Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Jan. 31, 2014 | Jun. 28, 2013 | |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'WTW | ' | ' |
Entity Registrant Name | 'WEIGHT WATCHERS INTERNATIONAL INC | ' | ' |
Entity Central Index Key | '0000105319 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 56,426,741 | ' |
Entity Public Float | ' | ' | $1,254,625,620 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS | ' | ' | ||
Cash and cash equivalents | $174,557 | $70,215 | ||
Receivables (net of allowances: December 28, 2013-$3,477 and December 29, 2012-$3,447) | 36,248 | 37,363 | ||
Inventories | 40,939 | 46,846 | ||
Deferred income taxes | 24,457 | 21,757 | ||
Prepaid expenses and other current assets | 39,524 | 41,786 | ||
TOTAL CURRENT ASSETS | 315,725 | 217,967 | ||
Property and equipment, net | 87,052 | 71,768 | ||
Franchise rights acquired | 836,835 | 783,695 | ||
Goodwill | 79,294 | 62,726 | ||
Trademarks and other intangible assets, net | 45,297 | 52,480 | ||
Deferred financing costs, net | 42,046 | 26,571 | ||
Other noncurrent assets | 2,682 | 3,400 | ||
TOTAL ASSETS | 1,408,931 | 1,218,607 | ||
CURRENT LIABILITIES | ' | ' | ||
Portion of long-term debt due within one year | 30,000 | 114,695 | ||
Accounts payable | 45,496 | 49,349 | ||
Salaries and wages payable | 65,810 | 56,490 | ||
Accrued marketing and advertising | 15,509 | 27,437 | ||
Accrued interest | 22,776 | 13,552 | ||
Other accrued liabilities | 89,899 | 100,171 | ||
Deferred revenue | 76,330 | 86,161 | ||
TOTAL CURRENT LIABILITIES | 345,820 | 447,855 | ||
Long-term debt | 2,358,000 | 2,291,669 | ||
Deferred income taxes | 164,064 | 129,431 | ||
Other | 15,669 | 15,111 | ||
TOTAL LIABILITIES | 2,883,553 | 2,884,066 | ||
Commitments and contingencies (Note 13) | ' | ' | ||
TOTAL DEFICIT | ' | ' | ||
Common stock, $0 par value; 1,000,000 shares authorized; 111,988 shares issued | 0 | 0 | ||
Treasury stock, at cost, 55,562 shares at December 28, 2013 and 56,234 shares at December 29, 2012 | -3,256,406 | -3,281,831 | ||
Retained earnings | 1,773,267 | 1,603,513 | ||
Accumulated other comprehensive income | 8,517 | [1] | 12,859 | [1] |
TOTAL DEFICIT | -1,474,622 | -1,665,459 | ||
TOTAL LIABILITIES AND TOTAL DEFICIT | $1,408,931 | $1,218,607 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Receivables, allowances | $3,477 | $3,447 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 111,988 | 111,988 |
Treasury stock, shares | 55,562 | 56,234 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Meeting fees, net | $851,626 | $934,933 | $990,296 |
Product sales and other, net | 350,271 | 400,161 | 442,703 |
Internet revenues | 522,226 | 504,338 | 399,495 |
Revenues, net | 1,724,123 | 1,839,432 | 1,832,494 |
Cost of meetings, products and other | 652,283 | 681,972 | 718,284 |
Cost of Internet revenues | 70,728 | 63,642 | 55,705 |
Cost of revenues | 723,011 | 745,614 | 773,989 |
Gross profit | 1,001,112 | 1,093,818 | 1,058,505 |
Marketing expenses | 295,628 | 353,673 | 302,923 |
Selling, general and administrative expenses | 244,727 | 229,340 | 209,254 |
Operating income | 460,757 | 510,805 | 546,328 |
Interest expense | 103,108 | 90,537 | 59,850 |
Other expense, net | 599 | 1,979 | 3,386 |
Early extinguishment of debt | 21,685 | 1,328 | 0 |
Income before income taxes | 335,365 | 416,961 | 483,092 |
Provision for income taxes | 130,640 | 159,535 | 178,748 |
Net income | 204,725 | 257,426 | 304,344 |
Net loss attributable to the noncontrolling interest | 0 | 0 | 523 |
Net income attributable to Weight Watchers International, Inc. | $204,725 | $257,426 | $304,867 |
Earnings Per Share attributable to Weight Watchers International, Inc. | ' | ' | ' |
Basic | $3.65 | $4.27 | $4.16 |
Diluted | $3.63 | $4.23 | $4.11 |
Weighted average common shares outstanding | ' | ' | ' |
Basic | 56,144 | 60,294 | 73,344 |
Diluted | 56,394 | 60,923 | 74,131 |
Dividends declared per common share | $0.53 | $0.70 | $0.70 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Net income | $204,725 | $257,426 | $304,344 | |
Other comprehensive income: | ' | ' | ' | |
Foreign currency translation adjustments | -10,363 | 763 | -1,111 | |
Income tax effect on foreign currency translation adjustments | 4,022 | -225 | 433 | |
Foreign currency translation adjustments, net of taxes | -6,341 | 538 | -678 | |
Changes in fair value of derivatives | 3,277 | 11,016 | 17,698 | |
Income tax effect on changes in fair value of derivatives | -1,278 | -4,296 | -6,902 | |
Changes in fair value of derivatives, net of taxes | 1,999 | 6,720 | 10,796 | |
Net current period other comprehensive income (loss) | -4,342 | [1] | 7,258 | 10,118 |
Comprehensive income | 200,383 | 264,684 | 314,462 | |
Comprehensive loss attributable to the noncontrolling interest | 0 | 0 | 523 | |
Comprehensive income attributable to Weight Watchers International, Inc. | $200,383 | $264,684 | $314,985 | |
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT (USD $) | Total | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
In Thousands | ||||||
Beginning balance at Jan. 01, 2011 | ($690,724) | $0 | ($1,794,066) | ($4,517) | $1,103,817 | $4,042 |
Beginning balance (in shares) at Jan. 01, 2011 | ' | 111,988 | 38,618 | ' | ' | ' |
Purchase of noncontrolling interest | -4,472 | ' | ' | ' | -953 | -3,519 |
Comprehensive Income | 314,462 | ' | ' | 10,118 | 304,867 | -523 |
Issuance of treasury stock under stock plans (in shares) | ' | ' | -1,042 | ' | ' | ' |
Issuance of treasury stock under stock plans | 39,970 | ' | 31,633 | ' | 8,337 | ' |
Tax benefit of restricted stock units vested and stock options exercised | 5,093 | ' | ' | ' | 5,093 | ' |
Cash dividends declared | -51,612 | ' | ' | ' | -51,612 | ' |
Purchase of treasury stock (in shares) | 814 | ' | 814 | ' | ' | ' |
Purchase of treasury stock | -31,550 | ' | -31,550 | ' | ' | ' |
Compensation expense on share-based awards | 9,067 | ' | ' | ' | 9,067 | ' |
Ending balance at Dec. 31, 2011 | -409,766 | 0 | -1,793,983 | 5,601 | 1,378,616 | 0 |
Ending balance (in shares) at Dec. 31, 2011 | ' | 111,988 | 38,390 | ' | ' | ' |
Comprehensive Income | 264,684 | ' | ' | 7,258 | 257,426 | 0 |
Issuance of treasury stock under stock plans (in shares) | ' | ' | -435 | ' | ' | ' |
Issuance of treasury stock under stock plans | 10,663 | ' | 16,341 | ' | -5,678 | ' |
Tax benefit of restricted stock units vested and stock options exercised | 3,408 | ' | ' | ' | 3,408 | ' |
Cash dividends declared | -39,104 | ' | ' | ' | -39,104 | ' |
Purchase of treasury stock (in shares) | ' | ' | 18,279 | ' | ' | ' |
Purchase of treasury stock | -1,498,902 | ' | -1,498,902 | ' | ' | ' |
Tender Offer fees | -5,287 | ' | -5,287 | ' | ' | ' |
Compensation expense on share-based awards | 8,845 | ' | ' | ' | 8,845 | ' |
Ending balance at Dec. 29, 2012 | -1,665,459 | 0 | -3,281,831 | 12,859 | 1,603,513 | 0 |
Ending balance (in shares) at Dec. 29, 2012 | ' | 111,988 | 56,234 | ' | ' | ' |
Comprehensive Income | 200,383 | ' | ' | -4,342 | 204,725 | 0 |
Issuance of treasury stock under stock plans (in shares) | ' | ' | -672 | ' | ' | ' |
Issuance of treasury stock under stock plans | 15,121 | ' | 25,425 | ' | -10,304 | ' |
Tax benefit of restricted stock units vested and stock options exercised | 537 | ' | ' | ' | 537 | ' |
Cash dividends declared | -29,459 | ' | ' | ' | -29,459 | ' |
Compensation expense on share-based awards | 4,255 | ' | ' | ' | 4,255 | ' |
Ending balance at Dec. 28, 2013 | ($1,474,622) | $0 | ($3,256,406) | $8,517 | $1,773,267 | $0 |
Ending balance (in shares) at Dec. 28, 2013 | ' | 111,988 | 55,562 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $204,725 | $257,426 | $304,344 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 44,904 | 36,640 | 30,995 |
Amortization of deferred financing costs | 7,672 | 7,070 | 4,825 |
Impairment of intangible and long-lived assets | 5,426 | 0 | 0 |
Share-based compensation expense | 4,255 | 8,845 | 9,067 |
Deferred tax provision | 35,380 | 26,765 | 25,291 |
Allowance for doubtful accounts | 596 | -1,067 | 1,441 |
Reserve for inventory obsolescence | 9,580 | 10,491 | 13,203 |
Foreign currency exchange rate loss/(gain) | 659 | -722 | -80 |
Loss on disposal of assets | 1,417 | 590 | 500 |
Loss on investment | 0 | 2,697 | 3,585 |
Early extinguishment of debt | 21,685 | 1,328 | 0 |
Other items, net | 0 | 0 | 105 |
Changes in cash due to: | ' | ' | ' |
Receivables | 345 | 5,870 | -563 |
Inventories | -2,226 | -1,341 | -24,456 |
Prepaid expenses | 1,037 | -639 | 2,531 |
Accounts payable | -3,607 | -11,794 | 17,495 |
UK self-employment liability | -7,272 | -37,441 | 2,931 |
Accrued liabilities | 4,988 | 28,042 | 2,348 |
Deferred revenue | -10,521 | 1,539 | 10,555 |
Income taxes | 4,473 | 2,408 | 2,922 |
Cash provided by operating activities | 323,516 | 336,707 | 407,039 |
Investing activities: | ' | ' | ' |
Capital expenditures | -40,657 | -48,807 | -21,750 |
Capitalized software expenditures | -21,277 | -29,926 | -23,086 |
Cash paid for acquisitions | -83,825 | -30,400 | 0 |
Other items, net | 411 | -323 | -374 |
Cash used for investing activities | -145,348 | -109,456 | -45,210 |
Financing activities: | ' | ' | ' |
Proceeds from new term loans | 2,400,000 | 1,449,397 | 0 |
Net borrowings/(payments) on revolver | 70,000 | 30,000 | -174,000 |
Payments on long-term debt | -2,488,364 | -124,833 | -139,285 |
Payment of dividends | -29,571 | -51,961 | -51,624 |
Payments to acquire treasury stock | 0 | -1,504,189 | -34,924 |
Deferred financing costs | -44,817 | -26,248 | 0 |
Proceeds from stock options exercised | 16,187 | 12,688 | 42,040 |
Tax benefit of restricted stock units vested and stock options exercised | 2,132 | 4,026 | 5,831 |
Cash used for financing activities | -74,433 | -211,120 | -351,962 |
Effect of exchange rate changes on cash and cash equivalents and other | 607 | 885 | -13 |
Net increase in cash and cash equivalents | 104,342 | 17,016 | 9,854 |
Cash and cash equivalents, beginning of fiscal year | 70,215 | 53,199 | 43,345 |
Cash and cash equivalents, end of fiscal year | $174,557 | $70,215 | $53,199 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Basis of Presentation | ' | ||||||||||||
1 | Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements include the accounts of Weight Watchers International, Inc. and all of its subsidiaries. The term “Company” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of its businesses consolidated for purposes of its financial statements. The term “WWI” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of the Company’s businesses other than WW.com. The term “WW.com” as used throughout these notes is used to indicate WeightWatchers.com, Inc. and all of the Company’s Internet-based businesses. | |||||||||||||
As further discussed in Note 3, effective with its formation in February 2008, the Company consolidated the financial statements of Weight Watchers China Limited. | |||||||||||||
Revisions: | |||||||||||||
The Company identified a correction in the statements of cash flows for the year ended 2012 and 2011 as it relates to foreign currency activity, resulting in a reclassification between accrued liabilities and effect of exchange rate changes on cash and cash equivalents and other. The effects of this revision on the previously reported amounts are as follows: | |||||||||||||
December 29, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||
Cash provided by operating activities | $ | (12,684 | ) | $ | 2,231 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 12,684 | $ | (2,231 | ) | ||||||||
In addition, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Product sales and other, net | $ | 12,058 | $ | 12,620 | $ | 13,338 | |||||||
Cost of meetings, products and other | $ | 1,078 | $ | 1,589 | $ | 1,974 | |||||||
Gross profit | $ | 10,979 | $ | 11,031 | $ | 11,364 | |||||||
Marketing expenses | $ | 10,279 | $ | 10,158 | $ | 10,572 | |||||||
Selling, general and administrative expenses | $ | 701 | $ | 873 | $ | 792 | |||||||
These adjustments were not considered to be material, individually or in the aggregate, to previously issued financial statements. However, because of the significance of these adjustments, the Company revised its fiscal 2012 and fiscal 2011 consolidated statements of cash flows and its first nine months of fiscal 2013, fiscal 2012 and fiscal 2011 consolidated statements of income. These revisions had no impact on the consolidated balance sheets, consolidated statements of comprehensive income or consolidated statements of changes in stockholders’ equity included in these financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 28, 2013 | ||
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Fiscal Year: | ||
The Company’s fiscal year ends on the Saturday closest to December 31st and consists of either 52 or 53-week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on December 31st of each year. This difference in fiscal years does not have a material effect on the consolidated financial statements. | ||
Use of Estimates: | ||
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates. | ||
Translation of Foreign Currencies: | ||
For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss). | ||
Foreign currency gains and losses arising from the translation of intercompany receivables with the Company’s international subsidiaries are recorded as a component of other expense (income), net, unless the receivable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of comprehensive income (loss). | ||
Cash Equivalents: | ||
Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies. | ||
Inventories: | ||
Inventories, which consist of finished goods, are stated at the lower of cost or market on a first-in, first-out basis, net of reserves for obsolescence and shrinkage. | ||
Property and Equipment: | ||
Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income. | ||
Impairment of Long Lived Assets: | ||
The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. | ||
In fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $1,607 related to property, plant and equipment ($372) and amortizable intangible assets ($1,235). The Company also recorded an impairment charge of $2,653 in fiscal 2013 related to internal-use computer software that was not expected to provide substantive service potential. | ||
Franchise Rights Acquired, Goodwill and Other Intangible Assets: | ||
Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired, 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 the end of fiscal 2013 and fiscal 2012 on its goodwill and other indefinite-lived intangible assets. | ||
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 aside from WW.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32,668, $5,124 and $3,677, respectively, totaling $41,469. The value of goodwill for the WW.com reporting unit at December 28, 2013 was $37,825. | ||
In performing the impairment analysis for franchise rights acquired, the fair value for the Company’s franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697,334, $110,346, $14,401, $13,740 and $1,014, respectively, totaling $836,835. | ||
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 will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease 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. The Company continues to evaluate these estimates and assumptions and believes that these assumptions are appropriate. | ||
In performing the impairment analysis for the fiscal year ended December 28, 2013, the Company determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to its Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and recorded impairment charges of $935 and $231, respectively, for such rights. The Company determined that the carrying amounts of the remainder of these assets did not exceed their respective fair values, and therefore, no other impairment existed. | ||
The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs), once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred. | ||
Revenue Recognition: | ||
WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. WWI charges non-refundable registration fees in exchange for an introductory information session and materials it provides to new members in its meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized. | ||
WW.com primarily generates revenue from monthly subscriptions for its Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website. | ||
The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid. | ||
Advertising Costs: | ||
Advertising costs consist primarily of television and digital media. All costs related to advertising are expensed in the period incurred, except for media production related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $274,160, $334,422 and $283,674, respectively. | ||
Income Taxes: | ||
Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance. | ||
The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of income. | ||
In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases. | ||
Derivative Instruments and Hedging: | ||
The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes. | ||
The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | ||
The fair value of the Company’s interest rate swaps is reported in derivative payable and prepaid expenses and other current assets on its balance sheet. See Note 15 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s interest rate swaps is included in interest expense on the statement of income. | ||
Investments: | ||
The Company uses the cost method to account for investments in which it holds 20% or less of the investee’s voting stock and over which it does not have significant influence. | ||
Deferred Financing Costs: | ||
Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fiscal year ended December 28, 2013, the Company incurred fees of $44,817 associated with the refinancing of the WWI Credit Facility (as defined in Note 6). The Company wrote-off fees in connection with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. During the fiscal year ended December 29, 2012, the Company incurred deferred financing costs of $26,248 associated with the Tender Offer (as defined in Note 7). The Company wrote-off fees in connection with the Tender Offer which resulted in the Company recording a charge of $1,328 in early extinguishment of debt. During the fiscal year ended January 1, 2011, the Company incurred deferred financing costs of $11,483 associated with the refinancing of the Company’s then existing credit facilities. Such costs are being amortized using the straight-line method over the term of the related debt. Amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $7,672, $7,070 and $4,825, respectively. | ||
Accumulated Other Comprehensive Income: | ||
The Company’s accumulated other comprehensive income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2013 and December 29, 2012, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(4,603) and $(6,602), respectively. At December 28, 2013 and December 29, 2012, the cumulative balance of the effects of foreign currency translations, net of taxes, was $13,120 and $19,461, respectively. | ||
Reclassification: | ||
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Acquisitions_of_Franchisees_an
Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture | 12 Months Ended | |
Dec. 28, 2013 | ||
Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture | ' | |
3 | Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture | |
Acquisitions of Franchisees | ||
The acquisitions of franchisees have been accounted for under the purchase method of accounting and, accordingly, earnings of acquired franchisees have been included in the consolidated operating results of the Company since the applicable date of acquisition. During fiscal 2013 and fiscal 2012, the Company acquired certain assets of its franchisees as outlined below. There were no key franchise acquisitions in fiscal 2011. | ||
On September 10, 2012, the Company acquired substantially all of the assets of its Southeastern Ontario and Ottawa, Canada franchisee, Slengora Limited, for a net purchase price of $16,755 plus assumed liabilities of $245. The total purchase price has been allocated to franchise rights acquired ($9,871), goodwill ($6,779), customer relationship value ($180), fixed assets ($81), inventory ($66) and prepaid expenses ($23). | ||
On November 2, 2012, the Company acquired substantially all of the assets of its Adirondacks franchisee, Weight Watchers of the Adirondacks, Inc., for a purchase price of $3,400. The total purchase price has been allocated to franchise rights acquired ($2,216), goodwill ($1,156), customer relationship value ($37), inventory ($29) and prepaid expenses ($10) offset by deferred revenue of $48. | ||
On December 20, 2012, the Company acquired substantially all of the assets of its Memphis, Tennessee franchisee, Weight Watchers of the Mid-South, Inc., for a purchase price of $10,000. The total purchase price has been allocated to franchise rights acquired ($8,396), goodwill ($1,461), customer relationship value ($209), inventory ($35), receivables ($9) and fixed assets ($4) offset by deferred revenue of $114. | ||
On March 4, 2013, the Company acquired substantially all of the assets of its Alberta and Saskatchewan, Canada franchisees, Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd., for an aggregate purchase price of $35,000. The total purchase price has been allocated to franchise rights acquired ($30,633), goodwill ($4,626), customer relationship value ($473), inventory ($218), fixed assets ($182) and prepaid expenses ($3) offset by deferred revenue of $1,135. | ||
On July 15, 2013, the Company acquired substantially all of the assets of its West Virginia franchisee, Weight Watchers of West Virginia, Inc., for a net purchase price of $16,028 less assumed assets, plus assumed liabilities, net of $28. The total purchase price has been allocated to franchise rights acquired ($10,131), goodwill ($5,212), customer relationship value ($448) and fixed assets ($209). | ||
On July 22, 2013, the Company acquired substantially all of the assets of its Columbus, Ohio franchisee, Weight Watchers of Columbus, Inc., for a net purchase price of $23,357 plus assumed liabilities of $143 and its Reno, Nevada franchisee, Weight Watchers of Northern Nevada, Inc., for a net purchase price of $3,969 plus assumed liabilities of $31. The aggregate total purchase price has been allocated to franchise rights acquired ($19,643), goodwill ($7,220), customer relationship value ($494), fixed assets ($116) and inventory ($27). | ||
On October 28, 2013, the Company acquired substantially all of the assets of its Manitoba, Canada franchisee, Weight Watchers of Manitoba Ltd., for a net purchase price of $5,197 plus assumed liabilities of $28 and its Franklin and St. Lawrence Counties, New York franchisee, Weight Watchers of Franklin and St. Lawrence Counties Inc., for a net purchase price of $274 plus assumed liabilities of $1. The total purchase price of the Manitoba, Canada franchisee has been preliminarily allocated to franchise rights acquired ($4,525), goodwill ($449), customer relationship value ($249), inventory ($1) and prepaid expenses ($1). The total purchase price of the Franklin and St. Lawrence Counties, New York franchisee has been preliminarily allocated to franchise rights acquired ($238), goodwill ($23), customer relationship value ($13) and prepaid expenses ($1). | ||
The weighted-average amortization period of the customer relationships acquired in the above acquisitions was approximately 15 weeks. Due to the short-term nature of this asset, its estimated fair value has been recorded as a component of prepaid expenses and other current assets. The acquisitions resulted in goodwill related to, among other things, expected synergies in operations. The goodwill recorded in connection with these acquisitions represents the intangible assets that did not qualify for separate recognition in the financial statements. The Company expects that $16,953 of the total $17,530 of goodwill recorded in connection with the above acquisitions will be deductible for tax purposes. The effect of these franchise acquisitions was not material to the Company’s consolidated financial position, results of operations, or operating cash flows in the periods presented. | ||
Acquisition of Minority Equity Interest in China Joint Venture | ||
On February 5, 2008, Weight Watchers Asia Holdings Ltd. (“Weight Watchers Asia”), a direct, wholly-owned subsidiary of the Company, and Danone Dairy Asia (“Danone Asia”), an indirect, wholly-owned subsidiary of Groupe DANONE S.A., entered into a joint venture agreement to establish a weight management business in the People’s Republic of China. Pursuant to the terms of the joint venture agreement, Weight Watchers Asia and Danone Asia owned 51% and 49%, respectively, of the joint venture entity, Weight Watchers China Limited (together with all of its businesses, the “China Joint Venture”). Because the Company had a direct controlling financial interest in the China Joint Venture, it consolidated the entity from the first quarter of fiscal 2008. | ||
On April 27, 2011, Weight Watchers Asia entered into a share purchase agreement with Danone Asia, pursuant to which Weight Watchers Asia acquired Danone Asia’s 49% minority equity interest in the China Joint Venture as of that date for consideration of $1. Effective April 27, 2011, the date of the acquisition of Danone Asia’s minority equity interest by Weight Watchers Asia, the Company owns 100% of the China Joint Venture and no longer accounts for a non-controlling interest in the China Joint Venture. The noncontrolling interest that had been reflected on the Company’s balance sheet was reclassified to retained earnings. | ||
On December 12, 2013, the Company made a strategic decision to shut down its China operations. As a result of this decision, the Company incurred a charge of $2,500 related to severance and the impairment of property, plant and equipment and amortizable intangible assets. |
Franchise_Rights_Acquired_Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Franchise Rights Acquired, Goodwill and Other Intangible Assets | ' | ||||||||||||||||
4 | Franchise Rights Acquired, Goodwill and Other Intangible Assets | ||||||||||||||||
The Company performed its annual impairment review of goodwill and other indefinite-lived intangible assets as of December 28, 2013 and December 29, 2012. As a result of this review, the Company recorded a $1,166 franchise rights acquired impairment charge related to its Mexico and Hong Kong operations in fiscal 2013 and determined that no impairment existed in fiscal 2012. Franchise rights acquired are due to acquisitions of the Company’s franchised territories. The franchise rights acquired allocated to the WW.com reporting segment relate to the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the year ended December 28, 2013, the change in the carrying value of franchise rights acquired is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows: | |||||||||||||||||
WWI | WW.com | Total | |||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of December 29, 2012 | $ | 774,514 | $ | 9,181 | $ | 783,695 | |||||||||||
Franchise rights acquired during the year | 34,501 | 30,669 | 65,170 | ||||||||||||||
Impairment charge | (1,166 | ) | 0 | (1,166 | ) | ||||||||||||
Effect of exchange rate changes | (9,703 | ) | (1,161 | ) | (10,864 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 798,146 | $ | 38,689 | $ | 836,835 | |||||||||||
Goodwill is due to the acquisition of the Company by H.J. Heinz Company (“Heinz”) in 1978, the acquisition of WW.com in 2005 and the acquisitions of the Company’s franchised territories. For the year ended December 28, 2013, the change in the carrying amount of goodwill is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, and the effect of exchange rate changes as follows: | |||||||||||||||||
WWI | WW.com | Total | |||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of December 29, 2012 | $ | 32,033 | $ | 30,693 | $ | 62,726 | |||||||||||
Goodwill acquired during the year | 9,998 | 7,532 | 17,530 | ||||||||||||||
Effect of exchange rate changes | (562 | ) | (400 | ) | (962 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 41,469 | $ | 37,825 | $ | 79,294 | |||||||||||
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $24,562, $17,796, and $16,545 for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | |||||||||||||||||
The carrying amount of finite-lived intangible assets as of December 28, 2013 and December 29, 2012 was as follows: | |||||||||||||||||
December 28, 2013 | December 29, 2012 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
Capitalized software costs | $ | 85,095 | $ | 62,418 | $ | 86,857 | $ | 54,134 | |||||||||
Trademarks | 10,691 | 9,955 | 10,342 | 9,615 | |||||||||||||
Website development costs | 69,660 | 48,060 | 57,042 | 38,357 | |||||||||||||
Other | 7,021 | 6,737 | 7,034 | 6,689 | |||||||||||||
$ | 172,467 | $ | 127,170 | $ | 161,275 | $ | 108,795 | ||||||||||
As described in Note 2, in fiscal 2013, the Company recorded an impairment charge of $1,235 for amortizable intangible assets related to the shutdown of its China operations and an impairment charge of $2,653 related to internal-use computer software that was not expected to provide substantive service potential. | |||||||||||||||||
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows: | |||||||||||||||||
2014 | $ | 20,841 | |||||||||||||||
2015 | $ | 14,997 | |||||||||||||||
2016 | $ | 7,593 | |||||||||||||||
2017 | $ | 1,765 | |||||||||||||||
2018 and thereafter | $ | 101 |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Property and Equipment | ' | ||||||||
5 | Property and Equipment | ||||||||
The components of property and equipment were: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 123,210 | $ | 113,301 | |||||
Leasehold improvements | 77,771 | 70,229 | |||||||
200,981 | 183,530 | ||||||||
Less: Accumulated depreciation and amortization | (113,929 | ) | (111,762 | ) | |||||
$ | 87,052 | $ | 71,768 | ||||||
As described in Note 2, in fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $372 related to property, plant and equipment. | |||||||||
Depreciation and amortization expense of property and equipment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $20,342, $18,844 and $14,450, respectively. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||
6 | Long-Term Debt | ||||||||||||||||
The components of the Company’s long-term debt were as follows: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance | Effective | Balance | Effective | ||||||||||||||
Rate | Rate | ||||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 298,500 | 2.97 | % | 0 | 0 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,089,500 | 3.75 | % | 0 | 0 | % | |||||||||||
Revolver A-1 due June 30, 2014 | 0 | 0 | % | 6,374 | 3.12 | % | |||||||||||
Revolver A-2 due March 15, 2017 | 0 | 0 | % | 23,626 | 2.56 | % | |||||||||||
Term A-1 Loan due January 26, 2013 | 0 | 0 | % | 38,226 | 1.53 | % | |||||||||||
Term B Loan due January 26, 2014 | 0 | 0 | % | 129,445 | 1.9 | % | |||||||||||
Term C Loan due June 30, 2015 | 0 | 0 | % | 113,808 | 2.72 | % | |||||||||||
Term D Loan due June 30, 2016 | 0 | 0 | % | 118,217 | 2.77 | % | |||||||||||
Term E Loan due March 15, 2017 | 0 | 0 | % | 1,154,651 | 2.53 | % | |||||||||||
Term F Loan due March 15, 2019 | 0 | 0 | % | 822,017 | 3.92 | % | |||||||||||
Total Debt | 2,388,000 | 3.49 | % | 2,406,364 | 2.91 | % | |||||||||||
Less Current Portion | 30,000 | 114,695 | |||||||||||||||
Total Long-Term Debt | $ | 2,358,000 | $ | 2,291,669 | |||||||||||||
The Company’s credit facilities at the end of the first quarter of fiscal 2013 consisted of the following term loan facilities and revolving credit facilities: a tranche A-1 loan (“Term A-1 Loan”), a tranche B loan (“Term B Loan”), a tranche C loan (“Term C Loan”), a tranche D loan (“Term D Loan”), a tranche E loan (“Term E Loan”), a tranche F loan (“Term F Loan”), revolving credit facility A-1 (“Revolver A-1” ) and revolving credit facility A-2 (“Revolver A-2”). | |||||||||||||||||
On April 2, 2013, the Company refinanced its credit facilities pursuant to a Credit Agreement (the “New Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and an issuing bank, The Bank of Nova Scotia, as revolving agent, swingline lender and an issuing bank, and the other parties thereto. The New Credit Agreement provides for (a) a revolving credit facility (including swing line loans and letters of credit) in an initial aggregate principal amount of $250,000 that will mature on April 2, 2018 (the “Revolving Facility”), (b) an initial term B-1 loan credit facility in an aggregate principal amount of $300,000 that will mature on April 2, 2016 (the “Tranche B-1 Term Facility”) and (c) an initial term B-2 loan credit facility in an aggregate principal amount of $2,100,000 that will mature on April 2, 2020 (the “Tranche B-2 Term Facility”, and together with the Tranche B-1 Term Facility, the “Term Facilities”; the Term Facilities and Revolving Facility collectively, the “WWI Credit Facility”). In connection with this refinancing, the Company used the proceeds from borrowings under the Term Facilities to pay off a total of $2,399,904 of outstanding loans, consisting of $128,759 of Term B Loans, $110,602 of Term C Loans, $117,612 of Term D Loans, $1,125,044 of Term E Loans, $817,887 of Term F Loans, $21,247 of loans under the Revolver A-1 and $78,753 of loans under the Revolver A-2. Following the refinancing of a total of $2,399,904 of loans, at April 2, 2013, the Company had $2,400,000 debt outstanding under the Term Facilities and $248,848 of availability under the Revolving Facility. The Company incurred fees of $44,817 during the second quarter of fiscal 2013 in connection with this refinancing. In the second quarter of fiscal 2013, the Company wrote-off fees associated with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. | |||||||||||||||||
At December 28, 2013, the Company had $2,388,000 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at December 28, 2013, the Revolving Facility had $1,554 in issued but undrawn letters of credit outstanding thereunder and $248,446 in available unused commitments thereunder. The proceeds from borrowings under the Revolving Facility (including swing line loans and letters of credit) will be used for working capital and general corporate purposes. | |||||||||||||||||
Borrowings under the New Credit Agreement bear interest at a rate equal to, at the Company’s option, LIBOR plus an applicable margin or a base rate plus an applicable margin. LIBOR under the Tranche B-2 Term Facility is subject to a minimum interest rate of 0.75% and the base rate under the Tranche B-2 Term Facility is subject to a minimum interest rate of 1.75%. The applicable margin relating to both of the Term Facilities will increase by 25 basis points in the event that the Company receives a corporate rating of BB- (or lower) from S&P and a corporate rating of Ba3 (or lower) from Moody’s. The applicable margin relating to the Revolving Facility will fluctuate depending upon the Company’s Consolidated Leverage Ratio (as defined in the New Credit Agreement). At December 28, 2013, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 2.75% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.00%. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, had there been any borrowings under the Revolving Facility, it would have borne interest at LIBOR plus an applicable margin of 2.25% or base rate plus an applicable margin of 1.25%. On a quarterly basis, the Company will pay a commitment fee to the lenders under the Revolving Facility in respect of unutilized commitments thereunder, which commitment fee will fluctuate depending upon the Company’s Consolidated Leverage Ratio. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, the commitment fee was 0.40% per annum. The Company also will pay customary letter of credit fees and fronting fees under the Revolving Facility. | |||||||||||||||||
The New Credit Agreement contains customary covenants including covenants that, in certain circumstances, restrict the Company’s ability to incur additional indebtedness, pay dividends on and redeem capital stock, make other payments, including investments, sell its assets and enter into consolidations, mergers and transfers of all or substantially all of its assets. The Revolving Facility requires the Company to not exceed a specified Consolidated Leverage Ratio, but only if borrowings under the Revolving Facility exceed 20.0% of revolving commitments as of the end of such fiscal quarter. As of December 28, 2013, borrowings in excess of $50,000 would require us to not exceed such ratio. As of December 28, 2013, there were no borrowings under our Revolving Facility and total letters of credit issued were $1,554. The Term Facilities do not require the Company to maintain any financial ratios. The WWI Credit Facility is guaranteed by certain of the Company’s existing and future subsidiaries. Substantially all of the Company’s assets secure the WWI Credit Facility. | |||||||||||||||||
At December 28, 2013 and December 29, 2012, the Company’s debt consisted entirely of 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. The average interest rate on the Company’s debt, exclusive of the impact of swaps, was approximately 3.65% and 2.99% per annum at December 28, 2013 and December 29, 2012, respectively. The average interest rate on our debt, including the impact of swaps, was approximately 4.08% and 3.50% per annum at December 28, 2013 and December 29, 2012, respectively. | |||||||||||||||||
Maturities | |||||||||||||||||
At December 28, 2013, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter are as follows: | |||||||||||||||||
2014 | $ | 30,000 | |||||||||||||||
2015 | 24,000 | ||||||||||||||||
2016 | 307,500 | ||||||||||||||||
2017 | 21,000 | ||||||||||||||||
2018 | 21,000 | ||||||||||||||||
Thereafter | 1,984,500 | ||||||||||||||||
$ | 2,388,000 | ||||||||||||||||
Treasury_Stock
Treasury Stock | 12 Months Ended | |
Dec. 28, 2013 | ||
Treasury Stock | ' | |
7 | Treasury Stock | |
On February 23, 2012, the Company commenced a “modified Dutch auction” tender offer for up to $720,000 in value of its common stock at a purchase price not less than $72.00 and not greater than $83.00 per share (the “Tender Offer”). Prior to the Tender Offer, on February 14, 2012, the Company entered into an agreement (the “Purchase Agreement”) with Artal Holdings Sp. z o.o., Succursale de Luxembourg (“Artal Holdings”) (the then-current record holder of all of the Company’s shares owned by Artal Group, S.A. and its affiliates) whereby Artal Holdings agreed to sell to the Company, at the same price as was determined in the Tender Offer, such number of its shares of the Company’s common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of the Company’s common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer. | ||
The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 the Company repurchased 8,780 shares at a purchase price of $82.00 per share. On April 9, 2012, the Company repurchased 9,499 of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, the Company amended and extended the WWI Credit Facility to finance these repurchases. See Note 6. | ||
On October 9, 2003, the Company’s Board of Directors authorized and the Company announced a program to repurchase up to $250,000 of the Company’s outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, the Company’s Board of Directors authorized and the Company announced adding $250,000 to the program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings and its parents and subsidiaries under the program. The repurchase program currently has no expiration date. | ||
During the fiscal years ended December 28, 2013 and December 29, 2012, the Company purchased no shares of its common stock in the open market under the repurchase program. During the fiscal year ended December 31, 2011, the Company purchased 814 shares of its common stock in the open market under the repurchase program for a total cost of $31,550. The repurchase of shares of common stock under the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement was not made pursuant to the Company’s existing repurchase program. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
8 | Earnings Per Share | ||||||||||||
Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares outstanding during the periods presented. Diluted EPS 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 EPS for the fiscal years ended: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Weight Watchers International, Inc. | $ | 204,725 | $ | 257,426 | $ | 304,867 | |||||||
Denominator: | |||||||||||||
Weighted average shares of common stock outstanding | 56,144 | 60,294 | 73,344 | ||||||||||
Effect of dilutive common stock equivalents | 250 | 629 | 787 | ||||||||||
Weighted average diluted common shares outstanding | 56,394 | 60,923 | 74,131 | ||||||||||
EPS attributable to Weight Watchers International, Inc. | |||||||||||||
Basic | $ | 3.65 | $ | 4.27 | $ | 4.16 | |||||||
Diluted | $ | 3.63 | $ | 4.23 | $ | 4.11 | |||||||
The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 1,285, 536 and 188 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. |
Stock_Plans
Stock Plans | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Stock Plans | ' | ||||||||||||||||
9 | Stock Plans | ||||||||||||||||
Incentive Compensation Plans | |||||||||||||||||
On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan” and together with the 2008 Plan, the “Stock Plans”). These plans are designed to promote the long-term financial interests and growth of the Company by attracting, motivating and retaining employees with the ability to contribute to the success of the business and to align compensation for the Company’s employees over a multi-year period directly with the interests of the shareholders of the Company. The Company’s Board of Directors or a committee thereof administers the Stock Plans. | |||||||||||||||||
Under the 2008 Plan, grants may take the following forms at the Compensation and Benefit Committee’s discretion: non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2008 Plan was 3,000, subject to increase and adjustment as set forth in the 2008 Plan. Pursuant to the terms of the 2008 Plan, the number of shares of our common stock available for issuance under the 2008 Plan was increased by 550, the remaining number of shares of our common stock with respect to which awards could be granted under the Company’s 1999 Stock Purchase and Option Plan upon its termination. | |||||||||||||||||
Under the 2004 Plan, grants may take the following forms at the Company’s Board of Directors or its committee’s sole discretion: non-qualified stock options, incentive stock options, stock appreciation rights, RSUs, restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2004 Plan was 2,500. | |||||||||||||||||
Under the Stock Plans, the Company also grants fully-vested shares of its common stock to certain members of its Board of Directors. While these shares are fully vested, beginning with stock grants made in the fourth quarter of 2006, the directors are restricted from selling these shares while they are still serving on the Company’s Board of Directors. During the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company granted 14, 13, and 13 fully-vested shares, respectively, and recognized compensation expense of $524, $707 and $772, respectively. | |||||||||||||||||
The Company issues common stock for share-based compensation awards from treasury stock. The total compensation cost that has been charged against income for these plans was $4,255, $8,845 and $9,067 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. Such amounts have been included as a component of selling, general and administrative expenses. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $1,174, $2,742 and $2,895 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The tax benefits realized from options exercised and RSUs vested totaled $4,217, $5,847 and $11,309 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. No compensation costs were capitalized. As of December 28, 2013, there was $24,881 of total unrecognized compensation cost related to stock options and RSUs granted under the Stock Plans. That cost is expected to be recognized over a weighted-average period of approximately 2.5 years. | |||||||||||||||||
While the Stock Plans permit various types of awards, other than the aforementioned shares issued to directors, grants under the plans have historically been either non-qualified stock options or RSUs. In fiscal 2013, the Company also granted special performance-based stock option awards. The following describes some further details of these awards. | |||||||||||||||||
Stock Option Awards | |||||||||||||||||
Option Awards with Time Vesting Criteria | |||||||||||||||||
Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with time vesting criteria (“Time Vesting Options”). The options are exercisable based on the terms outlined in the agreements. Time Vesting Options outstanding at December 28, 2013 vest over a period of three to five years and the expiration term is ten years. Time Vesting Options outstanding at December 28, 2013 have an exercise price between $19.74 and $79.55 per share. | |||||||||||||||||
The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these option grants to be the midpoint between the vesting period and the contractual term of each award. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time Vesting Options. The dividend yield is based on our historic average dividend yield. For Time Vesting Options granted in the fourth quarter of fiscal 2013, the dividend yield is zero because there is no longer a dividend. | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0.80% | 1.60% | 1.80% | ||||||||||||||
Volatility | 36.50% | 35.50% | 33.60% | ||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | 1.5% - 2.8% | ||||||||||||||
Expected term (years) | 6.5 | 6.5 | 6.5 | ||||||||||||||
Option Awards with Time and Performance Vesting Criteria | |||||||||||||||||
Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with both time and performance vesting criteria (“T&P Vesting Options”). The options are exercisable based on the terms outlined in the agreements. During the fourth quarter of fiscal 2013, the Company granted 686,549 T&P Vesting Options to certain employees that will vest based on the achievement of both time and performance vesting criteria. The time-vesting criteria will be 100% satisfied on the third anniversary of the date of the grant and the performance criteria is contingent upon meeting or exceeding certain stock price hurdles. With respect to the performance-vesting criteria, the stock options will fully vest in 20% increments upon the first date that the average closing stock price for the 20 consecutive preceding trading days is equal to or greater than specified stock price hurdles. The fair value of the T&P Vesting Options was estimated on the date of grant and was based on the likelihood of the Company achieving the performance conditions. The Company estimated the fair value of the T&P Vesting Options to be $8.46. The Company estimated this fair value using a Monte Carlo simulation that used various assumptions that included expected volatility of 36.48%, a risk free rate of 1.55% and an expected term of 3.0 years. Expected volatility was based on the historical volatility of the Company’s stock. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the performance measurement period. The expected term represents the period from the grant date to the end of the five year performance period. Compensation expense on T&P Vesting Options is recognized ratably over the three year required service period as this period is longer than the derived service period calculated by the Monte Carlo simulation. | |||||||||||||||||
A summary of all option activity under the Stock Plans for the year ended December 28, 2013 is presented below: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 29, 2012 | 2,239 | $ | 42.75 | ||||||||||||||
Granted | 1,551 | $ | 36.35 | ||||||||||||||
Exercised | (620 | ) | $ | 26.09 | |||||||||||||
Canceled | (957 | ) | $ | 51.62 | |||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | 7.2 | $ | 2,372 | |||||||||||
Exercisable at December 28, 2013 | 362 | $ | 32.03 | 5.5 | $ | 2,166 | |||||||||||
The weighted-average grant-date fair value of all options granted was $11.37, $16.60 and $20.44 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total intrinsic value of Time Vesting Options exercised was $9,858, $12,734 and $27,808 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | |||||||||||||||||
Cash received from Time Vesting Options exercised during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $16,187, $12,688 and $42,040, respectively. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Pursuant to the restricted stock components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received RSUs. The RSUs are exercisable based on the terms outlined in the agreements. The RSUs vest over a period of three to five years. The fair value of RSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of RSU activity under the Stock Plans for the year ended December 28, 2013 is presented below: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 29, 2012 | 246 | $ | 50.67 | ||||||||||||||
Granted | 155 | $ | 38.4 | ||||||||||||||
Vested | (63 | ) | $ | 27.08 | |||||||||||||
Forfeited | (85 | ) | $ | 56.23 | |||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
The weighted-average grant-date fair value of RSUs granted was $38.40, $55.54 and $64.32 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total fair value of RSUs vested during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,705, $5,536 and $3,657, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
10 | Income Taxes | ||||||||||||
The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
US federal | $ | 60,556 | $ | 99,437 | $ | 121,860 | |||||||
State | 9,583 | 12,719 | 18,298 | ||||||||||
Foreign | 25,121 | 20,614 | 13,299 | ||||||||||
$ | 95,260 | $ | 132,770 | $ | 153,457 | ||||||||
Deferred: | |||||||||||||
US federal | $ | 31,801 | $ | 23,002 | $ | 23,410 | |||||||
State | 3,634 | 2,629 | 2,675 | ||||||||||
Foreign | (55 | ) | 1,134 | (794 | ) | ||||||||
$ | 35,380 | $ | 26,765 | $ | 25,291 | ||||||||
Total tax provision | $ | 130,640 | $ | 159,535 | $ | 178,748 | |||||||
The components of the Company’s consolidated income before income taxes consist of the following: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 255,183 | $ | 337,321 | $ | 400,310 | |||||||
Foreign | 80,182 | 79,640 | 82,782 | ||||||||||
$ | 335,365 | $ | 416,961 | $ | 483,092 | ||||||||
The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal and state tax reserve provision | (0.1 | ) | 0.2 | (0.6 | ) | ||||||||
States income taxes (net of federal benefit) | 2.7 | 2.6 | 3 | ||||||||||
Foreign taxes | 0.3 | (0.3 | ) | (0.4 | ) | ||||||||
Increase in valuation allowance | 0.9 | 0.7 | 0.5 | ||||||||||
Loss on closure of Finland | 0 | 0 | (0.8 | ) | |||||||||
Other | 0.2 | 0.1 | 0.3 | ||||||||||
Effective tax rate | 39 | % | 38.3 | % | 37 | % | |||||||
The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: | |||||||||||||
December 28, | December 29, | ||||||||||||
2013 | 2012 | ||||||||||||
Provision for estimated expenses | $ | 8,593 | $ | 8,561 | |||||||||
Operating loss carryforwards | 40,587 | 34,714 | |||||||||||
Salaries and wages | 6,238 | 4,522 | |||||||||||
Share-based compensation | 4,705 | 6,958 | |||||||||||
Other | 6,562 | 6,336 | |||||||||||
Less: valuation allowance | (36,372 | ) | (31,015 | ) | |||||||||
Total deferred tax assets | $ | 30,313 | $ | 30,076 | |||||||||
Depreciation | $ | (6,381 | ) | $ | (2,844 | ) | |||||||
Other comprehensive income | (5,446 | ) | (8,180 | ) | |||||||||
Other | (1,046 | ) | 0 | ||||||||||
Amortization | (157,047 | ) | (126,726 | ) | |||||||||
Total deferred tax liabilities | $ | (169,920 | ) | $ | (137,750 | ) | |||||||
Net deferred tax liabilities | $ | (139,607 | ) | $ | (107,674 | ) | |||||||
Certain foreign operations of the Company have generated net operating loss carryforwards. If it has been determined that it is more likely than not that the deferred tax assets associated with these net operating loss carryforwards will not be utilized, a valuation allowance has been recorded. As of December 28, 2013 and December 29, 2012, various foreign subsidiaries had net operating loss carryforwards of approximately $148,107 and $126,219, respectively, most of which can be carried forward indefinitely. | |||||||||||||
The Company’s undistributed earnings of foreign subsidiaries are not considered to be reinvested permanently. Accordingly, the Company has recorded all taxes, after taking into account foreign tax credits, on the undistributed earnings of foreign subsidiaries. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 5,319 | $ | 5,040 | $ | 15,794 | |||||||
Additions based on tax positions related to the current year | 1,428 | 1,647 | 1,537 | ||||||||||
Additions based on tax positions of prior years | 0 | 0 | 0 | ||||||||||
Reductions for tax positions of prior years | (963 | ) | (1,219 | ) | (11,901 | ) | |||||||
Settlements | 0 | (149 | ) | (390 | ) | ||||||||
Balance at end of year | $ | 5,784 | $ | 5,319 | $ | 5,040 | |||||||
At December 28, 2013, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $4,824. As of December 28, 2013, given the nature of the Company’s uncertain tax positions, it is reasonably possible that there will not be a significant change in the Company’s uncertain tax benefits within the next twelve months. | |||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $2,217 and $3,405 of accrued interest and penalties at December 28, 2013 and December 29, 2012, respectively. The Company recognized $(1,188), $823 and $(256) in interest and penalties during the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | |||||||||||||
The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. At December 28, 2013, with few exceptions, the Company was no longer subject to US federal, state or local income tax examinations by tax authorities for years prior to 2010, or non-US income tax examinations by tax authorities for years prior to 2004. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |
Dec. 28, 2013 | ||
Employee Benefit Plans | ' | |
11 | Employee Benefit Plans | |
The Company sponsors the Second Amended and Restated Weight Watchers Savings Plan (the “Savings Plan”) for salaried and certain hourly US employees of the Company. The Savings Plan is a defined contribution plan that provides for employer matching contributions of 100% of the employee’s tax deferred contributions up to 3% of an employee’s eligible compensation. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,888, $2,730 and $2,466, respectively. | ||
During fiscal 2011, the Company received a favorable determination letter from the IRS that qualifies the Savings Plan under Section 401(a) of the Internal Revenue Code. | ||
Pursuant to the Savings Plan, the Company also makes profit sharing contributions for all full-time salaried US employees who are eligible to participate in the Savings Plan (except for certain management personnel). The profit sharing contribution is a guaranteed monthly employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The Savings Plan also has a discretionary supplemental profit sharing employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,658, $2,779 and $3,704, respectively. | ||
For certain US management personnel, the Company sponsors the Second Amended and Restated Weight Watchers Executive Profit Sharing Plan (“EPSP”). Under the IRS definition, the EPSP is considered a Nonqualified Deferred Compensation Plan. There is a promise of payment by the Company made on the employees’ behalf instead of an individual account with a cash balance. The EPSP provides for a guaranteed employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The EPSP has a discretionary supplemental employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. The account is valued at the end of each fiscal month, based on an annualized interest rate of prime plus 2%, with an annualized cap of 15%. Expense related to this commitment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,651, $2,954 and $2,369, respectively. |
Cash_Flow_Information
Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Cash Flow Information | ' | ||||||||||||
12 | Cash Flow Information | ||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Net cash paid during the year for: | |||||||||||||
Interest expense | $ | 88,860 | $ | 68,808 | $ | 52,591 | |||||||
Income taxes | $ | 87,071 | $ | 133,131 | $ | 144,925 | |||||||
Noncash investing and financing activities were as follows: | |||||||||||||
Fair value of net assets/(liabilities) acquired in connection with acquisitions | $ | 175 | $ | 0 | $ | 0 | |||||||
Dividends declared but not yet paid at year-end | $ | 177 | $ | 289 | $ | 13,145 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 28, 2013 | |||||
Commitments and Contingencies | ' | ||||
13 | Commitments and Contingencies | ||||
UK Self-Employment Matter | |||||
In July 2007, Her Majesty’s Revenue and Customs (“HMRC”) issued to the Company notices of determination and decisions that, for the period April 2001 to April 2007, its leaders and certain other service providers in the United Kingdom should have been classified as employees for tax purposes and, as such, it should have withheld tax from the leaders and certain other service providers pursuant to the “Pay As You Earn” (“PAYE”) and national insurance contributions (“NIC”) collection rules and remitted such amounts to HMRC. HMRC also issued a claim to the Company in October 2008 in respect of NIC which corresponds to the prior notices of assessment with respect to PAYE previously raised by HMRC. | |||||
In September 2007, the Company appealed to the UK First Tier Tribunal (Tax Chamber) (formerly known as the UK VAT and Duties Tribunal and hereinafter referred to as the “First Tier Tribunal”) against HMRC’s notices as to these classifications and against any amount of PAYE and NIC liability claimed to be owed by the Company. In February 2010, the First Tier Tribunal issued a ruling that the Company’s UK leaders should have been classified as employees for UK tax purposes and, as such, the Company should have withheld tax from its leaders pursuant to the PAYE and NIC collection rules for the period from April 2001 to April 2007 with respect to services performed by the leaders for the Company. The Company appealed the First Tier Tribunal’s adverse ruling to the UK Upper Tribunal (Tax and Chancery Chamber) (the “Upper Tribunal”), and in October 2011, the Upper Tribunal issued a ruling dismissing the Company’s appeal. In January 2012, the Company sought permission from the UK Court of Appeal to appeal the Upper Tribunal’s ruling, which the UK Court of Appeal refused in March 2012. In March 2012, the Company applied to the UK Court of Appeal for an oral hearing to seek permission to appeal to the UK Court of Appeal against the Upper Tribunal’s ruling. At the hearing in June 2012, the UK Court of Appeal granted the Company permission to appeal. A hearing date for the appeal was set for January 2013. | |||||
In December 2011, HMRC’s claim in respect of NIC was amended to increase the claimed amount for the period April 2002 to April 2007 and include the interest accrued thereon through December 2011. In addition, in February 2012, HMRC asserted a claim in respect of PAYE for the period April 2007 to April 2011 similar to what it had claimed for the period April 2001 to April 2007. The Company was granted permission to appeal this PAYE claim with the First Tier Tribunal and the First Tier Tribunal directed that the appeal be stayed until following the decision of the UK Court of Appeal with respect to the Company’s appeal of the Upper Tribunal’s ruling. | |||||
In light of the First Tier Tribunal’s adverse ruling and in accordance with accounting guidance for contingencies, the Company recorded in the fourth quarter of fiscal 2009 a reserve for the period from April 2001 through the end of fiscal 2009, inclusive of estimated accrued interest. On a quarterly basis, beginning in the first quarter of fiscal 2010 and through the second quarter of fiscal 2011, the Company recorded a reserve for UK withholding taxes with respect to its UK leaders consistent with this ruling. The reserve at the end of the second quarter of fiscal 2011 equaled approximately $43,671 in the aggregate based on the exchange rates at the end of fiscal 2011. As of the beginning of the third quarter of fiscal 2011, the Company began employing its UK leaders and therefore has ceased recording any further reserves for this matter. In February 2012, the Company paid HMRC, on a without prejudice basis, a portion of the amount previously reserved equal to approximately $30,018 based on the exchange rates at the payment date for estimated amounts claimed to be owed by the Company with respect to PAYE and interest thereon for the period April 2001 to July 2011. In December 2012, the Company reached an agreement with HMRC to settle the matter in its entirety for approximately $36,770. In January 2013, $6,752 was paid to HMRC, representing the balance due over the amount previously paid to HMRC in February 2012. In January 2013, the UK Court of Appeal dismissed the case and the First Tier Tribunal confirmed withdrawal of the Company’s appeal against HMRC. | |||||
Other Litigation Matters | |||||
Due to the nature of the Company’s activities, it is also, at times, subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows. | |||||
Lease Commitments | |||||
Minimum rental commitments under non-cancelable operating leases, primarily for office and rental facilities, at December 28, 2013, consist of the following: | |||||
2014 | $ | 41,095 | |||
2015 | 36,642 | ||||
2016 | 30,704 | ||||
2017 | 22,076 | ||||
2018 | 16,898 | ||||
2019 and thereafter | 118,001 | ||||
Total | $ | 265,416 | |||
Total rent expense charged to operations under these leases for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $46,300, $40,485 and $36,572, respectively. |
Segment_and_Geographic_Data
Segment and Geographic Data | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Segment and Geographic Data | ' | ||||||||||||||||
14 | Segment and Geographic Data | ||||||||||||||||
The Company has two reportable segments: WWI and WW.com. WWI has multiple operating segments which have been aggregated into one reportable segment. WWI and WW.com are two separate and distinct businesses for which discrete financial information is available. This discrete financial information is maintained and managed separately and is reviewed regularly by the chief operating decision maker. All intercompany activity is eliminated in consolidation. | |||||||||||||||||
Information about the Company’s reportable operating segments is as follows: | |||||||||||||||||
Year Ended December 28, 2013 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,197,375 | $ | 526,748 | $ | 0 | $ | 1,724,123 | |||||||||
Depreciation and amortization | $ | 41,468 | $ | 11,108 | $ | 0 | $ | 52,576 | |||||||||
Operating income | $ | 154,745 | $ | 306,012 | $ | 0 | $ | 460,757 | |||||||||
Interest expense | 103,108 | ||||||||||||||||
Other expense, net | 599 | ||||||||||||||||
Early extinguishment of debt | 21,685 | ||||||||||||||||
Provision for taxes | 130,640 | ||||||||||||||||
Net income | $ | 204,725 | |||||||||||||||
Total assets | $ | 1,733,464 | $ | 776,515 | $ | (1,101,048 | ) | $ | 1,408,931 | ||||||||
Year Ended December 29, 2012 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,331,916 | $ | 507,516 | $ | 0 | $ | 1,839,432 | |||||||||
Depreciation and amortization | $ | 34,073 | $ | 9,637 | $ | 0 | $ | 43,710 | |||||||||
Operating income | $ | 250,335 | $ | 260,470 | $ | 0 | $ | 510,805 | |||||||||
Interest expense | 90,537 | ||||||||||||||||
Other expense, net | 1,979 | ||||||||||||||||
Early extinguishment of debt | 1,328 | ||||||||||||||||
Provision for taxes | 159,535 | ||||||||||||||||
Net income | $ | 257,426 | |||||||||||||||
Total assets | $ | 1,539,434 | $ | 567,478 | $ | (888,305 | ) | $ | 1,218,607 | ||||||||
Year Ended December 31, 2011 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,428,690 | $ | 403,804 | $ | 0 | $ | 1,832,494 | |||||||||
Depreciation and amortization | $ | 25,744 | $ | 10,076 | $ | 0 | $ | 35,820 | |||||||||
Operating income | $ | 339,963 | $ | 206,365 | $ | 0 | $ | 546,328 | |||||||||
Interest expense | 59,850 | ||||||||||||||||
Other income, net | 3,386 | ||||||||||||||||
Provision for taxes | 178,748 | ||||||||||||||||
Net income | $ | 304,344 | |||||||||||||||
Total assets | $ | 1,413,109 | $ | 392,381 | $ | (683,862 | ) | $ | 1,121,628 | ||||||||
The following table presents information about the Company’s sources of revenue and other information by geographic area. There were no material amounts of sales or transfers among geographic areas and no material amounts of US export sales. | |||||||||||||||||
Revenues for the Year Ended | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
NACO meeting fees | $ | 595,097 | $ | 653,396 | $ | 686,758 | |||||||||||
International Company-owned meeting fees | 256,529 | 281,537 | 303,538 | ||||||||||||||
Product sales | 245,319 | 294,758 | 334,303 | ||||||||||||||
Franchise royalties | 9,035 | 12,732 | 14,461 | ||||||||||||||
Internet revenues | 522,226 | 504,338 | 399,495 | ||||||||||||||
Other | 95,917 | 92,671 | 93,939 | ||||||||||||||
$ | 1,724,123 | $ | 1,839,432 | $ | 1,832,494 | ||||||||||||
Revenues for the Year Ended | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
North America | $ | 1,181,696 | $ | 1,283,232 | $ | 1,266,005 | |||||||||||
United Kingdom | 172,783 | 204,506 | 227,238 | ||||||||||||||
Continental Europe | 299,403 | 270,701 | 247,003 | ||||||||||||||
Australia, New Zealand and other | 70,241 | 80,993 | 92,248 | ||||||||||||||
$ | 1,724,123 | $ | 1,839,432 | $ | 1,832,494 | ||||||||||||
Long-Lived Assets | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
North America | $ | 82,518 | $ | 65,708 | $ | 35,196 | |||||||||||
United Kingdom | 1,192 | 1,645 | 1,508 | ||||||||||||||
Continental Europe | 2,083 | 2,431 | 2,208 | ||||||||||||||
Australia, New Zealand and other | 1,259 | 1,984 | 2,160 | ||||||||||||||
$ | 87,052 | $ | 71,768 | $ | 41,072 | ||||||||||||
Effective the first day of fiscal 2014 (i.e. December 29, 2013), the Company realigned its organizational structure to better leverage its significant assets and align its innovation efforts, which resulted in new reporting segments (North America, United Kingdom, Continental Europe, and Rest of World) for the purpose of making operational and resource decisions and assessing financial performance. The segment information presented in these financial statements does not reflect this change as the change was not effected internally until the Company’s first quarter of fiscal 2014. The Company will begin reporting segment information based on these new segments in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2014. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
15 | 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. | |||||||||||||||||
The fair value of the Company’s long-term debt is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of December 28, 2013, and December 29, 2012, the fair value of the Company’s long-term debt was approximately $2,169,908 and $2,410,724, 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 16 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 | ||||||||||||||
Fair | Active Markets | Observable Inputs | Unobservable | ||||||||||||||
Value | for Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 0 | |||||||||
Interest rate swap liability at December 29, 2012 | $ | 13,871 | $ | 0 | $ | 13,871 | $ | 0 | |||||||||
The Company did not 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 fiscal years ended December 28, 2013 and December 29, 2012. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging | 12 Months Ended | |
Dec. 28, 2013 | ||
Derivative Instruments and Hedging | ' | |
16 | Derivative Instruments and Hedging | |
As of December 28, 2013 and December 29, 2012, the Company had in effect an interest rate swap with a notional amount totaling $466,250 and $583,250, respectively. In January 2009, the Company entered into this forward-starting interest rate swap with an effective date of January 4, 2010 and a termination date of January 27, 2014. During the term of this forward-starting interest rate swap, the notional amount fluctuated, but was no higher than the amount outstanding as of the end of fiscal 2013. The initial notional amount was $425,000 and the highest notional amount was $755,000. Effective April 2, 2013, due to the Company’s debt refinancing, the Company ceased the application of hedge accounting for this swap. Accordingly, changes in the fair value of this swap have been recorded in earnings subsequent to April 2, 2013 and were immaterial for the fiscal year ended December 28, 2013. | ||
On July 26, 2013, in order to hedge an additional portion of its variable rate debt, the Company entered into a forward-starting interest rate swap with an effective date of March 31, 2014 and a termination date of April 2, 2020. The initial notional amount of this swap is $1,500,000. During the term of this swap, the notional amount will decrease from $1,500,000 effective March 31, 2014 to $1,250,000 on April 3, 2017 with a further reduction to $1,000,000 on April 1, 2019. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 2.38%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive income (loss). | ||
As of December 28, 2013 and December 29, 2012, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive income (loss) in the amounts of $4,603 ($7,546 before taxes) and $6,602 ($10,824 before taxes), respectively. | ||
The Company is hedging forecasted transactions for periods not exceeding the next seven years. The Company expects approximately $12,017 ($19,700 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at December 28, 2013, based on current market rates, will be reclassified into earnings within the next 12 months. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
17 | Accumulated Other Comprehensive Income | ||||||||||||
Amounts reclassified out of accumulated other comprehensive income are as follows: | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component(a) | |||||||||||||
Fiscal year ended December 28, 2013 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at December 29, 2012 | $ | (6,602 | ) | $ | 19,461 | $ | 12,859 | ||||||
Other comprehensive loss before reclassifications, net of tax | (4,124 | ) | (6,341 | ) | (10,465 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax(b) | 6,123 | 0 | 6,123 | ||||||||||
Net current period other comprehensive income (loss) | 1,999 | (6,341 | ) | (4,342 | ) | ||||||||
Ending Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
(a) | Amounts in parentheses indicate debits | ||||||||||||
(b) | See separate table below for details about these reclassifications | ||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income(a) | |||||||||||||
Amounts Reclassified | |||||||||||||
from Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Details about Other | Fiscal Year | Affected Line Item in the | |||||||||||
Comprehensive Income | Ended | Statement Where Net Income is | |||||||||||
Components | December 28, 2013 | Presented | |||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (10,037 | ) | Interest expense | |||||||||
(10,037 | ) | Income before income taxes | |||||||||||
3,914 | Provision for income taxes | ||||||||||||
$ | (6,123 | ) | Net income | ||||||||||
(a) | Amounts in parentheses indicate debits to profit / loss |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
18 | Quarterly Financial Information (Unaudited) | ||||||||||||||||
The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2013 and December 29, 2012. | |||||||||||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 30, | June 29, | September 28, | December 28, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Fiscal year ended December 28, 2013 | |||||||||||||||||
Revenues, net | $ | 490,790 | $ | 470,888 | $ | 396,334 | $ | 366,111 | |||||||||
Gross profit | 283,637 | 283,715 | 231,980 | 201,780 | |||||||||||||
Operating income | 103,119 | 153,976 | 124,520 | 79,142 | |||||||||||||
Net income | 48,753 | 64,916 | 60,258 | 30,798 | |||||||||||||
Basic EPS | $ | 0.87 | $ | 1.16 | $ | 1.07 | $ | 0.55 | |||||||||
Diluted EPS | $ | 0.87 | $ | 1.15 | $ | 1.07 | $ | 0.54 | |||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 31, | June 30, | September 29, | December 29, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Fiscal year ended December 29, 2012 | |||||||||||||||||
Revenues, net | $ | 506,786 | $ | 488,610 | $ | 432,903 | $ | 411,133 | |||||||||
Gross profit | 291,171 | 297,032 | 257,651 | 247,964 | |||||||||||||
Operating income | 102,774 | 153,508 | 131,984 | 122,539 | |||||||||||||
Net income | 54,605 | 77,462 | 67,364 | 57,995 | |||||||||||||
Basic EPS | $ | 0.74 | $ | 1.37 | $ | 1.21 | $ | 1.04 | |||||||||
Diluted EPS | $ | 0.74 | $ | 1.36 | $ | 1.2 | $ | 1.03 | |||||||||
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year. | |||||||||||||||||
In the second quarter of fiscal 2013, net income and EPS were impacted by a $21,685 ($13,336 after tax), or $0.24 per fully diluted share, early extinguishment of debt charge resulting from the write-off of fees associated with the Company’s April 2013 debt refinancing. In the first quarter of fiscal 2012, the Company wrote-off $1,328 of fees in connection with the March 2012 refinancing of its debt that the Company recorded as an early extinguishment of debt charge. | |||||||||||||||||
As discussed in further detail in Note 13, in the fourth quarter of fiscal 2012, the Company recognized a $4,099 net benefit ($7,423 pre-tax), or $0.07 per fully diluted share, from an accrual reversal associated with the settlement in the quarter of the previously reported UK self-employment tax litigation. The $7,423 pre-tax net benefit associated with the settlement consisted of an over-accrual reversal to cost of revenues of $14,544 partially offset by an additional interest accrual of $7,130. | |||||||||||||||||
As discussed in further detail in Note 1, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing revenues and gross profit the first nine months of fiscal 2013 and all four quarters of fiscal 2012. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Balance at | Charged to | Charged | Deductions(1) | Balance at | |||||||||||||||||
Beginning | Costs and | to Other | End | ||||||||||||||||||
of Period | Expenses | Accounts | of Period | ||||||||||||||||||
FISCAL YEAR ENDED DECEMBER 28, 2013 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,447 | $ | 596 | $ | 0 | $ | (566 | ) | $ | 3,477 | ||||||||||
Inventory and other reserves | $ | 6,942 | $ | 9,580 | $ | 0 | $ | (10,663 | ) | $ | 5,859 | ||||||||||
Tax valuation allowance | $ | 31,015 | $ | 3,821 | $ | 2,429 | $ | (893 | ) | $ | 36,372 | ||||||||||
FISCAL YEAR ENDED DECEMBER 29, 2012 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 5,315 | $ | (1,067 | ) | $ | 26 | $ | (827 | ) | $ | 3,447 | |||||||||
Inventory and other reserves | $ | 7,397 | $ | 10,491 | $ | 0 | $ | (10,946 | ) | $ | 6,942 | ||||||||||
Tax valuation allowance | $ | 25,781 | $ | 3,387 | $ | 2,322 | $ | (475 | ) | $ | 31,015 | ||||||||||
FISCAL YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 5,191 | $ | 1,441 | $ | 0 | $ | (1,317 | ) | $ | 5,315 | ||||||||||
Inventory and other reserves | $ | 3,948 | $ | 13,203 | $ | 0 | $ | (9,754 | ) | $ | 7,397 | ||||||||||
Tax valuation allowance | $ | 24,989 | $ | 2,512 | $ | 970 | $ | (2,690 | ) | $ | 25,781 | ||||||||||
-1 | Primarily represents the utilization of established reserves, net of recoveries, where applicable. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2013 | |
Fiscal Year | ' |
Fiscal Year: | |
The Company’s fiscal year ends on the Saturday closest to December 31st and consists of either 52 or 53-week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on December 31st of each year. This difference in fiscal years does not have a material effect on the consolidated financial statements. | |
Use of Estimates | ' |
Use of Estimates: | |
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates. | |
Translation of Foreign Currencies | ' |
Translation of Foreign Currencies: | |
For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss). | |
Foreign currency gains and losses arising from the translation of intercompany receivables with the Company’s international subsidiaries are recorded as a component of other expense (income), net, unless the receivable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of comprehensive income (loss). | |
Cash Equivalents | ' |
Cash Equivalents: | |
Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies. | |
Inventories | ' |
Inventories: | |
Inventories, which consist of finished goods, are stated at the lower of cost or market on a first-in, first-out basis, net of reserves for obsolescence and shrinkage. | |
Property and Equipment | ' |
Property and Equipment: | |
Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income. | |
Impairment of Long Lived Assets | ' |
Impairment of Long Lived Assets: | |
The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. | |
In fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $1,607 related to property, plant and equipment ($372) and amortizable intangible assets ($1,235). The Company also recorded an impairment charge of $2,653 in fiscal 2013 related to internal-use computer software that was not expected to provide substantive service potential. | |
Franchise Rights Acquired, Goodwill and Other Intangible Assets | ' |
Franchise Rights Acquired, Goodwill and Other Intangible Assets: | |
Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired, 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 the end of fiscal 2013 and fiscal 2012 on its goodwill and other indefinite-lived intangible assets. | |
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 aside from WW.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32,668, $5,124 and $3,677, respectively, totaling $41,469. The value of goodwill for the WW.com reporting unit at December 28, 2013 was $37,825. | |
In performing the impairment analysis for franchise rights acquired, the fair value for the Company’s franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697,334, $110,346, $14,401, $13,740 and $1,014, respectively, totaling $836,835. | |
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 will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease 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. The Company continues to evaluate these estimates and assumptions and believes that these assumptions are appropriate. | |
In performing the impairment analysis for the fiscal year ended December 28, 2013, the Company determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to its Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and recorded impairment charges of $935 and $231, respectively, for such rights. The Company determined that the carrying amounts of the remainder of these assets did not exceed their respective fair values, and therefore, no other impairment existed. | |
The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs), once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred. | |
Revenue Recognition | ' |
Revenue Recognition: | |
WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. WWI charges non-refundable registration fees in exchange for an introductory information session and materials it provides to new members in its meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized. | |
WW.com primarily generates revenue from monthly subscriptions for its Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website. | |
The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid. | |
Advertising Costs | ' |
Advertising Costs: | |
Advertising costs consist primarily of television and digital media. All costs related to advertising are expensed in the period incurred, except for media production related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $274,160, $334,422 and $283,674, respectively. | |
Income Taxes | ' |
Income Taxes: | |
Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance. | |
The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of income. | |
In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases. | |
Derivative Instruments and Hedging | ' |
Derivative Instruments and Hedging: | |
The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes. | |
The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |
The fair value of the Company’s interest rate swaps is reported in derivative payable and prepaid expenses and other current assets on its balance sheet. See Note 15 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s interest rate swaps is included in interest expense on the statement of income. | |
Investments | ' |
Investments: | |
The Company uses the cost method to account for investments in which it holds 20% or less of the investee’s voting stock and over which it does not have significant influence. | |
Deferred Financing Costs | ' |
Deferred Financing Costs: | |
Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fiscal year ended December 28, 2013, the Company incurred fees of $44,817 associated with the refinancing of the WWI Credit Facility (as defined in Note 6). The Company wrote-off fees in connection with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. During the fiscal year ended December 29, 2012, the Company incurred deferred financing costs of $26,248 associated with the Tender Offer (as defined in Note 7). The Company wrote-off fees in connection with the Tender Offer which resulted in the Company recording a charge of $1,328 in early extinguishment of debt. During the fiscal year ended January 1, 2011, the Company incurred deferred financing costs of $11,483 associated with the refinancing of the Company’s then existing credit facilities. Such costs are being amortized using the straight-line method over the term of the related debt. Amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $7,672, $7,070 and $4,825, respectively. | |
Accumulated Other Comprehensive Income | ' |
Accumulated Other Comprehensive Income: | |
The Company’s accumulated other comprehensive income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2013 and December 29, 2012, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(4,603) and $(6,602), respectively. At December 28, 2013 and December 29, 2012, the cumulative balance of the effects of foreign currency translations, net of taxes, was $13,120 and $19,461, respectively. | |
Reclassification | ' |
Reclassification: | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Effect of Revision on Previously Reported Amounts | ' | ||||||||||||
The effects of this revision on the previously reported amounts are as follows: | |||||||||||||
December 29, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||
Cash provided by operating activities | $ | (12,684 | ) | $ | 2,231 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 12,684 | $ | (2,231 | ) | ||||||||
Revision of Certain Brand Marketing Funds Received From Licensees | ' | ||||||||||||
In addition, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Product sales and other, net | $ | 12,058 | $ | 12,620 | $ | 13,338 | |||||||
Cost of meetings, products and other | $ | 1,078 | $ | 1,589 | $ | 1,974 | |||||||
Gross profit | $ | 10,979 | $ | 11,031 | $ | 11,364 | |||||||
Marketing expenses | $ | 10,279 | $ | 10,158 | $ | 10,572 | |||||||
Selling, general and administrative expenses | $ | 701 | $ | 873 | $ | 792 |
Franchise_Rights_Acquired_Good1
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Changes in Carrying Value of Franchise Rights Acquired | ' | ||||||||||||||||
For the year ended December 28, 2013, the change in the carrying value of franchise rights acquired is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows: | |||||||||||||||||
WWI | WW.com | Total | |||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of December 29, 2012 | $ | 774,514 | $ | 9,181 | $ | 783,695 | |||||||||||
Franchise rights acquired during the year | 34,501 | 30,669 | 65,170 | ||||||||||||||
Impairment charge | (1,166 | ) | 0 | (1,166 | ) | ||||||||||||
Effect of exchange rate changes | (9,703 | ) | (1,161 | ) | (10,864 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 798,146 | $ | 38,689 | $ | 836,835 | |||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||
For the year ended December 28, 2013, the change in the carrying amount of goodwill is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, and the effect of exchange rate changes as follows: | |||||||||||||||||
WWI | WW.com | Total | |||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of December 29, 2012 | $ | 32,033 | $ | 30,693 | $ | 62,726 | |||||||||||
Goodwill acquired during the year | 9,998 | 7,532 | 17,530 | ||||||||||||||
Effect of exchange rate changes | (562 | ) | (400 | ) | (962 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 41,469 | $ | 37,825 | $ | 79,294 | |||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||
The carrying amount of finite-lived intangible assets as of December 28, 2013 and December 29, 2012 was as follows: | |||||||||||||||||
December 28, 2013 | December 29, 2012 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
Capitalized software costs | $ | 85,095 | $ | 62,418 | $ | 86,857 | $ | 54,134 | |||||||||
Trademarks | 10,691 | 9,955 | 10,342 | 9,615 | |||||||||||||
Website development costs | 69,660 | 48,060 | 57,042 | 38,357 | |||||||||||||
Other | 7,021 | 6,737 | 7,034 | 6,689 | |||||||||||||
$ | 172,467 | $ | 127,170 | $ | 161,275 | $ | 108,795 | ||||||||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows: | |||||||||||||||||
2014 | $ | 20,841 | |||||||||||||||
2015 | $ | 14,997 | |||||||||||||||
2016 | $ | 7,593 | |||||||||||||||
2017 | $ | 1,765 | |||||||||||||||
2018 and thereafter | $ | 101 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Property, Plant and Equipment | ' | ||||||||
The components of property and equipment were: | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 123,210 | $ | 113,301 | |||||
Leasehold improvements | 77,771 | 70,229 | |||||||
200,981 | 183,530 | ||||||||
Less: Accumulated depreciation and amortization | (113,929 | ) | (111,762 | ) | |||||
$ | 87,052 | $ | 71,768 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||||||||||
The components of the Company’s long-term debt were as follows: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance | Effective | Balance | Effective | ||||||||||||||
Rate | Rate | ||||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 298,500 | 2.97 | % | 0 | 0 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,089,500 | 3.75 | % | 0 | 0 | % | |||||||||||
Revolver A-1 due June 30, 2014 | 0 | 0 | % | 6,374 | 3.12 | % | |||||||||||
Revolver A-2 due March 15, 2017 | 0 | 0 | % | 23,626 | 2.56 | % | |||||||||||
Term A-1 Loan due January 26, 2013 | 0 | 0 | % | 38,226 | 1.53 | % | |||||||||||
Term B Loan due January 26, 2014 | 0 | 0 | % | 129,445 | 1.9 | % | |||||||||||
Term C Loan due June 30, 2015 | 0 | 0 | % | 113,808 | 2.72 | % | |||||||||||
Term D Loan due June 30, 2016 | 0 | 0 | % | 118,217 | 2.77 | % | |||||||||||
Term E Loan due March 15, 2017 | 0 | 0 | % | 1,154,651 | 2.53 | % | |||||||||||
Term F Loan due March 15, 2019 | 0 | 0 | % | 822,017 | 3.92 | % | |||||||||||
Total Debt | 2,388,000 | 3.49 | % | 2,406,364 | 2.91 | % | |||||||||||
Less Current Portion | 30,000 | 114,695 | |||||||||||||||
Total Long-Term Debt | $ | 2,358,000 | $ | 2,291,669 | |||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||
At December 28, 2013, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter are as follows: | |||||||||||||||||
2014 | $ | 30,000 | |||||||||||||||
2015 | 24,000 | ||||||||||||||||
2016 | 307,500 | ||||||||||||||||
2017 | 21,000 | ||||||||||||||||
2018 | 21,000 | ||||||||||||||||
Thereafter | 1,984,500 | ||||||||||||||||
$ | 2,388,000 | ||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
The following table sets forth the computation of basic and diluted EPS for the fiscal years ended: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Weight Watchers International, Inc. | $ | 204,725 | $ | 257,426 | $ | 304,867 | |||||||
Denominator: | |||||||||||||
Weighted average shares of common stock outstanding | 56,144 | 60,294 | 73,344 | ||||||||||
Effect of dilutive common stock equivalents | 250 | 629 | 787 | ||||||||||
Weighted average diluted common shares outstanding | 56,394 | 60,923 | 74,131 | ||||||||||
EPS attributable to Weight Watchers International, Inc. | |||||||||||||
Basic | $ | 3.65 | $ | 4.27 | $ | 4.16 | |||||||
Diluted | $ | 3.63 | $ | 4.23 | $ | 4.11 | |||||||
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these option grants to be the midpoint between the vesting period and the contractual term of each award. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time Vesting Options. The dividend yield is based on our historic average dividend yield. For Time Vesting Options granted in the fourth quarter of fiscal 2013, the dividend yield is zero because there is no longer a dividend. | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0.80% | 1.60% | 1.80% | ||||||||||||||
Volatility | 36.50% | 35.50% | 33.60% | ||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | 1.5% - 2.8% | ||||||||||||||
Expected term (years) | 6.5 | 6.5 | 6.5 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||
A summary of all option activity under the Stock Plans for the year ended December 28, 2013 is presented below: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 29, 2012 | 2,239 | $ | 42.75 | ||||||||||||||
Granted | 1,551 | $ | 36.35 | ||||||||||||||
Exercised | (620 | ) | $ | 26.09 | |||||||||||||
Canceled | (957 | ) | $ | 51.62 | |||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | 7.2 | $ | 2,372 | |||||||||||
Exercisable at December 28, 2013 | 362 | $ | 32.03 | 5.5 | $ | 2,166 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||||||||||||
A summary of RSU activity under the Stock Plans for the year ended December 28, 2013 is presented below: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 29, 2012 | 246 | $ | 50.67 | ||||||||||||||
Granted | 155 | $ | 38.4 | ||||||||||||||
Vested | (63 | ) | $ | 27.08 | |||||||||||||
Forfeited | (85 | ) | $ | 56.23 | |||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||
The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
US federal | $ | 60,556 | $ | 99,437 | $ | 121,860 | |||||||
State | 9,583 | 12,719 | 18,298 | ||||||||||
Foreign | 25,121 | 20,614 | 13,299 | ||||||||||
$ | 95,260 | $ | 132,770 | $ | 153,457 | ||||||||
Deferred: | |||||||||||||
US federal | $ | 31,801 | $ | 23,002 | $ | 23,410 | |||||||
State | 3,634 | 2,629 | 2,675 | ||||||||||
Foreign | (55 | ) | 1,134 | (794 | ) | ||||||||
$ | 35,380 | $ | 26,765 | $ | 25,291 | ||||||||
Total tax provision | $ | 130,640 | $ | 159,535 | $ | 178,748 | |||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | ||||||||||||
The components of the Company’s consolidated income before income taxes consist of the following: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 255,183 | $ | 337,321 | $ | 400,310 | |||||||
Foreign | 80,182 | 79,640 | 82,782 | ||||||||||
$ | 335,365 | $ | 416,961 | $ | 483,092 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal and state tax reserve provision | (0.1 | ) | 0.2 | (0.6 | ) | ||||||||
States income taxes (net of federal benefit) | 2.7 | 2.6 | 3 | ||||||||||
Foreign taxes | 0.3 | (0.3 | ) | (0.4 | ) | ||||||||
Increase in valuation allowance | 0.9 | 0.7 | 0.5 | ||||||||||
Loss on closure of Finland | 0 | 0 | (0.8 | ) | |||||||||
Other | 0.2 | 0.1 | 0.3 | ||||||||||
Effective tax rate | 39 | % | 38.3 | % | 37 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: | |||||||||||||
December 28, | December 29, | ||||||||||||
2013 | 2012 | ||||||||||||
Provision for estimated expenses | $ | 8,593 | $ | 8,561 | |||||||||
Operating loss carryforwards | 40,587 | 34,714 | |||||||||||
Salaries and wages | 6,238 | 4,522 | |||||||||||
Share-based compensation | 4,705 | 6,958 | |||||||||||
Other | 6,562 | 6,336 | |||||||||||
Less: valuation allowance | (36,372 | ) | (31,015 | ) | |||||||||
Total deferred tax assets | $ | 30,313 | $ | 30,076 | |||||||||
Depreciation | $ | (6,381 | ) | $ | (2,844 | ) | |||||||
Other comprehensive income | (5,446 | ) | (8,180 | ) | |||||||||
Other | (1,046 | ) | 0 | ||||||||||
Amortization | (157,047 | ) | (126,726 | ) | |||||||||
Total deferred tax liabilities | $ | (169,920 | ) | $ | (137,750 | ) | |||||||
Net deferred tax liabilities | $ | (139,607 | ) | $ | (107,674 | ) | |||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 5,319 | $ | 5,040 | $ | 15,794 | |||||||
Additions based on tax positions related to the current year | 1,428 | 1,647 | 1,537 | ||||||||||
Additions based on tax positions of prior years | 0 | 0 | 0 | ||||||||||
Reductions for tax positions of prior years | (963 | ) | (1,219 | ) | (11,901 | ) | |||||||
Settlements | 0 | (149 | ) | (390 | ) | ||||||||
Balance at end of year | $ | 5,784 | $ | 5,319 | $ | 5,040 | |||||||
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | ||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Net cash paid during the year for: | |||||||||||||
Interest expense | $ | 88,860 | $ | 68,808 | $ | 52,591 | |||||||
Income taxes | $ | 87,071 | $ | 133,131 | $ | 144,925 | |||||||
Noncash investing and financing activities were as follows: | |||||||||||||
Fair value of net assets/(liabilities) acquired in connection with acquisitions | $ | 175 | $ | 0 | $ | 0 | |||||||
Dividends declared but not yet paid at year-end | $ | 177 | $ | 289 | $ | 13,145 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 28, 2013 | |||||
Minimum Rental Commitments Under Non-Cancelable Operating Leases | ' | ||||
Minimum rental commitments under non-cancelable operating leases, primarily for office and rental facilities, at December 28, 2013, consist of the following: | |||||
2014 | $ | 41,095 | |||
2015 | 36,642 | ||||
2016 | 30,704 | ||||
2017 | 22,076 | ||||
2018 | 16,898 | ||||
2019 and thereafter | 118,001 | ||||
Total | $ | 265,416 | |||
Segment_and_Geographic_Data_Ta
Segment and Geographic Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||
Information about the Company’s reportable operating segments is as follows: | |||||||||||||||||
Year Ended December 28, 2013 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,197,375 | $ | 526,748 | $ | 0 | $ | 1,724,123 | |||||||||
Depreciation and amortization | $ | 41,468 | $ | 11,108 | $ | 0 | $ | 52,576 | |||||||||
Operating income | $ | 154,745 | $ | 306,012 | $ | 0 | $ | 460,757 | |||||||||
Interest expense | 103,108 | ||||||||||||||||
Other expense, net | 599 | ||||||||||||||||
Early extinguishment of debt | 21,685 | ||||||||||||||||
Provision for taxes | 130,640 | ||||||||||||||||
Net income | $ | 204,725 | |||||||||||||||
Total assets | $ | 1,733,464 | $ | 776,515 | $ | (1,101,048 | ) | $ | 1,408,931 | ||||||||
Year Ended December 29, 2012 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,331,916 | $ | 507,516 | $ | 0 | $ | 1,839,432 | |||||||||
Depreciation and amortization | $ | 34,073 | $ | 9,637 | $ | 0 | $ | 43,710 | |||||||||
Operating income | $ | 250,335 | $ | 260,470 | $ | 0 | $ | 510,805 | |||||||||
Interest expense | 90,537 | ||||||||||||||||
Other expense, net | 1,979 | ||||||||||||||||
Early extinguishment of debt | 1,328 | ||||||||||||||||
Provision for taxes | 159,535 | ||||||||||||||||
Net income | $ | 257,426 | |||||||||||||||
Total assets | $ | 1,539,434 | $ | 567,478 | $ | (888,305 | ) | $ | 1,218,607 | ||||||||
Year Ended December 31, 2011 | |||||||||||||||||
WWI | WW.com | Intercompany | Consolidated | ||||||||||||||
Eliminations | |||||||||||||||||
Total revenue | $ | 1,428,690 | $ | 403,804 | $ | 0 | $ | 1,832,494 | |||||||||
Depreciation and amortization | $ | 25,744 | $ | 10,076 | $ | 0 | $ | 35,820 | |||||||||
Operating income | $ | 339,963 | $ | 206,365 | $ | 0 | $ | 546,328 | |||||||||
Interest expense | 59,850 | ||||||||||||||||
Other income, net | 3,386 | ||||||||||||||||
Provision for taxes | 178,748 | ||||||||||||||||
Net income | $ | 304,344 | |||||||||||||||
Total assets | $ | 1,413,109 | $ | 392,381 | $ | (683,862 | ) | $ | 1,121,628 | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | ||||||||||||||||
The following table presents information about the Company’s sources of revenue and other information by geographic area. There were no material amounts of sales or transfers among geographic areas and no material amounts of US export sales. | |||||||||||||||||
Revenues for the Year Ended | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
NACO meeting fees | $ | 595,097 | $ | 653,396 | $ | 686,758 | |||||||||||
International Company-owned meeting fees | 256,529 | 281,537 | 303,538 | ||||||||||||||
Product sales | 245,319 | 294,758 | 334,303 | ||||||||||||||
Franchise royalties | 9,035 | 12,732 | 14,461 | ||||||||||||||
Internet revenues | 522,226 | 504,338 | 399,495 | ||||||||||||||
Other | 95,917 | 92,671 | 93,939 | ||||||||||||||
$ | 1,724,123 | $ | 1,839,432 | $ | 1,832,494 | ||||||||||||
Revenues for the Year Ended | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
North America | $ | 1,181,696 | $ | 1,283,232 | $ | 1,266,005 | |||||||||||
United Kingdom | 172,783 | 204,506 | 227,238 | ||||||||||||||
Continental Europe | 299,403 | 270,701 | 247,003 | ||||||||||||||
Australia, New Zealand and other | 70,241 | 80,993 | 92,248 | ||||||||||||||
$ | 1,724,123 | $ | 1,839,432 | $ | 1,832,494 | ||||||||||||
Long-Lived Assets | |||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
North America | $ | 82,518 | $ | 65,708 | $ | 35,196 | |||||||||||
United Kingdom | 1,192 | 1,645 | 1,508 | ||||||||||||||
Continental Europe | 2,083 | 2,431 | 2,208 | ||||||||||||||
Australia, New Zealand and other | 1,259 | 1,984 | 2,160 | ||||||||||||||
$ | 87,052 | $ | 71,768 | $ | 41,072 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||
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 | ||||||||||||||
Fair | Active Markets | Observable Inputs | Unobservable | ||||||||||||||
Value | for Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 0 | |||||||||
Interest rate swap liability at December 29, 2012 | $ | 13,871 | $ | 0 | $ | 13,871 | $ | 0 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Income by Component(a) | |||||||||||||
Fiscal year ended December 28, 2013 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at December 29, 2012 | $ | (6,602 | ) | $ | 19,461 | $ | 12,859 | ||||||
Other comprehensive loss before reclassifications, net of tax | (4,124 | ) | (6,341 | ) | (10,465 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax(b) | 6,123 | 0 | 6,123 | ||||||||||
Net current period other comprehensive income (loss) | 1,999 | (6,341 | ) | (4,342 | ) | ||||||||
Ending Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
(a) | Amounts in parentheses indicate debits | ||||||||||||
(b) | See separate table below for details about these reclassifications | ||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income | ' | ||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income(a) | |||||||||||||
Amounts Reclassified | |||||||||||||
from Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Details about Other | Fiscal Year | Affected Line Item in the | |||||||||||
Comprehensive Income | Ended | Statement Where Net Income is | |||||||||||
Components | December 28, 2013 | Presented | |||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (10,037 | ) | Interest expense | |||||||||
(10,037 | ) | Income before income taxes | |||||||||||
3,914 | Provision for income taxes | ||||||||||||
$ | (6,123 | ) | Net income | ||||||||||
(a) | Amounts in parentheses indicate debits to profit / loss |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2013 and December 29, 2012. | |||||||||||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 30, | June 29, | September 28, | December 28, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Fiscal year ended December 28, 2013 | |||||||||||||||||
Revenues, net | $ | 490,790 | $ | 470,888 | $ | 396,334 | $ | 366,111 | |||||||||
Gross profit | 283,637 | 283,715 | 231,980 | 201,780 | |||||||||||||
Operating income | 103,119 | 153,976 | 124,520 | 79,142 | |||||||||||||
Net income | 48,753 | 64,916 | 60,258 | 30,798 | |||||||||||||
Basic EPS | $ | 0.87 | $ | 1.16 | $ | 1.07 | $ | 0.55 | |||||||||
Diluted EPS | $ | 0.87 | $ | 1.15 | $ | 1.07 | $ | 0.54 | |||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 31, | June 30, | September 29, | December 29, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Fiscal year ended December 29, 2012 | |||||||||||||||||
Revenues, net | $ | 506,786 | $ | 488,610 | $ | 432,903 | $ | 411,133 | |||||||||
Gross profit | 291,171 | 297,032 | 257,651 | 247,964 | |||||||||||||
Operating income | 102,774 | 153,508 | 131,984 | 122,539 | |||||||||||||
Net income | 54,605 | 77,462 | 67,364 | 57,995 | |||||||||||||
Basic EPS | $ | 0.74 | $ | 1.37 | $ | 1.21 | $ | 1.04 | |||||||||
Diluted EPS | $ | 0.74 | $ | 1.36 | $ | 1.2 | $ | 1.03 |
Effect_of_Revision_on_Previous
Effect of Revision on Previously Reported Amounts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2012 | Dec. 31, 2011 |
Cash provided by operating activities | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' |
Statement Adjustment | ($12,684) | $2,231 |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' |
Statement Adjustment | $12,684 | ($2,231) |
Revision_of_Certain_Brand_Mark
Revision of Certain Brand Marketing Funds Received from Licensees (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Product sales and other, net | ' | ' | ' | ' | ' | ' | ' | ' | $350,271 | $400,161 | $442,703 |
Cost of meetings, products and other | ' | ' | ' | ' | ' | ' | ' | ' | 652,283 | 681,972 | 718,284 |
Gross profit | 201,780 | 231,980 | 283,715 | 283,637 | 247,964 | 257,651 | 297,032 | 291,171 | 1,001,112 | 1,093,818 | 1,058,505 |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 244,727 | 229,340 | 209,254 |
Certain Brand Marketing Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product sales and other, net | ' | ' | ' | ' | ' | ' | ' | ' | 12,058 | 12,620 | 13,338 |
Cost of meetings, products and other | ' | ' | ' | ' | ' | ' | ' | ' | 1,078 | 1,589 | 1,974 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 10,979 | 11,031 | 11,364 |
Marketing expenses | ' | ' | ' | ' | ' | ' | ' | ' | 10,279 | 10,158 | 10,572 |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | $701 | $873 | $792 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 29, 2013 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | ' | $5,426 | $0 | $0 | ' |
Goodwill | ' | ' | 79,294 | 62,726 | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 836,835 | 783,695 | ' | ' |
Total advertising expenses | ' | ' | 274,160 | 334,422 | 283,674 | ' |
Deferred financing costs | ' | ' | 44,817 | 26,248 | 0 | 11,483 |
Early extinguishment of debt | 21,685 | 1,328 | 21,685 | 1,328 | 0 | ' |
Deferred financing costs, amortization expense | ' | ' | 7,672 | 7,070 | 4,825 | ' |
The cumulative balance of changes in fair value of derivative instruments, net of taxes | ' | ' | -4,603 | -6,602 | ' | ' |
The cumulative balance of the effects of foreign currency translations, net of taxes | ' | ' | 13,120 | 19,461 | ' | ' |
China Operations | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | ' | 1,607 | ' | ' | ' |
Property, plant and equipment, impairment charges | ' | ' | 372 | ' | ' | ' |
Intangible assets, impairment charges | ' | ' | 1,235 | ' | ' | ' |
WWI | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 41,469 | 32,033 | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 798,146 | 774,514 | ' | ' |
WW.com | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 37,825 | 30,693 | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 38,689 | 9,181 | ' | ' |
Internal-use Computer Software | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Intangible assets, impairment charges | ' | ' | 2,653 | ' | ' | ' |
Franchise Rights | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 836,835 | ' | ' | ' |
Franchise Rights | Mexico | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Intangible assets, impairment charges | ' | ' | 935 | ' | ' | ' |
Franchise Rights | Hong Kong | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Intangible assets, impairment charges | ' | ' | 231 | ' | ' | ' |
Website development costs | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | '3 years | ' | ' | ' |
UNITED STATES | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 697,334 | ' | ' | ' |
UNITED STATES | WWI | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 32,668 | ' | ' | ' |
CANADA | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 110,346 | ' | ' | ' |
CANADA | WWI | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 5,124 | ' | ' | ' |
United Kingdom | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 14,401 | ' | ' | ' |
Australia/New Zealand | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 13,740 | ' | ' | ' |
Other International | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Franchise rights acquired, carrying value | ' | ' | 1,014 | ' | ' | ' |
Other International | WWI | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | $3,677 | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Equipment,estimated useful life (in years) | ' | ' | '3 years | ' | ' | ' |
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | '3 years | ' | ' | ' |
Minimum | Capitalized software costs | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | '3 years | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Equipment,estimated useful life (in years) | ' | ' | '10 years | ' | ' | ' |
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | '20 years | ' | ' | ' |
Percentage of investee's voting stock hold for cost method investments | ' | ' | 20.00% | ' | ' | ' |
Maximum | Capitalized software costs | ' | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | '5 years | ' | ' | ' |
Acquisitions_of_Franchisees_an1
Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Apr. 27, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 12, 2013 | Apr. 27, 2011 | Feb. 05, 2008 | Feb. 05, 2008 | Sep. 10, 2012 | Sep. 10, 2012 | Sep. 10, 2012 | Nov. 02, 2012 | Nov. 02, 2012 | Nov. 02, 2012 | Dec. 20, 2012 | Dec. 20, 2012 | Dec. 20, 2012 | Mar. 04, 2013 | Mar. 04, 2013 | Mar. 04, 2013 | Mar. 04, 2013 | Jul. 15, 2013 | Jul. 15, 2013 | Jul. 15, 2013 | Jul. 15, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 |
China Operations | Weight Watchers Asia Holdings Limited | Weight Watchers Asia Holdings Limited | Danone Dairy Asia | Slengora Limited | Slengora Limited | Slengora Limited | Adirondacks Inc | Adirondacks Inc | Adirondacks Inc | Mid South Inc | Mid South Inc | Mid South Inc | Alberta Ltd and Saskatchewan Ltd | Alberta Ltd and Saskatchewan Ltd | Alberta Ltd and Saskatchewan Ltd | Alberta Ltd and Saskatchewan Ltd | West Virginia, Inc. | West Virginia, Inc. | West Virginia, Inc. | West Virginia, Inc. | Columbus, Inc. | Northern Nevada, Inc. | Columbus, Inc. and Northern Nevada, Inc. | Columbus, Inc. and Northern Nevada, Inc. | Columbus, Inc. and Northern Nevada, Inc. | Manitoba Ltd | Manitoba Ltd | Manitoba Ltd | Manitoba Ltd | Franklin and St Lawrence Counties Inc | Franklin and St Lawrence Counties Inc | Franklin and St Lawrence Counties Inc | Franklin and St Lawrence Counties Inc | ||||
Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Preliminary Allocation | Preliminary Allocation | Franchise Rights | Preliminary Allocation | Preliminary Allocation | Franchise Rights | Preliminary Allocation | Preliminary Allocation | Franchise Rights | Preliminary Allocation | Preliminary Allocation | Franchise Rights | Preliminary Allocation | Preliminary Allocation | Franchise Rights | |||||||||||||||||
Customer Relationships | Preliminary Allocation | Customer Relationships | Preliminary Allocation | Customer Relationships | Preliminary Allocation | Customer Relationships | Preliminary Allocation | Customer Relationships | Preliminary Allocation | ||||||||||||||||||||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, net purchase price | $1 | ' | ' | ' | ' | ' | ' | $16,755 | ' | ' | $3,400 | ' | ' | $10,000 | ' | ' | $35,000 | ' | ' | ' | $16,028 | ' | ' | ' | $23,357 | $3,969 | ' | ' | ' | $5,197 | ' | ' | ' | $274 | ' | ' | ' |
Business acquisition, assumed liabilities | ' | ' | ' | ' | ' | ' | ' | 245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' | ' | 143 | 31 | ' | ' | ' | 28 | ' | ' | ' | 1 | ' | ' | ' |
Business acquisition, purchase price allocation, intangible assets, indefinite lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,871 | ' | ' | 2,216 | ' | ' | 8,396 | ' | ' | ' | 30,633 | ' | ' | ' | 10,131 | ' | ' | ' | ' | 19,643 | ' | ' | ' | 4,525 | ' | ' | ' | 238 |
Business acquisition, purchase price allocation, goodwill | ' | 79,294 | 62,726 | ' | ' | ' | ' | 6,779 | ' | ' | 1,156 | ' | ' | 1,461 | ' | ' | ' | 4,626 | ' | ' | ' | 5,212 | ' | ' | ' | ' | 7,220 | ' | ' | ' | 449 | ' | ' | ' | 23 | ' | ' |
Business acquisition, purchase price allocation, intangible assets, finite lived | ' | ' | ' | ' | ' | ' | ' | ' | 180 | ' | ' | 37 | ' | ' | 209 | ' | ' | ' | 473 | ' | ' | ' | 448 | ' | ' | ' | ' | 494 | ' | ' | ' | 249 | ' | ' | ' | 13 | ' |
Business acquisition, purchase price allocation, inventory | ' | ' | ' | ' | ' | ' | ' | 66 | ' | ' | 29 | ' | ' | 35 | ' | ' | ' | 218 | ' | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, fixed assets | ' | ' | ' | ' | ' | ' | ' | 81 | ' | ' | ' | ' | ' | 4 | ' | ' | ' | 182 | ' | ' | ' | 209 | ' | ' | ' | ' | 116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, prepaid expenses | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' | 10 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | 1 | ' | ' |
Business acquisition, purchase price allocation, deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48 | ' | ' | 114 | ' | ' | ' | 1,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, amortization period for customer relationships | ' | '105 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount | ' | 16,953 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, goodwill | ' | 17,530 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of controlling interest ownership in Weight Watchers Danone China Limited (China Joint Venture) | 100.00% | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent ownership in Weight Watchers Danone China Limited (China Joint Venture) | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of minority equity interest in China Joint Venture through share purchase agreement | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge incurred in relation to shut down of China operations | ' | ' | ' | $2,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise_Rights_Acquired_Good2
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure | ' | ' | ' |
Indefinite-lived intangible assets, impairment charges | $1,166 | ' | ' |
Finite-lived intangible assets, aggregate amortization expense | 24,562 | 17,796 | 16,545 |
Internal-use Computer Software | ' | ' | ' |
Goodwill and Intangible Assets Disclosure | ' | ' | ' |
Intangible assets, impairment charges | 2,653 | ' | ' |
Mexico and Hong Kong Operations | Franchise Rights | ' | ' | ' |
Goodwill and Intangible Assets Disclosure | ' | ' | ' |
Indefinite-lived intangible assets, impairment charges | 1,166 | ' | ' |
China Operations | ' | ' | ' |
Goodwill and Intangible Assets Disclosure | ' | ' | ' |
Intangible assets, impairment charges | $1,235 | ' | ' |
Changes_in_Carrying_Value_of_F
Changes in Carrying Value of Franchise Rights Acquired (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2013 |
Franchise Rights Acquired [Line Items] | ' |
Beginning balance | $783,695 |
Franchise rights acquired during the year | 65,170 |
Impairment charge | -1,166 |
Effect of exchange rate changes | -10,864 |
Ending balance | 836,835 |
WWI | ' |
Franchise Rights Acquired [Line Items] | ' |
Beginning balance | 774,514 |
Franchise rights acquired during the year | 34,501 |
Impairment charge | -1,166 |
Effect of exchange rate changes | -9,703 |
Ending balance | 798,146 |
WW.com | ' |
Franchise Rights Acquired [Line Items] | ' |
Beginning balance | 9,181 |
Franchise rights acquired during the year | 30,669 |
Impairment charge | 0 |
Effect of exchange rate changes | -1,161 |
Ending balance | $38,689 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2013 |
Goodwill [Line Items] | ' |
Beginning balance | $62,726 |
Goodwill acquired during the year | 17,530 |
Effect of exchange rate changes | -962 |
Ending balance | 79,294 |
WWI | ' |
Goodwill [Line Items] | ' |
Beginning balance | 32,033 |
Goodwill acquired during the year | 9,998 |
Effect of exchange rate changes | -562 |
Ending balance | 41,469 |
WW.com | ' |
Goodwill [Line Items] | ' |
Beginning balance | 30,693 |
Goodwill acquired during the year | 7,532 |
Effect of exchange rate changes | -400 |
Ending balance | $37,825 |
Carrying_Amount_of_FiniteLived
Carrying Amount of Finite-Lived Intangible Assets (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $172,467 | $161,275 |
Accumulated Amortization | 127,170 | 108,795 |
Capitalized software costs | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 85,095 | 86,857 |
Accumulated Amortization | 62,418 | 54,134 |
Trademarks | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 10,691 | 10,342 |
Accumulated Amortization | 9,955 | 9,615 |
Website development costs | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 69,660 | 57,042 |
Accumulated Amortization | 48,060 | 38,357 |
Other | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 7,021 | 7,034 |
Accumulated Amortization | $6,737 | $6,689 |
Estimated_Amortization_Expense
Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Expected Amortization Expense | ' |
2014 | $20,841 |
2015 | 14,997 |
2016 | 7,593 |
2017 | 1,765 |
2018 and thereafter | $101 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment | $123,210 | $113,301 |
Leasehold improvements | 77,771 | 70,229 |
Property, Plant and Equipment, Gross, Total | 200,981 | 183,530 |
Less: Accumulated depreciation and amortization | -113,929 | -111,762 |
Property and equipment, net | $87,052 | $71,768 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense, property and equipment | $20,342 | $18,844 | $14,450 |
China Operations | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, impairment charges | $372 | ' | ' |
Components_of_LongTerm_Debt_De
Components of Long-Term Debt (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Total Debt | $2,388,000 | $2,406,364 |
Less Current Portion | 30,000 | 114,695 |
Effective Interest Rate | 3.49% | 2.91% |
Total Long-Term Debt | 2,358,000 | 2,291,669 |
Revolving Facility due April 2, 2018 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 0 |
Effective Interest Rate | 0.00% | 0.00% |
Tranche B-1 Term Facility due April 2, 2016 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 298,500 | 0 |
Effective Interest Rate | 2.97% | 0.00% |
Tranche B-2 Term Facility due April 2, 2020 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 2,089,500 | 0 |
Effective Interest Rate | 3.75% | 0.00% |
Revolver A-1 Loan due June 30, 2014 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 6,374 |
Effective Interest Rate | 0.00% | 3.12% |
Revolver A-2 Loan due March 15, 2017 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 23,626 |
Effective Interest Rate | 0.00% | 2.56% |
Term A-1 Loan due January 26, 2013 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 38,226 |
Effective Interest Rate | 0.00% | 1.53% |
Term B Loan due January 26, 2014 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 129,445 |
Effective Interest Rate | 0.00% | 1.90% |
Term C Loan due June 30, 2015 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 113,808 |
Effective Interest Rate | 0.00% | 2.72% |
Term D Loan due June 30, 2016 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 118,217 |
Effective Interest Rate | 0.00% | 2.77% |
Term E Loan due March 15, 2017 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 0 | 1,154,651 |
Effective Interest Rate | 0.00% | 2.53% |
Term F Loan due March 15, 2019 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | $0 | $822,017 |
Effective Interest Rate | 0.00% | 3.92% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Jun. 29, 2013 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Apr. 02, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Apr. 02, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Apr. 02, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 02, 2013 | Dec. 28, 2013 |
Revolving Facility due April 2, 2018 | Revolving Facility due April 2, 2018 | Revolving Facility due April 2, 2018 | Revolving Facility due April 2, 2018 | Revolving Facility due April 2, 2018 | Tranche B-1 Term Facility due April 2, 2016 | Tranche B-1 Term Facility due April 2, 2016 | Tranche B-1 Term Facility due April 2, 2016 | Tranche B-1 Term Facility due April 2, 2016 | Tranche B-2 Term Facility due April 2, 2020 | Tranche B-2 Term Facility due April 2, 2020 | Tranche B-2 Term Facility due April 2, 2020 | Tranche B-2 Term Facility due April 2, 2020 | Tranche B-2 Term Facility due April 2, 2020 | Term B Loan due January 26, 2014 | Term B Loan due January 26, 2014 | Term B Loan due January 26, 2014 | Term C Loan due June 30, 2015 | Term C Loan due June 30, 2015 | Term C Loan due June 30, 2015 | Term D Loan due June 30, 2016 | Term D Loan due June 30, 2016 | Term D Loan due June 30, 2016 | Term E Loan due March 15, 2017 | Term E Loan due March 15, 2017 | Term E Loan due March 15, 2017 | Term F Loan due March 15, 2019 | Term F Loan due March 15, 2019 | Term F Loan due March 15, 2019 | Revolver A-1 Loan due June 30, 2014 | Revolver A-1 Loan due June 30, 2014 | Revolver A-1 Loan due June 30, 2014 | Revolver A-2 Loan due March 15, 2017 | Revolver A-2 Loan due March 15, 2017 | Revolver A-2 Loan due March 15, 2017 | Term Loan Facility | WWI Credit Facility | |||||||||
London Interbank Offered Rate (LIBOR) | Base Rate Plus | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Base Rate Plus | |||||||||||||||||||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WWI Credit Facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | $300,000 | ' | ' | ' | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees incurred in connection with debt refinancing | ' | 44,817 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of term loan | 2,399,904 | ' | ' | 2,488,364 | 124,833 | 139,285 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,759 | ' | ' | 110,602 | ' | ' | 117,612 | ' | ' | 1,125,044 | ' | ' | 817,887 | ' | ' | 21,247 | ' | ' | 78,753 | ' | ' | ' | ' |
Early extinguishment of debt charge | ' | 21,685 | 1,328 | 21,685 | 1,328 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility available amount | ' | ' | ' | ' | ' | ' | ' | ' | 248,446 | 248,848 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' |
Credit Facility, aggregate principal amount outstanding | ' | ' | ' | 2,388,000 | 2,406,364 | ' | ' | ' | 0 | ' | 0 | ' | ' | 298,500 | ' | 0 | ' | 2,089,500 | ' | 0 | ' | ' | ' | 0 | 129,445 | ' | 0 | 113,808 | ' | 0 | 118,217 | ' | 0 | 1,154,651 | ' | 0 | 822,017 | ' | 0 | 6,374 | ' | 0 | 23,626 | ' | 2,388,000 |
Letters of credit issued | ' | ' | ' | 1,554 | ' | ' | ' | ' | 1,554 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WWI Credit Facility, minimum interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WWI Credit Facility, additional interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 1.25% | ' | ' | ' | 2.75% | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional applicable margin in the event the Company receives a corporate rating of BB- from S&P (or lower) and a corporate rating of Ba3 from Moody's (or lower) | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, commitment fee on unused commitments | ' | ' | ' | ' | ' | ' | ' | ' | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement customary covenants, percentage by which borrowings under Revolving Facility to exceed revolving commitments to require maintenance of specified financial ratio | ' | 20.00% | ' | 20.00% | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum borrowings required to maintain specified financial ratio | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under revolver | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on debt | ' | ' | ' | 3.65% | 2.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on debt | ' | ' | ' | 4.08% | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Maturities_Detai
Long-Term Debt Maturities (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
2014 | $30,000 | ' |
2015 | 24,000 | ' |
2016 | 307,500 | ' |
2017 | 21,000 | ' |
2018 | 21,000 | ' |
Thereafter | 1,984,500 | ' |
Total | $2,388,000 | $2,406,364 |
Treasury_Stock_Additional_Info
Treasury Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 09, 2003 | Mar. 31, 2012 | Dec. 29, 2012 | Dec. 31, 2011 | Apr. 09, 2012 | Dec. 23, 2012 | Feb. 23, 2012 | Feb. 23, 2012 | Oct. 21, 2010 | 25-May-06 | Jun. 13, 2005 |
Artal Holdings | Tender Offers | Tender Offers | Tender Offers | Additional Shares | Additional Shares | Additional Shares | |||||
Minimum | Maximum | ||||||||||
Equity, Class of Treasury Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, value of common stock shares authorized for repurchase | ' | ' | ' | ' | ' | $720,000 | ' | ' | ' | ' | ' |
Repurchase of common stock, price per share | ' | ' | ' | ' | ' | ' | $72 | $83 | ' | ' | ' |
Repurchase of common stock, shares repurchased | ' | 8,780 | ' | 814 | 9,499 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, price per share | ' | $82 | ' | ' | $82 | ' | ' | ' | ' | ' | ' |
Treasury Stock, value of common stock shares authorized for repurchase | 250,000 | ' | ' | ' | ' | ' | ' | ' | 250,000 | 250,000 | 250,000 |
Treasury Stock, amount of common stock shares repurchased | ' | ' | $1,498,902 | $31,550 | ' | ' | ' | ' | ' | ' | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Weight Watchers International, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | $204,725 | $257,426 | $304,867 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares of common stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 56,144 | 60,294 | 73,344 |
Effect of dilutive common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 629 | 787 |
Weighted average diluted common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 56,394 | 60,923 | 74,131 |
EPS attributable to Weight Watchers International, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.55 | $1.07 | $1.16 | $0.87 | $1.04 | $1.21 | $1.37 | $0.74 | $3.65 | $4.27 | $4.16 |
Diluted | $0.54 | $1.07 | $1.15 | $0.87 | $1.03 | $1.20 | $1.36 | $0.74 | $3.63 | $4.23 | $4.11 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' |
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS | 1,285 | 536 | 188 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | 31-May-08 | 6-May-08 | 12-May-04 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Stock Option | Stock Option | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Special Performance Based Options Awards | Time and Performance Based Stock Options | Stock Incentive Plan 2008 | Stock Incentive Plan 2008 | Stock Incentive Plan 2004 | Stock Compensation Plan | Stock Compensation Plan | Stock Compensation Plan | |||||
Minimum | Maximum | Minimum | Maximum | D | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 2,500,000 | ' | ' | ' |
Number of shares of our common stock available for issuance, increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000 | ' | ' | ' | ' | ' |
Share based compensation, fully-vested shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | 13,000 | 13,000 |
Share based compensation, value of fully-vested shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $524 | $707 | $772 |
Total share-based compensation expense | ' | 4,255 | 8,845 | 9,067 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total income tax benefit recognized for all share-based compensation arrangements | ' | 1,174 | 2,742 | 2,895 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefits realized from options exercised and RSUs vested | ' | 4,217 | 5,847 | 11,309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to stock options and RSUs granted | 24,881 | 24,881 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense recognition period | ' | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units, vesting period | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awards, expiration period | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, exercise price, lower range | ' | $19.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, exercise price, upper range | ' | $79.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | 0.00% | 0.80% | 1.60% | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based option awards granted during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 686,549 | ' | ' | ' | ' | ' | ' | ' |
Percentage of time-vesting criteria satisfied on third anniversary of date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Vesting of stock options increments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Minimum number of consecutive preceding trading days specified for stock price hurdles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' |
Fair value of T&P vesting options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.46 | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | 36.50% | 35.50% | 33.60% | ' | ' | ' | ' | ' | ' | ' | 36.48% | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.55% | ' | ' | ' | ' | ' | ' | ' |
Expected term (years) | ' | '6 years 6 months | '6 years 6 months | '6 years 6 months | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted | ' | $11.37 | $16.60 | $20.44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | 9,858 | 12,734 | 27,808 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from options exercised | ' | 16,187 | 12,688 | 42,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of RSUs granted | ' | $38.40 | ' | ' | ' | ' | $38.40 | $55.54 | $64.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of RSUs vested | ' | ' | ' | ' | ' | ' | $1,705 | $5,536 | $3,657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Estimate Fair Value of Option Award on Grand Date (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Dividend yield | 0.00% | 0.80% | 1.60% | 1.80% |
Volatility | ' | 36.50% | 35.50% | 33.60% |
Risk-free interest rate, minimum | ' | 1.30% | 1.00% | 1.50% |
Risk-free interest rate, maximum | ' | 2.20% | 1.40% | 2.80% |
Expected term (years) | ' | '6 years 6 months | '6 years 6 months | '6 years 6 months |
Summary_of_Option_Activity_Und
Summary of Option Activity Under Stock Plans (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 |
Shares | ' |
Beginning Balance | 2,239 |
Granted | 1,551 |
Exercised | -620 |
Canceled | -957 |
Ending Balance | 2,213 |
Exercisable at December 28, 2013 | 362 |
Weighted-Average Exercise Price | ' |
Beginning Balance | $42.75 |
Granted | $36.35 |
Exercised | $26.09 |
Canceled | $51.62 |
Ending Balance | $39.09 |
Exercisable at December 28, 2013 | $32.03 |
Weighted-Average Remaining Contractual Life (Yrs.) | ' |
Outstanding at December 28, 2013 | '7 years 2 months 12 days |
Exercisable at December 28, 2013 | '5 years 6 months |
Aggregate Intrinsic Value | ' |
Granted | ' |
Exercised | ' |
Canceled | ' |
Outstanding at December 28, 2013 | 2,372 |
Exercisable at December 28, 2013 | $2,166 |
Summary_of_RSU_Activity_Under_
Summary of RSU Activity Under Stock Plans (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 |
Shares | ' |
Beginning Balance | 246 |
Granted | 155 |
Vested | -63 |
Forfeited | -85 |
Ending Balance | 253 |
Weighted-Average Grant-Date Fair Value | ' |
Beginning Balance | $50.67 |
Granted | $38.40 |
Vested | $27.08 |
Forfeited | $56.23 |
Ending Balance | $47.11 |
Summary_of_Consolidated_Provis
Summary of Consolidated Provision for US Federal State and Foreign Taxes on Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
US federal | $60,556 | $99,437 | $121,860 |
State | 9,583 | 12,719 | 18,298 |
Foreign | 25,121 | 20,614 | 13,299 |
Current Income Tax Expense (Benefit), Total | 95,260 | 132,770 | 153,457 |
Deferred: | ' | ' | ' |
US federal | 31,801 | 23,002 | 23,410 |
State | 3,634 | 2,629 | 2,675 |
Foreign | -55 | 1,134 | -794 |
Deferred tax provision | 35,380 | 26,765 | 25,291 |
Total tax provision | $130,640 | $159,535 | $178,748 |
Components_of_Consolidated_Inc
Components of Consolidated Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Taxes | ' | ' | ' |
Domestic | $255,183 | $337,321 | $400,310 |
Foreign | 80,182 | 79,640 | 82,782 |
Income before income taxes | $335,365 | $416,961 | $483,092 |
Difference_Between_US_Federal_
Difference Between US Federal Statutory Tax Rate and consolidated Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' | ' |
US federal statutory rate | 35.00% | 35.00% | 35.00% |
Federal and state tax reserve provision | -0.10% | 0.20% | -0.60% |
States income taxes (net of federal benefit) | 2.70% | 2.60% | 3.00% |
Foreign taxes | 0.30% | -0.30% | -0.40% |
Increase in valuation allowance | 0.90% | 0.70% | 0.50% |
Loss on closure of Finland | 0.00% | 0.00% | -0.80% |
Other | 0.20% | 0.10% | 0.30% |
Effective tax rate | 39.00% | 38.30% | 37.00% |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Provision for estimated expenses | $8,593 | $8,561 |
Operating loss carryforwards | 40,587 | 34,714 |
Salaries and wages | 6,238 | 4,522 |
Share-based compensation | 4,705 | 6,958 |
Other | 6,562 | 6,336 |
Less: valuation allowance | -36,372 | -31,015 |
Total deferred tax assets | 30,313 | 30,076 |
Depreciation | -6,381 | -2,844 |
Other comprehensive income | -5,446 | -8,180 |
Other | -1,046 | 0 |
Amortization | -157,047 | -126,726 |
Total deferred tax liabilities | -169,920 | -137,750 |
Net deferred tax liabilities | ($139,607) | ($107,674) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carry forwards | $148,107 | $126,219 | ' |
Total amount of unrecognized tax benefits, if recognized, would affect effective tax rate | 4,824 | ' | ' |
Unrecognized tax benefits, accrued interest and penalties | 2,217 | 3,405 | ' |
Unrecognized tax benefits, interest and penalties recognized | ($1,188) | $823 | ($256) |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Balance at beginning of year | $5,319 | $5,040 | $15,794 |
Additions based on tax positions related to the current year | 1,428 | 1,647 | 1,537 |
Additions based on tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | -963 | -1,219 | -11,901 |
Settlements | 0 | -149 | -390 |
Balance at end of year | $5,784 | $5,319 | $5,040 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Profit Sharing Plan | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, contribution cost | $1,658 | $2,779 | $3,704 |
Profit Sharing Plan | Management | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, contribution cost | 2,651 | 2,954 | 2,369 |
EPSP annualized interest rate, added percentage above prime rate | 2.00% | ' | ' |
Maximum | Profit Sharing Plan | Management | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
EPSP annualized interest rate cap | 15.00% | ' | ' |
Savings Plan | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, contribution cost | $2,888 | $2,730 | $2,466 |
Savings Plan | Maximum | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, employer matching contribution percentage | 100.00% | ' | ' |
Employee benefit plans, employer contribution percentage | 3.00% | ' | ' |
Cash_Flow_Information_Detail
Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net cash paid during the year for: | ' | ' | ' |
Interest expense | $88,860 | $68,808 | $52,591 |
Income taxes | 87,071 | 133,131 | 144,925 |
Noncash investing and financing activities were as follows: | ' | ' | ' |
Fair value of net assets/(liabilities) acquired in connection with acquisitions | 175 | 0 | 0 |
Dividends declared but not yet paid at year-end | $177 | $289 | $13,145 |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 29, 2012 | Feb. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jul. 02, 2011 | Jan. 31, 2013 |
Settled Litigation | |||||||
Loss Contingencies | ' | ' | ' | ' | ' | ' | ' |
U.K. Self-employment liability | ' | ' | ' | ' | ' | $43,671 | ' |
Payment of U.K. self-employment liability | ' | 30,018 | ' | ' | ' | ' | 6,752 |
Amount agreed for settlement | 36,770 | ' | ' | ' | ' | ' | ' |
Rent expense charged to operations under leases | ' | ' | $46,300 | $40,485 | $36,572 | ' | ' |
Minimum_Rental_Commitments_Und
Minimum Rental Commitments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $41,095 |
2015 | 36,642 |
2016 | 30,704 |
2017 | 22,076 |
2018 | 16,898 |
2019 and thereafter | 118,001 |
Total | $265,416 |
Segment_and_Geographic_Data_Ad
Segment and Geographic Data - Additional Information (Detail) | 12 Months Ended |
Dec. 28, 2013 | |
Segment | |
Segment Reporting Information | ' |
Number of reportable segments | 2 |
WWI | ' |
Segment Reporting Information | ' |
Number of reportable segments | 1 |
Information_About_Reportable_S
Information About Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $366,111 | $396,334 | $470,888 | $490,790 | $411,133 | $432,903 | $488,610 | $506,786 | $1,724,123 | $1,839,432 | $1,832,494 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 52,576 | 43,710 | 35,820 |
Operating income | 79,142 | 124,520 | 153,976 | 103,119 | 122,539 | 131,984 | 153,508 | 102,774 | 460,757 | 510,805 | 546,328 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 103,108 | 90,537 | 59,850 |
Other (income) expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 599 | 1,979 | 3,386 |
Early extinguishment of debt | ' | ' | 21,685 | ' | ' | ' | ' | 1,328 | 21,685 | 1,328 | 0 |
Provision for taxes | ' | ' | ' | ' | ' | ' | ' | ' | 130,640 | 159,535 | 178,748 |
Net income | 30,798 | 60,258 | 64,916 | 48,753 | 57,995 | 67,364 | 77,462 | 54,605 | 204,725 | 257,426 | 304,344 |
Total assets | 1,408,931 | ' | ' | ' | 1,218,607 | ' | ' | ' | 1,408,931 | 1,218,607 | 1,121,628 |
Operating Segments | WWI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,197,375 | 1,331,916 | 1,428,690 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 41,468 | 34,073 | 25,744 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 154,745 | 250,335 | 339,963 |
Total assets | 1,733,464 | ' | ' | ' | 1,539,434 | ' | ' | ' | 1,733,464 | 1,539,434 | 1,413,109 |
Operating Segments | WW.com | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 526,748 | 507,516 | 403,804 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 11,108 | 9,637 | 10,076 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 306,012 | 260,470 | 206,365 |
Total assets | 776,515 | ' | ' | ' | 567,478 | ' | ' | ' | 776,515 | 567,478 | 392,381 |
Intercompany Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total assets | ($1,101,048) | ' | ' | ' | ($888,305) | ' | ' | ' | ($1,101,048) | ($888,305) | ($683,862) |
Sources_of_Revenue_and_Other_I
Sources of Revenue and Other Information by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Meeting fees | ' | ' | ' | ' | ' | ' | ' | ' | $851,626 | $934,933 | $990,296 |
Product sales | ' | ' | ' | ' | ' | ' | ' | ' | 245,319 | 294,758 | 334,303 |
Franchise royalties | ' | ' | ' | ' | ' | ' | ' | ' | 9,035 | 12,732 | 14,461 |
Internet revenues | ' | ' | ' | ' | ' | ' | ' | ' | 522,226 | 504,338 | 399,495 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 95,917 | 92,671 | 93,939 |
Net revenue | 366,111 | 396,334 | 470,888 | 490,790 | 411,133 | 432,903 | 488,610 | 506,786 | 1,724,123 | 1,839,432 | 1,832,494 |
Long-lived assets | 87,052 | ' | ' | ' | 71,768 | ' | ' | ' | 87,052 | 71,768 | 41,072 |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,181,696 | 1,283,232 | 1,266,005 |
Long-lived assets | 82,518 | ' | ' | ' | 65,708 | ' | ' | ' | 82,518 | 65,708 | 35,196 |
United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 172,783 | 204,506 | 227,238 |
Long-lived assets | 1,192 | ' | ' | ' | 1,645 | ' | ' | ' | 1,192 | 1,645 | 1,508 |
Continental Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 299,403 | 270,701 | 247,003 |
Long-lived assets | 2,083 | ' | ' | ' | 2,431 | ' | ' | ' | 2,083 | 2,431 | 2,208 |
Australia New Zealand and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 70,241 | 80,993 | 92,248 |
Long-lived assets | 1,259 | ' | ' | ' | 1,984 | ' | ' | ' | 1,259 | 1,984 | 2,160 |
NACO meeting fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Meeting fees | ' | ' | ' | ' | ' | ' | ' | ' | 595,097 | 653,396 | 686,758 |
International Company-owned meeting fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Meeting fees | ' | ' | ' | ' | ' | ' | ' | ' | $256,529 | $281,537 | $303,538 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value of long-term debt | $2,169,908 | $2,410,724 |
Aggregate_Fair_Value_of_Deriva
Aggregate Fair Value of Derivative Financial Instruments (Detail) (Fair Value, Measurements, Recurring, Interest Rate Swap, USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Interest rate swap liability | $7,578 | $13,871 |
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Interest rate swap liability | 0 | 0 |
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Interest rate swap liability | 7,578 | 13,871 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Interest rate swap liability | $0 | $0 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Jul. 31, 2013 | Jan. 01, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Jul. 26, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Jan. 01, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||
Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | |||||||
31-Mar-14 | 3-Apr-17 | 1-Apr-19 | Forward starting swaps | Forward starting swaps | ||||||||||
Maximum | ||||||||||||||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | $466,250 | $1,500,000 | $583,250 | $1,500,000 | $1,250,000 | $1,000,000 | $425,000 | $755,000 |
Forward starting interest rate swap, termination date | ' | ' | 2-Apr-20 | 27-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward-starting interest rate swap, effective date | ' | ' | 31-Mar-14 | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 3-Apr-17 | 1-Apr-19 | ' | ' |
Derivative interest rate swap percentage | ' | ' | ' | ' | 2.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), net of tax | 4,603 | 6,602 | ' | ' | 4,603 | 6,602 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), before tax | ' | ' | ' | ' | 7,546 | 10,824 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, net of tax | 12,017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, before tax | $19,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Beginning Balance | $12,859 | [1] | ' | ' | |
Other comprehensive loss before reclassifications, net of tax | -10,465 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 6,123 | [1],[2] | ' | ' | |
Net current period other comprehensive income (loss) | -4,342 | [1] | 7,258 | 10,118 | |
Ending Balance | 8,517 | [1] | 12,859 | [1] | ' |
Loss on Qualifying Hedges | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Beginning Balance | -6,602 | [1] | ' | ' | |
Other comprehensive loss before reclassifications, net of tax | -4,124 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 6,123 | [1],[2] | ' | ' | |
Net current period other comprehensive income (loss) | 1,999 | [1] | ' | ' | |
Ending Balance | -4,603 | [1] | ' | ' | |
Foreign Currency Translation Adjustments | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Beginning Balance | 19,461 | [1] | ' | ' | |
Other comprehensive loss before reclassifications, net of tax | -6,341 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | [1],[2] | ' | ' | |
Net current period other comprehensive income (loss) | -6,341 | [1] | ' | ' | |
Ending Balance | $13,120 | [1] | ' | ' | |
[1] | Amounts in parentheses indicate debits | ||||
[2] | See separate table below for details about these reclassifications |
Reclassifications_out_of_Accum
Reclassifications out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ($103,108) | ($90,537) | ($59,850) | |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 335,365 | 416,961 | 483,092 | |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -130,640 | -159,535 | -178,748 | |
Net income | 30,798 | 60,258 | 64,916 | 48,753 | 57,995 | 67,364 | 77,462 | 54,605 | 204,725 | 257,426 | 304,344 | |
Reclassification out of Accumulated Other Comprehensive Income | Loss on Qualifying Hedges | Interest Rate Contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -10,037 | [1] | ' | ' |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -10,037 | [1] | ' | ' |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 3,914 | [1] | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ($6,123) | [1] | ' | ' |
[1] | Amounts in parentheses indicate debits to profit / loss |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues, net | $366,111 | $396,334 | $470,888 | $490,790 | $411,133 | $432,903 | $488,610 | $506,786 | $1,724,123 | $1,839,432 | $1,832,494 |
Gross profit | 201,780 | 231,980 | 283,715 | 283,637 | 247,964 | 257,651 | 297,032 | 291,171 | 1,001,112 | 1,093,818 | 1,058,505 |
Operating income | 79,142 | 124,520 | 153,976 | 103,119 | 122,539 | 131,984 | 153,508 | 102,774 | 460,757 | 510,805 | 546,328 |
Net income | $30,798 | $60,258 | $64,916 | $48,753 | $57,995 | $67,364 | $77,462 | $54,605 | $204,725 | $257,426 | $304,344 |
Basic EPS | $0.55 | $1.07 | $1.16 | $0.87 | $1.04 | $1.21 | $1.37 | $0.74 | $3.65 | $4.27 | $4.16 |
Diluted EPS | $0.54 | $1.07 | $1.15 | $0.87 | $1.03 | $1.20 | $1.36 | $0.74 | $3.63 | $4.23 | $4.11 |
Quarterly_Financial_Informatio3
Quarterly Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 29, 2013 | Dec. 29, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' |
Impact of early extinguishment of debt on net income before of tax | $21,685 | ' | ' | ' | ' | ' |
Impact of early extinguishment of debt on net income net of tax | 13,336 | ' | ' | ' | ' | ' |
Impact of early extinguishment of debt per fully diluted share | $0.24 | ' | ' | ' | ' | ' |
Write-off of fees associated early extinguishment of debt charge | 21,685 | ' | 1,328 | 21,685 | 1,328 | 0 |
Benefit recognized for settlement of UK self-employment tax litigation | ' | 7,423 | ' | ' | ' | ' |
Net benefit recognized for an accrual reversal associated with settlement of Uk self-employment tax litigation, per dully diluted share | ' | $0.07 | ' | ' | ' | ' |
Over-accrual reversal | ' | 14,544 | ' | ' | ' | ' |
Accrual of additional interest | ' | 7,130 | ' | ' | ' | ' |
United Kingdom | State Value Added Tax | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' |
Benefit recognized from settlement of UK self-employment tax litigation, net of income taxes | ' | $4,099 | ' | ' | ' | ' |
Recovered_Sheet1
Valuation And Qualifying Accounts And Reserves (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $3,447 | $5,315 | $5,191 | |||
Additions charged to Costs and Expenses | 596 | -1,067 | 1,441 | |||
Additions charged to Other Accounts | 0 | 26 | 0 | |||
Deductions | -566 | [1] | -827 | [1] | -1,317 | [1] |
Balance at End of Period | 3,477 | 3,447 | 5,315 | |||
Inventory and other reserves | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 6,942 | 7,397 | 3,948 | |||
Additions charged to Costs and Expenses | 9,580 | 10,491 | 13,203 | |||
Additions charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -10,663 | [1] | -10,946 | [1] | -9,754 | [1] |
Balance at End of Period | 5,859 | 6,942 | 7,397 | |||
Tax valuation allowance | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 31,015 | 25,781 | 24,989 | |||
Additions charged to Costs and Expenses | 3,821 | 3,387 | 2,512 | |||
Additions charged to Other Accounts | 2,429 | 2,322 | 970 | |||
Deductions | -893 | [1] | -475 | [1] | -2,690 | [1] |
Balance at End of Period | $36,372 | $31,015 | $25,781 | |||
[1] | Primarily represents the utilization of established reserves, net of recoveries, where applicable. |