Exhibit 99.1
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
14. Segment and Geographic Data
Effective December 29, 2013, the Company realigned its organizational structure to better leverage its significant assets and align its innovation efforts by integrating its Weight Watchers International and WeightWatchers.com businesses and assigning responsibility for those integrated businesses on a geographical basis. This resulted in the Company changing the determination of its reportable segments such that the Company now has four reportable segments: North America, United Kingdom, Continental Europe and Rest of World. Rest of World represents Asia Pacific, Emerging Markets and Franchise operations, which have been grouped together as if they were a single reportable segment because they do not meet any of the quantitative thresholds and are therefore immaterial for separate disclosure. The Company determined these segments to be its reportable segments due to the fact that discrete financial information for each of these segments is regularly reviewed by the chief operating decision maker (“CODM”). To be consistent with the information that is presented to the CODM, the Company does not include intercompany activity in the segment results. Segment information for all periods presented below has been revised to reflect the new reportable segment structure.
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| | Total Revenue for the Year Ended | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
North America | | $ | 1,164,018 | | | $ | 1,258,461 | | | $ | 1,234,095 | |
United Kingdom | | | 172,783 | | | | 204,506 | | | | 227,238 | |
Continental Europe | | | 299,403 | | | | 270,701 | | | | 247,003 | |
Rest of World | | | 87,919 | | | | 105,764 | | | | 124,158 | |
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Total revenue | | $ | 1,724,123 | | | $ | 1,839,432 | | | $ | 1,832,494 | |
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| | Net Income for the Year Ended | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
Segment operating income: | | | | | | | | | | | | |
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North America | | $ | 406,109 | | | $ | 437,379 | | | $ | 460,269 | |
United Kingdom | | | 34,429 | | | | 63,320 | | | | 62,701 | |
Continental Europe | | | 66,273 | | | | 38,714 | | | | 36,493 | |
Rest of World | | | 13,774 | | | | 22,690 | | | | 29,888 | |
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Total segment operating income | | | 520,585 | | | | 562,103 | | | | 589,351 | |
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General corporate expenses | | | (59,828 | ) | | | (51,298 | ) | | | (43,023 | ) |
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 | |
Provision for taxes | | | 130,640 | | | | 159,535 | | | | 178,748 | |
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Net Income | | $ | 204,725 | | | $ | 257,426 | | | $ | 304,344 | |
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| | Depreciation and Amortization for the Year Ended | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
North America | | $ | 32,923 | | | $ | 26,808 | | | $ | 20,033 | |
United Kingdom | | | 1,269 | | | | 1,159 | | | | 1,152 | |
Continental Europe | | | 2,222 | | | | 2,182 | | | | 2,133 | |
Rest of World | | | 1,965 | | | | 2,068 | | | | 2,796 | |
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Total segment depreciation and amortization | | | 38,379 | | | | 32,217 | | | | 26,114 | |
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General corporate depreciation and amortization | | | 14,197 | | | | 11,493 | | | | 9,706 | |
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Depreciation and amortization | | $ | 52,576 | | | $ | 43,710 | | | $ | 35,820 | |
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The following table presents information about the Company’s revenue by source 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.
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| | Revenues for the Year Ended | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
Meeting fees | | $ | 851,626 | | | $ | 934,933 | | | $ | 990,296 | |
Internet revenues | | | 522,226 | | | | 504,338 | | | | 399,495 | |
Product sales | | | 245,319 | | | | 294,758 | | | | 334,303 | |
Franchise royalties | | | 9,035 | | | | 12,732 | | | | 14,461 | |
Other | | | 95,917 | | | | 92,671 | | | | 93,939 | |
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| | $ | 1,724,123 | | | $ | 1,839,432 | | | $ | 1,832,494 | |
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| | Revenues for the Year Ended | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
United States | | $ | 1,068,216 | | | $ | 1,169,234 | | | $ | 1,151,811 | |
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Canada | | | 95,802 | | | | 89,227 | | | | 82,284 | |
United Kingdom | | | 172,783 | | | | 204,506 | | | | 227,238 | |
Continental Europe | | | 299,403 | | | | 270,701 | | | | 247,003 | |
Rest of World | | | 87,919 | | | | 105,764 | | | | 124,158 | |
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Total Foreign | | | 655,907 | | | | 670,198 | | | | 680,683 | |
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| | $ | 1,724,123 | | | $ | 1,839,432 | | | $ | 1,832,494 | |
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| | Long-Lived Assets | |
| | December 28, 2013 | | | December 29, 2012 | | | December 31, 2011 | |
United States | | $ | 79,448 | | | $ | 63,147 | | | $ | 33,722 | |
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Canada | | | 3,070 | | | | 2,561 | | | | 1,474 | |
United Kingdom | | | 1,192 | | | | 1,645 | | | | 1,508 | |
Continental Europe | | | 2,083 | | | | 2,431 | | | | 2,208 | |
Rest of World | | | 1,259 | | | | 1,984 | | | | 2,160 | |
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Total Foreign | | | 7,604 | | | | 8,621 | | | | 7,350 | |
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| | $ | 87,052 | | | $ | 71,768 | | | $ | 41,072 | |
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