Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Jan. 31, 2015 | Jun. 27, 2014 | |
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 3-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WTW | ||
Entity Registrant Name | WEIGHT WATCHERS INTERNATIONAL INC | ||
Entity Central Index Key | 105319 | ||
Current Fiscal Year End Date | -2 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 56,711,534 | ||
Entity Public Float | $571,205,322 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 03, 2015 | Dec. 28, 2013 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | $301,212 | $174,557 | ||
Receivables (net of allowances: January 3, 2015-$3,287 and December 28, 2013-$3,477) | 31,960 | 36,248 | ||
Inventories | 32,382 | 40,939 | ||
Deferred income taxes | 23,744 | 24,457 | ||
Prepaid expenses and other current assets | 38,430 | 39,524 | ||
TOTAL CURRENT ASSETS | 427,728 | 315,725 | ||
Property and equipment, net | 74,650 | 87,052 | ||
Franchise rights acquired | 799,795 | 836,835 | ||
Goodwill | 106,820 | 79,294 | ||
Trademarks and other intangible assets, net | 68,115 | 45,297 | ||
Deferred financing costs, net | 32,742 | 42,046 | ||
Other noncurrent assets | 5,337 | 2,682 | ||
TOTAL ASSETS | 1,515,187 | 1,408,931 | ||
CURRENT LIABILITIES | ||||
Portion of long-term debt due within one year | 24,000 | 30,000 | ||
Accounts payable | 54,474 | 45,496 | ||
Salaries and wages payable | 64,785 | 65,810 | ||
Accrued marketing and advertising | 20,540 | 15,509 | ||
Accrued interest | 22,965 | 22,776 | ||
Other accrued liabilities | 81,653 | 82,321 | ||
Derivative payable | 42,423 | 7,578 | ||
Deferred revenue | 66,190 | 76,330 | ||
TOTAL CURRENT LIABILITIES | 377,030 | 345,820 | ||
Long-term debt | 2,334,000 | 2,358,000 | ||
Deferred income taxes | 171,529 | 164,064 | ||
Other | 16,883 | 15,669 | ||
TOTAL LIABILITIES | 2,899,442 | 2,883,553 | ||
Commitments and contingencies (Note 13) | ||||
Redeemable noncontrolling interest | 5,553 | 0 | ||
TOTAL DEFICIT | ||||
Common stock, $0 par value; 1,000,000 shares authorized; 112,195 shares issued at January 3, 2015 and 111,988 shares issued at December 28, 2013 | 0 | 0 | ||
Treasury stock, at cost, 55,485 shares at January 3, 2015 and 55,562 shares at December 28, 2013 | -3,253,597 | -3,256,406 | ||
Retained earnings | 1,883,349 | 1,773,267 | ||
Accumulated other comprehensive (loss) income | -19,560 | [1] | 8,517 | [1] |
TOTAL DEFICIT | -1,389,808 | -1,474,622 | ||
TOTAL LIABILITIES AND TOTAL DEFICIT | $1,515,187 | $1,408,931 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Receivables, allowances | $3,287 | $3,477 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 112,195 | 111,988 |
Treasury stock, shares | 55,485 | 55,562 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Service Revenues, net | $1,181,945 | $1,360,761 | $1,425,065 |
Product sales and other, net | 297,971 | 363,362 | 414,367 |
Revenues, net | 1,479,916 | 1,724,123 | 1,839,432 |
Cost of services | 535,320 | 558,451 | 559,325 |
Cost of product sales and other | 142,045 | 164,560 | 186,289 |
Cost of revenues | 677,365 | 723,011 | 745,614 |
Gross profit | 802,551 | 1,001,112 | 1,093,818 |
Marketing expenses | 262,258 | 295,628 | 353,673 |
Selling, general and administrative expenses | 240,979 | 243,561 | 229,340 |
Indefinite-lived intangible impairments | 26,057 | 1,166 | 0 |
Operating income | 273,257 | 460,757 | 510,805 |
Interest expense | 122,984 | 103,108 | 90,537 |
Other expense, net | 3,206 | 599 | 1,979 |
Gain on Brazil acquisition | -10,540 | 0 | 0 |
Early extinguishment of debt | 0 | 21,685 | 1,328 |
Income before income taxes | 157,607 | 335,365 | 416,961 |
Provision for income taxes | 59,014 | 130,640 | 159,535 |
Net income | 98,593 | 204,725 | 257,426 |
Net loss attributable to the noncontrolling interest | 54 | 0 | 0 |
Net income attributable to Weight Watchers International, Inc. | $98,647 | $204,725 | $257,426 |
Earnings Per Share attributable to Weight Watchers International, Inc. | |||
Basic | $1.74 | $3.65 | $4.27 |
Diluted | $1.74 | $3.63 | $4.23 |
Weighted average common shares outstanding | |||
Basic | 56,607 | 56,144 | 60,294 |
Diluted | 56,705 | 56,394 | 60,923 |
Dividends declared per common share | $0 | $0.53 | $0.70 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Net income | $98,593 | $204,725 | $257,426 | ||
Other comprehensive loss: | |||||
Foreign currency translation adjustments | -18,528 | -10,363 | 763 | ||
Income tax effect on foreign currency translation adjustments | 7,226 | 4,022 | -225 | ||
Foreign currency translation adjustments, net of taxes | -11,302 | -6,341 | 538 | ||
Changes in (loss) gain on derivatives | -28,283 | 3,277 | 11,016 | ||
Income tax effect on changes in gain (loss) on derivatives | 11,030 | -1,278 | -4,296 | ||
Changes in (loss) gain on derivatives, net of taxes | -17,253 | 1,999 | 6,720 | ||
Net current period other comprehensive loss | -28,555 | [1] | -4,342 | [1] | 7,258 |
Comprehensive income | 70,038 | 200,383 | 264,684 | ||
Less: Net loss attributable to the noncontrolling interest | 54 | 0 | 0 | ||
Less: Foreign currency translation adjustments, net of taxes attributable to the noncontrolling interest | 478 | 0 | 0 | ||
Comprehensive loss attributable to the noncontrolling interest | 532 | 0 | 0 | ||
Comprehensive income attributable to Weight Watchers International, Inc. | $70,570 | $200,383 | $264,684 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT (USD $) | Total | Redeemable Noncontrolling Interest | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2011 | ($409,766) | $0 | $0 | ($1,793,983) | $5,601 | $1,378,616 |
Beginning balance (in shares) at Dec. 31, 2011 | 111,988,000 | 38,390,000 | ||||
Comprehensive Income | 264,684 | 0 | 7,258 | 257,426 | ||
Issuance of treasury stock under stock plans (in shares) | -435,000 | |||||
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) | 0 | 18,279,000 | ||||
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 | 0 | -3,281,831 | 12,859 | 1,603,513 |
Ending balance (in shares) at Dec. 29, 2012 | 111,988,000 | 56,234,000 | ||||
Comprehensive Income | 200,383 | 0 | -4,342 | 204,725 | ||
Issuance of treasury stock under stock plans (in shares) | -672,000 | |||||
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 | ||||
Purchase of treasury stock (in shares) | 0 | |||||
Compensation expense on share-based awards | 4,255 | 4,255 | ||||
Ending balance at Dec. 28, 2013 | -1,474,622 | 0 | 0 | -3,256,406 | 8,517 | 1,773,267 |
Ending balance (in shares) at Dec. 28, 2013 | 111,988,000 | 55,562,000 | ||||
Comprehensive Income | 70,570 | -532 | -28,077 | 98,647 | ||
Issuance of treasury stock under stock plans (in shares) | -77,000 | |||||
Issuance of treasury stock under stock plans | 250 | 2,809 | -2,559 | |||
Tax benefit of restricted stock units vested and stock options exercised | -788 | -788 | ||||
Cash dividends declared | 42 | 42 | ||||
Purchase of treasury stock (in shares) | 0 | |||||
Compensation expense on share-based awards | 10,533 | 10,533 | ||||
Acquisition of Wello | 4,207 | 4,207 | ||||
Acquisition of Wello (Shares) | 207,000 | |||||
Acquisition of Additional Equity Interest in Brazil | 6,157 | |||||
Distribution to noncontrolling interest | -75 | |||||
Other | 3 | |||||
Ending balance at Jan. 03, 2015 | ($1,389,808) | $5,553 | $0 | ($3,253,597) | ($19,560) | $1,883,349 |
Ending balance (in shares) at Jan. 03, 2015 | 112,195,000 | 55,485,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Operating activities: | |||
Net income | $98,593 | $204,725 | $257,426 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 49,234 | 44,904 | 36,640 |
Amortization of deferred financing costs | 9,305 | 7,672 | 7,070 |
Impairment of intangible and long-lived assets | 26,709 | 5,426 | 0 |
Share-based compensation expense | 10,533 | 4,255 | 8,845 |
Deferred tax provision | 22,182 | 35,380 | 26,765 |
Allowance for doubtful accounts | 99 | 596 | -1,067 |
Reserve for inventory obsolescence | 11,822 | 9,580 | 10,491 |
Foreign currency exchange rate loss/(gain) | 2,984 | 659 | -722 |
Gain on Brazil acquisition | -10,540 | 0 | 0 |
Loss on disposal of assets | 171 | 1,417 | 590 |
Loss on investment | 0 | 0 | 2,697 |
Early extinguishment of debt | 0 | 21,685 | 1,328 |
Other items, net | -184 | 0 | 0 |
Changes in cash due to: | |||
Receivables | 3,777 | 345 | 5,870 |
Inventories | -3,218 | -2,226 | -1,341 |
Prepaid expenses | -722 | 1,037 | -639 |
Accounts payable | 9,870 | -3,607 | -11,794 |
Accrued liabilities | 10,361 | 4,988 | 28,042 |
Deferred revenue | -7,915 | -10,521 | 1,539 |
Income taxes | -1,442 | 4,473 | 2,408 |
Cash provided by operating activities | 231,619 | 323,516 | 336,707 |
Investing activities: | |||
Capital expenditures | -9,097 | -40,657 | -48,807 |
Capitalized software expenditures | -42,589 | -21,277 | -29,926 |
Cash paid for acquisitions | -16,678 | -83,825 | -30,400 |
Other items, net | -628 | 411 | -323 |
Cash used for investing activities | -68,992 | -145,348 | -109,456 |
Financing activities: | |||
Proceeds from new term loans | 0 | 2,400,000 | 1,449,397 |
Net borrowings/(payments) on revolver | 0 | 70,000 | 30,000 |
Payments on long-term debt | -30,000 | -2,488,364 | -124,833 |
Payment of dividends | -80 | -29,571 | -51,961 |
Payments to acquire treasury stock | 0 | 0 | -1,504,189 |
Deferred financing costs | 0 | -44,817 | -26,248 |
Proceeds from stock options exercised | 658 | 16,187 | 12,688 |
Tax benefit of restricted stock units vested and stock options exercised | 1 | 2,132 | 4,026 |
Cash used for financing activities | -29,421 | -74,433 | -211,120 |
Effect of exchange rate changes on cash and cash equivalents and other | -6,551 | 607 | 885 |
Net increase in cash and cash equivalents | 126,655 | 104,342 | 17,016 |
Cash and cash equivalents, beginning of fiscal year | 174,557 | 70,215 | 53,199 |
Cash and cash equivalents, end of fiscal year | 301,212 | 174,557 | 70,215 |
United Kingdom | |||
Changes in cash due to: | |||
UK self-employment liability | $0 | ($7,272) | ($37,441) |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | |
Jan. 03, 2015 | ||
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 Company’s “meetings” business refers to providing access to meetings to the Company’s monthly commitment plan subscribers, “pay-as-you-go” members, Total Access subscribers and other meeting members. “Online” refers to Weight Watchers Online, Weight Watchers OnlinePlus, Personal Coaching and other digital subscription products. | ||
As further discussed in Note 3, (1) as a result of the acquisition of an additional equity interest in Vigilantes do Peso Marketing Ltda. (“VPM”) in March 2014, the Company gained a direct controlling financial interest in VPM and has therefore begun consolidating this entity as of the date of acquisition; and (2) as a result of the acquisition of Knowplicity, Inc., d/b/a Wello, in April 2014, Wello became a wholly owned subsidiary of the Company and the Company began to consolidate the entity as of the date of acquisition. | ||
Liquidity: | ||
The Company has a $291,000 debt maturity obligation due April 2016. Based upon the Company’s cash on hand of $301,212 as of January 3, 2015 and its 2015 forecasted cash flow, the Company believes that it will maintain sufficient liquidity to meet this obligation. In addition, the Company has access to the unused portion of its revolving credit facility of $48,181 and has the ability, if necessary, to delay investments or reduce marketing spend. Notwithstanding the foregoing, depending on future developments, there can be no assurance that the Company will meet this obligation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Jan. 03, 2015 | ||
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 year 2014 contained 53 weeks and fiscal years 2013 and 2012 each contained 52 weeks. In 2014, when the Company realigned its organizational structure and changed the determination of its reportable segments, the Company’s Online business accordingly changed its fiscal year end to be the same as the Company’s fiscal year end, which did not have a material effect on the consolidated financial statements. See Note 14 for further information on the Company’s reportable segments. In fiscal years 2013 and 2012, the Company’s Online business’ fiscal year ended on December 31st of each year. This difference in fiscal years did 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 accumulated other 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 2014, the Company recorded an impairment charge of $652 related to property, plant and equipment that was expected to be disposed of before the end of its estimated useful life. | ||
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 2014 and fiscal 2013 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. The values of goodwill in the United States, Brazil, Canada and other countries at January 3, 2015 were $65,608, $23,023, $7,543, and $10,646, respectively, totaling $106,820. | ||
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 for its franchise rights related to its meetings business and a relief from royalty methodology for its franchise rights related to its Online business. 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 combination of the rights in the meetings and Online businesses in 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 January 3, 2015 were $697,334, $74,672, $13,138, $7,272, $5,449 and $1,930, respectively, totaling $799,795. | ||
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 January 3, 2015, the Company determined that, based on the fair values calculated, the carrying amount of the franchise rights acquired related to its Canada operations exceeded its fair value as of the end of fiscal 2014 and recorded an impairment charge of $26,057 for such rights. 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, for which it charges a fee, predominantly through monthly commitment plans, prepayment plans or the “pay-as-you-go” arrangement. WWI also earns revenue from monthly subscriptions for its Online products, selling products in its meetings, on the Internet and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements, selling magazine subscriptions, selling advertising space on its website and in copies of its magazines, and By Mail product sales. | ||
Monthly commitment plans, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Online Subscription 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. Online Subscription Revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Revenue from “pay-as-you-go” meeting fees, product sales, By Mail, 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. Revenue from advertising in magazines 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. Revenue from advertising on its website is recognized when the advertisement is viewed by the user. | ||
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 January 3, 2015, December 28, 2013 and December 29, 2012 were $251,954, $285,298 and $344,582, respectively. Note the fiscal 2013 and fiscal 2012 amounts have been revised to exclude certain brand marketing funds received from licensees, which results in an increase in advertising expense of $11,138 and $10,160 for fiscal 2013 and fiscal 2012, 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. | ||
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 January 3, 2015, the Company wrote-off deferred financing fees of approximately $1,583 in connection with amending its Credit Agreement (as defined in Note 6). 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. Amortization expense for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $9,305, $7,672 and $7,070, respectively. | ||
Accumulated Other Comprehensive (Loss) Income: | ||
The Company’s accumulated other comprehensive (loss) income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At January 3, 2015 and December 28, 2013, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(21,856) and $(4,603), respectively. At January 3, 2015 and December 28, 2013, the cumulative balance of the effects of foreign currency translations, net of taxes, was $2,296 and $13,120, respectively. | ||
Restructuring Expense: | ||
The Company records estimated expense for restructuring initiatives when such costs are deemed probable and estimable, when approved by the appropriate corporate authority and by accumulating detailed estimates of costs for such plans. These expenses include the estimated costs of employee severance and related benefits, impairment or accelerated depreciation of property, plant and equipment and capitalized software, and any other qualifying exit costs. Such costs represent the Company’s best estimate, but require assumptions about the programs that may change over time, including attrition rates. Estimates are evaluated periodically to determine whether an adjustment is required. | ||
Reclassification: | ||
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Acquisitions_of_Franchisees_Ad
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello and Shutdown of China Operations | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello and Shutdown of China Operations | 3 | Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello and Shutdown of China Operations | |||
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. | |||||
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 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). | |||||
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 Additional Equity Interest in Brazil | |||||
Prior to March 12, 2014, the Company had owned 35% of 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 as of the date of acquisition. | |||||
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 redeemable noncontrolling interest has been valued at $6,157. 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. | |||||
The net purchase price of the Brazil acquisition has been allocated as follows: | |||||
Fair value of consideration transferred: | |||||
Net purchase price | $ | 14,181 | |||
Less cash acquired | 2,262 | ||||
Total | 11,919 | ||||
Gain on acquisition | 10,540 | ||||
Redeemable noncontrolling interest | 6,157 | ||||
28,616 | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Franchise rights acquired | 2,000 | ||||
Receivables | 1,139 | ||||
Fixed assets | 575 | ||||
Prepaid expenses | 421 | ||||
Inventory | 287 | ||||
Customer relationship value | 275 | ||||
Other assets | 199 | ||||
Accrued liabilities | (1,063 | ) | |||
Deferred tax on acquired intangibles | (680 | ) | |||
Deferred revenue | (445 | ) | |||
Income taxes payable | (258 | ) | |||
Accounts payable | (91 | ) | |||
Total identifiable net assets | 2,359 | ||||
Goodwill | $ | 26,257 | |||
The acquisition resulted in goodwill related to, among other things, expected synergies in operations and the ability of the Company to provide VPM with various intellectual property and technology innovations which will afford additional future opportunities in the meetings and Online businesses within the market where VPM operates. The Company does not expect goodwill to be deductible for tax purposes. | |||||
Acquisition of Wello | |||||
On April 16, 2014, the Company acquired Knowplicity, Inc., d/b/a Wello, an online fitness and personal training company for a net purchase price of $8,977 less cash acquired of $11. Payment was in the form of stock issued $4,207 and cash $4,770. The total purchase price of Wello has been allocated to goodwill ($6,204), website development ($4,516), prepaid expenses ($4) and fixed assets ($1) offset by deferred tax liabilities ($1,759). As a result of the acquisition, Wello became a wholly owned subsidiary of the Company and the Company began to consolidate the entity as of the date of acquisition. The acquisition resulted in goodwill related to, among other things, expected synergies in operations. The Company does not expect goodwill to be deductible for tax purposes. | |||||
Shutdown of China Operations | |||||
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 | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
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 January 3, 2015 and December 28, 2013. As a result of this review, the Company recorded a franchise rights acquired impairment charge of $26,057 related to its Canada operations in fiscal 2014 and a $1,166 franchise rights acquired impairment charge related to its Mexico and Hong Kong operations in fiscal 2013. | |||||||||||||||||||||
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 year ended January 3, 2015, the change in the carrying value of franchise rights acquired is due to the VPM acquisition, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows: | |||||||||||||||||||||
Balance as of December 28, 2013 | $ | 836,835 | |||||||||||||||||||
Franchise rights acquired during the period | 2,000 | ||||||||||||||||||||
Amortization of Brazil franchise rights acquired | (773 | ) | |||||||||||||||||||
Indefinite-lived intangible impairment | (26,057 | ) | |||||||||||||||||||
Effect of exchange rate changes | (12,210 | ) | |||||||||||||||||||
Balance as of January 3, 2015 | $ | 799,795 | |||||||||||||||||||
The franchise rights acquired related to the VPM acquisition are being amortized ratably over a 2 year period. | |||||||||||||||||||||
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, the acquisition of the majority interest in VPM in the first quarter of fiscal 2014 and the acquisition of Wello in the second quarter of fiscal 2014. See Note 3 for further information on certain acquisitions. For the year ended January 3, 2015, the change in the carrying amount of goodwill is due to the VPM and Wello acquisitions 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 | 6,204 | 0 | 0 | 26,257 | 32,461 | ||||||||||||||||
Effect of exchange rate changes | (751 | ) | (109 | ) | (684 | ) | (3,391 | ) | (4,935 | ) | |||||||||||
Balance as of January 3, 2015 | $ | 73,152 | $ | 1,421 | $ | 7,661 | $ | 24,586 | $ | 106,820 | |||||||||||
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $28,599, $24,562, and $17,796 for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. | |||||||||||||||||||||
The carrying amount of finite-lived intangible assets as of January 3, 2015 and December 28, 2013 was as follows: | |||||||||||||||||||||
January 3, 2015 | December 28, 2013 | ||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Capitalized software costs | $ | 107,581 | $ | 72,590 | $ | 85,095 | $ | 62,418 | |||||||||||||
Trademarks | 10,836 | 10,213 | 10,691 | 9,955 | |||||||||||||||||
Website development costs | 95,717 | 63,405 | 69,660 | 48,060 | |||||||||||||||||
Other | 7,014 | 6,825 | 7,021 | 6,737 | |||||||||||||||||
$ | 221,148 | $ | 153,033 | $ | 172,467 | $ | 127,170 | ||||||||||||||
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 and thereafter is as follows: | |||||||||||||||||||||
2015 | $ | 29,833 | |||||||||||||||||||
2016 | $ | 21,770 | |||||||||||||||||||
2017 | $ | 14,378 | |||||||||||||||||||
2018 | $ | 2,051 | |||||||||||||||||||
2019 and thereafter | $ | 83 | |||||||||||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Property and Equipment | 5 | Property and Equipment | |||||||
The components of property and equipment were: | |||||||||
January 3, | December 28, | ||||||||
2015 | 2013 | ||||||||
Equipment | $ | 124,788 | $ | 123,210 | |||||
Leasehold improvements | 79,496 | 77,771 | |||||||
204,284 | 200,981 | ||||||||
Less: Accumulated depreciation and amortization | (129,634 | ) | (113,929 | ) | |||||
$ | 74,650 | $ | 87,052 | ||||||
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 January 3, 2015, December 28, 2013 and December 29, 2012 was $20,635, $20,342 and $18,844, respectively. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Long-Term Debt | 6 | Long-Term Debt | |||||||||||||||
The components of the Company’s long-term debt were as follows: | |||||||||||||||||
January 3, 2015 | December 28, 2013 | ||||||||||||||||
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 | 294,750 | 3.12 | % | 298,500 | 2.97 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,063,250 | 3.96 | % | 2,089,500 | 3.75 | % | |||||||||||
Total Debt | 2,358,000 | 3.86 | % | 2,388,000 | 3.49 | % | |||||||||||
Less Current Portion | 24,000 | 30,000 | |||||||||||||||
Total Long-Term Debt | $ | 2,334,000 | $ | 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 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 new Credit Agreement (as amended, supplemented or otherwise modified, the “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 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. | |||||||||||||||||
On September 26, 2014, the Company and certain lenders entered into an agreement amending the Credit Agreement that, among other things, eliminated the Financial Covenant (as defined in the Credit Agreement) with respect to the Revolving Facility. In connection with this amendment, the Company wrote-off deferred financing fees of approximately $1,583 in the third quarter of fiscal 2014. Concurrently with and in order to effect this amendment, the Company reduced the amount of the Revolving Facility from $250,000 to $50,000. | |||||||||||||||||
At January 3, 2015, the Company had $2,358,000 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at January 3, 2015, the Revolving Facility had $1,819 in issued but undrawn letters of credit outstanding thereunder and $48,181 in available unused commitments thereunder. The proceeds from borrowings under the Revolving Facility (including swing line loans and letters of credit) are available to be used for working capital and general corporate purposes. | |||||||||||||||||
Borrowings under the 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%. Under the terms of the Credit Agreement, in the event 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 both of the Term Facilities would increase by 25 basis points. 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 Credit Agreement). At January 3, 2015, 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 January 3, 2015, had there been any borrowings under the Revolving Facility, it would have borne interest at LIBOR plus an applicable margin of 2.50% or base rate plus an applicable margin of 1.50%. 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 January 3, 2015, the commitment fee was 0.50% per annum. The Company also will pay customary letter of credit fees and fronting fees under the Revolving Facility. | |||||||||||||||||
The 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 WWI Credit Facility does not require the Company to meet any financial maintenance covenants and 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 January 3, 2015 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 January 3, 2015 and December 28, 2013, respectively. The average interest rate on the Company’s debt, including the impact of swaps, was approximately 4.93% and 4.08% per annum at January 3, 2015 and December 28, 2013, respectively. | |||||||||||||||||
Maturities | |||||||||||||||||
At January 3, 2015, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter were as follows: | |||||||||||||||||
2015 | $ | 24,000 | |||||||||||||||
2016 | 307,500 | ||||||||||||||||
2017 | 21,000 | ||||||||||||||||
2018 | 21,000 | ||||||||||||||||
2019 | 21,000 | ||||||||||||||||
Thereafter | 1,963,500 | ||||||||||||||||
$ | 2,358,000 | ||||||||||||||||
Treasury_Stock
Treasury Stock | 12 Months Ended | |
Jan. 03, 2015 | ||
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 Company’s then-existing 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 January 3, 2015, December 28, 2013 and December 29, 2012, the Company purchased no shares of its common stock in the open market under the repurchase program. 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. As of the end of fiscal 2014, $208,933 remained available to purchase shares of our common stock under the repurchase program. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
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: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Weight Watchers International, Inc. | $ | 98,647 | $ | 204,725 | $ | 257,426 | |||||||
Denominator: | |||||||||||||
Weighted average shares of common stock outstanding | 56,607 | 56,144 | 60,294 | ||||||||||
Effect of dilutive common stock equivalents | 98 | 250 | 629 | ||||||||||
Weighted average diluted common shares outstanding | 56,705 | 56,394 | 60,923 | ||||||||||
EPS attributable to Weight Watchers International, Inc. | |||||||||||||
Basic | $ | 1.74 | $ | 3.65 | $ | 4.27 | |||||||
Diluted | $ | 1.74 | $ | 3.63 | $ | 4.23 | |||||||
The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 3,073, 1,285 and 536 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. |
Stock_Plans
Stock Plans | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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”). On May 6, 2014, the Company’s shareholders approved the 2014 Stock Incentive Plan (the “2014 Plan” and together with the 2004 Plan and the 2008 Plan, the “Stock Plans”), which replaced 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. | |||||||||||||||||
Under the 2014 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 2014 Plan was 3,500, subject to increase and adjustment as set forth in the 2014 Plan. | |||||||||||||||||
Under the 2008 Plan, grants could take the following forms at the Compensation and Benefit Committee’s 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 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 could 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 2014 Plan, 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 January 3, 2015, December 28, 2013 and December 29, 2012, the Company granted 20, 14, and 13 fully-vested shares, respectively, and recognized compensation expense of $497, $524 and $707, 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 $10,533, $4,255 and $8,845 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, 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 $3,285, $1,174 and $2,742 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. The tax benefits realized from options exercised and RSUs vested totaled $301, $4,217 and $5,847 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. No compensation costs were capitalized. As of January 3, 2015, there was $34,191 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 2.2 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 2014 and 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 January 3, 2015 vest over a period of three to five years and the expiration term is ten years. Time Vesting Options outstanding at January 3, 2015 have an exercise price between $19.74 and $63.59 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. The Company did not grant any Time Vesting Options in fiscal 2014. | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0.80% | 1.60% | |||||||||||||||
Volatility | 36.50% | 35.50% | |||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | |||||||||||||||
Expected term (years) | 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 fiscal 2014 and the fourth quarter of fiscal 2013, the Company granted 1,600,583 and 686,549 T&P Vesting Options, respectively, 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 using a Monte Carlo simulation that used various assumptions that included expected volatility, a risk free rate and an expected term. | |||||||||||||||||
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. | |||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Volatility | 37.80% | 36.50% | |||||||||||||||
Risk-free interest rate | 1.4% - 1.8% | 1.60% | |||||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
A summary of all option activity under the Stock Plans for the year ended January 3, 2015 is presented below: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | ||||||||||||||
Granted | 1,601 | $ | 21.73 | ||||||||||||||
Exercised | (28 | ) | $ | 23.76 | |||||||||||||
Canceled | (536 | ) | $ | 38.78 | |||||||||||||
Outstanding at January 3, 2015 | 3,250 | $ | 30.72 | 5.3 | $ | 522 | |||||||||||
Exercisable at January 3, 2015 | 415 | $ | 38.05 | 5.1 | $ | 113 | |||||||||||
The weighted-average grant-date fair value of all options granted was $6.51, $11.37 and $16.60 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. The total intrinsic value of Time Vesting Options exercised was $62, $9,858 and $12,734 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. | |||||||||||||||||
Cash received from Time Vesting Options exercised during the years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $658, $16,187 and $12,688, 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 January 3, 2015 is presented below: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Granted | 725 | $ | 24.37 | ||||||||||||||
Vested | (49 | ) | $ | 61.82 | |||||||||||||
Forfeited | (91 | ) | $ | 36.55 | |||||||||||||
Outstanding at January 3, 2015 | 838 | $ | 27.71 | ||||||||||||||
The weighted-average grant-date fair value of RSUs granted was $24.37, $38.40 and $55.54 for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. The total fair value of RSUs vested during the years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $3,042, $1,705 and $5,536, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income Taxes | 10 | Income Taxes | |||||||||||
The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
US federal | $ | 13,558 | $ | 60,556 | $ | 99,437 | |||||||
State | (131 | ) | 9,583 | 12,719 | |||||||||
Foreign | 23,405 | 25,121 | 20,614 | ||||||||||
$ | 36,832 | $ | 95,260 | $ | 132,770 | ||||||||
Deferred: | |||||||||||||
US federal | $ | 19,595 | $ | 31,801 | $ | 23,002 | |||||||
State | 2,239 | 3,634 | 2,629 | ||||||||||
Foreign | 348 | (55 | ) | 1,134 | |||||||||
$ | 22,182 | $ | 35,380 | $ | 26,765 | ||||||||
Total tax provision | $ | 59,014 | $ | 130,640 | $ | 159,535 | |||||||
The components of the Company’s consolidated income before income taxes consist of the following: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Domestic | $ | 68,319 | $ | 255,183 | $ | 337,321 | |||||||
Foreign | 89,288 | 80,182 | 79,640 | ||||||||||
$ | 157,607 | $ | 335,365 | $ | 416,961 | ||||||||
The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate is as follows: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal and state tax reserve provision | 0.4 | (0.1 | ) | 0.2 | |||||||||
States income taxes (net of federal benefit) | 1.6 | 2.7 | 2.6 | ||||||||||
Foreign taxes | (0.7 | ) | 0.3 | (0.3 | ) | ||||||||
Increase in valuation allowance | 2 | 0.9 | 0.7 | ||||||||||
Loss on closure of China | (2.5 | ) | 0 | 0 | |||||||||
Canada intangible asset impairment | 1.4 | 0 | 0 | ||||||||||
Other | 0.2 | 0.2 | 0.1 | ||||||||||
Effective tax rate | 37.4 | % | 39 | % | 38.3 | % | |||||||
The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Provision for estimated expenses | $ | 7,863 | $ | 8,593 | |||||||||
Operating loss carryforwards | 37,746 | 40,587 | |||||||||||
Salaries and wages | 9,567 | 6,238 | |||||||||||
Share-based compensation | 6,653 | 4,705 | |||||||||||
Other | 6,922 | 6,562 | |||||||||||
Other comprehensive income | 12,811 | 0 | |||||||||||
Less: valuation allowance | (34,640 | ) | (36,372 | ) | |||||||||
Total deferred tax assets | $ | 46,922 | $ | 30,313 | |||||||||
Depreciation | $ | (6,482 | ) | $ | (6,381 | ) | |||||||
Other comprehensive income | 0 | (5,446 | ) | ||||||||||
Other | (3,123 | ) | (1,046 | ) | |||||||||
Amortization | (182,716 | ) | (157,047 | ) | |||||||||
Total deferred tax liabilities | $ | (192,321 | ) | $ | (169,920 | ) | |||||||
Net deferred tax liabilities | $ | (145,399 | ) | $ | (139,607 | ) | |||||||
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 January 3, 2015 and December 28, 2013, various foreign subsidiaries had net operating loss carryforwards of approximately $142,433 and $148,107, 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: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 5,784 | $ | 5,319 | $ | 5,040 | |||||||
Additions based on tax positions related to the current year | 1,304 | 1,428 | 1,647 | ||||||||||
Reductions for tax positions of prior years | (820 | ) | (963 | ) | (1,219 | ) | |||||||
Settlements | 0 | 0 | (149 | ) | |||||||||
Balance at end of year | $ | 6,268 | $ | 5,784 | $ | 5,319 | |||||||
At January 3, 2015, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $5,439. As of January 3, 2015, 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 $2,300 and $2,217 of accrued interest and penalties at January 3, 2015 and December 28, 2013, respectively. The Company recognized $83, $(1,188) and $823 in interest and penalties during the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively. | |||||||||||||
The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. At January 3, 2015, 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 2011, or non-US income tax examinations by tax authorities for years prior to 2009. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |
Jan. 03, 2015 | ||
Employee Benefit Plans | 11 | Employee Benefit Plans |
The Company sponsors the Third 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 January 3, 2015, December 28, 2013 and December 29, 2012 was $2,525, $2,888 and $2,730, respectively. | ||
During fiscal 2014, 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 January 3, 2015, December 28, 2013 and December 29, 2012 was $266, $1,658 and $2,779, 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 January 3, 2015, December 28, 2013 and December 29, 2012 was $1,090, $2,651 and $2,954, respectively. |
Cash_Flow_Information
Cash Flow Information | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Cash Flow Information | 12 | Cash Flow Information | |||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Net cash paid during the year for: | |||||||||||||
Interest expense | $ | 107,296 | $ | 88,860 | $ | 68,808 | |||||||
Income taxes | $ | 35,232 | $ | 87,071 | $ | 133,131 | |||||||
Noncash investing and financing activities were as follows: | |||||||||||||
Fair value of net assets/(liabilities) acquired in connection with acquisitions | $ | 359 | $ | (175 | ) | $ | 0 | ||||||
Dividends declared but not yet paid at year-end | $ | 0 | $ | 177 | $ | 289 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Commitments and Contingencies | 13 | Commitments and Contingencies | |||
Jeri Connolly et al. v. Weight Watchers North America, Inc. | |||||
In August 2013, the Company was contacted by plaintiffs’ counsel in the previously filed and settled Sabatino v. Weight Watchers North America, Inc. case (“Sabatino”), threatening to file a new class action on behalf of the Company’s current and former service providers in California asserting various wage and hour claims, including but not limited to claims for unpaid overtime and minimum wage violations, which allegedly accrued after the effective date of the Sabatino settlement. On March 17, 2014, the parties came to an agreement in principle to settle the matter on a class-wide basis for $1,688. On April 29, 2014, the parties executed a Memorandum of Understanding to document the terms and conditions of settlement and, the following day, plaintiffs filed a complaint regarding the claims at issue in the Northern District of California. On June 11, 2014, the parties filed a formal settlement agreement and other required documents for the Court’s preliminary approval. On July 21, 2014, the parties received the Court’s preliminary approval of the settlement agreement. On August 11, 2014, notices of settlement were sent out to the class members advising them of the settlement and their right to object or opt-out of the settlement; no class members did so by the deadline of September 22, 2014. At a December 2014 hearing the Court provided final approval of the settlement and the Company made the corresponding settlement payment in January 2015. | |||||
In re Weight Watchers International, Inc. Securities Litigation | |||||
In March 2014, two substantially identical putative 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 purportedly 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 Period”). The complaints allege that, during the Class 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. The plaintiffs seek to recover unspecified damages on behalf of the class members. In June 2014, the Court consolidated the cases and appointed lead plaintiffs and lead counsel. On August 12, 2014, the plaintiffs filed an amended complaint that, among other things, reduced the Class Period to between February 14, 2012 and February 13, 2013 and dropped all current officers and certain directors previously named as defendants. On October 14, 2014, the defendants filed a motion to dismiss. The plaintiffs filed an opposition to the defendants’ motion to dismiss on November 24, 2014 and the defendants filed a reply in support of their motion to dismiss on December 23, 2014. The Company continues to believe that the suits are without merit and intends to defend them vigorously. | |||||
On May 29, 2014 and June 23, 2014, the Company received shareholder litigation demand letters alleging breaches of fiduciary duties and unjust enrichment by Company officers and directors and Artal Group, S.A., to the alleged injury of the Company. The allegations in the letters relate to those contained in the ongoing securities class action litigation. In response to the letters, pursuant to Virginia law, the Board of Directors has created a special committee to review and evaluate the facts and circumstances surrounding the claims made in the demand letters. | |||||
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. | |||||
Commitments | |||||
Minimum commitments under non-cancelable obligations, primarily for office and rental facilities operating leases at January 3, 2015, consist of the following: | |||||
2015 | $ | 41,584 | |||
2016 | 34,810 | ||||
2017 | 25,867 | ||||
2018 | 19,890 | ||||
2019 | 13,082 | ||||
2020 and thereafter | 102,653 | ||||
Total | $ | 237,886 | |||
Total rent expense charged to operations under these operating leases for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $44,228, $46,300 and $40,485, respectively. |
Segment_and_Geographic_Data
Segment and Geographic Data | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Segment and Geographic Data | 14 | Segment and Geographic Data | |||||||||||
Effective December 29, 2013, the Company realigned its organizational structure to improve the leverage of its significant assets and the alignment of its innovation efforts by integrating its Online business with its meetings business 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 fiscal years ended December 28, 2013 and December 29, 2012 presented below have been revised to reflect the new reportable segment structure. | |||||||||||||
Total Revenue for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
North America | $ | 947,716 | $ | 1,163,002 | $ | 1,258,461 | |||||||
United Kingdom | 156,843 | 172,783 | 204,506 | ||||||||||
Continental Europe | 298,878 | 299,403 | 270,701 | ||||||||||
Other | 76,479 | 88,935 | 105,764 | ||||||||||
Total revenue | $ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | |||||||
Net Income for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Segment operating income: | |||||||||||||
North America | $ | 224,225 | $ | 406,109 | $ | 437,379 | |||||||
United Kingdom | 29,187 | 34,429 | 63,320 | ||||||||||
Continental Europe | 79,282 | 66,273 | 38,714 | ||||||||||
Other | 13,676 | 13,774 | 22,690 | ||||||||||
Total segment operating income | 346,370 | 520,585 | 562,103 | ||||||||||
General corporate expenses | (73,113 | ) | (59,828 | ) | (51,298 | ) | |||||||
Interest expense | 122,984 | 103,108 | 90,537 | ||||||||||
Other expense, net | 3,206 | 599 | 1,979 | ||||||||||
Gain on Brazil acquisition | (10,540 | ) | 0 | 0 | |||||||||
Early extinguishment of debt | 0 | 21,685 | 1,328 | ||||||||||
Provision for taxes | 59,014 | 130,640 | 159,535 | ||||||||||
Net income | 98,593 | 204,725 | 257,426 | ||||||||||
Net income attributable to noncontrolling interest | 54 | 0 | 0 | ||||||||||
Net income attributable to Weight Watchers International, Inc. | $ | 98,647 | $ | 204,725 | $ | 257,426 | |||||||
Depreciation and Amortization for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
North America | $ | 34,654 | $ | 32,923 | $ | 26,808 | |||||||
United Kingdom | 1,158 | 1,269 | 1,159 | ||||||||||
Continental Europe | 2,356 | 2,222 | 2,182 | ||||||||||
Other | 2,144 | 1,965 | 2,068 | ||||||||||
Total segment depreciation and amortization | 40,312 | 38,379 | 32,217 | ||||||||||
General corporate depreciation and amortization | 18,227 | 14,197 | 11,493 | ||||||||||
Depreciation and amortization | $ | 58,539 | $ | 52,576 | $ | 43,710 | |||||||
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 | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Meeting Fees | $ | 744,560 | $ | 851,626 | $ | 934,933 | |||||||
Online Subscription Revenues | 437,385 | 509,135 | 490,132 | ||||||||||
In-meeting product sales | 169,101 | 211,963 | 253,237 | ||||||||||
Licensing, franchise royalties and other | 128,870 | 151,399 | 161,130 | ||||||||||
$ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | ||||||||
Revenues for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
United States | $ | 869,541 | $ | 1,067,200 | $ | 1,169,234 | |||||||
Canada | 78,175 | 95,802 | 89,227 | ||||||||||
United Kingdom | 156,843 | 172,783 | 204,506 | ||||||||||
Continental Europe | 298,878 | 299,403 | 270,701 | ||||||||||
Other | 76,479 | 88,935 | 105,764 | ||||||||||
$ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | ||||||||
Long-Lived Assets | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
United States | $ | 67,903 | $ | 79,448 | $ | 63,147 | |||||||
Canada | 3,149 | 3,070 | 2,561 | ||||||||||
United Kingdom | 724 | 1,192 | 1,645 | ||||||||||
Continental Europe | 1,454 | 2,083 | 2,431 | ||||||||||
Other | 1,420 | 1,259 | 1,984 | ||||||||||
$ | 74,650 | $ | 87,052 | $ | 71,768 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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 January 3, 2015 and December 28, 2013, the fair value of the Company’s long-term debt was approximately $1,888,051 and $2,169,908, respectively. As of January 3, 2015 and December 28, 2013, the book value of the Company’s long-term debt was approximately $2,334,000 and $2,358,000, 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 January 3, 2015 | $ | 42,423 | $ | 0 | $ | 42,423 | $ | 0 | |||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 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 January 3, 2015 and December 28, 2013. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging | 12 Months Ended | |
Jan. 03, 2015 | ||
Derivative Instruments and Hedging | 16 | Derivative Instruments and Hedging |
As of January 3, 2015 and December 28, 2013, the Company had in effect interest rate swaps with notional amounts totaling $1,500,000 and $466,250, respectively. In January 2009, the Company entered into a forward-starting interest rate swap which had an effective date of January 4, 2010 and a termination date of January 27, 2014. From December 29, 2012 through April 1, 2013, this swap had qualified for hedge accounting, and therefore changes in the fair value of this derivative were recorded in accumulated other comprehensive income (loss). 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 fiscal year ended January 3, 2015. | ||
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 was $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 January 3, 2015 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 $21,856 ($35,830 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 $11,256 ($18,452 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at January 3, 2015, 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 | ||||||||||||
Jan. 03, 2015 | |||||||||||||
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 January 3, 2015 | |||||||||||||
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 | (21,775 | ) | (11,302 | ) | (33,077 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, | 4,522 | 0 | 4,522 | ||||||||||
net of tax(b) | |||||||||||||
Net current period other comprehensive loss including noncontrolling interest | (17,253 | ) | (11,302 | ) | (28,555 | ) | |||||||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | 478 | 478 | ||||||||||
Ending Balance at January 3, 2015 | $ | (21,856 | ) | $ | 2,296 | $ | (19,560 | ) | |||||
(a) | Amounts in parentheses indicate debits | ||||||||||||
(b) | See separate table below for details about these reclassifications | ||||||||||||
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, | 6,123 | 0 | 6,123 | ||||||||||
net of tax(b) | |||||||||||||
Net current period other comprehensive 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) | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Details about Other | Amounts Reclassified from | Affected Line Item in the | |||||||||||
Comprehensive Income | Accumulated Other | Statement Where Net Income is Presented | |||||||||||
Components | Comprehensive Income | ||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (7,413 | ) | $ | (10,037 | ) | Interest expense | ||||||
(7,413 | ) | (10,037 | ) | Income before income taxes | |||||||||
2,891 | 3,914 | Provision for income taxes | |||||||||||
$ | (4,522 | ) | $ | (6,123 | ) | Net income | |||||||
(a) | Amounts in parentheses indicate debits to profit / loss |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Restructuring Charges | 18 | Restructuring Charges | |||
As previously disclosed, the Company has reviewed its organization and undertook a restructuring which resulted in the elimination of certain positions and the termination of employment of certain employees in the fiscal year ended January 3, 2015. In connection with this plan, the Company recorded restructuring charges in connection with employee termination benefit costs of $11,840 ($7,222 after tax) during the fiscal year ended January 3, 2015. For the fiscal year ended January 3, 2015, these charges impacted cost of revenues by $4,642 and selling, general and administrative expense by $7,198. For the fiscal year ended January 3, 2015, all restructuring charges were recorded to general corporate expense and therefore there was no impact to the segments. | |||||
For the fiscal year ended January 3, 2015, the reconciliation of the liability balance for these restructuring charges was as follows: | |||||
Balance as of December 28, 2013 | $ | 0 | |||
Provision | 11,840 | ||||
Payments | (9,270 | ) | |||
Balance as of January 3, 2015 | $ | 2,570 | |||
The Company expects the $2,570 liability as of January 3, 2015 to be paid in fiscal 2015. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Quarterly Financial Information (Unaudited) | 19 | Quarterly Financial Information (Unaudited) | |||||||||||||||
The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended January 3, 2015 and December 28, 2013. | |||||||||||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 29, | June 28, | September 27, | January 3, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Fiscal year ended January 3, 2015 | |||||||||||||||||
Revenues, net | $ | 409,358 | $ | 397,547 | $ | 345,184 | $ | 327,827 | |||||||||
Gross profit | 222,900 | 225,814 | 187,567 | 166,270 | |||||||||||||
Operating income | 51,053 | 114,564 | 91,394 | 16,246 | |||||||||||||
Net income attributable to the Company | 21,531 | 54,002 | 37,892 | (14,778 | ) | ||||||||||||
Basic EPS | $ | 0.38 | $ | 0.95 | $ | 0.67 | $ | (0.26 | ) | ||||||||
Diluted EPS | $ | 0.38 | $ | 0.95 | $ | 0.67 | $ | (0.26 | ) | ||||||||
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 | |||||||||
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 fourth quarter of fiscal 2014, operating income, net income and EPS were impacted by a $26,057, or $0.34 per fully diluted share, franchise rights acquired impairment charge related to the Company’s Canada operations. In the fourth quarter of fiscal 2013, operating income, net income and EPS were impacted by a $1,166, or $0.01 per fully diluted share, franchise rights acquired impairment charge related to the Company’s Mexico and Hong Kong operations. See Note 2 for further information on these impairment charges. | |||||||||||||||||
As discussed in further detail in Note 18, the Company recorded restructuring charges of $3,656 ($2,235 after tax), $6,498 ($3,964 after tax), $713 ($430 after tax) and $973 ($593 after tax) during the first, second, third and fourth quarters of fiscal 2014, respectively, in connection with employee termination benefit costs associated with its previously disclosed plan to restructure its organization, reducing gross profit, operating income, net income attributable to the Company and EPS all four quarters of fiscal 2014. | |||||||||||||||||
As discussed in further detail in Note 3, in the first quarter of fiscal 2014, net income and EPS were impacted by a $10,540 gain ($6,396 after tax), or $0.11 per fully diluted share, recognized in connection with the Brazil acquisition due to an adjustment of our previously held equity interest to fair value offset by a charge associated with the settlement of the royalty-free arrangement of the Brazilian partnership. | |||||||||||||||||
In the second quarter of fiscal 2014, net income and EPS were impacted by a $2,350, or $0.04 per fully diluted share, net tax benefit related to an intercompany loan write-off in connection with the closure of our China business partially offset by the recognition of a valuation allowance related to tax benefits for foreign losses that are not expected to be realized. | |||||||||||||||||
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. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended | |
Jan. 03, 2015 | ||
Recently Issued Accounting Pronouncements | 20 | Recently Issued Accounting Pronouncements |
In November 2014, the Financial Accounting Standards Board (the “FASB”) issued updated guidance on accounting for derivatives and hedging. The guidance clarifies how current accounting principles generally accepted in the United States (GAAP) should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016 with early adoption, including adoption in an interim period, permitted. The adoption of this guidance is not expected to have a material effect on the consolidated financial position, results of operations or cash flows of the Company. | ||
In August 2014, the FASB issued updated guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the consolidated financial position, results of operations or cash flows of the Company. | ||
In May 2014, the FASB issued updated guidance on accounting for revenue from contracts with customers. The objective of this guidance is to provide a single, comprehensive revenue recognition model, to remove existing industry specific guidance and to expand qualitative and quantitative disclosures. The core principle of the new standard is for revenue recognition to depict transfer of control to the customer in an amount that reflects consideration to which an entity expects to be entitled. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption not permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the consolidated financial position, results of operations or cash flows of the Company. | ||
In April 2014, the FASB issued updated guidance on reporting discontinued operations and disclosures of disposals of components of an entity. This guidance raises the threshold for disposal transactions to qualify as discontinued operations and focuses on disposal transactions that represent strategic shifts having a major effect on operations and financial results, requiring additional disclosures and revising balance sheet presentation. This guidance was effective for fiscal years beginning after December 15, 2014, and interim periods within those fiscal years and is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
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 JANUARY 3, 2015 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,477 | $ | 99 | $ | 0 | $ | (289 | ) | $ | 3,287 | ||||||||||
Inventory and other reserves | $ | 5,859 | $ | 11,822 | $ | 0 | $ | (10,574 | ) | $ | 7,107 | ||||||||||
Tax valuation allowance | $ | 36,372 | $ | 3,183 | $ | 0 | $ | (4,915 | ) | $ | 34,640 | ||||||||||
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 | ||||||||||
-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 |
Jan. 03, 2015 | |
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 year 2014 contained 53 weeks and fiscal years 2013 and 2012 each contained 52 weeks. In 2014, when the Company realigned its organizational structure and changed the determination of its reportable segments, the Company’s Online business accordingly changed its fiscal year end to be the same as the Company’s fiscal year end, which did not have a material effect on the consolidated financial statements. See Note 14 for further information on the Company’s reportable segments. In fiscal years 2013 and 2012, the Company’s Online business’ fiscal year ended on December 31st of each year. This difference in fiscal years did 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 accumulated other 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 2014, the Company recorded an impairment charge of $652 related to property, plant and equipment that was expected to be disposed of before the end of its estimated useful life. | |
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 2014 and fiscal 2013 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. The values of goodwill in the United States, Brazil, Canada and other countries at January 3, 2015 were $65,608, $23,023, $7,543, and $10,646, respectively, totaling $106,820. | |
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 for its franchise rights related to its meetings business and a relief from royalty methodology for its franchise rights related to its Online business. 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 combination of the rights in the meetings and Online businesses in 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 January 3, 2015 were $697,334, $74,672, $13,138, $7,272, $5,449 and $1,930, respectively, totaling $799,795. | |
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 January 3, 2015, the Company determined that, based on the fair values calculated, the carrying amount of the franchise rights acquired related to its Canada operations exceeded its fair value as of the end of fiscal 2014 and recorded an impairment charge of $26,057 for such rights. 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, for which it charges a fee, predominantly through monthly commitment plans, prepayment plans or the “pay-as-you-go” arrangement. WWI also earns revenue from monthly subscriptions for its Online products, selling products in its meetings, on the Internet and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements, selling magazine subscriptions, selling advertising space on its website and in copies of its magazines, and By Mail product sales. | |
Monthly commitment plans, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Online Subscription 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. Online Subscription Revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Revenue from “pay-as-you-go” meeting fees, product sales, By Mail 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. Revenue from advertising in magazines 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. Revenue from advertising on its website is recognized when the advertisement is viewed by the user. | |
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 January 3, 2015, December 28, 2013 and December 29, 2012 were $251,954, $285,298 and $344,582, respectively. Note the fiscal 2013 and fiscal 2012 amounts have been revised to exclude certain brand marketing funds received from licensees, which results in an increase in advertising expense of $11,138 and $10,160 for fiscal 2013 and fiscal 2012, 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. | |
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 January 3, 2015, the Company wrote-off deferred financing fees of approximately $1,583 in connection with amending its Credit Agreement (as defined in Note 6). 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. Amortization expense for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $9,305, $7,672 and $7,070, respectively. | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: |
The Company’s accumulated other comprehensive (loss) income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At January 3, 2015 and December 28, 2013, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(21,856) and $(4,603), respectively. At January 3, 2015 and December 28, 2013, the cumulative balance of the effects of foreign currency translations, net of taxes, was $2,296 and $13,120, respectively. | |
Restructuring Expense | Restructuring Expense: |
The Company records estimated expense for restructuring initiatives when such costs are deemed probable and estimable, when approved by the appropriate corporate authority and by accumulating detailed estimates of costs for such plans. These expenses include the estimated costs of employee severance and related benefits, impairment or accelerated depreciation of property, plant and equipment and capitalized software, and any other qualifying exit costs. Such costs represent the Company’s best estimate, but require assumptions about the programs that may change over time, including attrition rates. Estimates are evaluated periodically to determine whether an adjustment is required. | |
Reclassification | Reclassification: |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Acquisitions_of_Franchisees_Ad1
Acquisitions of Franchisees, Additional Equity Interest in Brazil and Wello and Shutdown of China Operations (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Schedule of Net Purchase Price of the Acquisition | The net purchase price of the Brazil acquisition has been allocated as follows: | ||||
Fair value of consideration transferred: | |||||
Net purchase price | $ | 14,181 | |||
Less cash acquired | 2,262 | ||||
Total | 11,919 | ||||
Gain on acquisition | 10,540 | ||||
Redeemable noncontrolling interest | 6,157 | ||||
28,616 | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Franchise rights acquired | 2,000 | ||||
Receivables | 1,139 | ||||
Fixed assets | 575 | ||||
Prepaid expenses | 421 | ||||
Inventory | 287 | ||||
Customer relationship value | 275 | ||||
Other assets | 199 | ||||
Accrued liabilities | (1,063 | ) | |||
Deferred tax on acquired intangibles | (680 | ) | |||
Deferred revenue | (445 | ) | |||
Income taxes payable | (258 | ) | |||
Accounts payable | (91 | ) | |||
Total identifiable net assets | 2,359 | ||||
Goodwill | $ | 26,257 | |||
Franchise_Rights_Acquired_Good1
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
Changes in Carrying Value of Franchise Rights Acquired | For the year ended January 3, 2015, the change in the carrying value of franchise rights acquired is due to the VPM acquisition, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows: | ||||||||||||||||||||
Balance as of December 28, 2013 | $ | 836,835 | |||||||||||||||||||
Franchise rights acquired during the period | 2,000 | ||||||||||||||||||||
Amortization of Brazil franchise rights acquired | (773 | ) | |||||||||||||||||||
Indefinite-lived intangible impairment | (26,057 | ) | |||||||||||||||||||
Effect of exchange rate changes | (12,210 | ) | |||||||||||||||||||
Balance as of January 3, 2015 | $ | 799,795 | |||||||||||||||||||
Changes in Carrying Amount of Goodwill | For the year ended January 3, 2015, the change in the carrying amount of goodwill is due to the VPM and Wello acquisitions 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 | 6,204 | 0 | 0 | 26,257 | 32,461 | ||||||||||||||||
Effect of exchange rate changes | (751 | ) | (109 | ) | (684 | ) | (3,391 | ) | (4,935 | ) | |||||||||||
Balance as of January 3, 2015 | $ | 73,152 | $ | 1,421 | $ | 7,661 | $ | 24,586 | $ | 106,820 | |||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | The carrying amount of finite-lived intangible assets as of January 3, 2015 and December 28, 2013 was as follows: | ||||||||||||||||||||
January 3, 2015 | December 28, 2013 | ||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Capitalized software costs | $ | 107,581 | $ | 72,590 | $ | 85,095 | $ | 62,418 | |||||||||||||
Trademarks | 10,836 | 10,213 | 10,691 | 9,955 | |||||||||||||||||
Website development costs | 95,717 | 63,405 | 69,660 | 48,060 | |||||||||||||||||
Other | 7,014 | 6,825 | 7,021 | 6,737 | |||||||||||||||||
$ | 221,148 | $ | 153,033 | $ | 172,467 | $ | 127,170 | ||||||||||||||
Schedule of Expected Amortization Expense | Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: | ||||||||||||||||||||
2015 | $ | 29,833 | |||||||||||||||||||
2016 | $ | 21,770 | |||||||||||||||||||
2017 | $ | 14,378 | |||||||||||||||||||
2018 | $ | 2,051 | |||||||||||||||||||
2019 and thereafter | $ | 83 |
Property_and_Equipment_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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. The Company did not grant any Time Vesting Options in fiscal 2014. | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0.80% | 1.60% | |||||||||||||||
Volatility | 36.50% | 35.50% | |||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | |||||||||||||||
Expected term (years) | 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 January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | ||||||||||||||
Granted | 1,601 | $ | 21.73 | ||||||||||||||
Exercised | (28 | ) | $ | 23.76 | |||||||||||||
Canceled | (536 | ) | $ | 38.78 | |||||||||||||
Outstanding at January 3, 2015 | 3,250 | $ | 30.72 | 5.3 | $ | 522 | |||||||||||
Exercisable at January 3, 2015 | 415 | $ | 38.05 | 5.1 | $ | 113 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU activity under the Stock Plans for the year ended January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Granted | 725 | $ | 24.37 | ||||||||||||||
Vested | (49 | ) | $ | 61.82 | |||||||||||||
Forfeited | (91 | ) | $ | 36.55 | |||||||||||||
Outstanding at January 3, 2015 | 838 | $ | 27.71 | ||||||||||||||
Special Performance Based Options Awards | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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. | ||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Volatility | 37.80% | 36.50% | |||||||||||||||
Risk-free interest rate | 1.4% - 1.8% | 1.60% | |||||||||||||||
Expected term (years) | 5 | 5 |
LongTerm_Debt_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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. The Company did not grant any Time Vesting Options in fiscal 2014. | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0.80% | 1.60% | |||||||||||||||
Volatility | 36.50% | 35.50% | |||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | |||||||||||||||
Expected term (years) | 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 January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | ||||||||||||||
Granted | 1,601 | $ | 21.73 | ||||||||||||||
Exercised | (28 | ) | $ | 23.76 | |||||||||||||
Canceled | (536 | ) | $ | 38.78 | |||||||||||||
Outstanding at January 3, 2015 | 3,250 | $ | 30.72 | 5.3 | $ | 522 | |||||||||||
Exercisable at January 3, 2015 | 415 | $ | 38.05 | 5.1 | $ | 113 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU activity under the Stock Plans for the year ended January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Granted | 725 | $ | 24.37 | ||||||||||||||
Vested | (49 | ) | $ | 61.82 | |||||||||||||
Forfeited | (91 | ) | $ | 36.55 | |||||||||||||
Outstanding at January 3, 2015 | 838 | $ | 27.71 | ||||||||||||||
Special Performance Based Options Awards | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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. | ||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Volatility | 37.80% | 36.50% | |||||||||||||||
Risk-free interest rate | 1.4% - 1.8% | 1.60% | |||||||||||||||
Expected term (years) | 5 | 5 |
Earnings_Per_Share_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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. The Company did not grant any Time Vesting Options in fiscal 2014. | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0.80% | 1.60% | |||||||||||||||
Volatility | 36.50% | 35.50% | |||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | |||||||||||||||
Expected term (years) | 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 January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | ||||||||||||||
Granted | 1,601 | $ | 21.73 | ||||||||||||||
Exercised | (28 | ) | $ | 23.76 | |||||||||||||
Canceled | (536 | ) | $ | 38.78 | |||||||||||||
Outstanding at January 3, 2015 | 3,250 | $ | 30.72 | 5.3 | $ | 522 | |||||||||||
Exercisable at January 3, 2015 | 415 | $ | 38.05 | 5.1 | $ | 113 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU activity under the Stock Plans for the year ended January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Granted | 725 | $ | 24.37 | ||||||||||||||
Vested | (49 | ) | $ | 61.82 | |||||||||||||
Forfeited | (91 | ) | $ | 36.55 | |||||||||||||
Outstanding at January 3, 2015 | 838 | $ | 27.71 | ||||||||||||||
Special Performance Based Options Awards | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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. | ||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Volatility | 37.80% | 36.50% | |||||||||||||||
Risk-free interest rate | 1.4% - 1.8% | 1.60% | |||||||||||||||
Expected term (years) | 5 | 5 |
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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. The Company did not grant any Time Vesting Options in fiscal 2014. | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0.80% | 1.60% | |||||||||||||||
Volatility | 36.50% | 35.50% | |||||||||||||||
Risk-free interest rate | 1.3% - 2.2% | 1.0% - 1.4% | |||||||||||||||
Expected term (years) | 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 January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Yrs.) | |||||||||||||||||
Outstanding at December 28, 2013 | 2,213 | $ | 39.09 | ||||||||||||||
Granted | 1,601 | $ | 21.73 | ||||||||||||||
Exercised | (28 | ) | $ | 23.76 | |||||||||||||
Canceled | (536 | ) | $ | 38.78 | |||||||||||||
Outstanding at January 3, 2015 | 3,250 | $ | 30.72 | 5.3 | $ | 522 | |||||||||||
Exercisable at January 3, 2015 | 415 | $ | 38.05 | 5.1 | $ | 113 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU activity under the Stock Plans for the year ended January 3, 2015 is presented below: | ||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 28, 2013 | 253 | $ | 47.11 | ||||||||||||||
Granted | 725 | $ | 24.37 | ||||||||||||||
Vested | (49 | ) | $ | 61.82 | |||||||||||||
Forfeited | (91 | ) | $ | 36.55 | |||||||||||||
Outstanding at January 3, 2015 | 838 | $ | 27.71 | ||||||||||||||
Special Performance Based Options Awards | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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. | ||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Volatility | 37.80% | 36.50% | |||||||||||||||
Risk-free interest rate | 1.4% - 1.8% | 1.60% | |||||||||||||||
Expected term (years) | 5 | 5 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
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: | ||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
US federal | $ | 13,558 | $ | 60,556 | $ | 99,437 | |||||||
State | (131 | ) | 9,583 | 12,719 | |||||||||
Foreign | 23,405 | 25,121 | 20,614 | ||||||||||
$ | 36,832 | $ | 95,260 | $ | 132,770 | ||||||||
Deferred: | |||||||||||||
US federal | $ | 19,595 | $ | 31,801 | $ | 23,002 | |||||||
State | 2,239 | 3,634 | 2,629 | ||||||||||
Foreign | 348 | (55 | ) | 1,134 | |||||||||
$ | 22,182 | $ | 35,380 | $ | 26,765 | ||||||||
Total tax provision | $ | 59,014 | $ | 130,640 | $ | 159,535 | |||||||
Schedule of Income before Income Tax, Domestic and Foreign | The components of the Company’s consolidated income before income taxes consist of the following: | ||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Domestic | $ | 68,319 | $ | 255,183 | $ | 337,321 | |||||||
Foreign | 89,288 | 80,182 | 79,640 | ||||||||||
$ | 157,607 | $ | 335,365 | $ | 416,961 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate is as follows: | ||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal and state tax reserve provision | 0.4 | (0.1 | ) | 0.2 | |||||||||
States income taxes (net of federal benefit) | 1.6 | 2.7 | 2.6 | ||||||||||
Foreign taxes | (0.7 | ) | 0.3 | (0.3 | ) | ||||||||
Increase in valuation allowance | 2 | 0.9 | 0.7 | ||||||||||
Loss on closure of China | (2.5 | ) | 0 | 0 | |||||||||
Canada intangible asset impairment | 1.4 | 0 | 0 | ||||||||||
Other | 0.2 | 0.2 | 0.1 | ||||||||||
Effective tax rate | 37.4 | % | 39 | % | 38.3 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: | ||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Provision for estimated expenses | $ | 7,863 | $ | 8,593 | |||||||||
Operating loss carryforwards | 37,746 | 40,587 | |||||||||||
Salaries and wages | 9,567 | 6,238 | |||||||||||
Share-based compensation | 6,653 | 4,705 | |||||||||||
Other | 6,922 | 6,562 | |||||||||||
Other comprehensive income | 12,811 | 0 | |||||||||||
Less: valuation allowance | (34,640 | ) | (36,372 | ) | |||||||||
Total deferred tax assets | $ | 46,922 | $ | 30,313 | |||||||||
Depreciation | $ | (6,482 | ) | $ | (6,381 | ) | |||||||
Other comprehensive income | 0 | (5,446 | ) | ||||||||||
Other | (3,123 | ) | (1,046 | ) | |||||||||
Amortization | (182,716 | ) | (157,047 | ) | |||||||||
Total deferred tax liabilities | $ | (192,321 | ) | $ | (169,920 | ) | |||||||
Net deferred tax liabilities | $ | (145,399 | ) | $ | (139,607 | ) | |||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 5,784 | $ | 5,319 | $ | 5,040 | |||||||
Additions based on tax positions related to the current year | 1,304 | 1,428 | 1,647 | ||||||||||
Reductions for tax positions of prior years | (820 | ) | (963 | ) | (1,219 | ) | |||||||
Settlements | 0 | 0 | (149 | ) | |||||||||
Balance at end of year | $ | 6,268 | $ | 5,784 | $ | 5,319 | |||||||
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Net cash paid during the year for: | |||||||||||||
Interest expense | $ | 107,296 | $ | 88,860 | $ | 68,808 | |||||||
Income taxes | $ | 35,232 | $ | 87,071 | $ | 133,131 | |||||||
Noncash investing and financing activities were as follows: | |||||||||||||
Fair value of net assets/(liabilities) acquired in connection with acquisitions | $ | 359 | $ | (175 | ) | $ | 0 | ||||||
Dividends declared but not yet paid at year-end | $ | 0 | $ | 177 | $ | 289 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Minimum Commitments Under Non-Cancelable Obligations | Minimum commitments under non-cancelable obligations, primarily for office and rental facilities operating leases at January 3, 2015, consist of the following: | ||||
2015 | $ | 41,584 | |||
2016 | 34,810 | ||||
2017 | 25,867 | ||||
2018 | 19,890 | ||||
2019 | 13,082 | ||||
2020 and thereafter | 102,653 | ||||
Total | $ | 237,886 | |||
Segment_and_Geographic_Data_Ta
Segment and Geographic Data (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Information About Reportable Segments | Segment information for the fiscal years ended December 28, 2013 and December 29, 2012 presented below have been revised to reflect the new reportable segment structure. | ||||||||||||
Total Revenue for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
North America | $ | 947,716 | $ | 1,163,002 | $ | 1,258,461 | |||||||
United Kingdom | 156,843 | 172,783 | 204,506 | ||||||||||
Continental Europe | 298,878 | 299,403 | 270,701 | ||||||||||
Other | 76,479 | 88,935 | 105,764 | ||||||||||
Total revenue | $ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | |||||||
Net Income for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Segment operating income: | |||||||||||||
North America | $ | 224,225 | $ | 406,109 | $ | 437,379 | |||||||
United Kingdom | 29,187 | 34,429 | 63,320 | ||||||||||
Continental Europe | 79,282 | 66,273 | 38,714 | ||||||||||
Other | 13,676 | 13,774 | 22,690 | ||||||||||
Total segment operating income | 346,370 | 520,585 | 562,103 | ||||||||||
General corporate expenses | (73,113 | ) | (59,828 | ) | (51,298 | ) | |||||||
Interest expense | 122,984 | 103,108 | 90,537 | ||||||||||
Other expense, net | 3,206 | 599 | 1,979 | ||||||||||
Gain on Brazil acquisition | (10,540 | ) | 0 | 0 | |||||||||
Early extinguishment of debt | 0 | 21,685 | 1,328 | ||||||||||
Provision for taxes | 59,014 | 130,640 | 159,535 | ||||||||||
Net income | 98,593 | 204,725 | 257,426 | ||||||||||
Net income attributable to noncontrolling interest | 54 | 0 | 0 | ||||||||||
Net income attributable to Weight Watchers International, Inc. | $ | 98,647 | $ | 204,725 | $ | 257,426 | |||||||
Depreciation and Amortization for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
North America | $ | 34,654 | $ | 32,923 | $ | 26,808 | |||||||
United Kingdom | 1,158 | 1,269 | 1,159 | ||||||||||
Continental Europe | 2,356 | 2,222 | 2,182 | ||||||||||
Other | 2,144 | 1,965 | 2,068 | ||||||||||
Total segment depreciation and amortization | 40,312 | 38,379 | 32,217 | ||||||||||
General corporate depreciation and amortization | 18,227 | 14,197 | 11,493 | ||||||||||
Depreciation and amortization | $ | 58,539 | $ | 52,576 | $ | 43,710 | |||||||
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 | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Meeting Fees | $ | 744,560 | $ | 851,626 | $ | 934,933 | |||||||
Online Subscription Revenues | 437,385 | 509,135 | 490,132 | ||||||||||
In-meeting product sales | 169,101 | 211,963 | 253,237 | ||||||||||
Licensing, franchise royalties and other | 128,870 | 151,399 | 161,130 | ||||||||||
$ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | ||||||||
Revenues for the Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
United States | $ | 869,541 | $ | 1,067,200 | $ | 1,169,234 | |||||||
Canada | 78,175 | 95,802 | 89,227 | ||||||||||
United Kingdom | 156,843 | 172,783 | 204,506 | ||||||||||
Continental Europe | 298,878 | 299,403 | 270,701 | ||||||||||
Other | 76,479 | 88,935 | 105,764 | ||||||||||
$ | 1,479,916 | $ | 1,724,123 | $ | 1,839,432 | ||||||||
Long-Lived Assets | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
United States | $ | 67,903 | $ | 79,448 | $ | 63,147 | |||||||
Canada | 3,149 | 3,070 | 2,561 | ||||||||||
United Kingdom | 724 | 1,192 | 1,645 | ||||||||||
Continental Europe | 1,454 | 2,083 | 2,431 | ||||||||||
Other | 1,420 | 1,259 | 1,984 | ||||||||||
$ | 74,650 | $ | 87,052 | $ | 71,768 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
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 January 3, 2015 | $ | 42,423 | $ | 0 | $ | 42,423 | $ | 0 | |||||||||
Interest rate swap liability at December 28, 2013 | $ | 7,578 | $ | 0 | $ | 7,578 | $ | 0 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component(a) | ||||||||||||
Fiscal Year Ended January 3, 2015 | |||||||||||||
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 | (21,775 | ) | (11,302 | ) | (33,077 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, | 4,522 | 0 | 4,522 | ||||||||||
net of tax(b) | |||||||||||||
Net current period other comprehensive loss including noncontrolling interest | (17,253 | ) | (11,302 | ) | (28,555 | ) | |||||||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | 478 | 478 | ||||||||||
Ending Balance at January 3, 2015 | $ | (21,856 | ) | $ | 2,296 | $ | (19,560 | ) | |||||
(a) | Amounts in parentheses indicate debits | ||||||||||||
(b) | See separate table below for details about these reclassifications | ||||||||||||
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, | 6,123 | 0 | 6,123 | ||||||||||
net of tax(b) | |||||||||||||
Net current period other comprehensive 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) | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Details about Other | Amounts Reclassified from | Affected Line Item in the | |||||||||||
Comprehensive Income | Accumulated Other | Statement Where Net Income is Presented | |||||||||||
Components | Comprehensive Income | ||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | (7,413 | ) | $ | (10,037 | ) | Interest expense | ||||||
(7,413 | ) | (10,037 | ) | Income before income taxes | |||||||||
2,891 | 3,914 | Provision for income taxes | |||||||||||
$ | (4,522 | ) | $ | (6,123 | ) | Net income | |||||||
(a) | Amounts in parentheses indicate debits to profit / loss |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Reconciliation of Liability Balance for Restructuring Charges | For the fiscal year ended January 3, 2015, the reconciliation of the liability balance for these restructuring charges was as follows: | ||||
Balance as of December 28, 2013 | $ | 0 | |||
Provision | 11,840 | ||||
Payments | (9,270 | ) | |||
Balance as of January 3, 2015 | $ | 2,570 | |||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Schedule of Quarterly Financial Information | The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended January 3, 2015 and December 28, 2013. | ||||||||||||||||
For the Fiscal Quarters Ended | |||||||||||||||||
March 29, | June 28, | September 27, | January 3, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Fiscal year ended January 3, 2015 | |||||||||||||||||
Revenues, net | $ | 409,358 | $ | 397,547 | $ | 345,184 | $ | 327,827 | |||||||||
Gross profit | 222,900 | 225,814 | 187,567 | 166,270 | |||||||||||||
Operating income | 51,053 | 114,564 | 91,394 | 16,246 | |||||||||||||
Net income attributable to the Company | 21,531 | 54,002 | 37,892 | (14,778 | ) | ||||||||||||
Basic EPS | $ | 0.38 | $ | 0.95 | $ | 0.67 | $ | (0.26 | ) | ||||||||
Diluted EPS | $ | 0.38 | $ | 0.95 | $ | 0.67 | $ | (0.26 | ) | ||||||||
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 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Disclosure Basis Of Presentation Details [Line Items] | ||||
Long-term debt | $2,358,000 | $2,388,000 | ||
Cash and cash equivalents | 301,212 | 174,557 | 70,215 | 53,199 |
Unused portion of line of credit | 48,181 | |||
Debt Obligations Due April 2016 | ||||
Disclosure Basis Of Presentation Details [Line Items] | ||||
Long-term debt | $291,000 | |||
Long-term debt, payment date | 2016-04 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Jun. 29, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Sep. 27, 2014 |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Property, plant and equipment, impairment charges | $652 | ||||||
Asset impairment charges | 26,709 | 5,426 | 0 | ||||
Goodwill | 106,820 | 79,294 | 106,820 | 79,294 | |||
Franchise rights acquired, carrying value | 799,795 | 836,835 | 799,795 | 836,835 | |||
Indefinite-lived intangible assets, impairment charges | 26,057 | 1,166 | 26,057 | 1,166 | 0 | ||
Total advertising expenses | 251,954 | 285,298 | 344,582 | ||||
Deferred financing costs | 0 | 44,817 | 26,248 | ||||
Early extinguishment of debt | 21,685 | 0 | 21,685 | 1,328 | |||
Deferred financing costs, amortization expense | 9,305 | 7,672 | 7,070 | ||||
The cumulative balance of changes in fair value of derivative instruments, net of taxes | -21,856 | -4,603 | -21,856 | -4,603 | |||
The cumulative balance of the effects of foreign currency translations, net of taxes | 2,296 | 13,120 | 2,296 | 13,120 | |||
Revolving Facility due April 2, 2018 | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Write-off of deferred financing fees related to amendment of new credit agreement | 1,583 | 1,583 | |||||
Website development costs | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Finite-lived intangible assets, estimated useful life (in years) | 3 years | ||||||
CHINA | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Property, plant and equipment, impairment charges | 372 | ||||||
Asset impairment charges | 1,607 | ||||||
Intangible assets, impairment charges | 1,235 | ||||||
United States | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill | 65,608 | 65,608 | |||||
Franchise rights acquired, carrying value | 697,334 | 697,334 | |||||
BRAZIL | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill | 23,023 | 23,023 | |||||
Canada | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill | 7,543 | 7,543 | |||||
Franchise rights acquired, carrying value | 74,672 | 74,672 | |||||
Other International | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill | 10,646 | 10,646 | |||||
Franchise rights acquired, carrying value | 1,930 | 1,930 | |||||
United Kingdom | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill | 1,421 | 1,530 | 1,421 | 1,530 | |||
Franchise rights acquired, carrying value | 13,138 | 13,138 | |||||
AUSTRALIA | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Franchise rights acquired, carrying value | 7,272 | 7,272 | |||||
NEW ZEALAND | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Franchise rights acquired, carrying value | 5,449 | 5,449 | |||||
Canada | Franchise Rights | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Indefinite-lived intangible assets, impairment charges | 26,057 | ||||||
Mexico | Franchise Rights | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Indefinite-lived intangible assets, impairment charges | 935 | ||||||
Hong Kong | Franchise Rights | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Indefinite-lived intangible assets, impairment charges | 231 | ||||||
Advertising Costs | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Increase in advertising expense | 11,138 | 10,160 | |||||
Internal-use Computer Software | |||||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | |||||||
Intangible assets, impairment charges | $2,653 | ||||||
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 | ||||||
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_Ad2
Acquisitions of Franchisees Additional Equity Interest in Brazil and Wello and Shutdown of China Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 12, 2013 | Sep. 10, 2012 | Nov. 02, 2012 | Dec. 20, 2012 | Mar. 04, 2013 | Jul. 15, 2013 | Jul. 22, 2013 | Oct. 28, 2013 | Mar. 12, 2014 | Apr. 16, 2014 |
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | $106,820 | $79,294 | $106,820 | $79,294 | |||||||||||||||||
Business acquisition, amortization period for customer relationships | 105 days | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount | 16,953 | 16,953 | |||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 32,461 | 17,530 | |||||||||||||||||||
Gain related to acquisition | 10,540 | 0 | 0 | ||||||||||||||||||
Earnings per share, diluted | ($0.26) | $0.67 | $0.95 | $0.38 | $0.54 | $1.07 | $1.15 | $0.87 | $1.74 | $3.63 | $4.23 | ||||||||||
CHINA | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Charge incurred in relation to shut down of China operations | 2,500 | ||||||||||||||||||||
Slengora Limited | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 16,755 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 245 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 6,779 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 66 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 81 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 23 | ||||||||||||||||||||
Slengora Limited | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 180 | ||||||||||||||||||||
Slengora Limited | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 9,871 | ||||||||||||||||||||
Adirondacks Inc | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 3,400 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 1,156 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 29 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 10 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred revenue | 48 | ||||||||||||||||||||
Adirondacks Inc | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 37 | ||||||||||||||||||||
Adirondacks Inc | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 2,216 | ||||||||||||||||||||
Mid South Inc | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 10,000 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 1,461 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 35 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 4 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred revenue | 114 | ||||||||||||||||||||
Business acquisition, purchase price allocation, receivables | 9 | ||||||||||||||||||||
Mid South Inc | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 209 | ||||||||||||||||||||
Mid South Inc | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 8,396 | ||||||||||||||||||||
Alberta Ltd and Saskatchewan Ltd | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 35,000 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 4,626 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 218 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 182 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 3 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred revenue | 1,135 | ||||||||||||||||||||
Alberta Ltd and Saskatchewan Ltd | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 473 | ||||||||||||||||||||
Alberta Ltd and Saskatchewan Ltd | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 30,633 | ||||||||||||||||||||
West Virginia, Inc. | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 16,028 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 28 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 5,212 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 209 | ||||||||||||||||||||
West Virginia, Inc. | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 448 | ||||||||||||||||||||
West Virginia, Inc. | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 10,131 | ||||||||||||||||||||
Columbus, Inc. | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 23,357 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 143 | ||||||||||||||||||||
Northern Nevada, Inc. | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 3,969 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 31 | ||||||||||||||||||||
Columbus, Inc. and Northern Nevada, Inc. | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 7,220 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 27 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 116 | ||||||||||||||||||||
Columbus, Inc. and Northern Nevada, Inc. | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 494 | ||||||||||||||||||||
Columbus, Inc. and Northern Nevada, Inc. | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 19,643 | ||||||||||||||||||||
Manitoba Ltd | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 5,197 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 28 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 449 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 1 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 1 | ||||||||||||||||||||
Manitoba Ltd | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 249 | ||||||||||||||||||||
Manitoba Ltd | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 4,525 | ||||||||||||||||||||
Franklin and St Lawrence Counties Inc | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 274 | ||||||||||||||||||||
Business acquisition, assumed liabilities | 1 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 23 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 1 | ||||||||||||||||||||
Franklin and St Lawrence Counties Inc | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 13 | ||||||||||||||||||||
Franklin and St Lawrence Counties Inc | Franchise Rights | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, indefinite lived | 238 | ||||||||||||||||||||
Vigilantes do Peso Marketing Ltda | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 14,181 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 26,257 | ||||||||||||||||||||
Business acquisition, purchase price allocation, inventory | 287 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 575 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 421 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred revenue | 445 | ||||||||||||||||||||
Business acquisition, purchase price allocation, receivables | 1,139 | ||||||||||||||||||||
Percentage of ownership | 35.00% | ||||||||||||||||||||
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 | 10,540 | |||||||||||||||||||
Gain related to acquisition, after-tax | 6,429 | ||||||||||||||||||||
Earnings per share, diluted | $0.11 | ||||||||||||||||||||
Business acquisition, fair value of noncontrolling interest | 6,157 | ||||||||||||||||||||
Business acquisition, purchase price allocation, net purchase price | 28,616 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred tax liabilities | 680 | ||||||||||||||||||||
Vigilantes do Peso Marketing Ltda | Call and Put Option | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Percentage of ownership | 20.00% | ||||||||||||||||||||
Vigilantes do Peso Marketing Ltda | Customer Relationships | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, purchase price allocation, intangible assets, finite lived | 275 | ||||||||||||||||||||
Knowplicity, Inc. | |||||||||||||||||||||
Business Acquisition | |||||||||||||||||||||
Business acquisition, net purchase price | 4,770 | ||||||||||||||||||||
Business acquisition, purchase price allocation, goodwill | 6,204 | ||||||||||||||||||||
Business acquisition, purchase price allocation, fixed assets | 1 | ||||||||||||||||||||
Business acquisition, purchase price allocation, prepaid expenses | 4 | ||||||||||||||||||||
Business acquisition, cash acquired | 11 | ||||||||||||||||||||
Business acquisition, purchase price allocation, net purchase price | 8,977 | ||||||||||||||||||||
Business acquisition, purchase price allocation, stock issued | 4,207 | ||||||||||||||||||||
Business acquisition, purchase price allocation, website development | 4,516 | ||||||||||||||||||||
Business acquisition, purchase price allocation, deferred tax liabilities | $1,759 |
Schedule_of_Net_Purchase_Price
Schedule of Net Purchase Price of the Acquisition (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 12, 2014 | Mar. 29, 2014 |
Fair value of consideration transferred: | |||||
Total | $16,678 | $83,825 | $30,400 | ||
Gain on acquisition | 10,540 | 0 | 0 | ||
Identifiable assets acquired and liabilities assumed: | |||||
Goodwill | 106,820 | 79,294 | |||
Vigilantes do Peso Marketing Ltda | |||||
Fair value of consideration transferred: | |||||
Net purchase price | 14,181 | ||||
Less cash acquired | 2,262 | ||||
Total | 11,919 | ||||
Gain on acquisition | 10,540 | 10,540 | |||
Redeemable noncontrolling interest | 6,157 | ||||
Business acquisition, purchase price allocation, net purchase price | 28,616 | ||||
Identifiable assets acquired and liabilities assumed: | |||||
Receivables | 1,139 | ||||
Fixed assets | 575 | ||||
Prepaid expenses | 421 | ||||
Inventory | 287 | ||||
Other assets | 199 | ||||
Accrued liabilities | -1,063 | ||||
Deferred tax on acquired intangibles | -680 | ||||
Deferred revenue | -445 | ||||
Income taxes payable | -258 | ||||
Accounts payable | -91 | ||||
Total identifiable net assets | 2,359 | ||||
Goodwill | 26,257 | ||||
Vigilantes do Peso Marketing Ltda | Franchise Rights | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Intangible assets | 2,000 | ||||
Vigilantes do Peso Marketing Ltda | Customer Relationships | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Intangible assets | $275 |
Franchise_Rights_Acquired_Good2
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 12, 2014 |
Goodwill and Intangible Assets Disclosure | ||||||
Indefinite-lived intangible assets, impairment charges | $26,057 | $1,166 | $26,057 | $1,166 | $0 | |
Acquired intangible assets amortized period | 105 days | |||||
Finite-lived intangible assets, aggregate amortization expense | 28,599 | 24,562 | 17,796 | |||
CHINA | ||||||
Goodwill and Intangible Assets Disclosure | ||||||
Intangible assets, impairment charges | 1,235 | |||||
Franchise Rights | Canada | ||||||
Goodwill and Intangible Assets Disclosure | ||||||
Indefinite-lived intangible assets, impairment charges | 26,057 | |||||
Franchise Rights | Mexico and Hong Kong Operation | ||||||
Goodwill and Intangible Assets Disclosure | ||||||
Indefinite-lived intangible assets, impairment charges | 1,166 | |||||
Internal-use Computer Software | ||||||
Goodwill and Intangible Assets Disclosure | ||||||
Intangible assets, impairment charges | $2,653 | |||||
Vigilantes do Peso Marketing Ltda | Franchise Rights | ||||||
Goodwill and Intangible Assets Disclosure | ||||||
Acquired intangible assets amortized period | 2 years |
Changes_in_Carrying_Value_of_F
Changes in Carrying Value of Franchise Rights Acquired (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Franchise Rights Acquired [Line Items] | |||||
Franchise rights acquired, beginning balance | $836,835 | ||||
Amortization of Brazil franchise rights acquired | -773 | ||||
Indefinite-lived intangible impairment | -26,057 | -1,166 | -26,057 | -1,166 | 0 |
Effect of exchange rate changes | -12,210 | ||||
Franchise rights acquired, ending balance | 799,795 | 836,835 | 799,795 | 836,835 | |
Franchise Rights | |||||
Franchise Rights Acquired [Line Items] | |||||
Franchise rights acquired during the period | $2,000 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Goodwill [Line Items] | ||
Beginning balance | $79,294 | |
Goodwill acquired during the period | 32,461 | 17,530 |
Effect of exchange rate changes | -4,935 | |
Ending balance | 106,820 | 79,294 |
North America | ||
Goodwill [Line Items] | ||
Beginning balance | 67,699 | |
Goodwill acquired during the period | 6,204 | |
Effect of exchange rate changes | -751 | |
Ending balance | 73,152 | |
United Kingdom | ||
Goodwill [Line Items] | ||
Beginning balance | 1,530 | |
Goodwill acquired during the period | 0 | |
Effect of exchange rate changes | -109 | |
Ending balance | 1,421 | |
Continental Europe | ||
Goodwill [Line Items] | ||
Beginning balance | 8,345 | |
Goodwill acquired during the period | 0 | |
Effect of exchange rate changes | -684 | |
Ending balance | 7,661 | |
Other | ||
Goodwill [Line Items] | ||
Beginning balance | 1,720 | |
Goodwill acquired during the period | 26,257 | |
Effect of exchange rate changes | -3,391 | |
Ending balance | $24,586 |
Carrying_Amount_of_FiniteLived
Carrying Amount of Finite-Lived Intangible Assets (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $221,148 | $172,467 |
Accumulated Amortization | 153,033 | 127,170 |
Capitalized software costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 107,581 | 85,095 |
Accumulated Amortization | 72,590 | 62,418 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 10,836 | 10,691 |
Accumulated Amortization | 10,213 | 9,955 |
Website development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 95,717 | 69,660 |
Accumulated Amortization | 63,405 | 48,060 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 7,014 | 7,021 |
Accumulated Amortization | $6,825 | $6,737 |
Estimated_Amortization_Expense
Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Expected Amortization Expense | |
2015 | $29,833 |
2016 | 21,770 |
2017 | 14,378 |
2018 | 2,051 |
2019 and thereafter | $83 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | $124,788 | $123,210 |
Leasehold improvements | 79,496 | 77,771 |
Property, Plant and Equipment, Gross, Total | 204,284 | 200,981 |
Less: Accumulated depreciation and amortization | -129,634 | -113,929 |
Property and equipment, net | $74,650 | $87,052 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, impairment charges | $652 | ||
Depreciation and amortization expense, property and equipment | 20,635 | 20,342 | 18,844 |
CHINA | |||
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 $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ||
Total Debt | $2,358,000 | $2,388,000 |
Less Current Portion | 24,000 | 30,000 |
Effective Interest Rate | 3.86% | 3.49% |
Total Long-Term Debt | 2,334,000 | 2,358,000 |
Total Debt | 2,358,000 | 2,388,000 |
Tranche B-1 Term Facility due April 2, 2016 | ||
Debt Instrument | ||
Total Debt | 294,750 | 298,500 |
Effective Interest Rate | 3.12% | 2.97% |
Total Debt | 294,750 | 298,500 |
Tranche B-2 Term Facility due April 2, 2020 | ||
Debt Instrument | ||
Total Debt | 2,063,250 | 2,089,500 |
Effective Interest Rate | 3.96% | 3.75% |
Total Debt | 2,063,250 | 2,089,500 |
Revolving Facility due April 2, 2018 | ||
Debt Instrument | ||
Total Debt | 0 | 0 |
Effective Interest Rate | 0.00% | 0.00% |
Total Debt | $0 | $0 |
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 | ||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Jun. 29, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 21, 2014 | Sep. 27, 2014 | Apr. 02, 2013 | Sep. 26, 2014 |
Debt Instrument | |||||||||
Fees incurred in connection with debt refinancing | $44,817 | ||||||||
Payments of term loan | 2,399,904 | 30,000 | 2,488,364 | 124,833 | |||||
Write-off of deferred financing fees | 21,685 | 0 | 21,685 | 1,328 | |||||
Credit Facility, aggregate principal amount outstanding | 2,358,000 | 2,388,000 | |||||||
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% | ||||||||
Average interest rate on debt | 3.90% | 3.65% | |||||||
Average interest rate on debt | 4.93% | 4.08% | |||||||
Tranche B-1 Term Facility due April 2, 2016 | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, maximum borrowing capacity | 300,000 | ||||||||
Credit Facility, aggregate principal amount outstanding | 294,750 | 298,500 | |||||||
Tranche B-1 Term Facility due April 2, 2016 | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, additional interest rate | 3.00% | 2.75% | |||||||
Tranche B-2 Term Facility due April 2, 2020 | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, maximum borrowing capacity | 2,100,000 | ||||||||
Credit Facility, aggregate principal amount outstanding | 2,063,250 | 2,089,500 | |||||||
Tranche B-2 Term Facility due April 2, 2020 | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, minimum interest rate | 0.75% | ||||||||
WWI Credit Facility, additional interest rate | 3.25% | 3.00% | |||||||
Tranche B-2 Term Facility due April 2, 2020 | Base Rate Plus | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, minimum interest rate | 1.75% | ||||||||
Term B Loan due January 26, 2014 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 128,759 | ||||||||
Term C Loan due June 30, 2015 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 110,602 | ||||||||
Term D Loan due June 30, 2016 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 117,612 | ||||||||
Term E Loan due March 15, 2017 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 1,125,044 | ||||||||
Term F Loan due March 15, 2019 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 817,887 | ||||||||
Revolver A-1 Loan due June 30, 2014 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 21,247 | ||||||||
Revolver A-2 Loan due March 15, 2017 | |||||||||
Debt Instrument | |||||||||
Payments of term loan | 78,753 | ||||||||
Term Loan Facility | |||||||||
Debt Instrument | |||||||||
Debt outstanding amount | 2,400,000 | ||||||||
WWI Credit Facility | |||||||||
Debt Instrument | |||||||||
Credit Facility, aggregate principal amount outstanding | 2,358,000 | ||||||||
Revolving Facility due April 2, 2018 | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, maximum borrowing capacity | 250,000 | 50,000 | |||||||
Credit facility available amount | 48,181 | 248,848 | |||||||
Write-off of deferred financing fees related to amendment | 1,583 | 1,583 | |||||||
Credit Facility, aggregate principal amount outstanding | 0 | 0 | |||||||
Line of credit facility, issued but undrawn letters of credit | $1,819 | ||||||||
Revolving credit facility, commitment fee on unused commitments | 0.50% | ||||||||
Revolving Facility due April 2, 2018 | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, additional interest rate | 2.50% | ||||||||
Revolving Facility due April 2, 2018 | Base Rate Plus | |||||||||
Debt Instrument | |||||||||
WWI Credit Facility, additional interest rate | 1.50% |
LongTerm_Debt_Maturities_Detai
Long-Term Debt Maturities (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ||
2015 | $24,000 | |
2016 | 307,500 | |
2017 | 21,000 | |
2018 | 21,000 | |
2019 | 21,000 | |
Thereafter | 1,963,500 | |
Total Debt | $2,358,000 | $2,388,000 |
Treasury_Stock_Additional_Info
Treasury Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Mar. 28, 2012 | Feb. 23, 2012 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 09, 2012 | Oct. 21, 2010 | 25-May-06 | Jun. 13, 2005 | Oct. 09, 2003 |
Equity, Class of Treasury Stock | ||||||||||
Treasury Stock, value of common stock shares authorized for repurchase | $720,000 | |||||||||
Repurchase of common stock, shares repurchased | 8,780,000 | 0 | 0 | 0 | ||||||
Repurchase of common stock, price per share | $82 | |||||||||
Treasury Stock, value of common stock shares authorized for repurchase | 250,000 | 250,000 | 250,000 | 250,000 | ||||||
Amount remained available to purchase shares under repurchase program | $208,933 | |||||||||
Artal Holdings | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Repurchase of common stock, shares repurchased | 9,499,000 | |||||||||
Repurchase of common stock, price per share | $82 | |||||||||
Tender Offers | Minimum | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Repurchase of common stock, price per share | $72 | |||||||||
Tender Offers | Maximum | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Repurchase of common stock, price per share | $83 |
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 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Numerator: | |||||||||||
Net income attributable to Weight Watchers International, Inc. | $98,647 | $204,725 | $257,426 | ||||||||
Denominator: | |||||||||||
Weighted average shares of common stock outstanding | 56,607 | 56,144 | 60,294 | ||||||||
Effect of dilutive common stock equivalents | 98 | 250 | 629 | ||||||||
Weighted average diluted common shares outstanding | 56,705 | 56,394 | 60,923 | ||||||||
EPS attributable to Weight Watchers International, Inc. | |||||||||||
Basic | ($0.26) | $0.67 | $0.95 | $0.38 | $0.55 | $1.07 | $1.16 | $0.87 | $1.74 | $3.65 | $4.27 |
Diluted | ($0.26) | $0.67 | $0.95 | $0.38 | $0.54 | $1.07 | $1.15 | $0.87 | $1.74 | $3.63 | $4.23 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS | 3,073 | 1,285 | 536 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | 31-May-08 | 6-May-08 | 12-May-04 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total share-based compensation expense | $10,533 | $4,255 | $8,845 | ||||
Total income tax benefit recognized for all share-based compensation arrangements | 3,285 | 1,174 | 2,742 | ||||
Tax benefits realized from options exercised and RSUs vested | 301 | 4,217 | 5,847 | ||||
Compensation costs capitalized | 0 | ||||||
Total unrecognized compensation cost related to stock options and RSUs granted | 34,191 | ||||||
Compensation expense recognition period | 2 years 2 months 12 days | ||||||
Options outstanding, exercise price, lower range | $19.74 | ||||||
Options outstanding, exercise price, upper range | $63.59 | ||||||
Dividend yield | 0.00% | 0.00% | 0.80% | 1.60% | |||
Expected term (years) | 6 years 6 months | 6 years 6 months | |||||
Weighted-average grant-date fair value of options granted | $6.51 | $11.37 | $16.60 | ||||
Total intrinsic value of options exercised | 62 | 9,858 | 12,734 | ||||
Cash received from options exercised | 658 | 16,187 | 12,688 | ||||
Weighted-average grant-date fair value of RSUs granted | $24.37 | ||||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option awards, expiration period | 10 years | ||||||
Option awards granted during period | 0 | ||||||
Stock Option | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, vesting period | 3 years | ||||||
Stock Option | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, vesting period | 5 years | ||||||
Special Performance Based Options Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense recognition period | 3 years | ||||||
Dividend yield | 0.00% | 0.00% | |||||
Option awards granted during period | 686,549 | 1,600,583 | |||||
Percentage of time-vesting criteria satisfied on third anniversary of date of grant | 100.00% | ||||||
Vesting of stock options increments | 20.00% | ||||||
Expected term (years) | 5 years | 5 years | |||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average grant-date fair value of RSUs granted | $24.37 | $38.40 | $55.54 | ||||
Total fair value of RSUs vested | 3,042 | 1,705 | 5,536 | ||||
Restricted Stock Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, vesting period | 3 years | ||||||
Restricted Stock Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, vesting period | 5 years | ||||||
Stock Incentive Plan 2014 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares of common stock available for grant | 3,500,000 | ||||||
Stock Incentive Plan 2008 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares of common stock available for grant | 3,000,000 | ||||||
Number of shares of our common stock available for issuance, increase | 550,000 | ||||||
Stock Incentive Plan 2004 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares of common stock available for grant | 2,500,000 | ||||||
Share based compensation, fully-vested shares granted | 20,000 | 14,000 | 13,000 | ||||
Share based compensation, value of fully-vested shares granted | $497 | $524 | $707 |
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 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | 0.80% | 1.60% |
Volatility | 36.50% | 35.50% | ||
Risk-free interest rate, minimum | 1.30% | 1.00% | ||
Risk-free interest rate, maximum | 2.20% | 1.40% | ||
Expected term (years) | 6 years 6 months | 6 years 6 months | ||
Special Performance Based Options Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | ||
Volatility | 37.80% | 36.50% | ||
Risk-free interest rate, minimum | 1.40% | 1.60% | ||
Risk-free interest rate, maximum | 1.80% | |||
Expected term (years) | 5 years | 5 years |
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 | Jan. 03, 2015 |
Shares | |
Beginning Balance | 2,213 |
Granted | 1,601 |
Exercised | -28 |
Canceled | -536 |
Ending Balance | 3,250 |
Exercisable at January 3, 2015 | 415 |
Weighted-Average Exercise Price | |
Beginning Balance | $39.09 |
Granted | $21.73 |
Exercised | $23.76 |
Canceled | $38.78 |
Ending Balance | $30.72 |
Exercisable at January 3, 2015 | $38.05 |
Weighted-Average Remaining Contractual Life (Yrs.) | |
Outstanding at January 3, 2015 | 5 years 3 months 18 days |
Exercisable at January 3, 2015 | 5 years 1 month 6 days |
Aggregate Intrinsic Value | |
Granted | $0 |
Exercised | 0 |
Canceled | 0 |
Outstanding at January 3, 2015 | 522 |
Exercisable at January 3, 2015 | $113 |
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 | Jan. 03, 2015 |
Shares | |
Beginning Balance | 253 |
Granted | 725 |
Vested | -49 |
Forfeited | -91 |
Ending Balance | 838 |
Weighted-Average Grant-Date Fair Value | |
Beginning Balance | $47.11 |
Granted | $24.37 |
Vested | $61.82 |
Forfeited | $36.55 |
Ending Balance | $27.71 |
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 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Current: | |||
US federal | $13,558 | $60,556 | $99,437 |
State | -131 | 9,583 | 12,719 |
Foreign | 23,405 | 25,121 | 20,614 |
Current Income Tax Expense (Benefit), Total | 36,832 | 95,260 | 132,770 |
Deferred: | |||
US federal | 19,595 | 31,801 | 23,002 |
State | 2,239 | 3,634 | 2,629 |
Foreign | 348 | -55 | 1,134 |
Deferred tax provision | 22,182 | 35,380 | 26,765 |
Total tax provision | $59,014 | $130,640 | $159,535 |
Components_of_Consolidated_Inc
Components of Consolidated Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Taxes [Line Items] | |||
Domestic | $68,319 | $255,183 | $337,321 |
Foreign | 89,288 | 80,182 | 79,640 |
Income before income taxes | $157,607 | $335,365 | $416,961 |
Difference_Between_US_Federal_
Difference Between US Federal Statutory Tax Rate and consolidated Effective Tax Rate (Detail) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||
US federal statutory rate | 35.00% | 35.00% | 35.00% |
Federal and state tax reserve provision | 0.40% | -0.10% | 0.20% |
States income taxes (net of federal benefit) | 1.60% | 2.70% | 2.60% |
Foreign taxes | -0.70% | 0.30% | -0.30% |
Increase in valuation allowance | 2.00% | 0.90% | 0.70% |
Loss on closure of China | -2.50% | 0.00% | 0.00% |
Canada intangible asset impairment | 1.40% | 0.00% | 0.00% |
Other | 0.20% | 0.20% | 0.10% |
Effective tax rate | 37.40% | 39.00% | 38.30% |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Provision for estimated expenses | $7,863 | $8,593 |
Operating loss carryforwards | 37,746 | 40,587 |
Salaries and wages | 9,567 | 6,238 |
Share-based compensation | 6,653 | 4,705 |
Other | 6,922 | 6,562 |
Other comprehensive income | 12,811 | 0 |
Less: valuation allowance | -34,640 | -36,372 |
Total deferred tax assets | 46,922 | 30,313 |
Depreciation | -6,482 | -6,381 |
Other comprehensive income | 0 | -5,446 |
Other | -3,123 | -1,046 |
Amortization | -182,716 | -157,047 |
Total deferred tax liabilities | -192,321 | -169,920 |
Net deferred tax liabilities | ($145,399) | ($139,607) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Contingency [Line Items] | |||
Net operating loss carry forwards | $142,433 | $148,107 | |
Total amount of unrecognized tax benefits, if recognized, would affect effective tax rate | 5,439 | ||
Unrecognized tax benefits, accrued interest and penalties | 2,300 | 2,217 | |
Unrecognized tax benefits, interest and penalties recognized | $83 | ($1,188) | $823 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Contingency [Line Items] | |||
Balance at beginning of year | $5,784 | $5,319 | $5,040 |
Additions based on tax positions related to the current year | 1,304 | 1,428 | 1,647 |
Reductions for tax positions of prior years | -820 | -963 | -1,219 |
Settlements | 0 | 0 | -149 |
Balance at end of year | $6,268 | $5,784 | $5,319 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, contribution cost | $266 | $1,658 | $2,779 |
Profit Sharing Plan | Management | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, contribution cost | 1,090 | 2,651 | 2,954 |
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, employer contribution percentage | 3.00% | ||
Employee benefit plans, contribution cost | $2,525 | $2,888 | $2,730 |
Savings Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, employer matching contribution percentage | 100.00% |
Cash_Flow_Information_Detail
Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Net cash paid during the year for: | |||
Interest expense | $107,296 | $88,860 | $68,808 |
Income taxes | 35,232 | 87,071 | 133,131 |
Noncash investing and financing activities were as follows: | |||
Fair value of net assets/(liabilities) acquired in connection with acquisitions | 359 | -175 | 0 |
Dividends declared but not yet paid at year-end | $0 | $177 | $289 |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 17, 2014 |
LegalMatter | |||||
Loss Contingencies | |||||
Securities class action filed | 2 | ||||
Rent expense charged to operations under operating leases | $44,228 | $46,300 | $40,485 | ||
Jeri Connolly et al. v. Weight Watchers North America, Inc. | |||||
Loss Contingencies | |||||
Legal settlement | $1,688 |
Minimum_Commitments_Under_NonC
Minimum Commitments Under Non-Cancelable Obligations (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $41,584 |
2016 | 34,810 |
2017 | 25,867 |
2018 | 19,890 |
2019 | 13,082 |
2020 and thereafter | 102,653 |
Total | $237,886 |
Segment_and_Geographic_Data_Ad
Segment and Geographic Data - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Information_About_Reportable_S
Information About Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $327,827 | $345,184 | $397,547 | $409,358 | $366,111 | $396,334 | $470,888 | $490,790 | $1,479,916 | $1,724,123 | $1,839,432 |
Segment operating income | 16,246 | 91,394 | 114,564 | 51,053 | 79,142 | 124,520 | 153,976 | 103,119 | 273,257 | 460,757 | 510,805 |
Interest expense | 122,984 | 103,108 | 90,537 | ||||||||
Other expense, net | 3,206 | 599 | 1,979 | ||||||||
Gain on Brazil acquisition | -10,540 | 0 | 0 | ||||||||
Early extinguishment of debt | 21,685 | 0 | 21,685 | 1,328 | |||||||
Provision for taxes | 59,014 | 130,640 | 159,535 | ||||||||
Net income | -14,778 | 37,892 | 54,002 | 21,531 | 30,798 | 60,258 | 64,916 | 48,753 | 98,593 | 204,725 | 257,426 |
Net loss attributable to the noncontrolling interest | 54 | 0 | 0 | ||||||||
Net income attributable to Weight Watchers International, Inc. | 98,647 | 204,725 | 257,426 | ||||||||
Depreciation and amortization | 58,539 | 52,576 | 43,710 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 346,370 | 520,585 | 562,103 | ||||||||
Depreciation and amortization | 40,312 | 38,379 | 32,217 | ||||||||
General corporate expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate expenses | -73,113 | -59,828 | -51,298 | ||||||||
Depreciation and amortization | 18,227 | 14,197 | 11,493 | ||||||||
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 947,716 | 1,163,002 | 1,258,461 | ||||||||
North America | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 224,225 | 406,109 | 437,379 | ||||||||
Depreciation and amortization | 34,654 | 32,923 | 26,808 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 156,843 | 172,783 | 204,506 | ||||||||
United Kingdom | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 29,187 | 34,429 | 63,320 | ||||||||
Depreciation and amortization | 1,158 | 1,269 | 1,159 | ||||||||
Continental Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 298,878 | 299,403 | 270,701 | ||||||||
Continental Europe | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 79,282 | 66,273 | 38,714 | ||||||||
Depreciation and amortization | 2,356 | 2,222 | 2,182 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 76,479 | 88,935 | 105,764 | ||||||||
Other | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 13,676 | 13,774 | 22,690 | ||||||||
Depreciation and amortization | $2,144 | $1,965 | $2,068 |
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 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Meeting Fees | $1,181,945 | $1,360,761 | $1,425,065 | ||||||||
Online Subscription Revenues | 437,385 | 509,135 | 490,132 | ||||||||
In-meeting product sales | 169,101 | 211,963 | 253,237 | ||||||||
Licensing, franchise royalties and other | 128,870 | 151,399 | 161,130 | ||||||||
Net revenue | 327,827 | 345,184 | 397,547 | 409,358 | 366,111 | 396,334 | 470,888 | 490,790 | 1,479,916 | 1,724,123 | 1,839,432 |
Long-lived assets | 74,650 | 87,052 | 74,650 | 87,052 | 71,768 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 869,541 | 1,067,200 | 1,169,234 | ||||||||
Long-lived assets | 67,903 | 79,448 | 67,903 | 79,448 | 63,147 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 78,175 | 95,802 | 89,227 | ||||||||
Long-lived assets | 3,149 | 3,070 | 3,149 | 3,070 | 2,561 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 156,843 | 172,783 | 204,506 | ||||||||
Long-lived assets | 724 | 1,192 | 724 | 1,192 | 1,645 | ||||||
Continental Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 298,878 | 299,403 | 270,701 | ||||||||
Long-lived assets | 1,454 | 2,083 | 1,454 | 2,083 | 2,431 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 76,479 | 88,935 | 105,764 | ||||||||
Long-lived assets | 1,420 | 1,259 | 1,420 | 1,259 | 1,984 | ||||||
meeting fees | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Meeting Fees | $744,560 | $851,626 | $934,933 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $1,888,051 | $2,169,908 |
Long-term debt | $2,334,000 | $2,358,000 |
Aggregate_Fair_Value_of_Deriva
Aggregate Fair Value of Derivative Financial Instruments (Detail) (Fair Value, Measurements, Recurring, Interest Rate Swap, USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap liability | $42,423 | $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 | 42,423 | 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 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 26, 2013 | Jan. 31, 2009 | Jan. 03, 2015 | Dec. 28, 2013 |
Derivative | ||||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), net of tax | ($21,856) | ($4,603) | ||
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 | 11,256 | |||
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, before tax | 18,452 | |||
Interest Rate Swap | ||||
Derivative | ||||
Forward starting interest rate swap, termination date | 2-Apr-20 | 27-Jan-14 | ||
Forward-starting interest rate swap, effective date | 31-Mar-14 | |||
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 | -21,856 | -4,603 | ||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), before tax | -35,830 | -7,546 | ||
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative | ||||
Notional amount | 1,500,000 | 1,500,000 | 466,250 | |
Interest Rate Swap | Cash Flow Hedging | March 31, 2014 | ||||
Derivative | ||||
Notional amount | 1,500,000 | |||
Forward-starting interest rate swap, effective date | 31-Mar-14 | |||
Interest Rate Swap | Cash Flow Hedging | April 3, 2017 | ||||
Derivative | ||||
Notional amount | 1,250,000 | |||
Forward-starting interest rate swap, effective date | 3-Apr-17 | |||
Interest Rate Swap | Cash Flow Hedging | April 1, 2019 | ||||
Derivative | ||||
Notional amount | $1,000,000 | |||
Forward-starting interest rate swap, effective date | 1-Apr-19 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $8,517 | [1] | $12,859 | [1] | ||
Other comprehensive loss before reclassifications, net of tax | -33,077 | [1] | -10,465 | [1] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 4,522 | [1],[2] | 6,123 | [1],[2] | ||
Net current period other comprehensive loss | -28,555 | [1] | -4,342 | [1] | 7,258 | |
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 478 | [1] | ||||
Ending Balance | -19,560 | [1] | 8,517 | [1] | 12,859 | [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 | -21,775 | [1] | -4,124 | [1] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 4,522 | [1],[2] | 6,123 | [1],[2] | ||
Net current period other comprehensive loss | -17,253 | [1] | 1,999 | [1] | ||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | [1] | ||||
Ending Balance | -21,856 | [1] | -4,603 | [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 | -11,302 | [1] | -6,341 | [1] | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | [1],[2] | 0 | [1],[2] | ||
Net current period other comprehensive loss | -11,302 | [1] | -6,341 | [1] | ||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 478 | [1] | ||||
Ending Balance | $2,296 | [1] | $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 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Interest expense | ($122,984) | ($103,108) | ($90,537) | ||||||||||
Income before income taxes | 157,607 | 335,365 | 416,961 | ||||||||||
Provision for income taxes | -59,014 | -130,640 | -159,535 | ||||||||||
Net income | -14,778 | 37,892 | 54,002 | 21,531 | 30,798 | 60,258 | 64,916 | 48,753 | 98,593 | 204,725 | 257,426 | ||
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 | -7,413 | [1] | -10,037 | [1] | |||||||||
Income before income taxes | -7,413 | [1] | -10,037 | [1] | |||||||||
Provision for income taxes | 2,891 | [1] | 3,914 | [1] | |||||||||
Net income | ($4,522) | [1] | ($6,123) | [1] | |||||||||
[1] | Amounts in parentheses indicate debits to profit / loss |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 03, 2015 |
Restructuring Cost and Reserve [Line Items] | |||||
Employee termination benefit costs, pretax | $973 | $713 | $6,498 | $3,656 | $11,840 |
Employee termination benefit costs, after tax | 593 | 430 | 3,964 | 2,235 | 7,222 |
Expected restructuring liability to be paid in current fiscal year | 2,570 | 2,570 | |||
Cost of Revenues | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee termination benefit costs, pretax | 4,642 | ||||
Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee termination benefit costs, pretax | $7,198 |
Reconciliation_of_Liability_Ba
Reconciliation of Liability Balance for Restructuring Charges (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 03, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $0 |
Provision | 11,840 |
Payments | -9,270 |
Ending balance | $2,570 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Quarterly Financial Information [Line Items] | |||||||||||
Revenues, net | $327,827 | $345,184 | $397,547 | $409,358 | $366,111 | $396,334 | $470,888 | $490,790 | $1,479,916 | $1,724,123 | $1,839,432 |
Gross profit | 166,270 | 187,567 | 225,814 | 222,900 | 201,780 | 231,980 | 283,715 | 283,637 | 802,551 | 1,001,112 | 1,093,818 |
Operating income | 16,246 | 91,394 | 114,564 | 51,053 | 79,142 | 124,520 | 153,976 | 103,119 | 273,257 | 460,757 | 510,805 |
Net income | ($14,778) | $37,892 | $54,002 | $21,531 | $30,798 | $60,258 | $64,916 | $48,753 | $98,593 | $204,725 | $257,426 |
Basic EPS | ($0.26) | $0.67 | $0.95 | $0.38 | $0.55 | $1.07 | $1.16 | $0.87 | $1.74 | $3.65 | $4.27 |
Diluted EPS | ($0.26) | $0.67 | $0.95 | $0.38 | $0.54 | $1.07 | $1.15 | $0.87 | $1.74 | $3.63 | $4.23 |
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 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Jun. 29, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Quarterly Financial Information [Line Items] | |||||||||
Impact of impairment charges on net income before tax | $26,057 | $1,166 | $26,057 | $1,166 | $0 | ||||
Impact of impairment charges per fully diluted share, before tax | $0.34 | $0.01 | |||||||
Employee termination benefit costs, pretax | 973 | 713 | 6,498 | 3,656 | 11,840 | ||||
Employee termination benefit costs, after tax | 593 | 430 | 3,964 | 2,235 | 7,222 | ||||
Impact of early extinguishment of debt on net income before of tax | 2,350 | 10,540 | 21,685 | ||||||
Impact of early extinguishment of debt on net income net of tax | $6,396 | $13,336 | |||||||
Impact of early extinguishment of debt per fully diluted share | $0.04 | $0.11 | $0.24 |
Recovered_Sheet1
Valuation and Qualifying Accounts and Reserves (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Allowance for doubtful accounts | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $3,477 | $3,447 | $5,315 | |||
Additions charged to Costs and Expenses | 99 | 596 | -1,067 | |||
Additions charged to Other Accounts | 0 | 0 | 26 | |||
Deductions | -289 | [1] | -566 | [1] | -827 | [1] |
Balance at End of Period | 3,287 | 3,477 | 3,447 | |||
Inventory and other reserves | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 5,859 | 6,942 | 7,397 | |||
Additions charged to Costs and Expenses | 11,822 | 9,580 | 10,491 | |||
Additions charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -10,574 | [1] | -10,663 | [1] | -10,946 | [1] |
Balance at End of Period | 7,107 | 5,859 | 6,942 | |||
Tax valuation allowance | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 36,372 | 31,015 | 25,781 | |||
Additions charged to Costs and Expenses | 3,183 | 3,821 | 3,387 | |||
Additions charged to Other Accounts | 0 | 2,429 | 2,322 | |||
Deductions | -4,915 | [1] | -893 | [1] | -475 | [1] |
Balance at End of Period | $34,640 | $36,372 | $31,015 | |||
[1] | Primarily represents the utilization of established reserves, net of recoveries, where applicable. |