Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 30, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'WTW | ' |
Entity Registrant Name | 'WEIGHT WATCHERS INTERNATIONAL INC | ' |
Entity Central Index Key | '0000105319 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 56,663,369 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS | ' | ' | ||
Cash and cash equivalents | $231,633 | $174,557 | ||
Receivables (net of allowances: March 29, 2014 - $3,905 and December 28, 2013 - $3,477) | 40,443 | 36,248 | ||
Inventories | 32,669 | 40,939 | ||
Deferred income taxes | 24,509 | 24,457 | ||
Prepaid expenses and other current assets | 38,770 | 39,524 | ||
TOTAL CURRENT ASSETS | 368,024 | 315,725 | ||
Property and equipment, net | 84,176 | 87,052 | ||
Franchise rights acquired | 834,622 | 836,835 | ||
Goodwill | 109,959 | 79,294 | ||
Trademarks and other intangible assets, net | 43,349 | 45,297 | ||
Deferred financing costs, net | 40,088 | 42,046 | ||
Other noncurrent assets | 2,847 | 2,682 | ||
TOTAL ASSETS | 1,483,065 | 1,408,931 | ||
CURRENT LIABILITIES | ' | ' | ||
Portion of long-term debt due within one year | 30,000 | 30,000 | ||
Accounts payable | 55,849 | 45,496 | ||
Derivative payable | 20,960 | 7,578 | ||
Accrued marketing and advertising | 26,421 | 15,509 | ||
Other accrued liabilities | 151,933 | 160,130 | ||
Income taxes payable | 10,835 | 10,777 | ||
Deferred revenue | 102,991 | 76,330 | ||
TOTAL CURRENT LIABILITIES | 398,989 | 345,820 | ||
Long-term debt | 2,352,000 | 2,358,000 | ||
Deferred income taxes | 168,601 | 164,064 | ||
Other | 16,258 | 15,669 | ||
TOTAL LIABILITIES | 2,935,848 | 2,883,553 | ||
Redeemable noncontrolling interests | 8,232 | 0 | ||
TOTAL DEFICIT | ' | ' | ||
Common stock, $0 par value; 1,000,000 shares authorized; 111,988 shares issued | 0 | 0 | ||
Treasury stock, at cost, 55,533 shares at March 29, 2014 and 55,562 shares at December 28, 2013 | -3,255,285 | -3,256,406 | ||
Retained earnings | 1,794,310 | 1,773,267 | ||
Accumulated other comprehensive income | -40 | [1] | 8,517 | [1] |
TOTAL DEFICIT | -1,461,015 | -1,474,622 | ||
TOTAL LIABILITIES AND TOTAL DEFICIT | $1,483,065 | $1,408,931 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Receivables, allowances | $3,905 | $3,477 |
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 | 55,533 | 55,562 |
CONSOLIDATED_STATEMENTS_OF_NET
CONSOLIDATED STATEMENTS OF NET INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Service revenues, net | $316,697 | $371,501 |
Product sales and other, net | 92,661 | 119,289 |
Revenues, net | 409,358 | 490,790 |
Cost of services | 144,609 | 154,670 |
Cost of product sales and other | 41,849 | 52,483 |
Cost of revenues | 186,458 | 207,153 |
Gross profit | 222,900 | 283,637 |
Marketing expenses | 115,335 | 122,201 |
Selling, general and administrative expenses | 56,512 | 58,317 |
Operating income | 51,053 | 103,119 |
Interest expense | 25,262 | 22,550 |
Other expense, net | 270 | 1,296 |
Gain on Brazil acquisition | -10,540 | 0 |
Income before income taxes | 36,061 | 79,273 |
Provision for income taxes | 14,530 | 30,520 |
Net income | $21,531 | $48,753 |
Earnings per share | ' | ' |
Basic | $0.38 | $0.87 |
Diluted | $0.38 | $0.87 |
Weighted average common shares outstanding | ' | ' |
Basic | 56,428 | 55,801 |
Diluted | 56,506 | 56,245 |
Dividends declared per common share | $0 | $0.18 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | ||
Net income | $21,531 | $48,753 | ||
Other comprehensive income: | ' | ' | ||
Foreign currency translation adjustments | -1,300 | -23 | ||
Income tax effect on foreign currency translation adjustments | 925 | -10 | ||
Foreign currency translation adjustments, net of taxes | -375 | -33 | ||
Changes in loss on derivatives | -13,413 | 2,618 | ||
Income tax effect on changes in loss on derivatives | 5,231 | -1,021 | ||
Changes in loss on derivatives, net of taxes | -8,182 | 1,597 | ||
Net current period other comprehensive income (loss) | -8,557 | [1] | 1,564 | [1] |
Comprehensive income | $12,974 | $50,317 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Operating activities: | ' | ' |
Net income | $21,531 | $48,753 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 11,454 | 10,486 |
Amortization of deferred financing costs | 1,959 | 1,783 |
Share-based compensation expense | 1,448 | 2,008 |
Deferred tax provision | 10,857 | 6,719 |
Allowance for doubtful accounts | 299 | 4 |
Reserve for inventory obsolescence | 2,939 | 2,374 |
Foreign currency exchange rate loss | 209 | 1,380 |
Gain on Brazil acquisition | -10,540 | 0 |
Other items, net | -155 | 0 |
Changes in cash due to: | ' | ' |
Receivables | -3,201 | -5,536 |
Inventories | 6,029 | 190 |
Prepaid expenses | 751 | -2,939 |
Accounts payable | 10,193 | 5,856 |
UK self-employment liability | 0 | -7,272 |
Accrued liabilities | 7,785 | 3,711 |
Deferred revenue | 26,083 | 30,214 |
Income taxes | -6,791 | 17,432 |
Cash provided by operating activities | 80,850 | 115,163 |
Investing activities: | ' | ' |
Capital expenditures | -2,052 | -17,915 |
Capitalized software expenditures | -3,921 | -5,292 |
Cash paid for acquisitions | -11,919 | -35,000 |
Other items, net | -53 | 34 |
Cash used for investing activities | -17,945 | -58,173 |
Financing activities: | ' | ' |
Payments on long-term debt | -6,000 | -6,343 |
Payment of dividends | -73 | -4 |
Proceeds from stock options exercised | 0 | 2,590 |
Tax benefit of restricted stock units vested and stock options exercised | 1 | 657 |
Cash used for financing activities | -6,072 | -3,100 |
Effect of exchange rate changes on cash and cash equivalents and other | 243 | -2,724 |
Net increase in cash and cash equivalents | 57,076 | 51,166 |
Cash and cash equivalents, beginning of period | 174,557 | 70,215 |
Cash and cash equivalents, end of period | $231,633 | $121,381 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||||
Mar. 29, 2014 | |||||
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 terms “Company” and “WWI” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of its operations consolidated for purposes of its financial statements. | |||||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include amounts that are based on management’s best estimates and judgments. While all available information has been considered, actual amounts could differ from those estimates. The consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments including those of a normal recurring nature necessary for a fair statement of the interim results presented. | |||||
These statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal 2013, which includes additional information about the Company, its results of operations, its financial position and its cash flows. | |||||
Revisions: | |||||
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 three months of fiscal 2013 Product sales and other, net, Cost of product sales and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows: | |||||
March 30, | |||||
2013 | |||||
Product sales and other, net | $ | 3,862 | |||
Cost of product sales and other | $ | 375 | |||
Gross profit | $ | 3,487 | |||
Marketing expenses | $ | 3,287 | |||
Selling, general and administrative expenses | $ | 200 | |||
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 first three months of fiscal 2013 consolidated statements of net income. These revisions had no impact on the consolidated balance sheets, consolidated statements of comprehensive income or consolidated statements of cash flows included in these financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 29, 2014 | ||
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Reclassification: | ||
Certain prior year amounts have been reclassified to conform to the current period presentation. With respect to the Company’s previously announced change in segment reporting, segment data for the three months ended March 30, 2013 has been revised to reflect the new reportable segment structure. See Note 13 for disclosures related to segments. | ||
In addition, the components of Revenues and Cost of revenues as presented in the Consolidated Statements of Net Income have been reclassified to reflect the integration of the Company’s Internet-based business with its meetings and other businesses. Revenues are comprised of service revenues, which are comprised of meetings fees, Online subscription revenue and eTools subscription revenue, and revenues from product sales and other. Cost of revenues is comprised of cost of services and cost of product sales and other. | ||
For a discussion of the Company’s other significant accounting policies, see “Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for fiscal 2013. |
Acquisitions_of_Franchisees_Ad
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello | 3 Months Ended | |
Mar. 29, 2014 | ||
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello | ' | |
3 | Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello | |
Franchisee Acquisitions | ||
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. Details of these franchise acquisitions are outlined below. | ||
The acquisitions resulted in goodwill related to, among other things, expected synergies in operations. The Company expects that the majority of goodwill recorded in connection with the below 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. | ||
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 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 allocated to franchise rights acquired ($238), goodwill ($23), customer relationship value ($13) and prepaid expenses ($1). | ||
Acquisition of Additional Equity Interest in Brazil | ||
Prior to March 12, 2014, the Company had owned 35% of Vigilantes do Peso Marketing Ltda. (“VPM”), a Brazilian limited liability partnership. On March 12, 2014, the Company acquired an additional 45% equity interest in VPM for a net purchase price of $14,181 less cash acquired of $2,262. VPM was converted into a joint-stock corporation prior to closing and subsequently operates as a subsidiary of the Company with rights to conduct typical business lines. As a result of the acquisition, the Company gained a direct controlling financial interest in VPM and has therefore begun consolidating this entity since the date of acquisition. | ||
Due to the timing of this acquisition, the Company has not yet completed the purchase price allocation. For the three months ended March 29, 2014, the following preliminary purchase price allocations have been recorded: | ||
The equity interest held immediately before the acquisition was $12. An implied fair value technique was used to measure acquisition date fair value of the equity interest to be $11,029. As a result of this transaction, the Company adjusted its previously held equity interest to fair value of $11,017 and recorded a charge of $477 associated with the settlement of the royalty-free arrangement of the Brazilian partnership. The net effect of these items resulted in the Company recognizing a gain of $10,540 ($6,429 after-tax or $0.11 per fully diluted share) in the first quarter of fiscal 2014. | ||
The fair value of the noncontrolling interest has been preliminarily valued at $4,682. An implied fair value technique was used to value the noncontrolling interest which was adjusted for a discount for lack of control based on a market method. | ||
In connection with the acquisition, a call option and a put option were granted related to the 20% interest in VPM not owned by the Company. These options have been preliminarily valued with a Black-Scholes-Merton option pricing model using a Discounted Cash Flow Method. Major inputs included stock price, exercise price, interest rate, time to maturity, volatility and dividend yield. For the three months ended March 29, 2014, the fair value of the call option granted has been preliminarily estimated at $3,740 and the fair value of the put option has been preliminarily estimated at $7,290. | ||
The preliminary fair value of the assets acquired and liabilities assumed, subject to final valuation, is as follows: receivables ($1,139), fixed assets ($575), prepaid expenses ($421), inventory ($287) and intangibles and other assets ($199) offset by accrued liabilities ($1,063), deferred revenue ($445), income taxes payable ($258) and accounts payable ($91). | ||
The acquisition preliminarily resulted in goodwill of $31,000 related to, among other things, expected synergies in operations. The Company does not expect goodwill to be deductible for tax purposes. The Company has not yet completed the valuation of the reacquired rights or customer relationship value to be recognized in conjunction with the acquisition. | ||
Acquisition of Wello | ||
After the end of the Company’s first quarter of fiscal 2014, on April 16, 2014, the Company acquired Knowplicity, Inc., d/b/a Wello, an online fitness and personal training company. |
Franchise_Rights_Acquired_Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||
Franchise Rights Acquired, Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||
4 | Franchise Rights Acquired, Goodwill and Other Intangible Assets | ||||||||||||||||||||
Franchise rights acquired are due to acquisitions of the Company’s franchised territories as well as the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the three months ended March 29, 2014, the change in the carrying value of franchise rights acquired is due to the effect of exchange rate changes of $2,213. | |||||||||||||||||||||
Goodwill primarily relates to the acquisition of the Company by H.J. Heinz Company in 1978, the acquisition of WeightWatchers.com, Inc. in 2005, the acquisitions of the Company’s franchised territories and the acquisition of the majority interest in VPM in the first quarter of fiscal 2014, as described in Note 3. For the three months ended March 29, 2014, the change in the carrying amount of goodwill is due to the VPM acquisition and the effect of exchange rate changes as follows: | |||||||||||||||||||||
North America | UK | CE | Other | Total | |||||||||||||||||
Balance as of December 28, 2013 | $ | 67,699 | $ | 1,530 | $ | 8,345 | $ | 1,720 | $ | 79,294 | |||||||||||
Goodwill acquired during the period | 0 | 0 | 0 | 29,928 | 29,928 | ||||||||||||||||
Effect of exchange rate changes | (350 | ) | 0 | 0 | 1,087 | 737 | |||||||||||||||
Balance as of March 29, 2014 | $ | 67,349 | $ | 1,530 | $ | 8,345 | $ | 32,735 | $ | 109,959 | |||||||||||
The carrying amount of finite-lived intangible assets as of March 29, 2014 and December 28, 2013 was as follows: | |||||||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Capitalized software costs | $ | 86,940 | $ | 65,625 | $ | 85,095 | $ | 62,418 | |||||||||||||
Website development costs | 71,956 | 50,964 | 69,660 | 48,060 | |||||||||||||||||
Trademarks | 10,746 | 10,023 | 10,691 | 9,955 | |||||||||||||||||
Other | 7,024 | 6,786 | 7,021 | 6,737 | |||||||||||||||||
$ | 176,666 | $ | 133,398 | $ | 172,467 | $ | 127,170 | ||||||||||||||
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $6,193 and $5,817 for the three months ended March 29, 2014 and March 30, 2013, respectively. | |||||||||||||||||||||
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows: | |||||||||||||||||||||
Remainder of fiscal 2014 | $ | 16,520 | |||||||||||||||||||
Fiscal 2015 | $ | 15,905 | |||||||||||||||||||
Fiscal 2016 | $ | 8,654 | |||||||||||||||||||
Fiscal 2017 | $ | 2,037 | |||||||||||||||||||
Fiscal 2018 and thereafter | $ | 152 |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||
5 | Long-Term Debt | ||||||||||||||||
The components of the Company’s long-term debt are as follows: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Effective | Effective | ||||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 297,750 | 3.02 | % | 298,500 | 2.97 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,084,250 | 3.85 | % | 2,089,500 | 3.75 | % | |||||||||||
Total Debt | 2,382,000 | 3.75 | % | 2,388,000 | 3.49 | % | |||||||||||
Less Current Portion | 30,000 | 30,000 | |||||||||||||||
Total Long-Term Debt | $ | 2,352,000 | $ | 2,358,000 | |||||||||||||
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, 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 March 29, 2014, the Company had $2,382,000 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at March 29, 2014, 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. On February 21, 2014, both S&P and Moody’s issued revised corporate ratings of the Company of B+ and B1, respectively. As a result, effective February 21, 2014, the applicable margin on borrowings under the Tranche B-1 Term Facility went from 2.75% to 3.00% and on borrowings under the Tranche B-2 Term Facility went from 3.00% to 3.25%. 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 March 29, 2014, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 3.00% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.25%. Based on the Company’s Consolidated Leverage Ratio as of March 29, 2014, 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. Based on the Company’s Consolidated Leverage Ratio as of March 29, 2014, 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 March 29, 2014, borrowings in excess of $50,000 would require us to not exceed such ratio. As of March 29, 2014, 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 March 29, 2014 and December 28, 2013, 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 3.90% and 3.65% per annum at March 29, 2014 and December 28, 2013, respectively. The average interest rate on our debt including the impact of swaps was approximately 4.08% per annum at December 28, 2013. The Company’s forward starting swap became effective on March 31, 2014. Therefore, at March 29, 2014, the average interest was not impacted by swaps. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
6 | 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: | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income | $ | 21,531 | $ | 48,753 | |||||
Denominator: | |||||||||
Weighted average shares of common stock outstanding | 56,428 | 55,801 | |||||||
Effect of dilutive common stock equivalents | 78 | 444 | |||||||
Weighted average diluted common shares outstanding | 56,506 | 56,245 | |||||||
Earnings per share | |||||||||
Basic | $ | 0.38 | $ | 0.87 | |||||
Diluted | $ | 0.38 | $ | 0.87 | |||||
The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 2,190 and 1,056 for the three months ended March 29, 2014 and March 30, 2013, respectively. |
Stock_Plans
Stock Plans | 3 Months Ended | |
Mar. 29, 2014 | ||
Stock Plans | ' | |
7 | Stock 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”). On May 6, 2014, the Company’s shareholders approved the 2014 Stock Incentive Plan (the “2014 Plan”), which replaces the 2008 Plan and 2004 Plan for all equity-based awards granted on or after May 6, 2014. The 2014 Plan is 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 2014 Plan. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 29, 2014 | ||
Income Taxes | ' | |
8 | Income Taxes | |
The effective tax rates for the three months ended March 29, 2014 and March 30, 2013 were 40.3% and 38.5%, respectively. For the three months ended March 29, 2014, the primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were increases in valuation allowances and state income taxes. For the three months ended March 30, 2013, the primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were state income taxes and increases in valuation allowances, offset by lower rates in certain foreign jurisdictions. |
Legal
Legal | 3 Months Ended | |
Mar. 29, 2014 | ||
Legal | ' | |
9 | Legal | |
Securities Class Action Matters | ||
In March 2014, two substantially identical purported class action complaints alleging violation of the federal securities laws were filed by individual shareholders against the Company, certain of the Company’s current and former officers and directors, and the Company’s controlling shareholder, in the United States District Court for the Southern District of New York. The complaints were filed on behalf of all purchasers of the Company’s common stock, no par value per share, between February 14, 2012 and October 30, 2013, inclusive (the “Class”). The complaints allege that, during that period, the defendants disseminated materially false and misleading statements and/or concealed material adverse facts. The complaints allege claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder. The plaintiffs seek to recover unspecified damages on behalf of the Class. The Company believes that the suits are without merit and intends to vigorously defend them. | ||
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. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging | 3 Months Ended | |
Mar. 29, 2014 | ||
Derivative Instruments and Hedging | ' | |
10 | Derivative Instruments and Hedging | |
As of March 29, 2014, due to the interest rate swap termination on January 27, 2014, the Company did not have an interest rate swap in effect. As of March 30, 2013, the Company had in effect an interest rate swap with a notional amount totaling $470,000. 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. 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 were recorded in earnings subsequent to April 2, 2013 and were immaterial for the first fiscal quarter ended March 29, 2014. | ||
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 March 29, 2014 and December 28, 2013, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive income (loss) in the amounts of $12,785 ($20,960 before taxes) and $4,603 ($7,546 before taxes), respectively. | ||
The Company is hedging forecasted transactions for periods not exceeding the next seven years. The Company expects approximately $11,570 ($18,967 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at March 29, 2014, based on current market rates, will be reclassified into earnings within the next 12 months. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
11 | 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 March 29, 2014 and March 30, 2013, the fair value of the Company’s long-term debt was approximately $1,895,179 and $2,403,021, 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 10 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: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Total | Active Markets | Significant Other | Unobservable | ||||||||||||||
Fair | for Identical Assets | Observable Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Interest rate swap liability at March 29, 2014 | $ | 20,960 | $ | 0 | $ | 20,960 | $ | 0 | |||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 0 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
12 | Accumulated Other Comprehensive Income | ||||||||||||
Amounts reclassified out of accumulated other comprehensive income are as follows: | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component (a) | |||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
Other comprehensive loss before reclassifications, net of tax | (8,682 | ) | (375 | ) | (9,057 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 500 | 0 | 500 | ||||||||||
Net current period other comprehensive loss | (8,182 | ) | (375 | ) | (8,557 | ) | |||||||
Ending Balance at March 29, 2014 | $ | (12,785 | ) | $ | 12,745 | $ | (40 | ) | |||||
Three Months Ended March 30, 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 | (24 | ) | (33 | ) | (57 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 1,621 | 0 | 1,621 | ||||||||||
Net current period other comprehensive income (loss) | 1,597 | (33 | ) | 1,564 | |||||||||
Ending Balance at March 30, 2013 | $ | (5,005 | ) | $ | 19,428 | $ | 14,423 | ||||||
(a) Amounts in parentheses indicate debits | |||||||||||||
(b) See separate table below for details about these reclassifications | |||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (a) | |||||||||||||
Details about Other Comprehensive | Three Months Ended | Affected Line Item in the Statement | |||||||||||
Income Components | March 29, | March 30, | Where Net Income is Presented | ||||||||||
2014 | 2013 | ||||||||||||
Amounts Reclassified from | |||||||||||||
Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (820 | ) | $ | (2,657 | ) | Interest expense | ||||||
(820 | ) | (2,657 | ) | Income before income taxes | |||||||||
320 | 1,036 | Provision for income taxes | |||||||||||
$ | (500 | ) | $ | (1,621 | ) | Net income | |||||||
(a) Amounts in parentheses indicate debits to profit / loss |
Segment_Data
Segment Data | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Segment Data | ' | ||||||||
13 | Segment 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 Internet-based business with its meetings and other 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 Other. Other consists of Asia Pacific and emerging markets operations and franchise revenues and related costs, all of which have been grouped together as if they were a single reportable segment because they do not meet any of the quantitative thresholds and are immaterial for separate disclosure. To be consistent with the information that is presented to the chief operating decision maker, the Company does not include intercompany activity in the segment results. Segment information for the three months ended March 30, 2013 presented below has been revised to reflect the new reportable segment structure. | |||||||||
Total Revenue | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
North America | $ | 264,406 | $ | 332,864 | |||||
United Kingdom | 42,199 | 48,945 | |||||||
Continental Europe | 84,231 | 82,201 | |||||||
Other | 18,522 | 26,780 | |||||||
Total revenue | $ | 409,358 | $ | 490,790 | |||||
Net Income | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Segment operating income: | |||||||||
North America | $ | 57,808 | $ | 102,450 | |||||
United Kingdom | (1,546 | ) | 4,930 | ||||||
Continental Europe | 5,843 | 4,089 | |||||||
Other | 1,088 | 4,099 | |||||||
Total segment operating income | 63,193 | 115,568 | |||||||
General corporate expenses | (12,140 | ) | (12,449 | ) | |||||
Interest expense | 25,262 | 22,550 | |||||||
Other expense, net | 270 | 1,296 | |||||||
Gain on Brazil acquisition | (10,540 | ) | 0 | ||||||
Provision for taxes | 14,530 | 30,520 | |||||||
Net Income | $ | 21,531 | $ | 48,753 | |||||
Depreciation and Amortization | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
North America | $ | 7,978 | $ | 8,491 | |||||
United Kingdom | 358 | 287 | |||||||
Continental Europe | 593 | 558 | |||||||
Other | 348 | 447 | |||||||
Total segment depreciation and amortization | 9,277 | 9,783 | |||||||
General corporate depreciation and amortization | 4,136 | 2,486 | |||||||
Depreciation and amortization | $ | 13,413 | $ | 12,269 | |||||
Restructuring_Charges
Restructuring Charges | 3 Months Ended | |
Mar. 29, 2014 | ||
Restructuring Charges | ' | |
14 | Restructuring Charges | |
The Company undertook the first phase of its previously disclosed resizing of its organization which resulted in the elimination of certain positions and employees in the three months ended March 29, 2014. In connection with the first phase of this plan, the Company recorded restructuring charges in connection with employee termination benefit costs of $3,656 ($2,235 after tax) during the three months ended March 29, 2014. These charges impacted cost of revenues by $1,512 and selling, general and administrative expense by $2,144. The Company anticipates recording additional restructuring charges in connection with this plan and the related employee termination benefit costs of approximately $6,500 during the remaining quarters of fiscal 2014. | ||
For the three months ended March 29, 2014, all restructuring charges were recorded to general corporate expense therefore there was no impact to the segments. The liability for these restructuring charges at March 29, 2014 was $3,630 and $26 of payments were made during the first fiscal quarter ended March 29, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2014 | |
Reclassification | ' |
Reclassification: | |
Certain prior year amounts have been reclassified to conform to the current period presentation. With respect to the Company’s previously announced change in segment reporting, segment data for the three months ended March 30, 2013 has been revised to reflect the new reportable segment structure. See Note 13 for disclosures related to segments. | |
In addition, the components of Revenues and Cost of revenues as presented in the Consolidated Statements of Net Income have been reclassified to reflect the integration of the Company’s Internet-based business with its meetings and other businesses. Revenues are comprised of service revenues, which are comprised of meetings fees, Online subscription revenue and eTools subscription revenue, and revenues from product sales and other. Cost of revenues is comprised of cost of services and cost of product sales and other. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | ||||
Mar. 29, 2014 | |||||
Revision of Certain Brand Marketing Funds Received From Licensees | ' | ||||
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 three months of fiscal 2013 Product sales and other, net, Cost of product sales and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows: | |||||
March 30, | |||||
2013 | |||||
Product sales and other, net | $ | 3,862 | |||
Cost of product sales and other | $ | 375 | |||
Gross profit | $ | 3,487 | |||
Marketing expenses | $ | 3,287 | |||
Selling, general and administrative expenses | $ | 200 |
Franchise_Rights_Acquired_Good1
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||
For the three months ended March 29, 2014, the change in the carrying amount of goodwill is due to the VPM acquisition and the effect of exchange rate changes as follows: | |||||||||||||||||||||
North America | UK | CE | Other | Total | |||||||||||||||||
Balance as of December 28, 2013 | $ | 67,699 | $ | 1,530 | $ | 8,345 | $ | 1,720 | $ | 79,294 | |||||||||||
Goodwill acquired during the period | 0 | 0 | 0 | 29,928 | 29,928 | ||||||||||||||||
Effect of exchange rate changes | (350 | ) | 0 | 0 | 1,087 | 737 | |||||||||||||||
Balance as of March 29, 2014 | $ | 67,349 | $ | 1,530 | $ | 8,345 | $ | 32,735 | $ | 109,959 | |||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||||||
The carrying amount of finite-lived intangible assets as of March 29, 2014 and December 28, 2013 was as follows: | |||||||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Capitalized software costs | $ | 86,940 | $ | 65,625 | $ | 85,095 | $ | 62,418 | |||||||||||||
Website development costs | 71,956 | 50,964 | 69,660 | 48,060 | |||||||||||||||||
Trademarks | 10,746 | 10,023 | 10,691 | 9,955 | |||||||||||||||||
Other | 7,024 | 6,786 | 7,021 | 6,737 | |||||||||||||||||
$ | 176,666 | $ | 133,398 | $ | 172,467 | $ | 127,170 | ||||||||||||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||||||
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows: | |||||||||||||||||||||
Remainder of fiscal 2014 | $ | 16,520 | |||||||||||||||||||
Fiscal 2015 | $ | 15,905 | |||||||||||||||||||
Fiscal 2016 | $ | 8,654 | |||||||||||||||||||
Fiscal 2017 | $ | 2,037 | |||||||||||||||||||
Fiscal 2018 and thereafter | $ | 152 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||||||||||
The components of the Company’s long-term debt are as follows: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Effective | Effective | ||||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 297,750 | 3.02 | % | 298,500 | 2.97 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,084,250 | 3.85 | % | 2,089,500 | 3.75 | % | |||||||||||
Total Debt | 2,382,000 | 3.75 | % | 2,388,000 | 3.49 | % | |||||||||||
Less Current Portion | 30,000 | 30,000 | |||||||||||||||
Total Long-Term Debt | $ | 2,352,000 | $ | 2,358,000 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
The following table sets forth the computation of basic and diluted EPS: | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income | $ | 21,531 | $ | 48,753 | |||||
Denominator: | |||||||||
Weighted average shares of common stock outstanding | 56,428 | 55,801 | |||||||
Effect of dilutive common stock equivalents | 78 | 444 | |||||||
Weighted average diluted common shares outstanding | 56,506 | 56,245 | |||||||
Earnings per share | |||||||||
Basic | $ | 0.38 | $ | 0.87 | |||||
Diluted | $ | 0.38 | $ | 0.87 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
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: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Total | Active Markets | Significant Other | Unobservable | ||||||||||||||
Fair | for Identical Assets | Observable Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Interest rate swap liability at March 29, 2014 | $ | 20,960 | $ | 0 | $ | 20,960 | $ | 0 | |||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 0 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Income by Component (a) | |||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
Other comprehensive loss before reclassifications, net of tax | (8,682 | ) | (375 | ) | (9,057 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 500 | 0 | 500 | ||||||||||
Net current period other comprehensive loss | (8,182 | ) | (375 | ) | (8,557 | ) | |||||||
Ending Balance at March 29, 2014 | $ | (12,785 | ) | $ | 12,745 | $ | (40 | ) | |||||
Three Months Ended March 30, 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 | (24 | ) | (33 | ) | (57 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 1,621 | 0 | 1,621 | ||||||||||
Net current period other comprehensive income (loss) | 1,597 | (33 | ) | 1,564 | |||||||||
Ending Balance at March 30, 2013 | $ | (5,005 | ) | $ | 19,428 | $ | 14,423 | ||||||
(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) | |||||||||||||
Details about Other Comprehensive | Three Months Ended | Affected Line Item in the Statement | |||||||||||
Income Components | March 29, | March 30, | Where Net Income is Presented | ||||||||||
2014 | 2013 | ||||||||||||
Amounts Reclassified from | |||||||||||||
Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (820 | ) | $ | (2,657 | ) | Interest expense | ||||||
(820 | ) | (2,657 | ) | Income before income taxes | |||||||||
320 | 1,036 | Provision for income taxes | |||||||||||
$ | (500 | ) | $ | (1,621 | ) | Net income | |||||||
(a) Amounts in parentheses indicate debits to profit / loss |
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Information About Reportable Segments | ' | ||||||||
Segment information for the three months ended March 30, 2013 presented below has been revised to reflect the new reportable segment structure. | |||||||||
Total Revenue | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
North America | $ | 264,406 | $ | 332,864 | |||||
United Kingdom | 42,199 | 48,945 | |||||||
Continental Europe | 84,231 | 82,201 | |||||||
Other | 18,522 | 26,780 | |||||||
Total revenue | $ | 409,358 | $ | 490,790 | |||||
Net Income | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Segment operating income: | |||||||||
North America | $ | 57,808 | $ | 102,450 | |||||
United Kingdom | (1,546 | ) | 4,930 | ||||||
Continental Europe | 5,843 | 4,089 | |||||||
Other | 1,088 | 4,099 | |||||||
Total segment operating income | 63,193 | 115,568 | |||||||
General corporate expenses | (12,140 | ) | (12,449 | ) | |||||
Interest expense | 25,262 | 22,550 | |||||||
Other expense, net | 270 | 1,296 | |||||||
Gain on Brazil acquisition | (10,540 | ) | 0 | ||||||
Provision for taxes | 14,530 | 30,520 | |||||||
Net Income | $ | 21,531 | $ | 48,753 | |||||
Depreciation and Amortization | |||||||||
for the Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
North America | $ | 7,978 | $ | 8,491 | |||||
United Kingdom | 358 | 287 | |||||||
Continental Europe | 593 | 558 | |||||||
Other | 348 | 447 | |||||||
Total segment depreciation and amortization | 9,277 | 9,783 | |||||||
General corporate depreciation and amortization | 4,136 | 2,486 | |||||||
Depreciation and amortization | $ | 13,413 | $ | 12,269 | |||||
Revision_of_Certain_Brand_Mark
Revision of Certain Brand Marketing Funds Received from Licensees (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Product sales and other, net | $92,661 | $119,289 |
Cost of product sales and other | 41,849 | 52,483 |
Gross profit | 222,900 | 283,637 |
Selling, general and administrative expenses | 56,512 | 58,317 |
Certain Brand Marketing Funds | ' | ' |
Product sales and other, net | ' | 3,862 |
Cost of product sales and other | ' | 375 |
Gross profit | ' | 3,487 |
Marketing expenses | ' | 3,287 |
Selling, general and administrative expenses | ' | $200 |
Acquisitions_of_Franchisees_Ad1
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | Mar. 04, 2013 | Mar. 04, 2013 | Mar. 04, 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 | Mar. 12, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 |
Alberta Ltd and Saskatchewan Ltd | Alberta Ltd and Saskatchewan Ltd | Alberta Ltd and Saskatchewan Ltd | 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 | Franklin and St Lawrence Counties Inc | Franklin and St Lawrence Counties Inc | Franklin and St Lawrence Counties Inc | Vigilantes do Peso Marketing Ltda | Vigilantes do Peso Marketing Ltda | Vigilantes do Peso Marketing Ltda | Vigilantes do Peso Marketing Ltda | Vigilantes do Peso Marketing Ltda | ||||
Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Customer Relationships | Franchise Rights | Call and Put Option | Call Option | Put Option | |||||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, net purchase price | ' | ' | ' | $35,000 | ' | ' | $16,028 | ' | ' | $23,357 | $3,969 | ' | ' | ' | $5,197 | ' | ' | $274 | ' | ' | $14,181 | ' | ' | ' | ' |
Business acquisition, purchase price allocation, intangible assets, indefinite lived | ' | ' | ' | ' | ' | 30,633 | ' | ' | 10,131 | ' | ' | ' | ' | 19,643 | ' | ' | 4,525 | ' | ' | 238 | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, goodwill | 109,959 | ' | 79,294 | 4,626 | ' | ' | 5,212 | ' | ' | ' | ' | 7,220 | ' | ' | 449 | ' | ' | 23 | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, intangible assets, finite lived | ' | ' | ' | ' | 473 | ' | ' | 448 | ' | ' | ' | ' | 494 | ' | ' | 249 | ' | ' | 13 | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, inventory | ' | ' | ' | 218 | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, fixed assets | ' | ' | ' | 182 | ' | ' | 209 | ' | ' | ' | ' | 116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, prepaid expenses | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price allocation, deferred revenue | ' | ' | ' | 1,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, assumed liabilities | ' | ' | ' | ' | ' | ' | 28 | ' | ' | 143 | 31 | ' | ' | ' | 28 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | 20.00% | ' | ' |
Percentage of ownership acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' |
Business acquisition, cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,262 | ' | ' | ' | ' |
Business acquisition, equity interest held immediately before acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' |
Business acquisition, fair value of equity interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,029 | ' | ' | ' |
Remeasurement gain on business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,017 | ' | ' | ' |
Business acquisition cost associated with settlement of royalty-free arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 477 | ' | ' | ' |
Gain related to acquisition | 10,540 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,540 | ' | ' | ' |
Gain related to acquisition, after-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,429 | ' | ' | ' |
Earnings per share, diluted | $0.38 | $0.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.11 | ' | ' | ' |
Business acquisition, fair value of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,682 | ' | ' | ' |
Fair value of option granted, estimated amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,740 | 7,290 |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,139 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, fixed assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 575 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, prepaid expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 421 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 287 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, intangible and other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 199 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, accrued liabilitie | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,063 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 445 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, income tax payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 258 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91 | ' | ' | ' |
Preliminary fair value of assets acquired and liabilities assumed, subject to final valuation, goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,000 | ' | ' | ' |
Franchise_Rights_Acquired_Good2
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Goodwill and Intangible Assets Disclosure | ' | ' |
Effect of exchange rate changes | $2,213 | ' |
Finite-lived intangible assets, aggregate amortization expense | $6,193 | $5,817 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Goodwill [Line Items] | ' |
Beginning balance | $79,294 |
Goodwill acquired during the period | 29,928 |
Effect of exchange rate changes | 737 |
Ending balance | 109,959 |
North America | ' |
Goodwill [Line Items] | ' |
Beginning balance | 67,699 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | -350 |
Ending balance | 67,349 |
United Kingdom | ' |
Goodwill [Line Items] | ' |
Beginning balance | 1,530 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | 0 |
Ending balance | 1,530 |
Continental Europe | ' |
Goodwill [Line Items] | ' |
Beginning balance | 8,345 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | 0 |
Ending balance | 8,345 |
Other | ' |
Goodwill [Line Items] | ' |
Beginning balance | 1,720 |
Goodwill acquired during the period | 29,928 |
Effect of exchange rate changes | 1,087 |
Ending balance | $32,735 |
Carrying_Amount_of_FiniteLived
Carrying Amount of Finite-Lived Intangible Assets (Detail) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $176,666 | $172,467 |
Accumulated Amortization | 133,398 | 127,170 |
Capitalized software costs | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 86,940 | 85,095 |
Accumulated Amortization | 65,625 | 62,418 |
Website development costs | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 71,956 | 69,660 |
Accumulated Amortization | 50,964 | 48,060 |
Trademarks | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 10,746 | 10,691 |
Accumulated Amortization | 10,023 | 9,955 |
Other | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 7,024 | 7,021 |
Accumulated Amortization | $6,786 | $6,737 |
Estimated_Amortization_Expense
Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Expected Amortization Expense | ' |
Remainder of fiscal 2014 | $16,520 |
Fiscal 2015 | 15,905 |
Fiscal 2016 | 8,654 |
Fiscal 2017 | 2,037 |
Fiscal 2018 and thereafter | $152 |
Components_of_LongTerm_Debt_De
Components of Long-Term Debt (Detail) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Total Debt | $2,382,000 | $2,388,000 |
Less Current Portion | 30,000 | 30,000 |
Effective Interest Rate | 3.75% | 3.49% |
Total Long-Term Debt | 2,352,000 | 2,358,000 |
Tranche B-1 Term Facility due April 2, 2016 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 297,750 | 298,500 |
Effective Interest Rate | 3.02% | 2.97% |
Tranche B-2 Term Facility due April 2, 2020 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | 2,084,250 | 2,089,500 |
Effective Interest Rate | 3.85% | 3.75% |
Revolving Facility due April 2, 2018 | ' | ' |
Debt Instrument | ' | ' |
Total Debt | $0 | $0 |
Effective Interest Rate | 0.00% | 0.00% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Apr. 02, 2013 | Feb. 21, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Apr. 02, 2013 | Feb. 21, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 02, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Apr. 02, 2013 | Mar. 29, 2014 | Mar. 29, 2014 |
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-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 | Tranche B-2 Term Facility due April 2, 2020 | Term B Loan due January 26, 2014 | Term C Loan due June 30, 2015 | Term D Loan due June 30, 2016 | Term E Loan due March 15, 2017 | Term F Loan due March 15, 2019 | Revolver A-1 Loan due June 30, 2014 | Revolver A-2 Loan due March 15, 2017 | Term Loan Facility | WWI Credit Facility | 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 | ||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Base Rate Plus | London Interbank Offered Rate (LIBOR) | Base Rate Plus | ||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WWI Credit Facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' |
Fees incurred in connection with debt refinancing | ' | ' | 44,817 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of term loan | 2,399,904 | 6,000 | ' | 6,343 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,759 | 110,602 | 117,612 | 1,125,044 | 817,887 | 21,247 | 78,753 | ' | ' | ' | ' | ' | ' | ' |
Early extinguishment of debt charge | ' | ' | 21,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility available amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 248,446 | ' | 248,848 | ' | ' |
Debt outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' |
Credit Facility, aggregate principal amount outstanding | ' | 2,382,000 | ' | ' | 2,388,000 | 297,750 | 298,500 | ' | ' | ' | 2,084,250 | 2,089,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,382,000 | 0 | 0 | ' | ' | ' |
Letters of credit issued | ' | 1,554 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,554 | ' | ' | ' | ' |
WWI Credit Facility, minimum interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
WWI Credit Facility, additional interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 3.00% | ' | ' | ' | 3.00% | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 1.25% |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum borrowings required to maintain specified financial ratio | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under revolver | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on debt | ' | 3.90% | ' | ' | 3.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on debt | ' | ' | ' | ' | 4.08% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Numerator: | ' | ' |
Net income | $21,531 | $48,753 |
Denominator: | ' | ' |
Weighted average shares of common stock outstanding | 56,428 | 55,801 |
Effect of dilutive common stock equivalents | 78 | 444 |
Weighted average diluted common shares outstanding | 56,506 | 56,245 |
Earnings per share | ' | ' |
Basic | $0.38 | $0.87 |
Diluted | $0.38 | $0.87 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS | 2,190 | 1,056 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Income Taxes [Line Items] | ' | ' |
Effective income tax rate | 40.30% | 38.50% |
Legal_Additional_Information_D
Legal - Additional Information (Detail) | 1 Months Ended |
Mar. 29, 2014 | |
LegalMatter | |
Loss Contingencies | ' |
Securities class action filed | 2 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging - Additional Information (Detail) (USD $) | Mar. 29, 2014 | Jul. 26, 2013 | Jan. 01, 2011 | Mar. 29, 2014 | Dec. 28, 2013 | Jul. 26, 2013 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 |
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 | |
Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | ||||||
31-Mar-14 | 3-Apr-17 | 1-Apr-19 | ||||||||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | $1,500,000 | $470,000 | $1,500,000 | $1,250,000 | $1,000,000 |
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 | ' | ' | ' | 12,785 | 4,603 | ' | ' | ' | ' | ' |
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), before tax | ' | ' | ' | 20,960 | 7,546 | ' | ' | ' | ' | ' |
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 | 11,570 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, before tax | $18,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value of long-term debt | $1,895,179 | $2,403,021 |
Aggregate_Fair_Value_of_Deriva
Aggregate Fair Value of Derivative Financial Instruments (Detail) (Fair Value, Measurements, Recurring, Interest Rate Swap, USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Interest rate swap liability | $20,960 | $7,578 |
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 | 20,960 | 7,578 |
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 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | $8,517 | [1] | $12,859 | [1] |
Other comprehensive loss before reclassifications, net of tax | -9,057 | [1] | -57 | [1] |
Amounts reclassified from accumulated other comprehensive income, net of tax | 500 | [1],[2] | 1,621 | [1],[2] |
Net current period other comprehensive income (loss) | -8,557 | [1] | 1,564 | [1] |
Ending Balance | -40 | [1] | 14,423 | [1] |
Loss on Qualifying Hedges | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | -4,603 | [1] | -6,602 | [1] |
Other comprehensive loss before reclassifications, net of tax | -8,682 | [1] | -24 | [1] |
Amounts reclassified from accumulated other comprehensive income, net of tax | 500 | [1],[2] | 1,621 | [1],[2] |
Net current period other comprehensive income (loss) | -8,182 | [1] | 1,597 | [1] |
Ending Balance | -12,785 | [1] | -5,005 | [1] |
Foreign Currency Translation Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | 13,120 | [1] | 19,461 | [1] |
Other comprehensive loss before reclassifications, net of tax | -375 | [1] | -33 | [1] |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | [1],[2] | 0 | [1],[2] |
Net current period other comprehensive income (loss) | -375 | [1] | -33 | [1] |
Ending Balance | $12,745 | [1] | $19,428 | [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 | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Interest expense | ($25,262) | ($22,550) | ||
Income before income taxes | 36,061 | 79,273 | ||
Provision for income taxes | -14,530 | -30,520 | ||
Net income | 21,531 | 48,753 | ||
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 | -820 | [1] | -2,657 | [1] |
Income before income taxes | -820 | [1] | -2,657 | [1] |
Provision for income taxes | 320 | [1] | 1,036 | [1] |
Net income | ($500) | [1] | ($1,621) | [1] |
[1] | Amounts in parentheses indicate debits to profit / loss |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) | 3 Months Ended |
Mar. 29, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 4 |
Information_About_Reportable_S
Information About Reportable Segments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | $409,358 | $490,790 |
Segment operating income | 51,053 | 103,119 |
Interest expense | 25,262 | 22,550 |
Other expense, net | 270 | 1,296 |
Gain on Brazil acquisition | -10,540 | 0 |
Provision for taxes | 14,530 | 30,520 |
Net income | 21,531 | 48,753 |
Depreciation and amortization | 13,413 | 12,269 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment operating income | 63,193 | 115,568 |
Depreciation and amortization | 9,277 | 9,783 |
General corporate expenses | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
General corporate expenses | -12,140 | -12,449 |
Depreciation and amortization | 4,136 | 2,486 |
North America | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 264,406 | 332,864 |
North America | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment operating income | 57,808 | 102,450 |
Depreciation and amortization | 7,978 | 8,491 |
United Kingdom | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 42,199 | 48,945 |
United Kingdom | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment operating income | -1,546 | 4,930 |
Depreciation and amortization | 358 | 287 |
Continental Europe | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 84,231 | 82,201 |
Continental Europe | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment operating income | 5,843 | 4,089 |
Depreciation and amortization | 593 | 558 |
Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 18,522 | 26,780 |
Other | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment operating income | 1,088 | 4,099 |
Depreciation and amortization | $348 | $447 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Employee termination benefit costs, pretax | $3,656 |
Employee termination benefit costs, after tax | 2,235 |
Expected restructuring charges and related cost during remainder of current fiscal year | 6,500 |
Restructuring liability | 3,630 |
Payments for restructuring liability | 26 |
Cost of Revenues | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Employee termination benefit costs, pretax | 1,512 |
Selling, General and Administrative Expenses | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Employee termination benefit costs, pretax | $2,144 |