Subscribers in each business as well as the associated Paid Weeks and Revenues for each business. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and include amounts that are based on management’s best estimates and judgments. While all available information has been considered, actual amounts could differ from those estimates. These assumptions and estimates may change as new events occur and additional information is obtained, and such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity. The consolidated financial statements include all of the Company’s majority-owned subsidiaries. All entities acquired, and any entity of which a majority interest was acquired, are included in the consolidated financial statements from the date of acquisition. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s operating results for any interim period are not necessarily indicative of future or annual results. The consolidated financial statements are unaudited and, accordingly, they do not include all of the information necessary for a comprehensive presentation of results of operations, financial position and cash flow activity required by GAAP for complete financial statements but, in the opinion of management, reflect all adjustments including those of a normal recurring nature necessary for a fair statement of the interim results presented. In the second quarter of fiscal 2022, the Company identified and recorded out-of-period adjustments related to income tax errors resulting primarily from the reversal of (i) a basis difference related to goodwill and other intangibles and (ii) a U.S. federal income tax receivable that should have been adjusted in prior fiscal years. The impact of correcting these errors, which were immaterial to prior period financial statements and corrected in the second quarter of fiscal 2022, resulted in an income tax benefit of $ 2,150 and decreased net loss by $ 2,150 for the nine months ended October 1, 2022. These statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal 2021 filed on March 1, 2022, which includes additional information about the Company, its results of operations, its financial position and its cash flows. |
Accounting Standards Adopted in
Accounting Standards Adopted in Current Year | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Accounting Standards Adopted in Current Year | 2. Accounting Standards Adopted in Current Year In October 2021, the Financial Accounting Standards Board issued updated guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to (i) recognition of an acquired contract liability and (ii) payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this update require an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The new guidance should be applied prospectively to business combinations occurring on or after its effective date. On January 2, 2022 , the Company early adopted this updated guidance on a prospective basis, which did not have a material impact on its consolidated financial statements. |
Leases
Leases | 9 Months Ended |
Oct. 01, 2022 | |
Leases [Abstract] | |
Leases | 3. Leases At October 1, 2022 and January 1, 2022, the Company’s lease assets and lease liabilities, primarily for its studios and corporate offices, were as follows: October 1, 2022 January 1, 2022 Assets: Operating lease assets $ 79,911 $ 89,902 Finance lease assets 72 127 Total leased assets $ 79,983 $ 90,029 Liabilities: Current Operating $ 18,457 $ 20,297 Finance 38 75 Noncurrent Operating $ 70,848 $ 78,157 Finance 9 29 Total lease liabilities $ 89,352 $ 98,558 For the three and nine months ended October 1, 2022 and October 2, 2021, the components of the Company’s lease expense were as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Operating lease cost: Fixed lease cost $ 9,071 $ 8,533 $ 24,974 $ 29,359 Lease termination cost ( 189 ) 2,320 1,912 8,680 Variable lease cost 7 6 20 15 Total operating lease cost $ 8,889 $ 10,859 $ 26,906 $ 38,054 Finance lease cost: Amortization of leased assets 25 36 86 116 Interest on lease liabilities 4 2 6 7 Total finance lease cost $ 29 $ 38 $ 92 $ 123 Total lease cost $ 8,918 $ 10,897 $ 26,998 $ 38,177 In conjunction with the continued rationalization of its real estate portfolio, the Company has decided to enter into a sublease, which resulted in a lease asset impairment charge of $ 1,828 that was recognized in general and administrative expenses in the Company's consolidated statements of net income for the three and nine months ended October 1, 2022. The Company expects to begin recording sublease income as of the sublease commencement date in the fourth quarter of fiscal 2022 as an offset to general and administrative expenses. At October 1, 2022 and January 1, 2022, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: October 1, 2022 January 1, 2022 Weighted Average Remaining Lease Term (years) Operating leases 7.00 7.29 Finance leases 1.00 1.54 Weighted Average Discount Rate Operating leases 7.01 7.15 Finance leases 3.39 5.31 The Company’s leases have remaining lease terms of 0 to 10 ye ars with a weighted average lease term of 6.99 years as of October 1, 2022. At October 1, 2022, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows: Operating Finance Total Remainder of fiscal 2022 $ 4,734 $ 13 $ 4,747 Fiscal 2023 24,872 31 24,903 Fiscal 2024 18,014 4 18,018 Fiscal 2025 12,575 — 12,575 Fiscal 2026 9,683 — 9,683 Fiscal 2027 9,376 — 9,376 Thereafter 36,089 — 36,089 Total lease payments $ 115,343 $ 48 $ 115,391 Less imputed interest 26,038 1 26,039 Present value of lease liabilities $ 89,305 $ 47 $ 89,352 Supplemental cash flow information related to leases for the nine months ended October 1, 2022 and October 2, 2021 were as follows: Nine Months Ended October 1, October 2, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24,244 $ 31,021 Operating cash flows from finance leases $ 6 $ 7 Financing cash flows from finance leases $ 86 $ 116 Leased assets obtained (modified) in exchange for new (modified) operating lease liabilities $ 11,160 $ ( 496 ) Leased assets obtained in exchange for new finance lease liabilities $ 44 $ 81 |
Revenue
Revenue | 9 Months Ended |
Oct. 01, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 4. Revenue Revenues are recognized when control of the promised services or goods is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services or goods. The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Digital Subscription Revenues $ 155,881 $ 195,288 $ 521,582 $ 606,687 Workshops + Digital Fees 64,865 67,113 196,540 208,405 Subscription Revenues, net $ 220,746 $ 262,401 $ 718,122 $ 815,092 Product sales and other, net 28,972 31,096 98,810 121,580 Revenues, net $ 249,718 $ 293,497 $ 816,932 $ 936,672 The following tables present the Company’s revenues disaggregated by revenue source and segment: Three Months Ended October 1, 2022 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 102,735 $ 43,638 $ 5,693 $ 3,815 $ 155,881 Workshops + Digital Fees 52,113 7,586 3,764 1,402 64,865 Subscription Revenues, net $ 154,848 $ 51,224 $ 9,457 $ 5,217 $ 220,746 Product sales and other, net 21,234 5,272 1,441 1,025 28,972 Revenues, net $ 176,082 $ 56,496 $ 10,898 $ 6,242 $ 249,718 Three Months Ended October 2, 2021 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 125,077 $ 56,542 $ 9,007 $ 4,662 $ 195,288 Workshops + Digital Fees 51,661 8,727 4,528 2,197 67,113 Subscription Revenues, net $ 176,738 $ 65,269 $ 13,535 $ 6,859 $ 262,401 Product sales and other, net 21,059 6,664 2,131 1,242 31,096 Revenues, net $ 197,797 $ 71,933 $ 15,666 $ 8,101 $ 293,497 Nine Months Ended October 1, 2022 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 342,489 $ 145,920 $ 20,106 $ 13,067 $ 521,582 Workshops + Digital Fees 155,558 23,599 12,482 4,901 196,540 Subscription Revenues, net $ 498,047 $ 169,519 $ 32,588 $ 17,968 $ 718,122 Product sales and other, net 70,363 19,621 5,506 3,320 98,810 Revenues, net $ 568,410 $ 189,140 $ 38,094 $ 21,288 $ 816,932 Nine Months Ended October 2, 2021 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 387,422 $ 176,059 $ 28,410 $ 14,796 $ 606,687 Workshops + Digital Fees 158,265 28,397 14,304 7,439 208,405 Subscription Revenues, net $ 545,687 $ 204,456 $ 42,714 $ 22,235 $ 815,092 Product sales and other, net 81,055 27,308 9,021 4,196 121,580 Revenues, net $ 626,742 $ 231,764 $ 51,735 $ 26,431 $ 936,672 Information about Contract Balances For Subscription Revenues, the Company can collect payment in advance of providing services. Any amounts collected in advance of services being provided are recorded in deferred revenue. In the case where amounts are not collected, but the service has been provided and the revenue has been recognized, the amounts are recorded in accounts receivable. The opening and ending balances of the Company’s deferred revenues were as follows: Deferred Deferred Revenue Revenue-Long Term Balance as of January 1, 2022 $ 45,855 $ 28 Net (decrease) increase during the period ( 6,083 ) 11 Balance as of October 1, 2022 $ 39,772 $ 39 Balance as of January 2, 2021 $ 50,475 $ 44 Net decrease during the period ( 244 ) ( 36 ) Balance as of October 2, 2021 $ 50,231 $ 8 Revenue recognized from amounts included in current deferred revenue as of January 1, 2022 was $ 44,375 for the nine months ended October 1, 2022 . Revenue recognized from amounts included in current deferred revenue as of January 2, 2021 was $ 49,808 for the nine months ended October 2, 2021 . The Company’s long-term deferred revenue, which is included in other liabilities on the Company’s consolidated balance sheet, represents revenue that will not be recognized during the next fiscal year and is generally related to upfront payments received as an inducement for entering into certain sales-based royalty agreements with third party licensees. This revenue is amortized on a straight-line basis over the term of the applicable agreement. |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 01, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Acquisitions of Franchisees On February 18, 2022, the Company acquired the entire issued share capital of its Republic of Ireland franchisee, Denross Limited, and its Northern Ireland franchisee, Checkweight Limited, as follows: (a) The Company acquired the entire issued share capital of Denross Limited for a purchase price of $ 4,500 . Payment was in the form of cash paid on December 21, 2021 ($ 650 ), cash paid on February 18, 2022 ($ 3,100 ) and cash in reserves ($ 750 ). The total purchase price was allocated to goodwill ($ 4,645 ), deferred tax asset ($ 496 ) fully offset by a tax valuation allowance ($ 496 ), assumed liabilities ($ 166 ), customer relationship value ($ 14 ), cash ($ 4 ) and other receivables ($ 3 ). The goodwill will not be deductible for tax purposes; and (b) The Company acquired the entire issued share capital of Checkweight Limited for a purchase price of $ 1,500 . Payment was in the form of cash ($ 1,250 ) and cash in reserves ($ 250 ). The total purchase price was allocated to goodwill ($ 1,291 ), franchise rights acquired ($ 240 ), assumed liabilities ($ 56 ), customer relationship value ($ 17 ), deferred tax asset ($ 5 ) fully offset by a tax valuation allowance ($ 5 ), cash ($ 4 ) and other receivables ($ 4 ). The goodwill will not be deductible for tax purposes. On August 16, 2021, the Company acquired substantially all of the assets of its franchisee for certain territories in Maine, Weight Watchers of Maine, Inc., for a purchase price of $ 2,250 . Payment was in the form of cash ($ 1,999 ), cash in reserves ($ 225 ) and assumed net liabilities ($ 26 ). The total purchase price was allocated to goodwill ($ 2,153 ), customer relationship value ($ 56 ) and franchise rights acquired ($ 41 ). The goodwill will be deductible for tax purposes. On March 22, 2021, the Company acquired substantially all of the assets of its Michigan franchisee, The WW Group, Inc., and its Ontario, Canada franchisee, The WW Group Co., as follows: (a) The Company acquired substantially all of the assets of The WW Group, Inc., which operated franchises in certain territories in Michigan, for an aggregate purchase price of $ 17,500 . Payment was in the form of cash paid on March 22, 2021 ($ 8,255 ), cash paid on July 30, 2021 ($ 6,450 ), cash in reserves ($ 2,300 ) and assumed net liabilities ($ 495 ). The total purchase price was allocated to franchise rights acquired ($ 16,885 ), customer relationship value ($ 408 ), inventories ($ 162 ), property and equipment, net ($ 41 ) and other assets ($ 4 ); and (b) The Company acquired substantially all of the assets of The WW Group Co., which operated franchises in certain territories in Ontario, Canada, for an aggregate purchase price of $ 3,114 . Payment was in the form of cash ($ 2,605 ), cash in reserves ($ 599 ) and assumed net assets ($ 90 ). The total purchase price was allocated to franchise rights acquired ($ 3,040 ), customer relationship value ($ 42 ), property and equipment, net ($ 25 ), inventories ($ 6 ) and other assets ($ 1 ). These acquisitions have been accounted for under the purchase method of accounting and, accordingly, earnings of the acquired franchises have been included in the consolidated operating results of the Company since the date of acquisition. |
Franchise Rights Acquired, Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 6. 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 nine months ended October 1, 2022, the change in the carrying value of franchise rights acquired was due to the impairments of the United States, Canada and New Zealand units of account as discussed below, the effect of exchange rate changes and the Northern Ireland franchisee acquisition as described in Note 5. 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 nine months ended October 1, 2022, the change in the carrying amount of goodwill was due to the Republic of Ireland franchisee and Northern Ireland franchisee acquisitions as described in Note 5, the impairment of the Company's wholly-owned subsidiary Kurbo, Inc. (“Kurbo”) as discussed below and the effect of exchange rate changes as follows: North Continental United America Europe Kingdom Other Total Balance as of January 2, 2021 $ 145,071 $ 7,792 $ 1,268 $ 1,486 $ 155,617 Goodwill acquired during the period 2,153 — — — 2,153 Effect of exchange rate changes 306 ( 606 ) ( 14 ) ( 82 ) ( 396 ) Balance as of January 1, 2022 $ 147,530 $ 7,186 $ 1,254 $ 1,404 $ 157,374 Goodwill acquired during the period — — 5,936 — 5,936 Goodwill impairment ( 1,101 ) — — — ( 1,101 ) Effect of exchange rate changes ( 3,651 ) ( 1,152 ) ( 1,084 ) ( 167 ) ( 6,054 ) Balance as of October 1, 2022 $ 142,778 $ 6,034 $ 6,106 $ 1,237 $ 156,155 Franchise Rights Acquired Finite-lived franchise rights acquired are amortized over the remaining contractual period, which is generally less than one year . Indefinite-lived franchise rights acquired are tested for potential impairment on at least an annual basis or more often if events so require. In performing the impairment analysis for indefinite-lived franchise rights acquired, the fair value for franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach for franchise rights related to the Company’s Workshops + Digital business and a relief from royalty methodology for franchise rights related to the Company’s Digital business. The aggregate estimated fair value for these rights is then compared to the carrying value of the unit of account for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing impairment to be the combination of the rights in both the Workshops + Digital business and the Digital business in the country in which the applicable acquisition occurred. The net book values of these franchise rights in the United States, Canada, United Kingdom, Australia and New Zealand as of the October 1, 2022 balance sheet date were $ 400,092 , $ 19,342 , $ 10,061 , $ 5,753 and $ 2,141 , respectively. In its hypothetical start-up approach analysis for fiscal 2022, the Company assumed that the year of maturity was reached after 7 years. Subsequent to the year of maturity , the Company estimated future cash flows for the Workshops + Digital business in each country based on assumptions regarding revenue growth and operating income margins. In the Company’s relief from royalty approach analysis for fiscal 2022, the cash flows associated with the Digital business in each country were based on the expected Digital revenue for such country and the application of a royalty rate based on current market terms. The cash flows for the Workshops + Digital and the Digital businesses were discounted utilizing rates which were calculated using the weighted-average cost of capital, which included the cost of equity and the cost of debt. Goodwill In performing the impairment analysis for goodwill, the fair value for the Company’s reporting units is estimated using a discounted cash flow approach. This approach involves projecting future cash flows attributable to the reporting unit and discounting those estimated cash flows using an appropriate discount rate. The estimated fair value is then compared to the carrying value of the reporting unit. The Company has determined the appropriate reporting unit for purposes of assessing annual impairment to be the country for all reporting units. The net book values of goodwill in the United States, Canada and other countries as of the October 1, 2022 balance sheet date were $ 104,019 , $ 38,759 and $ 13,377 , respectively. For all of the Company’s reporting units tested as of May 8, 2022, the Company estimated future cash flows by utilizing the historical debt-free cash flows (cash flows provided by operations less capital expenditures) attributable to that country and then applied expected future operating income growth rates for such country. The Company utilized operating income as the basis for measuring its potential growth because it believes it is the best indicator of the performance of its business. The Company then discounted the estimated future cash flows utilizing a discount rate which was calculated using the weighted-average cost of capital, which included the cost of equity and the cost of debt. Indefinite-Lived Franchise Rights Acquired and Goodwill Annual Impairment Test The Company reviews indefinite-lived intangible assets, including franchise rights acquired with indefinite lives, and goodwill for potential impairment on at least an annual basis or more often if events so require. The Company performed fair value impairment testing as of May 8, 2022 and May 9, 2021, each the first day of fiscal May, on its indefinite-lived intangible assets and goodwill. In performing its annual impairment analysis as of May 8, 2022, the Company determined that (i) the carrying amounts of its Canada and New Zealand franchise rights acquired with indefinite-lived units of account exceeded their respective fair values and, as a result, the Company recorded impairment charges for its Canada and New Zealand units of account of $ 24,485 and $ 834 , respectively, in the second quarter of fiscal 2022; and (ii) the carrying amounts of all of its other franchise rights acquired with indefinite-lived units of account did not exceed their respective fair values and, therefore, no impairment existed with respect thereto. In performing its annual impairment analysis as of May 9, 2021, the Company determined that the carrying amounts of its franchise rights acquired with indefinite-lived units of account did not exceed their respective fair values and, therefore, no impairment existed. In performing its annual impairment analysis as of May 8, 2022 and May 9, 2021, the Company determined that the carrying amounts of its goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed. When determining fair value, the Company utilizes various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions could cause a change in the results of the impairment assessments and, as such, could cause fair value to be less than the carrying amounts and result in an impairment of those assets. In the event such a result occurred, the Company would be required to record a corresponding charge, which would impact earnings. The Company would also be required to reduce the carrying amounts of the related assets on its balance sheet. Based on the results of the Company’s May 8, 2022 annual franchise rights acquired impairment test performed for its United States unit of account, which held 92.7 % of the Company’s franchise rights acquired as of the July 2, 2022 balance sheet date, the estimated fair value of this unit of account exceeded its carrying value by approximately 15 %. Based on the results of the Company’s May 8, 2022 annual franchise rights acquired impairment analysis performed for its Canada and New Zealand units of account, which held 4.6 % and 0.5 %, respectively, of the Company’s franchise rights acquired as of the July 2, 2022 balance sheet date, the estimated fair values of these units of account were equal to their respective carrying values. The above difference or lack thereof between the estimated fair value of the applicable unit of account and its carrying value is referred to herein as the “Annual Impairment Headroom”. As previously disclosed, a change in the underlying assumptions for the United States, Canada and New Zealand could change the results of the impairment assessment and, as such, could result in an impairment of the franchise rights acquired related to the United States, Canada and New Zealand , for which the net book values were $ 698,383 , $ 34,556 and $ 3,574 , respectively, as of July 2, 2022. Based on the results of the Company’s May 8, 2022 annual franchise rights acquired impairment analysis performed for its remaining units of account, which collectively held 2.2 % of the Company’s franchise rights acquired as of the July 2, 2022 balance sheet date, the estimated fair values of these units of account exceeded their respective carrying values by over 100 %. Based on the results of the Company’s May 8, 2022 annual goodwill impairment analysis performed for all of its reporting units, all units, except for the Republic of Ireland, had an estimated fair value at least 35 % higher than the respective unit’s carrying amount. Collectively, these reporting units represented 97.4 % of the Company’s total goodwill as of the October 1, 2022 balance sheet date. Based on the results of the Company’s May 8, 2022 annual goodwill impairment analysis performed for its Republic of Ireland reporting unit, which holds 2.6 % of the Company’s goodwill as of the October 1, 2022 balance sheet date, the estimated fair value of this reporting unit exceeded its carrying value by approximately 14 %. Accordingly, a change in the underlying assumptions for the Republic of Ireland may change the results of the impairment assessment and, as such, could result in an impairment of the goodwill related to the Republic of Ireland, for which the net book value w as $ 4,009 as of October 1, 2022. Indefinite-Lived Franchise Rights Acquired Interim Impairment Test During the quarter ended October 1, 2022, the Company identified various qualitative and quantitative factors which collectively, when combined with the Annual Impairment Headroom discussed above for the United States, Canada and New Zealand units of account, indicated a triggering event had occurred within these units of account. These factors included actual business performance as compared to the assumptions used in its annual impairment test, the continued decline in the Company’s market capitalization and market factors, including the increase in interest rates. As a result of this triggering event, the Company performed an interim impairment test of these units of account. In performing this interim impairment test as of October 1, 2022 , the Company determined that the carrying amounts of its United States, Canada and New Zealand franchise rights acquired with indefinite-lived units of account exceeded their respective fair values. Accordingly, the Company recorded impairment charges for its United States, Canada and New Zealand units of account of $ 298,291 , $ 13,312 and $ 1,138 , respectively, in the third quarter of fiscal 2022. The preponderance of these impairments was driven by the increased weighted-average cost of capital used in this interim impairment test as compared to the weighted-average cost of capital used in the May 8, 2022 annual impairment test of its indefinite-lived franchise rights acquired, reflecting market factors including higher interest rates and the trading values of the Company's equity and debt. When determining fair value, the Company utilizes various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions could cause a change in the results of the impairment assessments and, as such, could cause fair value to be less than the carrying amounts and result in an impairment of those assets. In the event such a result occurred, the Company would be required to record a corresponding charge, which would impact earnings. The Company would also be required to reduce the carrying amounts of the related assets on its balance sheet. Based on the results of the Company’s October 1, 2022 interim franchise rights acquired impairment test performed for its United States, Canada and New Zealand units of account, which hold 91.5 %, 4.4 % and 0.5 %, respectively, of the Company’s franchise rights acquired as of the October 1, 2022 balance sheet date, the estimated fair values of these units of account were equal to their respective carrying values. Accordingly, a change in the underlying assumptions for the United States, Canada and New Zealand may change the results of the impairment assessment and, as such, could result in an impairment of the franchise rights acquired related to the United States, Canada and New Zealand, for which the net book values were $ 400,092 , $ 19,342 and $ 2,141 , respectively, as of October 1, 2022. Kurbo Goodwill Impairment On August 10, 2018, the Company acquired substantially all of the assets of Kurbo Health, Inc., a family-based healthy lifestyle coaching program, for a net purchase price of $ 3,063 , of which $ 1,101 was allocated to goodwill. The goodwill was deductible annually for tax purposes. The Company determined in the second quarter of fiscal 2022 to exit the Kurbo business in the third quarter of fiscal 2022 as part of its strategic plan. As a result of this determination, the Company recorded an impairment charge of $ 1,101 in the second quarter of fiscal 2022, which comprised the entire goodwill balance for Kurbo. Finite-lived Intangible Assets The carrying values of finite-lived intangible assets as of October 1, 2022 and January 1, 2022 were as follows: October 1, 2022 January 1, 2022 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 115,746 $ 101,017 $ 115,065 $ 94,771 Website development costs 130,738 90,790 110,678 78,629 Trademarks 12,145 11,833 12,116 11,677 Other 13,880 5,917 14,021 5,677 Trademarks and other intangible assets $ 272,509 $ 209,557 $ 251,880 $ 190,754 Franchise rights acquired 8,126 5,001 7,905 4,766 Total finite-lived intangible assets $ 280,635 $ 214,558 $ 259,785 $ 195,520 Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $ 8,347 and $ 25,282 for the three and nine months ended October 1, 2022, respectively. Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $ 8,032 and $ 24,066 for the three and nine months ended October 2, 2021, respectively. Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: Remainder of fiscal 2022 $ 8,223 Fiscal 2023 $ 27,053 Fiscal 2024 $ 16,687 Fiscal 2025 $ 5,378 Fiscal 2026 $ 845 Fiscal 2027 $ 720 Thereafter $ 7,171 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 01, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt The components of the Company’s long-term debt were as follows: October 1, 2022 January 1, 2022 Principal Unamortized Unamortized Effective (1) Principal Unamortized Unamortized Effective (1) Revolving Credit Facility due $ — $ — $ — 0.00 % $ — $ — $ — 2.61 % Term Loan Facility due 945,000 6,098 12,638 5.15 % 945,000 6,930 14,362 4.48 % Senior Secured Notes due 500,000 5,025 — 4.65 % 500,000 5,604 — 4.70 % Total $ 1,445,000 $ 11,123 $ 12,638 4.98 % $ 1,445,000 $ 12,534 $ 14,362 5.15 % Less: Current portion — — Unamortized deferred 11,123 12,534 Unamortized debt discount 12,638 14,362 Total long-term debt $ 1,421,239 $ 1,418,104 (1) Includes amortization of deferred financing costs and debt discount. On April 13, 2021, the Company (1) repaid in full approximately $ 1,189,750 in aggregate principal amount of senior secured tranche B term loans due in 2024 under its then-existing credit facilities and (2) redeemed all of the $ 300,000 in aggregate principal amount of its then-outstanding 8.625 % Senior Notes due in 2025 (the “Discharged Senior Notes”). On April 13, 2021, the Company’s then-existing credit facilities included a senior secured revolving credit facility (which included borrowing capacity available for letters of credit) due in 2022 with $ 175,000 in an aggregate principal amount of commitments. There were no outstanding borrowings under such revolving credit facility on that date. The Company funded such repayment of loans and redemption of notes with cash on hand as well as with proceeds received from approximately $ 1,000,000 in an aggregate principal amount of borrowings under its new credit facilities (as amended from time to time, the “Credit Facilities”) and proceeds received from the issuance of $ 500,000 in aggregate principal amount of 4.500 % Senior Secured Notes due 2029 (the “Senior Secured Notes”), each as described below. These transactions are collectively referred to herein as the “April 2021 debt refinancing”. During the second quarter of fiscal 2021, the Company incurred fees of $ 37,910 (which included $ 12,939 of a prepayment penalty on the Discharged Senior Notes and $ 5,000 of a debt discount on its Term Loan Facility (as defined below)) in connection with the April 2021 debt refinancing. In addition, the Company recorded a loss on early extinguishment of debt of $ 29,169 in connection thereto. This early extinguishment of debt charge was comprised of $ 12,939 of a prepayment penalty on the Discharged Senior Notes, $ 9,017 of financing fees paid in connection with the April 2021 debt refinancing and the write-off of $ 7,213 of pre-existing deferred financing fees and debt discount. Credit Facilities The Credit Facilities were issued under a credit agreement, dated April 13, 2021 (as amended from time to time, the “Credit Agreement”), among the Company, as borrower, the lenders party thereto, and Bank of America, N.A. (“Bank of America”), as administrative agent and an issuing bank. The Credit Facilities consist of (1) $ 1,000,000 in aggregate principal amount of senior secured tranche B term loans due in 2028 (the “Term Loan Facility”) and (2) $ 175,000 in an aggregate principal amount of commitments under a senior secured revolving credit facility (which includes borrowing capacity available for letters of credit) due in 2026 (the “Revolving Credit Facility”). In December 2021, the Company made voluntary prepayments at par in an aggregate amount of $ 52,500 in respect of its outstanding term loans under the Term Loan Facility. As a result of these prepayments, the Company wrote off a debt discount and deferred financing fees of $ 1,183 in the aggregate in the fourth quarter of fiscal 2021. As of October 1, 2022, the Company had $ 945,000 in an aggregate principal amount of loans outstanding under the Credit Facilities, wit h $ 173,911 of availability and $ 1,089 in issued but undrawn letters of credit outstanding under the Revolving Credit Facility. There were no out standing borrowings under the Revolving Credit Facility as of October 1, 2022. All obligations under the Credit Agreement are guaranteed by, subject to certain exceptions, each of the Company’s current and future wholly-owned material domestic restricted subsidiaries. All obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and each guarantor, subject to customary exceptions, including: • a pledge of 100 % of the equity interests directly held by the Company and each guarantor in any wholly-owned material subsidiary of the Company or any guarantor (which pledge, in the case of any non-U.S. subsidiary of a U.S. subsidiary, will not include more than 65 % of the voting stock of such first-tier non-U.S. subsidiary), subject to certain exceptions; and • a security interest in substantially all other tangible and intangible assets of the Company and each guarantor, subject to certain exceptions. The Credit Facilities require the Company to prepay outstanding term loans, subject to certain exceptions, with: • 50 % (which percentage will be reduced to 25 % and 0 % if the Company attains certain first lien secured net leverage ratios) of the Company’s annual excess cash flow; • 100 % of the net cash proceeds of certain non-ordinary course asset sales by the Company and its restricted subsidiaries (including casualty and condemnation events, subject to de minimis thresholds), and subject to the right to reinvest 100 % of such proceeds, subject to certain qualifications; and • 100 % of the net proceeds of any issuance or incurrence of debt by the Company or any of its restricted subsidiaries, other than certain debt permitted under the Credit Agreement. The foregoing mandatory prepayments will be used to reduce the installments of principal on the Term Loan Facility. The Company may voluntarily repay outstanding loans under the Credit Facilities at any time without penalty, except for customary “breakage” costs with respect to LIBOR loans under the Credit Facilities. Borrowings under the Term Loan Facility bear interest at a rate per annum equal to, at the Company’s option, either (1) an applicable margin plus a base rate determined by reference to the highest of (a) 0.50 % per annum plus the Federal Funds Effective Rate as determined by the Federal Reserve Bank of New York, (b) the prime rate of Bank of America and (c) the LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00 %; provided that such rate is not lower than a floor of 1.50 % or (2) an applicable margin plus a LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, provided that LIBOR is not lower than a floor of 0.50 %. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to an applicable margin based upon a leverage-based pricing grid, plus, at the Company’s option, either (1) a base rate determined by reference to the highest of (a) 0.50 % per annum plus the Federal Funds Effective Rate as determined by the Federal Reserve Bank of New York, (b) the prime rate of Bank of America and (c) the LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00 %; provided that such rate is not lower than a floor of 1.00 % or (2) a LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, provided such rate is not lower than a floor of zero . As of October 1, 2022, the applicable margins for the LIBOR rate borrowings under the Term Loan Facility and the Revolving Credit Facility w ere 3.50 % and 2.75 % , respectively. In the event that LIBOR is phased out as is currently expected, the Credit Agreement provides that the Company and the administrative agent may amend the Credit Agreement to replace the LIBOR definition therein with a successor rate subject to notifying the lending syndicate of such change and not receiving within five business days of such notification objections to such replacement rate from lenders holding at least a majority of the aggregate principal amount of loans and commitments then outstanding under the Credit Agreement; provided that such lending syndicate may not object to a SOFR-based successor rate contained in any such amendment. If the Company fails to do so, its borrowings will be based off of the alternative base rate plus a margin. On a quarterly basis, the Company pays a commitment fee to the lenders under the Revolving Credit Facility in respect of unutilized commitments thereunder, which commitment fee fluctuates depending upon the Company’s Consolidated First Lien Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement contains other customary terms, including (1) representations, warranties and affirmative covenants, (2) negative covenants, including limitations on indebtedness, liens, mergers, acquisitions, asset sales, investments, distributions, prepayments of subordinated debt, amendments of material agreements governing subordinated indebtedness, changes to lines of business and transactions with affiliates, in each case subject to baskets, thresholds and other exceptions, and (3) customary events of default. The availability of certain baskets and the ability to enter into certain transactions are also subject to compliance with certain financial ratios. In addition, if the aggregate principal amount of extensions of credit outstanding under the Revolving Credit Facility as of any fiscal quarter end exceeds 35 % of the amount of the aggregate commitments under the Revolving Credit Facility in effect on such date, the Company must be in compliance with a Consolidated First Lien Leverage Ratio of 5.75 :1.00 for the period ending after the first fiscal quarter of 2022 through and including with the first fiscal quarter of 2023, with a step down to 5.50 :1.00 for the period ending after the first fiscal quarter of 2023 through and including with the first fiscal quarter of 2024, with an additional step down to 5.25 :1.00 for the period ending after the first fiscal quarter of 2024 through and including with the first fiscal quarter of 2025 and again to 5.00 :1.00, for the period following the first fiscal quarter of 2025. As of October 1, 2022, the Company’s actual Consolidated First Lien Leverage Ratio was 4.99 : 1.00 and there wer e no b orrowings under its Revolving Credit Facility and total letters of credit issued we re $ 1,089 . T he Company expects it may not be able to satisfy the Consolidated First Lien Leverage Ratio in the near future, and as a result, the amount of funds the Company is able to borrow under the Revolving Credit Facility would be effectively limited. Senior Secured Notes The Senior Secured Notes were issued pursuant to an Indenture, dated as of April 13, 2021 (as amended, supplemented or modified from time to time, the “Indenture”), among the Company, the guarantors named therein and The Bank of New York Mellon, as trustee and notes collateral agent. The Indenture contains customary terms, events of default and covenants for an issuer of non-investment grade debt securities. These covenants include limitations on indebtedness, liens, mergers, acquisitions, asset sales, investments, distributions, prepayments of subordinated debt and transactions with affiliates, in each case subject to baskets, thresholds and other exceptions. The Senior Secured Notes accrue interest at a rate per annum equal to 4.500 % and will mature on April 15, 2029 . Interest on the Senior Secured Notes is payable semi-annually on April 15 and October 15 of each year, beginning on October 15, 2021. On or after April 15, 2024 , the Company may on any one or more occasions redeem some or all of the Senior Secured Notes at a purchase price equal to 102.250 % of the principal amount of the Senior Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date, such optional redemption price decreasing to 101.125 % on or after April 15, 2025 and to 100.000 % on or after April 15, 2026 . Prior to April 15, 2024, the Company may on any one or more occasions redeem up to 40 % of the aggregate principal amount of the Senior Secured Notes with an amount not to exceed the net proceeds of certain equity offerings at 104.500 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Prior to April 15, 2024, the Company may redeem some or all of the Senior Secured Notes at a make-whole price plus accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, during any twelve-month period ending prior to April 15, 2024, the Company may redeem up to 10 % of the aggregate principal amount of the Senior Secured Notes at a purchase price equal to 103.000 % of the principal amount of the Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If a change of control occurs, the Company must offer to purchase for cash the Senior Secured Notes at a purchase price equal to 101 % of the principal amount of the Senior Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. Following the sale of certain assets and subject to certain conditions, the Company must offer to purchase for cash the Senior Secured Notes at a purchase price equal to 100 % of the principal amount of the Senior Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. The Senior Secured Notes are guaranteed on a senior secured basis by the Company’s subsidiaries that guarantee the Credit Facilities. The Senior Secured Notes and the note guarantees are secured by a first-priority lien on all the collateral that secures the Credit Facilities, subject to a shared lien of equal priority with the Company’s and each guarantor’s obligations under the Credit Facilities and subject to certain thresholds, exceptions and permitted liens. Outstanding Debt At October 1, 2022, the Company had $ 1,445,000 outstanding under the Credit Facilities and the Senior Secured Notes, consisting of borrowings under the Term Loan Facility of $ 945,000 , $ 0 drawn down on the Revolving Credit Facility and $ 500,000 in aggregate principal amount of Senior Secured Notes issued and outstanding. At October 1, 2022 and January 1, 2022, the Company’s debt consisted of both fixed and variable-rate instruments. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. See Note 11 for information on the Company’s interest rate swaps. The weighted average interest rate (which includes amortization of deferred financing costs and debt discount) on the Company’s outstanding debt, exclusive of the impact of the swaps then in effect, was approximately 4.98 % and 5.11 % per annum at October 1, 2022 and January 1, 2022, respectively, based on interest rates on these dates. The weighted average interest rate (which includes amortization of deferred financing costs and debt discount) on the Company’s outstanding debt, including the impact of the swaps then in effect, was approximately 5.28 % and 5.62 % per annum at October 1, 2022 and January 1, 2022, respectively, based on interest rates on these dates. |
Per Share Data
Per Share Data | 9 Months Ended |
Oct. 01, 2022 | |
Earnings Per Share [Abstract] | |
Per Share Data | 8. Per Share Data Basic (net loss) earnings per share is calculated utilizing the weighted average number of common shares outstanding during the periods presented. Diluted (net loss) earnings per share is calculated utilizing the weighted average number of common shares outstanding during the periods presented adjusted for the effect of dilutive common stock equivalents. The following table sets forth the computation of basic and diluted (net loss) earnings per share data: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Numerator: Net (loss) income $ ( 206,036 ) $ 46,330 $ ( 218,902 ) $ 36,963 Denominator: Weighted average shares of common stock outstanding 70,383 69,875 70,258 69,516 Effect of dilutive common stock equivalents — 985 — 1,350 Weighted average diluted common shares outstanding 70,383 70,860 70,258 70,866 (Net loss) earnings per share Basic $ ( 2.93 ) $ 0.66 $ ( 3.12 ) $ 0.53 Diluted $ ( 2.93 ) $ 0.65 $ ( 3.12 ) $ 0.52 The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted (net loss) earnings per share was 9,229 and 5,426 for the three months ended October 1, 2022 and October 2, 2021 , respectively. The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted (net loss) earnings per share was 8,307 and 5,270 for the nine months ended October 1, 2022 and October 2, 2021 , respectively. |
Taxes
Taxes | 9 Months Ended |
Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxes | 9. Taxes Income Taxes The effective tax rates for the three and nine months ended October 1, 2022 were 25.6 % and 25.6 % , respectively. For the nine months ended October 1, 2022, the tax benefit was impacted by out-of-period income tax adjustments and a U.S. state tax rate change, partially offset by tax shortfalls from stock compensation. For the nine months ended October 1, 2022, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to state income tax expense and tax expense from income earned in foreign jurisdictions, partially offset by a tax benefit related to foreign-derived intangible income (“FDII”). The effective tax rates for the three and nine months ended October 2, 2021 were 22.4 % and 14.9 %, respectively. For the nine months ended October 2, 2021, the tax expense was impacted by tax windfalls from stock compensation and the reversal of a valuation allowance related to tax benefits for foreign losses that are now expected to be realized. For the nine months ended October 2, 2021, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to state income tax expense and tax expense from income earned in foreign jurisdictions, partially offset by a tax benefit related to FDII. The U.S. federal government has recently signed into law the Inflation Reduction Act of 2022 (the “IRA”) which, among other things, imposes a minimum “book” tax on certain large corporations and creates a new excise tax on stock repurchases made by certain publicly traded corporations after December 31, 2022. Although the Company is continuing to evaluate the impact of the IRA on its consolidated financial statements as it awaits further guidance, the Company does not currently expect a material impact. Non-Income Tax Matters The Internal Revenue Service notified the Company of certain penalties assessed related to the annual disclosure and reporting requirements of the Affordable Care Act. The Company is in the process of appealing this determination and does not believe it has any liability with respect to this matter. |
Legal
Legal | 9 Months Ended |
Oct. 01, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal | 10. Legal Due to the nature of the Company’s activities, it is, at times, subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, the disposition of any such matters is not expected, individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that the Company’s results of operations, financial condition or cash flows could be materially adversely affected in any particular period by the unfavorable resolution of one or more legal actions. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 9 Months Ended |
Oct. 01, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | 11. Derivative Instruments and Hedging As of October 1, 2022 and January 1, 2022, the Company had in effect interest rate swaps with an aggregate notional amount totaling $ 500,000 . On June 11, 2018, in order to hedge a portion of its variable rate debt, the Company entered into a forward-starting interest rate swap (the “2018 swap”) with an effective date of April 2, 2020 and a termination date of March 31, 2024 . The initial notional amount of this swap was $ 500,000 . During the term of this swap, the notional amount decreased from $ 500,000 effective April 2, 2020 to $ 250,000 on March 31, 2021 . This interest rate swap effectively fixed the variable interest rate on the notional amount of this swap at 3.1005 %. On June 7, 2019, in order to hedge a portion of its variable rate debt, the Company entered into a forward-starting interest rate swap (the “2019 swap”, and together with the 2018 swap, the “current swaps”) with an effective date of April 2, 2020 and a termination date of March 31, 2024 . The notional amount of this swap is $ 250,000 . This interest rate swap effectively fixed the variable interest rate on the notional amount of this swap at 1.901 %. The current swaps qualify for hedge accounting and, therefore, changes in the fair value of the current swaps have been recorded in accumulated other comprehensive loss. As of October 1, 2022, the cumulative unrealized gain for qualifying hedges was reported as a component of accumulated other comprehensive loss in the amount of $ 9,932 ($ 13,127 before taxes). As of January 1, 2022, the cumulative unrealized loss for qualifying hedges was reported as a component of accumulated other comprehensive loss in the amount of $ 10,843 ($ 14,622 before taxes). The following table presents the aggregate fair value of the Company’s derivative financial instruments by balance sheet classification and location: Fair Value Balance Sheet Classification Balance Sheet October 1, 2022 January 1, 2022 Assets: Interest rate swaps - current swaps Current asset Prepaid expenses and other current assets $ 8,631 $ — Interest rate swaps - current swaps Noncurrent asset Other noncurrent assets 4,513 — Total assets $ 13,144 $ — Liabilities: Interest rate swaps - current swaps Current liability Derivative payable $ — $ 14,670 Total liabilities $ — $ 14,670 The Company is hedging forecasted transactions for periods not exceeding the next two years . The Company expects approximately $ 6,287 ($ 8,397 before taxes) of net derivative gains included in accumulated other comprehensive loss at October 1, 2022 , based on current market rates, will be reclassified into earnings within the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. When measuring fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs. Fair Value of Financial Instruments The Company’s significant financial instruments include long-term debt and interest rate swap agreements as of October 1, 2022 and January 1, 2022. Since there were no outstanding borrowings under the Revolving Credit Facility as of October 1, 2022 and January 1, 2022, the fair value approximated a carrying value of $ 0 at both October 1, 2022 and January 1, 2022. The fair value of the Company’s Credit Facilities is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of October 1, 2022 and January 1, 2022, the fair value of the Company’s long-term debt was approximately $ 922,092 and $ 1,389,306 , respectively, as compared to the carrying value (net of deferred financing costs and debt discount) of $ 1,421,239 and $ 1,418,104 , respectively. Derivative Financial Instruments The fair values for the Company’s derivative financial instruments are determined using observable current market information such as the prevailing LIBOR interest rate and LIBOR yield curve rates and include consideration of counterparty credit risk. See Note 11 for disclosures related to derivative financial instruments. The following table presents the aggregate fair value of the Company’s derivative financial instruments: Fair Value Measurements Using: Total Quoted Prices in Significant Other Significant Interest rate swap current asset at October 1, 2022 $ 8,631 $ — $ 8,631 $ — Interest rate swap noncurrent asset at October 1, 2022 $ 4,513 $ — $ 4,513 $ — Interest rate swap current liability at January 1, 2022 $ 14,670 $ — $ 14,670 $ — The Company did no t have any transfers into or out of Levels 1 and 2 and did not maintain any assets or liabilities classified as Level 3 during the nine months ended October 1, 2022 and the fiscal year ended January 1, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 01, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss Amounts reclassified out of accumulated other comprehensive loss were as follows: Changes in Accumulated Other Comprehensive Loss by Component (1) Nine Months Ended October 1, 2022 (Loss) Gain on Loss on Total Beginning balance at January 1, 2022 $ ( 10,843 ) $ ( 7,761 ) $ ( 18,604 ) Other comprehensive income (loss) before 17,350 ( 13,488 ) 3,862 Amounts reclassified from accumulated other (2) 3,425 — 3,425 Net current period other comprehensive income (loss) 20,775 ( 13,488 ) 7,287 Ending balance at October 1, 2022 $ 9,932 $ ( 21,249 ) $ ( 11,317 ) (1) Amounts in parentheses indicate debits (2) See separate table below for details about these reclassifications Nine Months Ended October 2, 2021 Loss on Loss on Total Beginning balance at January 2, 2021 $ ( 20,979 ) $ ( 4,170 ) $ ( 25,149 ) Other comprehensive income (loss) before 418 ( 2,349 ) ( 1,931 ) Amounts reclassified from accumulated other (2) 6,028 — 6,028 Net current period other comprehensive income (loss) 6,446 ( 2,349 ) 4,097 Ending balance at October 2, 2021 $ ( 14,533 ) $ ( 6,519 ) $ ( 21,052 ) (1) Amounts in parentheses indicate debits (2) See separate table below for details about these reclassifications Reclassifications out of Accumulated Other Comprehensive Loss (1) Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Details about Other Comprehensive Amounts Reclassified from Amounts Reclassified from Affected Line Item in the Loss on Qualifying Hedges Interest rate contracts $ ( 326 ) $ ( 2,213 ) $ ( 4,575 ) $ ( 8,058 ) Interest expense ( 326 ) ( 2,213 ) ( 4,575 ) ( 8,058 ) (Loss) income before income taxes 82 557 1,150 2,030 (Benefit from) provision for income taxes $ ( 244 ) $ ( 1,656 ) $ ( 3,425 ) $ ( 6,028 ) Net (loss) income (1) Amounts in parentheses indicate debits to profit/loss |
Segment Data
Segment Data | 9 Months Ended |
Oct. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Data | 14. Segment Data The Company has four reportable segments based on an integrated geographical structure as follows: North America, Continental Europe (CE), United Kingdom and Other. Other consists of Australia, New Zealand and emerging markets operations and franchise revenues and related costs, all of which have been grouped together as if they were a single reportable segment because they do not meet any of the quantitative thresholds and are immaterial for separate disclosure. To be consistent with the information that is presented to the chief operating decision maker, the Company does not include intercompany activity in the segment results. Information about the Company’s reportable segments is as follows: Total Revenues, net Total Revenues, net Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 North America $ 176,082 $ 197,797 $ 568,410 $ 626,742 Continental Europe 56,496 71,933 189,140 231,764 United Kingdom 10,898 15,666 38,094 51,735 Other 6,242 8,101 21,288 26,431 Total revenues, net $ 249,718 $ 293,497 $ 816,932 $ 936,672 Net (Loss) Income Net (Loss) Income Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Segment operating (loss) income: North America $ ( 255,269 ) $ 74,310 $ ( 207,241 ) $ 163,287 Continental Europe 27,013 36,116 75,477 89,620 United Kingdom 2,462 3,502 1,363 6,085 Other ( 234 ) 1,746 578 3,834 Total segment operating (loss) income ( 226,028 ) 115,674 ( 129,823 ) 262,826 General corporate expenses 28,501 35,951 102,370 120,599 Interest expense 20,912 19,283 58,837 68,699 Other expense, net 1,344 764 3,303 908 Early extinguishment of debt — — — 29,169 (Benefit from) provision for income taxes ( 70,749 ) 13,346 ( 75,431 ) 6,488 Net (loss) income $ ( 206,036 ) $ 46,330 $ ( 218,902 ) $ 36,963 Depreciation and Amortization Depreciation and Amortization Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 North America $ 7,939 $ 9,635 $ 24,738 $ 29,752 Continental Europe 166 340 599 1,171 United Kingdom 109 160 475 639 Other 87 96 273 312 Total segment depreciation and amortization 8,301 10,231 26,085 31,874 General corporate depreciation and amortization 3,532 2,200 11,049 10,183 Depreciation and amortization $ 11,833 $ 12,431 $ 37,134 $ 42,057 |
Related Party
Related Party | 9 Months Ended |
Oct. 01, 2022 | |
Related Party Transactions [Abstract] | |
Related Party | 15. Related Party As previously disclosed, on October 18, 2015, the Company entered into the Strategic Collaboration Agreement with Oprah Winfrey, under which she would consult with the Company and participate in developing, planning, executing and enhancing the WW program and related initiatives, and provide it with services in her discretion to promote the Company and its programs, products and services for an initial term of five years (the “Initial Term”). As previously disclosed, on December 15, 2019, the Company entered into an amendment of the Strategic Collaboration Agreement with Ms. Winfrey, pursuant to which, among other things, the Initial Term of the Strategic Collaboration Agreement was extended until April 17, 2023 (with no additional successive renewal terms) after which a second term will commence and continue through the earlier of the date of the Company’s 2025 annual meeting of shareholders or May 31, 2025. Ms. Winfrey will continue to provide the above-described services during the remainder of the Initial Term and, during the second term, will provide certain consulting and other services to the Company. In addition to the Strategic Collaboration Agreement, Ms. Winfrey and her related entities provided services to the Company totaling $ 284 and $ 860 for the three and nine months ended October 1, 2022 , respectively, and $ 80 and $ 746 for the three and nine months ended October 2, 2021, respectively, which services included advertising, production and related fees. The Company’s accounts payable to parties related to Ms. Winfrey at October 1, 2022 and January 1, 2022 was $ 80 and $ 120 , respectively. During the nine months ended October 2, 2021 , as permitted by the transfer provisions set forth in the previously disclosed Share Purchase Agreement, dated October 18, 2015, between the Company and Ms. Winfrey, as amended, and the previously disclosed Winfrey Option Agreement, dated October 18, 2015, between the Company and Ms. Winfrey, Ms. Winfrey sold 1,542 of the shares she purchased under such purchase agreement and exercised a portion of her stock options granted in fiscal 2015 resulting in the sale of 581 shares issuable under such options, respectively. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 01, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 16. Restructuring 2022 Plan As previously disclosed, in the second quarter of fiscal 2022, the Company committed to a restructuring plan consisting of (i) an organizational realignment to simplify the Company’s corporate structure and reduce associated costs (the “Organizational Realignment”) and (ii) a continued rationalization of its real estate portfolio resulting in the termination of cer tain of the Company’s operating leases (together with the Organizational Realignment, the “2022 Plan”). In connection with the 2022 Plan, the Company previously expected to record restructuring charges of approximately $ 27,000 in the aggregate in fiscal 2022. The Company revised its estimate and currently expects to record restructuring expenses of approximately $ 33,000 in the aggregate in fiscal 2022 related to this plan. For the three and nine months ended October 1, 2022, the Company recorded restructuring expenses totaling $ 3,557 ($ 2,663 after tax) and $ 22,674 ($ 16,976 a fter tax), respectively. The Organizational Realignment has resulted and will result in the elimination of certain positions and termination of employment for certain employees worldwide. In connection with its Organizational Realignment, the Company continues to expect to record charges of approximately $ 20,000 in the aggregate with respect to employee termination benefit costs (consisting primarily of general and administrative expenses), the majority of which were recorded in the second quarter of fiscal 2022. In connection with the rationalization of its real estate portfolio , the Company previously expected to record charges of approximately $ 6,000 in the aggregate consisting of lease termination and other related costs in fiscal 2022. The Company revised its estimate and currently expects to record restructuring expenses with respect to lease termination and other related costs of approximately $ 12,000 in the aggregate in fiscal 2022. Additionally, the Company expects to record other restructuring costs of approximately $ 1,000 in the aggregate in fiscal 2022. Costs arising from the 2022 Plan related to separation payments, other employee termination expenses and lease termination and other related costs, except for lease impairment and accelerated depreciation and amortization related to leased locations, are expected to result in cash expenditures. For the three and nine months ended October 1, 2022, the components of the Company’s restructuring expenses were as follows: Three Months Ended Nine Months Ended October 1, 2022 October 1, 2022 Lease termination and other related costs $ ( 334 ) $ 3,332 Employee termination benefit costs 1,882 16,789 Lease impairment 1,828 1,828 Other costs 181 725 Total restructuring expenses $ 3,557 $ 22,674 See Note 3 for additional information in regard to the Company's lease impairment for the three and nine months ended October 1, 2022. For the three and nine months ended October 1, 2022, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Three Months Ended Nine Months Ended October 1, 2022 October 1, 2022 Cost of revenues $ ( 98 ) $ 4,401 Selling, general and administrative expenses 3,655 18,273 Total restructuring expenses $ 3,557 $ 22,674 All expenses were recorded to general corporate expenses and, therefore, there was no impact to the segments. For the nine months ended October 1, 2022, the Company made payments of $ 1,877 towards the liability for the lease termination costs. For the nine months ended October 1, 2022, the Company made payments of $ 7,505 towards the liability for the employee termination benefit costs. The Company expects the remaining lease termination liability o f $ 547 a nd the remaining employee termination benefit liability of $ 9,284 to be paid in full by the end of fiscal 2024. 2021 Plan As previously disclosed, in the first quarter of fiscal 2021, as the Company continued to evaluate its cost structure, anticipate consumer demand and focus on costs, the Company committed to a plan which has resulted in the termination of operating leases and elimination of certain positions worldwide. For the fiscal year ended January 1, 2022, the Company recorded restructuring expenses totaling $ 21,534 ($ 16,109 after tax). For the fiscal year ended January 1, 2022, the components of the Company’s restructuring expenses were as follows: Fiscal Year Ended January 1, 2022 Lease termination and other related costs $ 12,688 Employee termination benefit costs 8,846 Total restructuring expenses $ 21,534 For the fiscal year ended January 1, 2022, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Fiscal Year Ended January 1, 2022 Cost of revenues $ 16,727 Selling, general and administrative expenses 4,807 Total restructuring expenses $ 21,534 All expenses were recorded to general corporate expenses and, therefore, there was no impact to the segments. For the fiscal year ended January 1, 2022, the Company made payments of $ 7,640 towards the liability for the lease termination costs and decreased provision estimates by $ 3 . For the fiscal year ended January 1, 2022, the Company made payments of $ 4,802 towards the liability for the employee termination benefit costs. For the nine months ended October 1, 2022 , the Company made payments of $ 777 towards the liability for the lease termination costs, decreased provision estimates by $ 681 and incurred additional lease termination and other related costs of $ 119 . For the nine months ended October 1, 2022, the Company made payments of $ 3,407 towards the liability for the employee termination benefit costs, increased provision estimates by $ 215 and incurred additional employee termination benefit costs of $ 148 . As of October 1, 2022 , there was no outstanding lease termination liability. The Company expects the remaining employee termination benefit liability of $ 1,000 to be paid in full by the end of fiscal 2023. 2020 Plan As previously disclosed, in the second quarter of fiscal 2020, in connection with its cost-savings initiative, and its continued response to the COVID-19 pandemic and the related shift in market conditions, the Company committed to a plan of reduction in force which has resulted in the elimination of certain positions and termination of employment for certain employees worldwide. To adjust to anticipated consumer demand, the Company evolved its workshop strategy and expanded its restructuring plan to include lease termination and other related costs. For the fiscal year ended January 2, 2021, the Company recorded restructuring expenses totaling $ 33,092 ($ 24,756 after tax). For the fiscal year ended January 2, 2021, the components of the Company’s restructuring expenses were as follows: Fiscal Year Ended January 2, 2021 Lease termination and other related costs $ 7,989 Employee termination benefit costs 25,103 Total restructuring expenses $ 33,092 For the fiscal year ended January 2, 2021, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Fiscal Year Ended January 2, 2021 Cost of revenues $ 23,300 Selling, general and administrative expenses 9,792 Total restructuring expenses $ 33,092 All expenses were recorded to general corporate expenses and, therefore, there was no impact to the segments. For the fiscal year ended January 2, 2021, the Company made payments of $ 645 towards the liability for the lease termination costs. For the fiscal year ended January 2, 2021, the Company made payments of $ 15,434 towards the liability for the employee termination benefit costs and increased provision estimates by $ 180 . For the fiscal year ended January 1, 2022, the Company made payments of $ 4,649 towards the liability for the lease termination costs and decreased provision estimates by $ 470 . For the fiscal year ended January 1, 2022, the Company made payments of $ 6,773 towards the liability for the employee termination benefit costs and decreased provision estimates by $ 1,136 . For the nine months ended October 1, 2022, the Company made payments of $ 86 towards the liability for the lease termination costs an d decreased provision estimates by $ 116 . For the nine months ended October 1, 2022, the Company made payments of $ 1,164 towards the liability for the employee termination benefit costs. As of October 1, 2022, there was no outstanding lease termination liability. The Company expects the remaining employee termination benefit liability of $ 776 to be paid in full by the end of fiscal 2023. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Leases [Abstract] | |
Schedule of Lease Assets and Lease Liabilities | At October 1, 2022 and January 1, 2022, the Company’s lease assets and lease liabilities, primarily for its studios and corporate offices, were as follows: October 1, 2022 January 1, 2022 Assets: Operating lease assets $ 79,911 $ 89,902 Finance lease assets 72 127 Total leased assets $ 79,983 $ 90,029 Liabilities: Current Operating $ 18,457 $ 20,297 Finance 38 75 Noncurrent Operating $ 70,848 $ 78,157 Finance 9 29 Total lease liabilities $ 89,352 $ 98,558 |
Schedule of Components of Lease Expense | For the three and nine months ended October 1, 2022 and October 2, 2021, the components of the Company’s lease expense were as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Operating lease cost: Fixed lease cost $ 9,071 $ 8,533 $ 24,974 $ 29,359 Lease termination cost ( 189 ) 2,320 1,912 8,680 Variable lease cost 7 6 20 15 Total operating lease cost $ 8,889 $ 10,859 $ 26,906 $ 38,054 Finance lease cost: Amortization of leased assets 25 36 86 116 Interest on lease liabilities 4 2 6 7 Total finance lease cost $ 29 $ 38 $ 92 $ 123 Total lease cost $ 8,918 $ 10,897 $ 26,998 $ 38,177 |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates | At October 1, 2022 and January 1, 2022, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: October 1, 2022 January 1, 2022 Weighted Average Remaining Lease Term (years) Operating leases 7.00 7.29 Finance leases 1.00 1.54 Weighted Average Discount Rate Operating leases 7.01 7.15 Finance leases 3.39 5.31 |
Schedule of Maturity of Lease Liabilities | At October 1, 2022, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows: Operating Finance Total Remainder of fiscal 2022 $ 4,734 $ 13 $ 4,747 Fiscal 2023 24,872 31 24,903 Fiscal 2024 18,014 4 18,018 Fiscal 2025 12,575 — 12,575 Fiscal 2026 9,683 — 9,683 Fiscal 2027 9,376 — 9,376 Thereafter 36,089 — 36,089 Total lease payments $ 115,343 $ 48 $ 115,391 Less imputed interest 26,038 1 26,039 Present value of lease liabilities $ 89,305 $ 47 $ 89,352 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the nine months ended October 1, 2022 and October 2, 2021 were as follows: Nine Months Ended October 1, October 2, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24,244 $ 31,021 Operating cash flows from finance leases $ 6 $ 7 Financing cash flows from finance leases $ 86 $ 116 Leased assets obtained (modified) in exchange for new (modified) operating lease liabilities $ 11,160 $ ( 496 ) Leased assets obtained in exchange for new finance lease liabilities $ 44 $ 81 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source | The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Digital Subscription Revenues $ 155,881 $ 195,288 $ 521,582 $ 606,687 Workshops + Digital Fees 64,865 67,113 196,540 208,405 Subscription Revenues, net $ 220,746 $ 262,401 $ 718,122 $ 815,092 Product sales and other, net 28,972 31,096 98,810 121,580 Revenues, net $ 249,718 $ 293,497 $ 816,932 $ 936,672 |
Schedule of Revenues Disaggregated by Revenue Source and Segment | The following tables present the Company’s revenues disaggregated by revenue source and segment: Three Months Ended October 1, 2022 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 102,735 $ 43,638 $ 5,693 $ 3,815 $ 155,881 Workshops + Digital Fees 52,113 7,586 3,764 1,402 64,865 Subscription Revenues, net $ 154,848 $ 51,224 $ 9,457 $ 5,217 $ 220,746 Product sales and other, net 21,234 5,272 1,441 1,025 28,972 Revenues, net $ 176,082 $ 56,496 $ 10,898 $ 6,242 $ 249,718 Three Months Ended October 2, 2021 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 125,077 $ 56,542 $ 9,007 $ 4,662 $ 195,288 Workshops + Digital Fees 51,661 8,727 4,528 2,197 67,113 Subscription Revenues, net $ 176,738 $ 65,269 $ 13,535 $ 6,859 $ 262,401 Product sales and other, net 21,059 6,664 2,131 1,242 31,096 Revenues, net $ 197,797 $ 71,933 $ 15,666 $ 8,101 $ 293,497 Nine Months Ended October 1, 2022 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 342,489 $ 145,920 $ 20,106 $ 13,067 $ 521,582 Workshops + Digital Fees 155,558 23,599 12,482 4,901 196,540 Subscription Revenues, net $ 498,047 $ 169,519 $ 32,588 $ 17,968 $ 718,122 Product sales and other, net 70,363 19,621 5,506 3,320 98,810 Revenues, net $ 568,410 $ 189,140 $ 38,094 $ 21,288 $ 816,932 Nine Months Ended October 2, 2021 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 387,422 $ 176,059 $ 28,410 $ 14,796 $ 606,687 Workshops + Digital Fees 158,265 28,397 14,304 7,439 208,405 Subscription Revenues, net $ 545,687 $ 204,456 $ 42,714 $ 22,235 $ 815,092 Product sales and other, net 81,055 27,308 9,021 4,196 121,580 Revenues, net $ 626,742 $ 231,764 $ 51,735 $ 26,431 $ 936,672 |
Schedule of Deferred Revenues | The opening and ending balances of the Company’s deferred revenues were as follows: Deferred Deferred Revenue Revenue-Long Term Balance as of January 1, 2022 $ 45,855 $ 28 Net (decrease) increase during the period ( 6,083 ) 11 Balance as of October 1, 2022 $ 39,772 $ 39 Balance as of January 2, 2021 $ 50,475 $ 44 Net decrease during the period ( 244 ) ( 36 ) Balance as of October 2, 2021 $ 50,231 $ 8 |
Franchise Rights Acquired, Go_2
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Change in Carrying Amount of Goodwill | For the nine months ended October 1, 2022, the change in the carrying amount of goodwill was due to the Republic of Ireland franchisee and Northern Ireland franchisee acquisitions as described in Note 5, the impairment of the Company's wholly-owned subsidiary Kurbo, Inc. (“Kurbo”) as discussed below and the effect of exchange rate changes as follows: North Continental United America Europe Kingdom Other Total Balance as of January 2, 2021 $ 145,071 $ 7,792 $ 1,268 $ 1,486 $ 155,617 Goodwill acquired during the period 2,153 — — — 2,153 Effect of exchange rate changes 306 ( 606 ) ( 14 ) ( 82 ) ( 396 ) Balance as of January 1, 2022 $ 147,530 $ 7,186 $ 1,254 $ 1,404 $ 157,374 Goodwill acquired during the period — — 5,936 — 5,936 Goodwill impairment ( 1,101 ) — — — ( 1,101 ) Effect of exchange rate changes ( 3,651 ) ( 1,152 ) ( 1,084 ) ( 167 ) ( 6,054 ) Balance as of October 1, 2022 $ 142,778 $ 6,034 $ 6,106 $ 1,237 $ 156,155 |
Schedule of Carrying Values of Finite-lived Intangible Assets | The carrying values of finite-lived intangible assets as of October 1, 2022 and January 1, 2022 were as follows: October 1, 2022 January 1, 2022 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 115,746 $ 101,017 $ 115,065 $ 94,771 Website development costs 130,738 90,790 110,678 78,629 Trademarks 12,145 11,833 12,116 11,677 Other 13,880 5,917 14,021 5,677 Trademarks and other intangible assets $ 272,509 $ 209,557 $ 251,880 $ 190,754 Franchise rights acquired 8,126 5,001 7,905 4,766 Total finite-lived intangible assets $ 280,635 $ 214,558 $ 259,785 $ 195,520 |
Schedule of Estimated Amortization Expense of Finite-lived Intangible Assets | Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: Remainder of fiscal 2022 $ 8,223 Fiscal 2023 $ 27,053 Fiscal 2024 $ 16,687 Fiscal 2025 $ 5,378 Fiscal 2026 $ 845 Fiscal 2027 $ 720 Thereafter $ 7,171 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | The components of the Company’s long-term debt were as follows: October 1, 2022 January 1, 2022 Principal Unamortized Unamortized Effective (1) Principal Unamortized Unamortized Effective (1) Revolving Credit Facility due $ — $ — $ — 0.00 % $ — $ — $ — 2.61 % Term Loan Facility due 945,000 6,098 12,638 5.15 % 945,000 6,930 14,362 4.48 % Senior Secured Notes due 500,000 5,025 — 4.65 % 500,000 5,604 — 4.70 % Total $ 1,445,000 $ 11,123 $ 12,638 4.98 % $ 1,445,000 $ 12,534 $ 14,362 5.15 % Less: Current portion — — Unamortized deferred 11,123 12,534 Unamortized debt discount 12,638 14,362 Total long-term debt $ 1,421,239 $ 1,418,104 (1) Includes amortization of deferred financing costs and debt discount. |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted (net loss) earnings per share data: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Numerator: Net (loss) income $ ( 206,036 ) $ 46,330 $ ( 218,902 ) $ 36,963 Denominator: Weighted average shares of common stock outstanding 70,383 69,875 70,258 69,516 Effect of dilutive common stock equivalents — 985 — 1,350 Weighted average diluted common shares outstanding 70,383 70,860 70,258 70,866 (Net loss) earnings per share Basic $ ( 2.93 ) $ 0.66 $ ( 3.12 ) $ 0.53 Diluted $ ( 2.93 ) $ 0.65 $ ( 3.12 ) $ 0.52 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Aggregate Fair Value of Derivative Financial Instruments by Balance Sheet Classification and Location | The following table presents the aggregate fair value of the Company’s derivative financial instruments by balance sheet classification and location: Fair Value Balance Sheet Classification Balance Sheet October 1, 2022 January 1, 2022 Assets: Interest rate swaps - current swaps Current asset Prepaid expenses and other current assets $ 8,631 $ — Interest rate swaps - current swaps Noncurrent asset Other noncurrent assets 4,513 — Total assets $ 13,144 $ — Liabilities: Interest rate swaps - current swaps Current liability Derivative payable $ — $ 14,670 Total liabilities $ — $ 14,670 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Aggregate Fair Value of Derivative Financial Instruments | The following table presents the aggregate fair value of the Company’s derivative financial instruments: Fair Value Measurements Using: Total Quoted Prices in Significant Other Significant Interest rate swap current asset at October 1, 2022 $ 8,631 $ — $ 8,631 $ — Interest rate swap noncurrent asset at October 1, 2022 $ 4,513 $ — $ 4,513 $ — Interest rate swap current liability at January 1, 2022 $ 14,670 $ — $ 14,670 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Amounts reclassified out of accumulated other comprehensive loss were as follows: Changes in Accumulated Other Comprehensive Loss by Component (1) Nine Months Ended October 1, 2022 (Loss) Gain on Loss on Total Beginning balance at January 1, 2022 $ ( 10,843 ) $ ( 7,761 ) $ ( 18,604 ) Other comprehensive income (loss) before 17,350 ( 13,488 ) 3,862 Amounts reclassified from accumulated other (2) 3,425 — 3,425 Net current period other comprehensive income (loss) 20,775 ( 13,488 ) 7,287 Ending balance at October 1, 2022 $ 9,932 $ ( 21,249 ) $ ( 11,317 ) (1) Amounts in parentheses indicate debits (2) See separate table below for details about these reclassifications Nine Months Ended October 2, 2021 Loss on Loss on Total Beginning balance at January 2, 2021 $ ( 20,979 ) $ ( 4,170 ) $ ( 25,149 ) Other comprehensive income (loss) before 418 ( 2,349 ) ( 1,931 ) Amounts reclassified from accumulated other (2) 6,028 — 6,028 Net current period other comprehensive income (loss) 6,446 ( 2,349 ) 4,097 Ending balance at October 2, 2021 $ ( 14,533 ) $ ( 6,519 ) $ ( 21,052 ) (1) Amounts in parentheses indicate debits (2) See separate table below for details about these reclassifications |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of Accumulated Other Comprehensive Loss (1) Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Details about Other Comprehensive Amounts Reclassified from Amounts Reclassified from Affected Line Item in the Loss on Qualifying Hedges Interest rate contracts $ ( 326 ) $ ( 2,213 ) $ ( 4,575 ) $ ( 8,058 ) Interest expense ( 326 ) ( 2,213 ) ( 4,575 ) ( 8,058 ) (Loss) income before income taxes 82 557 1,150 2,030 (Benefit from) provision for income taxes $ ( 244 ) $ ( 1,656 ) $ ( 3,425 ) $ ( 6,028 ) Net (loss) income (1) Amounts in parentheses indicate debits to profit/loss |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments | Information about the Company’s reportable segments is as follows: Total Revenues, net Total Revenues, net Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 North America $ 176,082 $ 197,797 $ 568,410 $ 626,742 Continental Europe 56,496 71,933 189,140 231,764 United Kingdom 10,898 15,666 38,094 51,735 Other 6,242 8,101 21,288 26,431 Total revenues, net $ 249,718 $ 293,497 $ 816,932 $ 936,672 Net (Loss) Income Net (Loss) Income Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Segment operating (loss) income: North America $ ( 255,269 ) $ 74,310 $ ( 207,241 ) $ 163,287 Continental Europe 27,013 36,116 75,477 89,620 United Kingdom 2,462 3,502 1,363 6,085 Other ( 234 ) 1,746 578 3,834 Total segment operating (loss) income ( 226,028 ) 115,674 ( 129,823 ) 262,826 General corporate expenses 28,501 35,951 102,370 120,599 Interest expense 20,912 19,283 58,837 68,699 Other expense, net 1,344 764 3,303 908 Early extinguishment of debt — — — 29,169 (Benefit from) provision for income taxes ( 70,749 ) 13,346 ( 75,431 ) 6,488 Net (loss) income $ ( 206,036 ) $ 46,330 $ ( 218,902 ) $ 36,963 Depreciation and Amortization Depreciation and Amortization Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 North America $ 7,939 $ 9,635 $ 24,738 $ 29,752 Continental Europe 166 340 599 1,171 United Kingdom 109 160 475 639 Other 87 96 273 312 Total segment depreciation and amortization 8,301 10,231 26,085 31,874 General corporate depreciation and amortization 3,532 2,200 11,049 10,183 Depreciation and amortization $ 11,833 $ 12,431 $ 37,134 $ 42,057 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Components of Restructuring Expenses | For the three and nine months ended October 1, 2022, the components of the Company’s restructuring expenses were as follows: Three Months Ended Nine Months Ended October 1, 2022 October 1, 2022 Lease termination and other related costs $ ( 334 ) $ 3,332 Employee termination benefit costs 1,882 16,789 Lease impairment 1,828 1,828 Other costs 181 725 Total restructuring expenses $ 3,557 $ 22,674 See Note 3 for additional information in regard to the Company's lease impairment for the three and nine months ended October 1, 2022. For the three and nine months ended October 1, 2022, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Three Months Ended Nine Months Ended October 1, 2022 October 1, 2022 Cost of revenues $ ( 98 ) $ 4,401 Selling, general and administrative expenses 3,655 18,273 Total restructuring expenses $ 3,557 $ 22,674 For the fiscal year ended January 1, 2022, the components of the Company’s restructuring expenses were as follows: Fiscal Year Ended January 1, 2022 Lease termination and other related costs $ 12,688 Employee termination benefit costs 8,846 Total restructuring expenses $ 21,534 For the fiscal year ended January 1, 2022, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Fiscal Year Ended January 1, 2022 Cost of revenues $ 16,727 Selling, general and administrative expenses 4,807 Total restructuring expenses $ 21,534 For the fiscal year ended January 2, 2021, the components of the Company’s restructuring expenses were as follows: Fiscal Year Ended January 2, 2021 Lease termination and other related costs $ 7,989 Employee termination benefit costs 25,103 Total restructuring expenses $ 33,092 For the fiscal year ended January 2, 2021, restructuring expenses were recorded in the Company’s consolidated statements of net income as follows: Fiscal Year Ended January 2, 2021 Cost of revenues $ 23,300 Selling, general and administrative expenses 9,792 Total restructuring expenses $ 33,092 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 02, 2022 | Oct. 01, 2022 | |
Income Tax Expense (Benefit) | ||
Income Taxes [Line Items] | ||
Amount of error being corrected | $ (2,150) | $ (2,150) |
Accounting Standards Adopted _2
Accounting Standards Adopted in Current Year - Additional Information (Detail) - ASU 2021-08 | Oct. 01, 2022 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 02, 2022 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Assets: | ||
Operating lease assets | $ 79,911 | $ 89,902 |
Finance lease assets | $ 72 | $ 127 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Total leased assets | $ 79,983 | $ 90,029 |
Current | ||
Operating | 18,457 | 20,297 |
Finance | $ 38 | $ 75 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Noncurrent | ||
Operating | $ 70,848 | $ 78,157 |
Finance | $ 9 | $ 29 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Total lease liabilities | $ 89,352 | $ 98,558 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Operating lease cost: | ||||
Fixed lease cost | $ 9,071 | $ 8,533 | $ 24,974 | $ 29,359 |
Lease termination cost | (189) | 2,320 | 1,912 | 8,680 |
Variable lease cost | 7 | 6 | 20 | 15 |
Total operating lease cost | 8,889 | 10,859 | 26,906 | 38,054 |
Finance lease cost: | ||||
Amortization of leased assets | 25 | 36 | 86 | 116 |
Interest on lease liabilities | 4 | 2 | 6 | 7 |
Total finance lease cost | 29 | 38 | 92 | 123 |
Total lease cost | $ 8,918 | $ 10,897 | $ 26,998 | $ 38,177 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates (Detail) | Oct. 01, 2022 | Jan. 01, 2022 |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 7 years | 7 years 3 months 14 days |
Finance leases | 1 year | 1 year 6 months 14 days |
Weighted Average Discount Rate | ||
Operating leases | 7.01% | 7.15% |
Finance leases | 3.39% | 5.31% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 01, 2022 | Oct. 01, 2022 | |
Lessee Lease Description [Line Items] | ||
Lease weighted average remaining lease term | 6 years 11 months 26 days | |
Lease asset impairment charge | $ 1,828 | $ 1,828 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Leases, remaining lease term | 0 years | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Leases, remaining lease term | 10 years |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) $ in Thousands | Oct. 01, 2022 USD ($) |
Operating Leases | |
Remainder of fiscal 2022 | $ 4,734 |
Fiscal 2023 | 24,872 |
Fiscal 2024 | 18,014 |
Fiscal 2025 | 12,575 |
Fiscal 2026 | 9,683 |
Fiscal 2027 | 9,376 |
Thereafter | 36,089 |
Total lease payments | 115,343 |
Less imputed interest | 26,038 |
Present value of lease liabilities | 89,305 |
Finance Leases | |
Remainder of fiscal 2022 | 13 |
Fiscal 2023 | 31 |
Fiscal 2024 | 4 |
Total lease payments | 48 |
Less imputed interest | 1 |
Present value of lease liabilities | 47 |
Total | |
Remainder of fiscal 2022 | 4,747 |
Fiscal 2023 | 24,903 |
Fiscal 2024 | 18,018 |
Fiscal 2025 | 12,575 |
Fiscal 2026 | 9,683 |
Fiscal 2027 | 9,376 |
Thereafter | 36,089 |
Total lease payments | 115,391 |
Less imputed interest | 26,039 |
Present value of lease liabilities | $ 89,352 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 24,244 | $ 31,021 |
Operating cash flows from finance leases | 6 | 7 |
Financing cash flows from finance leases | 86 | 116 |
Leased assets obtained (modified) in exchange for new (modified) operating lease liabilities | 11,160 | (496) |
Leased assets obtained in exchange for new finance lease liabilities | $ 44 | $ 81 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 249,718 | $ 293,497 | $ 816,932 | $ 936,672 |
Digital Subscription Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 155,881 | 195,288 | 521,582 | 606,687 |
Workshops + Digital Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 64,865 | 67,113 | 196,540 | 208,405 |
Subscription Revenues, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 220,746 | 262,401 | 718,122 | 815,092 |
Product sales and other, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 28,972 | $ 31,096 | $ 98,810 | $ 121,580 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregated by Revenue Source and Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 249,718 | $ 293,497 | $ 816,932 | $ 936,672 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 176,082 | 197,797 | 568,410 | 626,742 |
Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 56,496 | 71,933 | 189,140 | 231,764 |
United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 10,898 | 15,666 | 38,094 | 51,735 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 6,242 | 8,101 | 21,288 | 26,431 |
Digital Subscription Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 155,881 | 195,288 | 521,582 | 606,687 |
Digital Subscription Revenues | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 102,735 | 125,077 | 342,489 | 387,422 |
Digital Subscription Revenues | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 43,638 | 56,542 | 145,920 | 176,059 |
Digital Subscription Revenues | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 5,693 | 9,007 | 20,106 | 28,410 |
Digital Subscription Revenues | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 3,815 | 4,662 | 13,067 | 14,796 |
Workshops + Digital Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 64,865 | 67,113 | 196,540 | 208,405 |
Workshops + Digital Fees | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 52,113 | 51,661 | 155,558 | 158,265 |
Workshops + Digital Fees | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 7,586 | 8,727 | 23,599 | 28,397 |
Workshops + Digital Fees | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 3,764 | 4,528 | 12,482 | 14,304 |
Workshops + Digital Fees | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 1,402 | 2,197 | 4,901 | 7,439 |
Subscription Revenues, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 220,746 | 262,401 | 718,122 | 815,092 |
Subscription Revenues, net | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 154,848 | 176,738 | 498,047 | 545,687 |
Subscription Revenues, net | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 51,224 | 65,269 | 169,519 | 204,456 |
Subscription Revenues, net | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 9,457 | 13,535 | 32,588 | 42,714 |
Subscription Revenues, net | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 5,217 | 6,859 | 17,968 | 22,235 |
Product sales and other, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 28,972 | 31,096 | 98,810 | 121,580 |
Product sales and other, net | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 21,234 | 21,059 | 70,363 | 81,055 |
Product sales and other, net | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 5,272 | 6,664 | 19,621 | 27,308 |
Product sales and other, net | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 1,441 | 2,131 | 5,506 | 9,021 |
Product sales and other, net | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 1,025 | $ 1,242 | $ 3,320 | $ 4,196 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenues (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Deferred Revenue - Short Term | ||
Contract With Customer Asset And Liability [Line Items] | ||
Deferred Revenue, Beginning balance | $ 45,855 | $ 50,475 |
Net (decrease) increase during the period | (6,083) | (244) |
Deferred Revenue, Ending balance | 39,772 | 50,231 |
Deferred Revenue - Long Term | ||
Contract With Customer Asset And Liability [Line Items] | ||
Deferred Revenue, Beginning balance | 28 | 44 |
Net (decrease) increase during the period | 11 | (36) |
Deferred Revenue, Ending balance | $ 39 | $ 8 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Revenues [Abstract] | ||
Deferred revenue recognized | $ 44,375 | $ 49,808 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 18, 2022 | Dec. 21, 2021 | Aug. 16, 2021 | Jul. 30, 2021 | Mar. 22, 2021 | Oct. 01, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 156,155 | $ 157,374 | $ 155,617 | |||||
Denross Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, aggregate purchase price | $ 4,500 | |||||||
Business acquisition, cash payment | 3,100 | $ 650 | ||||||
Business acquisition, purchase price allocation, assumed liabilities | 166 | |||||||
Business acquisition, cash in reserves | 750 | |||||||
Goodwill | 4,645 | |||||||
Business acquisition, purchase price allocation, deferred tax asset | 496 | |||||||
Business acquisition, purchase price allocation, tax asset valuation allowance | 496 | |||||||
Business acquisition, purchase price allocation, cash | 4 | |||||||
Business acquisition, purchase price allocation, other receivables | 3 | |||||||
Denross Limited | Customer Relationship | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | 14 | |||||||
Checkweight Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, aggregate purchase price | 1,500 | |||||||
Business acquisition, cash payment | 1,250 | |||||||
Business acquisition, purchase price allocation, assumed liabilities | 56 | |||||||
Business acquisition, cash in reserves | 250 | |||||||
Goodwill | 1,291 | |||||||
Business acquisition, purchase price allocation, deferred tax asset | 5 | |||||||
Business acquisition, purchase price allocation, tax asset valuation allowance | 5 | |||||||
Business acquisition, purchase price allocation, cash | 4 | |||||||
Business acquisition, purchase price allocation, other receivables | 4 | |||||||
Checkweight Limited | Customer Relationship | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | 17 | |||||||
Checkweight Limited | Franchise Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | $ 240 | |||||||
Weight Watchers of Maine, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, aggregate purchase price | $ 2,250 | |||||||
Business acquisition, cash payment | 1,999 | |||||||
Business acquisition, cash in reserves | 225 | |||||||
Goodwill | 2,153 | |||||||
Business acquisition, assumed net liabilities | 26 | |||||||
Weight Watchers of Maine, Inc. | Customer Relationship | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | 56 | |||||||
Weight Watchers of Maine, Inc. | Franchise Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | $ 41 | |||||||
The WW Group, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, aggregate purchase price | $ 17,500 | |||||||
Business acquisition, cash payment | $ 6,450 | 8,255 | ||||||
Business acquisition, cash in reserves | 2,300 | |||||||
Business acquisition, assumed net liabilities | 495 | |||||||
Business acquisition, purchase price allocation, inventories | 162 | |||||||
Business acquisition, purchase price allocation, property and equipment | 41 | |||||||
Business acquisition, purchase price allocation, other assets | 4 | |||||||
The WW Group, Inc. | Customer Relationship | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | 408 | |||||||
The WW Group, Inc. | Franchise Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, indefinite lived intangible assets | 16,885 | |||||||
The WW Group Co. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, aggregate purchase price | 3,114 | |||||||
Business acquisition, cash payment | 2,605 | |||||||
Business acquisition, cash in reserves | 599 | |||||||
Business acquisition, purchase price allocation, inventories | 6 | |||||||
Business acquisition, purchase price allocation, property and equipment | 25 | |||||||
Business acquisition, purchase price allocation, other assets | 1 | |||||||
Business acquisition, assumed net assets | 90 | |||||||
The WW Group Co. | Customer Relationship | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, finite lived intangible assets | 42 | |||||||
The WW Group Co. | Franchise Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocation, indefinite lived intangible assets | $ 3,040 |
Franchise Rights Acquired, Go_3
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Change in Carrying Amount of Goodwill (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
May 08, 2022 | May 09, 2021 | Oct. 01, 2022 | Jan. 01, 2022 | |
Goodwill [Line Items] | ||||
Beginning balance | $ 157,374,000 | $ 155,617,000 | ||
Goodwill acquired during the period | 5,936,000 | 2,153,000 | ||
Goodwill impairment | $ 0 | $ 0 | (1,101,000) | |
Effect of exchange rate changes | (6,054,000) | (396,000) | ||
Ending balance | 156,155,000 | 157,374,000 | ||
North America | ||||
Goodwill [Line Items] | ||||
Beginning balance | 147,530,000 | 145,071,000 | ||
Goodwill acquired during the period | 2,153,000 | |||
Goodwill impairment | (1,101,000) | |||
Effect of exchange rate changes | (3,651,000) | 306,000 | ||
Ending balance | 142,778,000 | 147,530,000 | ||
Continental Europe | ||||
Goodwill [Line Items] | ||||
Beginning balance | 7,186,000 | 7,792,000 | ||
Effect of exchange rate changes | (1,152,000) | (606,000) | ||
Ending balance | 6,034,000 | 7,186,000 | ||
United Kingdom | ||||
Goodwill [Line Items] | ||||
Beginning balance | 1,254,000 | 1,268,000 | ||
Goodwill acquired during the period | 5,936,000 | |||
Effect of exchange rate changes | (1,084,000) | (14,000) | ||
Ending balance | 6,106,000 | 1,254,000 | ||
Other | ||||
Goodwill [Line Items] | ||||
Beginning balance | 1,404,000 | 1,486,000 | ||
Effect of exchange rate changes | (167,000) | (82,000) | ||
Ending balance | $ 1,237,000 | $ 1,404,000 |
Franchise Rights Acquired, Go_4
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
May 08, 2022 | May 09, 2021 | Aug. 10, 2018 | Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Franchise right maturity period | 7 years | |||||||||
Net book value of goodwill | $ 156,155,000 | $ 156,155,000 | $ 157,374,000 | $ 155,617,000 | ||||||
Goodwill impairment | $ 0 | $ 0 | 1,101,000 | |||||||
Finite-lived intangible assets, aggregate amortization expense | 8,347,000 | $ 8,032,000 | 25,282,000 | $ 24,066,000 | ||||||
Kurbo Health, Inc | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of goodwill | $ 1,101,000 | |||||||||
Net purchase price | $ 3,063,000 | |||||||||
Kurbo, Inc | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Goodwill impairment | $ 1,101,000 | |||||||||
Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Indefinite-lived intangible assets, impairment charges | $ 0 | |||||||||
Franchise Rights | Other Units of Account | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Indefinite-lived intangible assets, impairment charges | $ 0 | |||||||||
United States | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of goodwill | 104,019,000 | 104,019,000 | ||||||||
United States | Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | 400,092,000 | 400,092,000 | ||||||||
Indefinite-lived intangible assets, impairment charges | 298,291,000 | |||||||||
Percentage of estimated fair value in excess of carrying amount | 15% | |||||||||
Canada | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of goodwill | 38,759,000 | 38,759,000 | ||||||||
Canada | Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | 19,342,000 | 19,342,000 | ||||||||
Indefinite-lived intangible assets, impairment charges | 13,312,000 | 24,485,000 | ||||||||
United Kingdom | Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | 10,061,000 | 10,061,000 | ||||||||
Australia | Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | 5,753,000 | 5,753,000 | ||||||||
New Zealand | Franchise Rights | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | 2,141,000 | 2,141,000 | ||||||||
Indefinite-lived intangible assets, impairment charges | 1,138,000 | $ 834,000 | ||||||||
Other Countries | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of goodwill | $ 13,377,000 | $ 13,377,000 | ||||||||
All Reporting Units Except for Republic of Ireland | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Percentage of goodwill held | 97.40% | 97.40% | ||||||||
Republic of Ireland | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of goodwill | $ 4,009,000 | $ 4,009,000 | ||||||||
Percentage of goodwill held | 2.60% | 2.60% | ||||||||
Percentage of estimated fair value in excess of carrying amount | 14% | |||||||||
Minimum | Franchise Rights | Other Units of Account | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Percentage of estimated fair value in excess of carrying amount | 100% | |||||||||
Minimum | All Reporting Units Except for Republic of Ireland | Goodwill | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Percentage of estimated fair value in excess of carrying amount | 35% | |||||||||
Franchise Rights | Other Units of Account | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Percentage of franchise rights acquired | 2.20% | |||||||||
Franchise Rights | United States | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | $ 400,092,000 | $ 698,383,000 | $ 400,092,000 | |||||||
Percentage of estimated fair value equal to carrying amount | 91.50% | 92.70% | 91.50% | |||||||
Franchise Rights | Canada | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | $ 19,342,000 | $ 34,556,000 | $ 19,342,000 | |||||||
Percentage of estimated fair value equal to carrying amount | 4.40% | 4.60% | 4.40% | |||||||
Franchise Rights | New Zealand | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Net book value of franchise rights acquired | $ 2,141,000 | $ 3,574,000 | $ 2,141,000 | |||||||
Percentage of estimated fair value equal to carrying amount | 0.50% | 0.50% | 0.50% | |||||||
Franchise Rights | Maximum | ||||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 1 year |
Franchise Rights Acquired, Go_5
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Schedule of Carrying Values of Finite-lived Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 280,635 | $ 259,785 |
Accumulated Amortization | 214,558 | 195,520 |
Capitalized software costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 115,746 | 115,065 |
Accumulated Amortization | 101,017 | 94,771 |
Website development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 130,738 | 110,678 |
Accumulated Amortization | 90,790 | 78,629 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 12,145 | 12,116 |
Accumulated Amortization | 11,833 | 11,677 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 13,880 | 14,021 |
Accumulated Amortization | 5,917 | 5,677 |
Trademarks and other intangible assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 272,509 | 251,880 |
Accumulated Amortization | 209,557 | 190,754 |
Franchise Rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 8,126 | 7,905 |
Accumulated Amortization | $ 5,001 | $ 4,766 |
Franchise Rights Acquired, Go_6
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Finite-lived Intangible Assets (Detail) $ in Thousands | Oct. 01, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of fiscal 2022 | $ 8,223 |
Fiscal 2023 | 27,053 |
Fiscal 2024 | 16,687 |
Fiscal 2025 | 5,378 |
Fiscal 2026 | 845 |
Fiscal 2027 | 720 |
Thereafter | $ 7,171 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 | Jul. 03, 2021 | |
Debt Instrument | ||||
Total Debt | $ 1,445,000 | $ 1,445,000 | ||
Unamortized Deferred Financing Costs | 11,123 | 12,534 | ||
Unamortized Debt discount | 12,638 | 14,362 | ||
Total long-term debt | $ 1,421,239 | $ 1,418,104 | ||
Effective Interest Rate | [1] | 4.98% | 5.15% | |
Term Loan Facility due April 13, 2028 | ||||
Debt Instrument | ||||
Total Debt | $ 945,000 | $ 945,000 | ||
Unamortized Deferred Financing Costs | 6,098 | 6,930 | ||
Unamortized Debt discount | $ 12,638 | $ 14,362 | $ 5,000 | |
Effective Interest Rate | [1] | 5.15% | 4.48% | |
Senior Secured Notes due April 15, 2029 | ||||
Debt Instrument | ||||
Total Debt | $ 500,000 | $ 500,000 | ||
Unamortized Deferred Financing Costs | $ 5,025 | $ 5,604 | ||
Effective Interest Rate | [1] | 4.65% | 4.70% | |
Revolving Credit Facility due April 13, 2026 | ||||
Debt Instrument | ||||
Total Debt | $ 0 | $ 0 | ||
Effective Interest Rate | [1] | 0% | 2.61% | |
[1] Includes amortization of deferred financing costs and debt discount. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Mar. 30, 2025 | Apr. 14, 2024 | Apr. 13, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | Jul. 03, 2021 USD ($) | Oct. 01, 2022 USD ($) | Oct. 02, 2021 USD ($) | Mar. 29, 2025 | Apr. 15, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Jan. 01, 2022 USD ($) | ||
Debt Instrument | ||||||||||||||
Repayment of aggregate principal amount | $ 1,511,500,000 | |||||||||||||
Loan outstanding amount | $ 1,445,000,000 | $ 1,445,000,000 | $ 1,445,000,000 | |||||||||||
Proceeds received from long-term debt | 1,500,000,000 | |||||||||||||
Aggregate principal amount | 1,418,104,000 | 1,421,239,000 | 1,418,104,000 | |||||||||||
Fees incurred in connection with debt refinancing | $ 37,910,000 | |||||||||||||
Unamortized Debt discount | $ 14,362,000 | $ 12,638,000 | $ 14,362,000 | |||||||||||
Loss on early extinguishment of debt | 29,169,000 | $ 29,169,000 | ||||||||||||
Financing costs in connection with debt refinancing | 9,017,000 | |||||||||||||
Write-off of pre-existing deferred financing fees and debt discount | 7,213,000 | |||||||||||||
Percentage of equity interests pledged | 100% | |||||||||||||
Percentage of annual excess cash flow | 50% | |||||||||||||
Percentage of annual excess cash flow after attaining first lien secured net leverage ratio one | 25% | |||||||||||||
Percentage of annual excess cash flow after attaining first lien secured net leverage ratio two | 0% | |||||||||||||
Percentage of net cash proceeds of certain non ordinary course asset sales by company and its restricted subsidiaries | 100% | |||||||||||||
Percentage of right to invest of net cash proceeds of certain non ordinary course asset sales by company and its restricted subsidiaries subject to certain qualifications | 100% | |||||||||||||
Percentage of net proceeds of any issuance or incurrence of debt by the Company or any of its restricted subsidiaries | 100% | |||||||||||||
Effective Interest Rate | [1] | 5.15% | 4.98% | 5.15% | ||||||||||
Average interest rate on outstanding debt, exclusive the impact of swap | 5.11% | 4.98% | 5.11% | |||||||||||
Average interest rate on outstanding debt, including the impact of swap | 5.28% | 5.62% | ||||||||||||
Maximum | ||||||||||||||
Debt Instrument | ||||||||||||||
Pledge percentage of first tier foreign subsidiaries directly owned by company or wholly owned subsidiaries | 65% | |||||||||||||
4.500% Senior Secured Notes due 2029 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 4.50% | |||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||
Senior Secured Tranche B Term Loan | ||||||||||||||
Debt Instrument | ||||||||||||||
Repayment of aggregate principal amount | $ 1,189,750,000 | |||||||||||||
Debt Instrument, maturity year | 2024 | |||||||||||||
8.625% Senior Notes due in 2025 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, maturity year | 2025 | |||||||||||||
Debt instrument redeemed amount | $ 300,000,000 | |||||||||||||
Debt Instrument Interest Rate Stated Percentage | 8.625% | |||||||||||||
Fees incurred in connection with debt refinancing | 12,939,000 | |||||||||||||
Credit Facilities | ||||||||||||||
Debt Instrument | ||||||||||||||
Loan outstanding amount | $ 945,000,000 | |||||||||||||
Proceeds received from long-term debt | $ 1,000,000,000 | |||||||||||||
Senior Secured Revolving Credit Facility Due in 2022 | ||||||||||||||
Debt Instrument | ||||||||||||||
Loan outstanding amount | $ 0 | |||||||||||||
Term Loan Facility due April 13, 2028 | ||||||||||||||
Debt Instrument | ||||||||||||||
Loan outstanding amount | $ 945,000,000 | 945,000,000 | $ 945,000,000 | |||||||||||
Unamortized Debt discount | $ 14,362,000 | $ 5,000,000 | $ 12,638,000 | $ 14,362,000 | ||||||||||
Effective Interest Rate | [1] | 4.48% | 5.15% | 4.48% | ||||||||||
Term Loan Facility due April 13, 2028 | Federal Funds Effective Rate | ||||||||||||||
Debt Instrument | ||||||||||||||
Credit facility, interest rate | 0.50% | |||||||||||||
Term Loan Facility due April 13, 2028 | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument | ||||||||||||||
Credit facility, interest rate | 1% | |||||||||||||
Debt instrument variable rate floor percent determined option one | 0.50% | |||||||||||||
Effective Interest Rate | 3.50% | |||||||||||||
Term Loan Facility due April 13, 2028 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument variable rate floor percent determined option one | 1.50% | |||||||||||||
Senior Secured Notes due April 15, 2029 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 4.50% | |||||||||||||
Loan outstanding amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||||||
Effective Interest Rate | [1] | 4.70% | 4.65% | 4.70% | ||||||||||
Debt instrument issued date | Apr. 13, 2021 | |||||||||||||
Debt instrument, mature date | Apr. 15, 2029 | |||||||||||||
Debt instrument interest payment term | Interest on the Senior Secured Notes is payable semi-annually on April 15 and October 15 of each year, beginning on October 15, 2021. | |||||||||||||
Debt Instrument, redemption, description | On or after April 15, 2024, the Company may on any one or more occasions redeem some or all of the Senior Secured Notes at a purchase price equal to 102.250% of the principal amount of the Senior Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date, such optional redemption price decreasing to 101.125% on or after April 15, 2025 and to 100.000% on or after April 15, 2026. Prior to April 15, 2024, the Company may on any one or more occasions redeem up to 40% of the aggregate principal amount of the Senior Secured Notes with an amount not to exceed the net proceeds of certain equity offerings at 104.500% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Prior to April 15, 2024, the Company may redeem some or all of the Senior Secured Notes at a make-whole price plus accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, during any twelve-month period ending prior to April 15, 2024, the Company may redeem up to 10% of the aggregate principal amount of the Senior Secured Notes at a purchase price equal to 103.000% of the principal amount of the Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. | |||||||||||||
Senior Secured Notes due April 15, 2029 | Change of Control | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, percentage of aggregate principal amount that may be redeemed (up to) | 101% | |||||||||||||
Senior Secured Notes due April 15, 2029 | Sale of Assets | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, percentage of aggregate principal amount that may be redeemed (up to) | 100% | |||||||||||||
Senior Secured Notes due April 15, 2029 | Debt Instrument Redemption Date, April 15, 2024 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, percentage of principal can be redeemed | 102.25% | |||||||||||||
Debt Instrument, redemption date | Apr. 15, 2024 | |||||||||||||
Senior Secured Notes due April 15, 2029 | Debt Instrument Redemption Date, April 15, 2025 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, percentage of principal can be redeemed | 101.125% | |||||||||||||
Debt Instrument, redemption date | Apr. 15, 2025 | |||||||||||||
Senior Secured Notes due April 15, 2029 | Debt Instrument Redemption Date, April 15, 2026 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, percentage of principal can be redeemed | 100% | |||||||||||||
Debt Instrument, redemption date | Apr. 15, 2026 | |||||||||||||
Senior Secured Notes due April 15, 2029 | Forecast | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, percentage of principal can be redeemed | 103% | |||||||||||||
Senior Secured Notes due April 15, 2029 | Maximum | Forecast | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, percentage of principal can be redeemed | 104.50% | |||||||||||||
Percent of principal amount of debt that may be redeemed (up to) | 40% | |||||||||||||
Debt instrument, percentage of aggregate principal amount that may be redeemed (up to) | 10% | |||||||||||||
Credit Facilities and Senior Secured Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Loan outstanding amount | $ 1,445,000,000 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Debt Instrument | ||||||||||||||
Loan outstanding amount | $ 0 | 0 | $ 0 | |||||||||||
Aggregate principal amount | $ 0 | 0 | $ 0 | |||||||||||
Credit facility available amount | 173,911,000 | |||||||||||||
Line of credit facility, issued but undrawn letters of credit | $ 1,089,000 | |||||||||||||
Effective Interest Rate | [1] | 2.61% | 0% | 2.61% | ||||||||||
Minimum outstanding amount to compliance springing maintenance covenant | 35% | |||||||||||||
Consolidated first lien leverage ratio | 4.99 | |||||||||||||
Revolving Credit Facility | Forecast | ||||||||||||||
Debt Instrument | ||||||||||||||
Consolidated first lien leverage ratio compliance | 5 | 5.25 | 5.50 | 5.75 | ||||||||||
Revolving Credit Facility | Federal Funds Effective Rate | ||||||||||||||
Debt Instrument | ||||||||||||||
Credit facility, interest rate | 0.50% | |||||||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument | ||||||||||||||
Credit facility, interest rate | 1% | |||||||||||||
Debt instrument variable rate floor percent determined option one | 0% | |||||||||||||
Effective Interest Rate | 2.75% | |||||||||||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument variable rate floor percent determined option one | 1% | |||||||||||||
Revolving Credit Facility | Senior Secured Revolving Credit Facility Due in 2022 | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, maturity year | 2022 | |||||||||||||
Credit Facility, maximum borrowing capacity | $ 175,000,000 | |||||||||||||
Revolving Credit Facility | Senior Secured Revolving Credit Facility | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, maturity year | 2026 | |||||||||||||
Credit Facility, maximum borrowing capacity | $ 175,000,000 | |||||||||||||
Term Loan Facility | Senior Secured Tranche B Term Loan | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt Instrument, maturity year | 2028 | |||||||||||||
Credit Facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||
Write-off of pre-existing deferred financing fees and debt discount | $ 1,183,000 | |||||||||||||
Prepayments of aggregate principal amount | $ 52,500,000 | |||||||||||||
[1] Includes amortization of deferred financing costs and debt discount. |
Per Share Data - Computation of
Per Share Data - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Numerator: | ||||
Net (loss) income | $ (206,036) | $ 46,330 | $ (218,902) | $ 36,963 |
Denominator: | ||||
Weighted average shares of common stock outstanding | 70,383 | 69,875 | 70,258 | 69,516 |
Effect of dilutive common stock equivalents | 985 | 1,350 | ||
Weighted average diluted common shares outstanding | 70,383 | 70,860 | 70,258 | 70,866 |
(Net loss) earnings per share | ||||
Basic | $ (2.93) | $ 0.66 | $ (3.12) | $ 0.53 |
Diluted | $ (2.93) | $ 0.65 | $ (3.12) | $ 0.52 |
Per Share Data - Additional Inf
Per Share Data - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS | 9,229 | 5,426 | 8,307 | 5,270 |
Taxes - Additional Information
Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25.60% | 22.40% | 25.60% | 14.90% |
Derivative Instruments and He_3
Derivative Instruments and Hedging - Additional Information (Detail) - USD ($) | 9 Months Ended | |||||
Mar. 31, 2021 | Apr. 02, 2020 | Jun. 07, 2019 | Jun. 11, 2018 | Oct. 01, 2022 | Jan. 01, 2022 | |
Derivative | ||||||
Maximum length of time hedging forecasted | 2 years | |||||
Derivative loss included in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next 12 months, net of tax | $ 6,287,000 | |||||
Derivative loss included in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next 12 months, before tax | 8,397,000 | |||||
Interest Rate Swap | ||||||
Derivative | ||||||
Cumulative gain (loss) for qualifying hedges reported as a component of accumulated other comprehensive income (loss) net of tax | 9,932,000 | $ (10,843,000) | ||||
Cumulative gain (loss) for qualifying hedges reported as a component of accumulated other comprehensive income (loss) before tax | 13,127,000 | (14,622,000) | ||||
Interest Rate Swap | 2018 Swap | ||||||
Derivative | ||||||
Forward-starting interest rate swap, effective date | Apr. 02, 2020 | |||||
Forward starting interest rate swap, termination date | Mar. 31, 2024 | |||||
Derivative interest rate swap percentage | 3.1005% | |||||
Interest Rate Swap | 2019 Swap | ||||||
Derivative | ||||||
Forward-starting interest rate swap, effective date | Apr. 02, 2020 | |||||
Forward starting interest rate swap, termination date | Mar. 31, 2024 | |||||
Derivative interest rate swap percentage | 1.901% | |||||
Interest Rate Swap | Cash Flow Hedging | ||||||
Derivative | ||||||
Notional amount | $ 500,000,000 | $ 500,000,000 | ||||
Interest Rate Swap | Cash Flow Hedging | 2018 Swap | ||||||
Derivative | ||||||
Notional amount | $ 250,000,000 | $ 500,000,000 | $ 500,000,000 | |||
Forward-starting interest rate swap, effective date | Mar. 31, 2021 | Apr. 02, 2020 | ||||
Interest Rate Swap | Cash Flow Hedging | 2019 Swap | ||||||
Derivative | ||||||
Notional amount | $ 250,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Aggregate Fair Value of Derivative Financial Instruments by Balance Sheet Classification and Location (Detail) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Derivative | ||
Derivative assets | $ 13,144 | |
Derivative liabilities, current | $ 14,670 | |
Derivative liabilities | 14,670 | |
Interest Rate Swap - Current Swaps | ||
Derivative | ||
Derivative assets, current | $ 8,631 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense And Other Assets Current | |
Derivative assets, noncurrent | $ 4,513 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | |
Derivative liabilities, current | $ 14,670 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Oct. 01, 2022 | Jan. 01, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt outstanding amount | $ 1,421,239,000 | $ 1,418,104,000 |
Fair value of long-term debt | 922,092,000 | 1,389,306,000 |
Fair value assets, transfer between level 1 to level 2 | 0 | 0 |
Fair value liabilities, transfer between level 1 to level 2 | 0 | 0 |
Fair value assets, transfer between level 2 to level 1 | 0 | 0 |
Fair value liabilities, transfer between level 2 to level 1 | 0 | 0 |
Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | 0 | 0 |
Debt outstanding amount | $ 0 | $ 0 |
Fair Value Measurements - Aggre
Fair Value Measurements - Aggregate Fair Value of Derivative Financial Instruments (Detail) - Fair Value, Measurements, Recurring - Interest Rate Swap - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap current asset | $ 8,631 | |
Interest rate swap noncurrent asset | 4,513 | |
Interest rate swap current liability | $ 14,670 | |
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap current asset | 8,631 | |
Interest rate swap noncurrent asset | $ 4,513 | |
Interest rate swap current liability | $ 14,670 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications, net of tax | [1] | $ 3,862 | $ (1,931) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | 3,425 | 6,028 |
Net current period other comprehensive income (loss) | [1] | 7,287 | 4,097 |
(Loss) Gain on Qualifying Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | [1] | (10,843) | (20,979) |
Other comprehensive income (loss) before reclassifications, net of tax | [1] | 17,350 | 418 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | 3,425 | 6,028 |
Net current period other comprehensive income (loss) | [1] | 20,775 | 6,446 |
Ending balance | [1] | 9,932 | (14,533) |
Loss on Foreign Currency Translation | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | [1] | (7,761) | (4,170) |
Other comprehensive income (loss) before reclassifications, net of tax | [1] | (13,488) | (2,349) |
Net current period other comprehensive income (loss) | [1] | (13,488) | (2,349) |
Ending balance | [1] | (21,249) | (6,519) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | [1] | (18,604) | (25,149) |
Ending balance | [1] | $ (11,317) | $ (21,052) |
[1] Amounts in parentheses indicate debits See separate table below for details about these reclassifications |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | ||
Interest Expense | Interest Rate Contract | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Loss on Qualifying Hedges | [1] | $ (326) | $ (2,213) | $ (4,575) | $ (8,058) |
(Loss) Income Before Income Taxes | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Loss on Qualifying Hedges | [1] | (326) | (2,213) | (4,575) | (8,058) |
(Benefit from) provision for income taxes | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Loss on Qualifying Hedges | [1] | 82 | 557 | 1,150 | 2,030 |
Net (loss) income | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Loss on Qualifying Hedges | [1] | $ (244) | $ (1,656) | $ (3,425) | $ (6,028) |
[1] Amounts in parentheses indicate debits to profit/loss |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 9 Months Ended |
Oct. 01, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Data - Information Abou
Segment Data - Information About Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues, net | $ 249,718 | $ 293,497 | $ 816,932 | $ 936,672 | |
Operating (loss) income | (254,529) | 79,723 | (232,193) | 142,227 | |
Interest expense | 20,912 | 19,283 | 58,837 | 68,699 | |
Other expense, net | 1,344 | 764 | 3,303 | 908 | |
Early extinguishment of debt | $ 29,169 | 29,169 | |||
(Benefit from) provision for income taxes | (70,749) | 13,346 | (75,431) | 6,488 | |
Net income | (206,036) | 46,330 | (218,902) | 36,963 | |
Depreciation and amortization | 11,833 | 12,431 | 37,134 | 42,057 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss) income | (226,028) | 115,674 | (129,823) | 262,826 | |
Depreciation and amortization | 8,301 | 10,231 | 26,085 | 31,874 | |
General corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
General corporate expenses | 28,501 | 35,951 | 102,370 | 120,599 | |
Depreciation and amortization | 3,532 | 2,200 | 11,049 | 10,183 | |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 176,082 | 197,797 | 568,410 | 626,742 | |
North America | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 176,082 | 197,797 | 568,410 | 626,742 | |
Operating (loss) income | (255,269) | 74,310 | (207,241) | 163,287 | |
Depreciation and amortization | 7,939 | 9,635 | 24,738 | 29,752 | |
Continental Europe | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 56,496 | 71,933 | 189,140 | 231,764 | |
Continental Europe | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 56,496 | 71,933 | 189,140 | 231,764 | |
Operating (loss) income | 27,013 | 36,116 | 75,477 | 89,620 | |
Depreciation and amortization | 166 | 340 | 599 | 1,171 | |
United Kingdom | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 10,898 | 15,666 | 38,094 | 51,735 | |
United Kingdom | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 10,898 | 15,666 | 38,094 | 51,735 | |
Operating (loss) income | 2,462 | 3,502 | 1,363 | 6,085 | |
Depreciation and amortization | 109 | 160 | 475 | 639 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 6,242 | 8,101 | 21,288 | 26,431 | |
Other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, net | 6,242 | 8,101 | 21,288 | 26,431 | |
Operating (loss) income | (234) | 1,746 | 578 | 3,834 | |
Depreciation and amortization | $ 87 | $ 96 | $ 273 | $ 312 |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 18, 2015 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
Related Party Transaction [Line Items] | ||||||
Initial agreement term | 5 years | |||||
Ms. Winfrey and her related entities | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, service provided by related party | $ 284 | $ 80 | $ 860 | $ 746 | ||
Ms. Winfrey | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable to related parties | $ 80 | $ 80 | $ 120 | |||
Number of shares purchased from related party | 1,542 | |||||
Stock options exercised | 581 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 | Oct. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
2022 Plan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | $ 3,557 | $ 22,674 | |||
Restructuring expenses after tax | 2,663 | 16,976 | |||
2022 Plan | Scenario Forecast | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Estimated cost | $ 27,000 | ||||
Revised estimated cost | 33,000 | ||||
Other restructuring costs | 1,000 | ||||
2022 Plan | Lease Termination Costs | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | (334) | 3,332 | |||
Payments | 1,877 | ||||
Restructuring liability | 547 | 547 | |||
2022 Plan | Lease Termination Costs | Scenario Forecast | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Estimated cost | 6,000 | ||||
Revised estimated cost | 12,000 | ||||
2022 Plan | Employee Severance | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | 1,882 | 16,789 | |||
Payments | 7,505 | ||||
Restructuring liability | 9,284 | 9,284 | |||
2022 Plan | Employee Severance | Scenario Forecast | General and Administrative Expenses | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Estimated cost | $ 20,000 | ||||
2021 Plan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | $ 21,534 | ||||
Restructuring expenses after tax | 16,109 | ||||
2021 Plan | Lease Termination Costs | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | 119 | 12,688 | |||
Payments | 777 | 7,640 | |||
Provision estimates | (681) | (3) | |||
Restructuring liability | 0 | 0 | |||
2021 Plan | Employee Severance | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | 148 | 8,846 | |||
Payments | 3,407 | 4,802 | |||
Provision estimates | 215 | ||||
Restructuring liability | 1,000 | 1,000 | |||
2020 Plan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | $ 33,092 | ||||
Restructuring expenses after tax | 24,756 | ||||
2020 Plan | Lease Termination Costs | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | 7,989 | ||||
Payments | 86 | 4,649 | 645 | ||
Provision estimates | (116) | (470) | |||
Restructuring liability | 0 | 0 | |||
2020 Plan | Employee Severance | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring expenses | 25,103 | ||||
Payments | 1,164 | 6,773 | 15,434 | ||
Provision estimates | $ (1,136) | $ 180 | |||
Restructuring liability | $ 776 | $ 776 |
Restructuring - Components of R
Restructuring - Components of Restructuring Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 01, 2022 | Oct. 01, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 3,557 | $ 22,674 | ||
2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 21,534 | |||
2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 33,092 | |||
Lease Termination Costs | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | (334) | 3,332 | ||
Lease Termination Costs | 2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 119 | 12,688 | ||
Lease Termination Costs | 2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 7,989 | |||
Employee Severance | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 1,882 | 16,789 | ||
Employee Severance | 2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 148 | $ 8,846 | ||
Employee Severance | 2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 25,103 | |||
Lease Impairment | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 1,828 | 1,828 | ||
Other Costs | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 181 | $ 725 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 01, 2022 | Oct. 01, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 3,557 | $ 22,674 | ||
2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 21,534 | |||
2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 33,092 | |||
Cost of Revenues | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | (98) | 4,401 | ||
Cost of Revenues | 2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 16,727 | |||
Cost of Revenues | 2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | 23,300 | |||
Selling, General and Administrative Expenses | 2022 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 3,655 | $ 18,273 | ||
Selling, General and Administrative Expenses | 2021 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 4,807 | |||
Selling, General and Administrative Expenses | 2020 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring expenses | $ 9,792 |