Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2015 | 5-May-15 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 4-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WTW | |
Entity Registrant Name | WEIGHT WATCHERS INTERNATIONAL INC | |
Entity Central Index Key | 105319 | |
Current Fiscal Year End Date | -1 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 57,182,008 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 04, 2015 | Jan. 03, 2015 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | $211,009 | $301,212 | ||
Receivables (net of allowances: April 4, 2015 - $2,901 and January 3, 2015 - $3,287) | 31,215 | 31,960 | ||
Inventories | 28,112 | 32,382 | ||
Deferred income taxes | 25,476 | 23,744 | ||
Prepaid expenses and other current assets | 49,420 | 36,367 | ||
TOTAL CURRENT ASSETS | 345,232 | 425,665 | ||
Property and equipment, net | 72,106 | 74,650 | ||
Franchise rights acquired | 754,335 | 760,883 | ||
Goodwill | 167,738 | 168,279 | ||
Trademarks and other intangible assets, net | 72,383 | 68,115 | ||
Deferred financing costs, net | 30,593 | 32,742 | ||
Other noncurrent assets | 4,034 | 4,306 | ||
TOTAL ASSETS | 1,446,421 | 1,534,640 | ||
CURRENT LIABILITIES | ||||
Portion of long-term debt due within one year | 250,185 | 80,728 | ||
Accounts payable | 56,930 | 52,411 | ||
Derivative payable | 57,815 | 42,423 | ||
Other accrued liabilities | 157,264 | 179,164 | ||
Income taxes payable | 8,817 | 10,779 | ||
Deferred revenue | 75,152 | 66,190 | ||
TOTAL CURRENT LIABILITIES | 606,163 | 431,695 | ||
Long-term debt | 2,037,000 | 2,277,272 | ||
Deferred income taxes | 170,954 | 176,278 | ||
Other | 17,522 | 16,883 | ||
TOTAL LIABILITIES | 2,831,639 | 2,902,128 | ||
Redeemable noncontrolling interest | 5,074 | 5,553 | ||
TOTAL DEFICIT | ||||
Common stock, $0 par value; 1,000,000 shares authorized; 112,493 shares issued at April 4, 2015 and 112,195 shares issued at January 3, 2015 | 0 | 0 | ||
Treasury stock, at cost, 55,412 shares at April 4, 2015 and 55,485 shares at January 3, 2015 | -3,251,141 | -3,253,597 | ||
Retained earnings | 1,897,669 | 1,900,506 | ||
Accumulated other comprehensive loss | -36,820 | [1] | -19,950 | [1] |
TOTAL DEFICIT | -1,390,292 | -1,373,041 | ||
TOTAL LIABILITIES AND TOTAL DEFICIT | $1,446,421 | $1,534,640 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
Receivables, allowances | $2,901 | $3,287 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 112,493,000 | 112,195,000 |
Treasury stock, shares | 55,412,000 | 55,485,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Service revenues, net | $249,965 | $316,697 |
Product sales and other, net | 72,138 | 92,661 |
Revenues, net | 322,103 | 409,358 |
Cost of services | 130,313 | 144,609 |
Cost of product sales and other | 34,487 | 41,849 |
Cost of revenues | 164,800 | 186,458 |
Gross profit | 157,303 | 222,900 |
Marketing expenses | 87,283 | 115,335 |
Selling, general and administrative expenses | 51,976 | 56,512 |
Operating income | 18,044 | 51,053 |
Interest expense | 31,104 | 25,262 |
Other expense, net | 575 | 270 |
Early extinguishment of debt | -4,776 | 0 |
Gain on Brazil acquisition | 0 | -10,540 |
(Loss) income before income taxes | -8,859 | 36,061 |
(Benefit) provision for income taxes | -3,375 | 14,530 |
Net (loss) income | -5,484 | 21,531 |
Net loss attributable to the noncontrolling interest | 51 | 0 |
Net (loss) income attributable to Weight Watchers International, Inc. | ($5,433) | $21,531 |
(Loss) Earnings Per Share attributable to Weight Watchers International, Inc. | ||
Basic | ($0.10) | $0.38 |
Diluted | ($0.10) | $0.38 |
Weighted average common shares outstanding | ||
Basic | 56,806 | 56,428 |
Diluted | 56,806 | 56,506 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | ||
Net (loss) income | ($5,484) | $21,531 | ||
Other comprehensive loss: | ||||
Foreign currency translation adjustments | -12,521 | -1,300 | ||
Income tax effect on foreign currency translation adjustments | 4,883 | 925 | ||
Foreign currency translation adjustments, net of taxes | -7,638 | -375 | ||
Changes in loss on derivatives | -15,869 | -13,413 | ||
Income tax effect on changes in loss on derivatives | 6,189 | 5,231 | ||
Changes in loss on derivatives, net of taxes | -9,680 | -8,182 | ||
Net current period other comprehensive loss | -17,318 | [1] | -8,557 | [1] |
Comprehensive (loss) income | -22,802 | 12,974 | ||
Less: Net loss attributable to the noncontrolling interest | 51 | 0 | ||
Less: Foreign currency translation adjustments, net of taxes attributable to the noncontrolling interest | 448 | 0 | ||
Comprehensive loss attributable to the noncontrolling interest | 499 | 0 | ||
Comprehensive (loss) income attributable to Weight Watchers International, Inc. | ($22,303) | $12,974 | ||
[1] | Amounts in parentheses indicate debits |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Operating activities: | ||
Net (loss) income | ($5,484) | $21,531 |
Adjustments to reconcile net (loss) income to cash (used in ) provided by operating activities: | ||
Depreciation and amortization | 13,933 | 11,454 |
Amortization of deferred financing costs | 1,822 | 1,959 |
Share-based compensation expense | 2,281 | 1,448 |
Deferred tax provision | 3,743 | 10,857 |
Allowance for doubtful accounts | -193 | 299 |
Reserve for inventory obsolescence | 1,952 | 2,939 |
Foreign currency exchange rate loss | 595 | 209 |
Gain on Brazil acquisition | 0 | -10,540 |
Early extinguishment of debt | -5,350 | 0 |
Other items, net | 0 | -155 |
Changes in cash due to: | ||
Receivables | 120 | -3,201 |
Inventories | 1,668 | 6,029 |
Prepaid expenses | -13,816 | 751 |
Accounts payable | 3,273 | 10,193 |
Accrued liabilities | -19,419 | 7,785 |
Deferred revenue | 10,584 | 26,083 |
Income taxes | -3,142 | -6,791 |
Cash (used in) provided by operating activities | -7,433 | 80,850 |
Investing activities: | ||
Capital expenditures | -1,444 | -2,052 |
Capitalized software expenditures | -9,322 | -3,921 |
Cash paid for acquisitions | -2,775 | -11,919 |
Other items, net | 54 | -53 |
Cash used in investing activities | -13,487 | -17,945 |
Financing activities: | ||
Payments on long-term debt | -65,139 | -6,000 |
Payment of dividends | -2 | -73 |
Tax benefit of restricted stock units vested and stock options exercised | 0 | 1 |
Cash used in financing activities | -65,141 | -6,072 |
Effect of exchange rate changes on cash and cash equivalents and other | -4,142 | 243 |
Net (decrease) increase in cash and cash equivalents | -90,203 | 57,076 |
Cash and cash equivalents, beginning of period | 301,212 | 174,557 |
Cash and cash equivalents, end of period | $211,009 | $231,633 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Apr. 04, 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 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 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. As further discussed in Note 3, as a result of the acquisition of Weilos, Inc. (“Weilos”), in March 2015, Weilos became a wholly owned subsidiary of the Company and the Company began to consolidate the entity as of the date of acquisition. | ||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and include amounts that are based on management’s best estimates and judgments. While all available information has been considered, actual amounts could differ from those estimates. The Company’s operating results for any interim period are not necessarily indicative of future or annual results. The consolidated financial statements are unaudited and, accordingly, they do not include all of the information necessary for a comprehensive presentation of results of operations, financial position and cash flow activity required by GAAP for complete financial statements but, in the opinion of management, reflect all adjustments including those of a normal recurring nature necessary for a fair statement of the interim results presented. | ||
These statements should be read in conjunction with the Company’s Annual Report on Form 10-K/A for fiscal 2014 filed on May 13, 2015, which includes additional information about the Company, its results of operations, its financial position and its cash flows. | ||
Restatement: | ||
The Company filed on May 13, 2015 an amendment on Form 10-K/A to amend its Annual Report on Form 10-K for the fiscal year ended January 3, 2015, as filed on March 4, 2015, to restate (1) its consolidated financial statements as of and for the fiscal year ended January 3, 2015, (2) its selected financial data as of and for the fiscal year ended January 3, 2015, (3) its quarterly results of operations for the fiscal quarter ended January 3, 2015 and (4) its Management’s Annual Report on Internal Control Over Financial Reporting as of January 3, 2015, as well as to revise (1) its consolidated financial statements as of and for the fiscal year ended December 28, 2013, (2) its selected financial data as of and for the fiscal year ended December 28, 2013 and (3) its quarterly results of operations for all fiscal quarters in the fiscal year ended December 28, 2013. | ||
On May 4, 2015, the Audit Committee of the Board of Directors of the Company (the “Audit Committee”) concluded that the Company’s previously issued consolidated financial statements for the fiscal year ended January 3, 2015 as contained in the Company’s Annual Report on Form 10-K for fiscal 2014, as filed on March 4, 2015, should be restated with respect to the accounting for certain franchise rights acquired. Based on discussions with the Staff of the Securities and Exchange Commission regarding the Company’s accounting of its franchise rights acquired, the Company determined that, subsequent to the fiscal 2009 adoption of ASC 350-30-35-2, franchise rights acquired in connection with franchise agreements that have a renewal term at the option of the franchisee should be accounted for as definite-lived assets. Previously these acquired franchise rights were accounted for as indefinite-lived assets based on the franchisee’s ability to elect indefinitely to renew the franchise rights. After this correction, the value of these rights and the amortization period thereon will contemplate the remainder of the contractual term from the date of acquisition without giving any effect to the franchisee’s renewal rights. | ||
As part of this restatement, the Company’s consolidated Balance Sheet as of January 3, 2015 was also revised to correct the previously disclosed immaterial misclassification of the Company’s total debt. In addition, the Company also recorded other miscellaneous adjustments as part of this restatement that are either related to the aforementioned or were previously identified but determined to be immaterial. | ||
For a discussion of the Company’s restatement, see “Restatement of Financial Statements” in the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K/A for fiscal 2014. | ||
Liquidity: | ||
The Company has a $228,724 debt maturity obligation due April 2016. Based upon the Company’s cash on hand of $211,009 as of April 4, 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 | 3 Months Ended | |
Apr. 04, 2015 | ||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies |
For a discussion of the Company’s other significant accounting policies, see “Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K/A for fiscal 2014. |
Acquisition_of_Weilos
Acquisition of Weilos | 3 Months Ended | |
Apr. 04, 2015 | ||
Acquisition of Weilos | 3 | Acquisition of Weilos |
On March 11, 2015, the Company acquired for a purchase price of $6,674 Weilos, a California-based startup with an online social platform that provides a mobile health and weight loss community. Payment was in the form of common stock issued $2,810, restricted stock issued $114 and cash $2,775 plus cash held back of $975. The total purchase price of Weilos has been preliminarily allocated to goodwill ($4,251), identifiable intangibles ($3,933) and other assets ($24) offset by deferred tax liabilities ($1,534). Restricted shares in the amount of $908 were issued to key employees, contingent upon 18 months post-combination employment, and will be accounted for as stock compensation cost in the post-combination financial statements. As a result of the acquisition, Weilos 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. The amounts are preliminary because the identification and valuation of intangibles have not been finalized. |
Franchise_Rights_Acquired_Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 4 | Franchise Rights Acquired, Goodwill and Other Intangible Assets | |||||||||||||||||||
Franchise rights acquired are due to acquisitions of the Company’s franchised territories as well as the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the three months ended April 4, 2015, the change in the carrying value of indefinite-lived franchise rights acquired is due to the effect of exchange rate changes as follows: | |||||||||||||||||||||
Balance as of January 3, 2015, as restated | $ | 759,838 | |||||||||||||||||||
Effect of exchange rate changes | (6,216 | ) | |||||||||||||||||||
Balance as of April 4, 2015 | $ | 753,622 | |||||||||||||||||||
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 acquisitions of the majority interest in VPM and of Wello in fiscal 2014 and the acquisition of Weilos in the first quarter of fiscal 2015. See Note 3 for further information on the Weilos acquisition. For the three months ended | |||||||||||||||||||||
April 4, 2015, the change in the carrying amount of goodwill is due to the Weilos acquisition and the effect of exchange rate changes as follows: | |||||||||||||||||||||
North | United | Continental | Other | Total | |||||||||||||||||
America | Kingdom | Europe | |||||||||||||||||||
Balance as of January 3, 2015, as restated | $ | 134,611 | $ | 1,421 | $ | 7,661 | $ | 24,586 | $ | 168,279 | |||||||||||
Goodwill acquired during the period | 4,251 | 0 | 0 | 0 | 4,251 | ||||||||||||||||
Effect of exchange rate changes | (1,178 | ) | (38 | ) | (369 | ) | (3,207 | ) | (4,792 | ) | |||||||||||
Balance as of April 4, 2015 | $ | 137,684 | $ | 1,383 | $ | 7,292 | $ | 21,379 | $ | 167,738 | |||||||||||
The carrying values of finite-lived intangible assets as of April 4, 2015 and January 3, 2015 was as follows: | |||||||||||||||||||||
April 4, 2015 | January 3, 2015 | ||||||||||||||||||||
(restated) | |||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Capitalized software costs | $ | 112,234 | $ | 75,627 | $ | 107,581 | $ | 72,590 | |||||||||||||
Website development costs | 101,482 | 68,616 | 95,717 | 63,405 | |||||||||||||||||
Trademarks | 10,852 | 10,270 | 10,836 | 10,213 | |||||||||||||||||
Other | 9,202 | 6,874 | 7,014 | 6,825 | |||||||||||||||||
Trademarks and other intangible assets | 233,770 | 161,387 | 221,148 | 153,033 | |||||||||||||||||
Franchise rights acquired | 4,493 | 3,780 | 4,735 | 3,690 | |||||||||||||||||
Total finite-lived intangible assets | $ | 238,263 | $ | 165,167 | $ | 225,883 | $ | 156,723 | |||||||||||||
Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $9,218 and $6,193 for the three months ended April 4, 2015 and March 29, 2014, respectively. | |||||||||||||||||||||
Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: | |||||||||||||||||||||
Remainder of fiscal 2015 | $ | 26,364 | |||||||||||||||||||
Fiscal 2016 | $ | 23,695 | |||||||||||||||||||
Fiscal 2017 | $ | 18,405 | |||||||||||||||||||
Fiscal 2018 | $ | 3,505 | |||||||||||||||||||
Fiscal 2019 and thereafter | $ | 1,127 |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Long-Term Debt | 5 | Long-Term Debt | |||||||||||||||
The components of the Company’s long-term debt are as follows: | |||||||||||||||||
April 4, 2015 | January 3, 2015 | ||||||||||||||||
Balance | Effective | Balance | Effective | ||||||||||||||
Rate | Rate | ||||||||||||||||
(restated) | |||||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 229,185 | 3.18 | % | 294,750 | 3.12 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,058,000 | 4 | % | 2,063,250 | 3.96 | % | |||||||||||
Total Debt | 2,287,185 | 3.9 | % | 2,358,000 | 3.86 | % | |||||||||||
Less Current Portion | 250,185 | 80,728 | |||||||||||||||
Total Long-Term Debt | $ | 2,037,000 | $ | 2,277,272 | |||||||||||||
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. | |||||||||||||||||
Under the terms of the Credit Agreement, depending on the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement), the Company is obligated to offer to prepay the Term Facilities in an aggregate amount determined by its excess cash flow (as defined in the Credit Agreement). On March 13, 2015, the Company commenced an offer to prepay at a discount to par up to $75,000 in aggregate principal amount of term loans outstanding under the Tranche B-1 Term Facility. On March 20, 2015, the Company accepted offers with a discount equal to or greater than 9.00% in respect of such term loans. On March 25, 2015, the Company paid an aggregate amount of cash proceeds totaling $57,389 plus an amount sufficient to pay accrued and unpaid interest on the amount prepaid to prepay $63,065 in aggregate principal amount of such term loans under the Tranche B-1 Term Facility. This expenditure reduced, on a dollar for dollar basis, the Company’s $59,728 obligation to make a mandatory excess cash flow prepayment offer to the term loan lenders under the terms of the Credit Agreement. In addition, the Company made a voluntary prepayment at par on March 25, 2015 of $2,500 in respect of such term loans under the Tranche B-1 Term Facility to reduce the remaining excess cash flow prepayment obligation for fiscal 2014. As a result of this prepayment, the Company wrote-off fees of $326, incurred fees of $574 and recorded a gain on early extinguishment of debt of $4,776, inclusive of these fees, in the first quarter of fiscal 2015. | |||||||||||||||||
At April 4, 2015, the Company had $2,287,185 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at April 4, 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. At April 4, 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 April 4, 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 April 4, 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 April 4, 2015 and January 3, 2015, 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 3.92% and 3.90% per annum at April 4, 2015 and January 3, 2015, respectively. The average interest rate on the Company’s debt, including the impact of swaps, was approximately 4.99% and 4.93% per annum at April 4, 2015 and January 3, 2015, respectively. |
Loss_Earnings_Per_Share
(Loss) Earnings Per Share | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
(Loss) Earnings Per Share | 6 | (Loss) 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 (loss) earnings per share: | |||||||||
Three Months Ended | |||||||||
April 4, | March 29, | ||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net (loss) income attributable to Weight Watchers International, Inc. | $ | (5,433 | ) | $ | 21,531 | ||||
Denominator: | |||||||||
Weighted average shares of common stock outstanding | 56,806 | 56,428 | |||||||
Effect of dilutive common stock equivalents | 0 | 78 | |||||||
Weighted average diluted common shares outstanding | 56,806 | 56,506 | |||||||
(Loss) Earnings Per Share attributable to Weight Watchers International, Inc. | |||||||||
Basic | $ | (0.10 | ) | $ | 0.38 | ||||
Diluted | $ | (0.10 | ) | $ | 0.38 | ||||
The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 4,117 and 2,190 for the three months ended April 4, 2015 and March 29, 2014, respectively. |
Stock_Plans
Stock Plans | 3 Months Ended | |
Apr. 04, 2015 | ||
Stock Plans | 7 | Stock Plans |
On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan”). On May 6, 2014, the Company’s shareholders approved the 2014 Stock Incentive Plan (the “2014 Plan” 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. | ||
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. Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to also enter into agreements under which certain employees received stock options with both time and performance vesting criteria (“T&P Vesting Options”). On May 7, 2015, the Company’s shareholders approved an amendment to the 2014 Plan to permit a one-time stock option exchange program under which the Company would offer eligible employees the opportunity to exchange certain eligible T&P Options on a (a) two-for-one basis for new stock options for all eligible employees, other than our Chief Executive Officer (i.e., so that the new stock options will cover half as many shares as the corresponding surrendered options) and (b) 3.5-for-one basis for new stock options for our Chief Executive Officer (i.e., so that the new stock options will cover a number of shares equal to the quotient of the number of shares covered by the corresponding surrendered options divided by 3.5). The option exchange program is designed to create better incentives for employees to remain with the Company and contribute to the attainment of its business and financial objectives. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Apr. 04, 2015 | ||
Income Taxes | 8 | Income Taxes |
The effective tax rates for the three months ended April 4, 2015 and March 29, 2014 were 38.1% and 40.3%, respectively. For the three months ended April 4, 2015, the primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were state income taxes, increases in valuation allowances and tax reserves. For the three months ended March 29, 2014, the primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were increases in valuation allowances and state income taxes. |
Legal
Legal | 3 Months Ended | |
Apr. 04, 2015 | ||
Legal | 9 | Legal |
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. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging | 3 Months Ended | |
Apr. 04, 2015 | ||
Derivative Instruments and Hedging | 10 | Derivative Instruments and Hedging |
As of both April 4, 2015 and January 3, 2015, the Company had in effect an interest rate swap with a notional amount totaling $1,500,000. 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 quarter ended March 29, 2014. | ||
On July 26, 2013, in order to hedge an additional portion of its variable rate debt, the Company entered into a forward-starting interest rate swap with an effective date of March 31, 2014 and a termination date of April 2, 2020. The initial notional amount of this swap 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 April 4, 2015 and January 3, 2015, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive income (loss) in the amounts of $31,536 ($51,698 before taxes) and $21,856 ($35,830 before taxes), respectively. | ||
The Company is hedging forecasted transactions for periods not exceeding the next six years. The Company expects approximately $14,818 ($24,292 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at April 4, 2015, based on current market rates, will be reclassified into earnings within the next 12 months. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Fair Value Measurements | 11 | Fair Value Measurements | |||||||||||||||
Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: | |||||||||||||||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
When measuring fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company’s significant financial instruments include long-term debt and interest rate swap agreements. | |||||||||||||||||
The fair value of the Company’s long-term debt is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of April 4, 2015 and January 3, 2015, the fair value of the Company’s long-term debt was approximately $1,310,711 and $1,888,051, respectively. | |||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
The fair values for the Company’s derivative financial instruments are determined using observable current market information such as the prevailing LIBOR interest rate and LIBOR yield curve rates and include consideration of counterparty credit risk. See Note 10 for disclosures related to derivative financial instruments. | |||||||||||||||||
The following table presents the aggregate fair value of the Company’s derivative financial instruments: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
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 April 4, 2015 | $ | 57,815 | $ | 0 | $ | 57,815 | $ | 0 | |||||||||
Interest rate swap liability at January 3, 2015 | $ | 42,423 | $ | 0 | $ | 42,423 | $ | 0 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Accumulated Other Comprehensive Loss | 12 | Accumulated Other Comprehensive Loss | |||||||||||
Amounts reclassified out of accumulated other comprehensive loss are as follows: | |||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component (a) | |||||||||||||
Three Months Ended April 4, 2015 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at January 3, 2015, restated | $ | (21,856 | ) | $ | 1,906 | $ | (19,950 | ) | |||||
Other comprehensive loss before reclassifications, net of tax | (9,389 | ) | (7,638 | ) | (17,027 | ) | |||||||
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (b) | (291 | ) | 0 | (291 | ) | ||||||||
Net current period other comprehensive loss including noncontrolling interest | (9,680 | ) | (7,638 | ) | (17,318 | ) | |||||||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | 448 | 448 | ||||||||||
Ending Balance at April 4, 2015 | $ | (31,536 | ) | $ | (5,284 | ) | $ | (36,820 | ) | ||||
(a) Amounts in parentheses indicate debits | |||||||||||||
(b) See separate table below for details about these reclassifications | |||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Translation | ||||||||||||
Hedges | Adjustments | ||||||||||||
Beginning Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
Other comprehensive loss before reclassifications, net of tax | (8,682 | ) | (375 | ) | (9,057 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 500 | 0 | 500 | ||||||||||
Net current period other comprehensive loss | (8,182 | ) | (375 | ) | (8,557 | ) | |||||||
Ending Balance at March 29, 2014 | $ | (12,785 | ) | $ | 12,745 | $ | (40 | ) | |||||
(a) Amounts in parentheses indicate debits | |||||||||||||
(b) See separate table below for details about these reclassifications | |||||||||||||
Reclassifications out of Accumulated Other Comprehensive Loss (a) | |||||||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Amounts Reclassified from | Affected Line Item in the | ||||||||||||
Accumulated Other | Statement Where Net (Loss) | ||||||||||||
Details about Other Comprehensive | Comprehensive Loss | Income is Presented | |||||||||||
Loss Components | |||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | 476 | $ | (820 | ) | Interest expense | |||||||
476 | (820 | ) | (Loss) income before income taxes | ||||||||||
(185 | ) | 320 | (Benefit) provision for income taxes | ||||||||||
$ | 291 | $ | (500 | ) | Net (loss) income | ||||||||
(a) Amounts in parentheses indicate debits to profit / loss |
Segment_Data
Segment Data | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Segment Data | 13 | Segment Data | |||||||
The Company has four reportable segments: North America, United Kingdom, Continental Europe (CE) 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. | |||||||||
Information about the Company’s reportable segments is as follows: | |||||||||
Total Revenue | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
North America | $ | 205,556 | $ | 264,406 | |||||
United Kingdom | 34,370 | 42,199 | |||||||
Continental Europe | 66,743 | 84,231 | |||||||
Other | 15,434 | 18,522 | |||||||
Total revenue | $ | 322,103 | $ | 409,358 | |||||
Net (Loss) Income | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
Segment operating income (loss): | |||||||||
North America | $ | 18,020 | $ | 57,808 | |||||
United Kingdom | 6,181 | (1,546 | ) | ||||||
Continental Europe | 10,057 | 5,843 | |||||||
Other | 1,498 | 1,088 | |||||||
Total segment operating income | 35,756 | 63,193 | |||||||
General corporate expenses | (17,712 | ) | (12,140 | ) | |||||
Interest expense | 31,104 | 25,262 | |||||||
Other expense, net | 575 | 270 | |||||||
Early extinguishment of debt | (4,776 | ) | 0 | ||||||
Gain on Brazil acquisition | 0 | (10,540 | ) | ||||||
(Benefit) provision for taxes | (3,375 | ) | 14,530 | ||||||
Net (loss) income | (5,484 | ) | 21,531 | ||||||
Net loss attributable to noncontrolling interest | 51 | 0 | |||||||
Net (loss) income attributable to Weight Watchers International, Inc. | $ | (5,433 | ) | $ | 21,531 | ||||
Depreciation and Amortization | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
North America | $ | 11,476 | $ | 7,978 | |||||
United Kingdom | 187 | 358 | |||||||
Continental Europe | 485 | 593 | |||||||
Other | 384 | 348 | |||||||
Total segment depreciation and amortization | 12,532 | 9,277 | |||||||
General corporate depreciation and amortization | 3,223 | 4,136 | |||||||
Depreciation and amortization | $ | 15,755 | $ | 13,413 | |||||
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Restructuring Charges | 14 | Restructuring Charges | |||
As previously disclosed, the Company established a new cost-savings plan and, as part of this cost-savings plan, in fiscal 2015, the Company undertook a plan of reduction in force which resulted in the elimination of certain positions and termination of employment for certain employees worldwide in the three months ended April 4, 2015. In fiscal 2014, the Company reviewed its organization and undertook a restructuring which resulted in the elimination of certain positions and the termination of employment for certain employees worldwide in the three months ended March 29, 2014. | |||||
In connection with these plans, the Company recorded restructuring charges in connection with employee termination benefit costs of $5,761 ($3,514 after tax) and $3,656 ($2,235 after tax) during the three months ended April 4, 2015 and March 29, 2014, respectively. For the three months ended April 4, 2015 and March 29, 2014, these charges impacted cost of revenues by $2,009 and $1,512, respectively, and selling, general and administrative expense by $3,752 and $2,144, respectively. For the three months ended April 4, 2015 and March 29, 2014, all restructuring charges were recorded to general corporate expense and therefore there was no impact to the segments. | |||||
For the three months ended April 4, 2015, the reconciliation of the liability balance for these restructuring charges was as follows: | |||||
Balance as of January 3, 2015 | $ | 2,570 | |||
Provision | 5,761 | ||||
Payments | (1,658 | ) | |||
Balance as of April 4, 2015 | $ | 6,673 | |||
The Company expects the liability as of April 4, 2015 to be paid in fiscal 2015. The Company anticipates recording additional restructuring charges in connection with the 2015 plan and the related employee termination benefit costs of approximately $4,200 during the remainder of fiscal 2015. |
Franchise_Rights_Acquired_Good1
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Changes in Carrying Value of Indefinite-Lived Franchise Rights Acquired | For the three months ended April 4, 2015, the change in the carrying value of indefinite-lived franchise rights acquired is due to the effect of exchange rate changes as follows: | ||||||||||||||||||||
Balance as of January 3, 2015, as restated | $ | 759,838 | |||||||||||||||||||
Effect of exchange rate changes | (6,216 | ) | |||||||||||||||||||
Balance as of April 4, 2015 | $ | 753,622 | |||||||||||||||||||
Changes in Carrying Values of Goodwill | For the three months ended | ||||||||||||||||||||
April 4, 2015, the change in the carrying amount of goodwill is due to the Weilos acquisition and the effect of exchange rate changes as follows: | |||||||||||||||||||||
North | United | Continental | Other | Total | |||||||||||||||||
America | Kingdom | Europe | |||||||||||||||||||
Balance as of January 3, 2015, as restated | $ | 134,611 | $ | 1,421 | $ | 7,661 | $ | 24,586 | $ | 168,279 | |||||||||||
Goodwill acquired during the period | 4,251 | 0 | 0 | 0 | 4,251 | ||||||||||||||||
Effect of exchange rate changes | (1,178 | ) | (38 | ) | (369 | ) | (3,207 | ) | (4,792 | ) | |||||||||||
Balance as of April 4, 2015 | $ | 137,684 | $ | 1,383 | $ | 7,292 | $ | 21,379 | $ | 167,738 | |||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | The carrying values of finite-lived intangible assets as of April 4, 2015 and January 3, 2015 was as follows: | ||||||||||||||||||||
April 4, 2015 | January 3, 2015 | ||||||||||||||||||||
(restated) | |||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Capitalized software costs | $ | 112,234 | $ | 75,627 | $ | 107,581 | $ | 72,590 | |||||||||||||
Website development costs | 101,482 | 68,616 | 95,717 | 63,405 | |||||||||||||||||
Trademarks | 10,852 | 10,270 | 10,836 | 10,213 | |||||||||||||||||
Other | 9,202 | 6,874 | 7,014 | 6,825 | |||||||||||||||||
Trademarks and other intangible assets | 233,770 | 161,387 | 221,148 | 153,033 | |||||||||||||||||
Franchise rights acquired | 4,493 | 3,780 | 4,735 | 3,690 | |||||||||||||||||
Total finite-lived intangible assets | $ | 238,263 | $ | 165,167 | $ | 225,883 | $ | 156,723 | |||||||||||||
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: | ||||||||||||||||||||
Remainder of fiscal 2015 | $ | 26,364 | |||||||||||||||||||
Fiscal 2016 | $ | 23,695 | |||||||||||||||||||
Fiscal 2017 | $ | 18,405 | |||||||||||||||||||
Fiscal 2018 | $ | 3,505 | |||||||||||||||||||
Fiscal 2019 and thereafter | $ | 1,127 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Schedule of Long-term Debt Instruments | The components of the Company’s long-term debt are as follows: | ||||||||||||||||
April 4, 2015 | January 3, 2015 | ||||||||||||||||
Balance | Effective | Balance | Effective | ||||||||||||||
Rate | Rate | ||||||||||||||||
(restated) | |||||||||||||||||
Revolving Facility due April 2, 2018 | $ | 0 | 0 | % | $ | 0 | 0 | % | |||||||||
Tranche B-1 Term Facility due April 2, 2016 | 229,185 | 3.18 | % | 294,750 | 3.12 | % | |||||||||||
Tranche B-2 Term Facility due April 2, 2020 | 2,058,000 | 4 | % | 2,063,250 | 3.96 | % | |||||||||||
Total Debt | 2,287,185 | 3.9 | % | 2,358,000 | 3.86 | % | |||||||||||
Less Current Portion | 250,185 | 80,728 | |||||||||||||||
Total Long-Term Debt | $ | 2,037,000 | $ | 2,277,272 | |||||||||||||
Loss_Earnings_Per_Share_Tables
(Loss) Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Schedule of (Loss) Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted (loss) earnings per share: | ||||||||
Three Months Ended | |||||||||
April 4, | March 29, | ||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net (loss) income attributable to Weight Watchers International, Inc. | $ | (5,433 | ) | $ | 21,531 | ||||
Denominator: | |||||||||
Weighted average shares of common stock outstanding | 56,806 | 56,428 | |||||||
Effect of dilutive common stock equivalents | 0 | 78 | |||||||
Weighted average diluted common shares outstanding | 56,806 | 56,506 | |||||||
(Loss) Earnings Per Share attributable to Weight Watchers International, Inc. | |||||||||
Basic | $ | (0.10 | ) | $ | 0.38 | ||||
Diluted | $ | (0.10 | ) | $ | 0.38 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 04, 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 April 4, 2015 | $ | 57,815 | $ | 0 | $ | 57,815 | $ | 0 | |||||||||
Interest rate swap liability at January 3, 2015 | $ | 42,423 | $ | 0 | $ | 42,423 | $ | 0 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component (a) | ||||||||||||
Three Months Ended April 4, 2015 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Currency | ||||||||||||
Hedges | Translation | ||||||||||||
Adjustments | |||||||||||||
Beginning Balance at January 3, 2015, restated | $ | (21,856 | ) | $ | 1,906 | $ | (19,950 | ) | |||||
Other comprehensive loss before reclassifications, net of tax | (9,389 | ) | (7,638 | ) | (17,027 | ) | |||||||
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax (b) | (291 | ) | 0 | (291 | ) | ||||||||
Net current period other comprehensive loss including noncontrolling interest | (9,680 | ) | (7,638 | ) | (17,318 | ) | |||||||
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | 448 | 448 | ||||||||||
Ending Balance at April 4, 2015 | $ | (31,536 | ) | $ | (5,284 | ) | $ | (36,820 | ) | ||||
(a) Amounts in parentheses indicate debits | |||||||||||||
(b) See separate table below for details about these reclassifications | |||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||
Loss on | Foreign | Total | |||||||||||
Qualifying | Translation | ||||||||||||
Hedges | Adjustments | ||||||||||||
Beginning Balance at December 28, 2013 | $ | (4,603 | ) | $ | 13,120 | $ | 8,517 | ||||||
Other comprehensive loss before reclassifications, net of tax | (8,682 | ) | (375 | ) | (9,057 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (b) | 500 | 0 | 500 | ||||||||||
Net current period other comprehensive loss | (8,182 | ) | (375 | ) | (8,557 | ) | |||||||
Ending Balance at March 29, 2014 | $ | (12,785 | ) | $ | 12,745 | $ | (40 | ) | |||||
(a) Amounts in parentheses indicate debits | |||||||||||||
(b) See separate table below for details about these reclassifications | |||||||||||||
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of Accumulated Other Comprehensive Loss (a) | ||||||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Amounts Reclassified from | Affected Line Item in the | ||||||||||||
Accumulated Other | Statement Where Net (Loss) | ||||||||||||
Details about Other Comprehensive | Comprehensive Loss | Income is Presented | |||||||||||
Loss Components | |||||||||||||
Loss on Qualifying Hedges | |||||||||||||
Interest rate contracts | $ | 476 | $ | (820 | ) | Interest expense | |||||||
476 | (820 | ) | (Loss) income before income taxes | ||||||||||
(185 | ) | 320 | (Benefit) provision for income taxes | ||||||||||
$ | 291 | $ | (500 | ) | Net (loss) income | ||||||||
(a) Amounts in parentheses indicate debits to profit / loss |
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Information About Reportable Segments | Information about the Company’s reportable segments is as follows: | ||||||||
Total Revenue | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
North America | $ | 205,556 | $ | 264,406 | |||||
United Kingdom | 34,370 | 42,199 | |||||||
Continental Europe | 66,743 | 84,231 | |||||||
Other | 15,434 | 18,522 | |||||||
Total revenue | $ | 322,103 | $ | 409,358 | |||||
Net (Loss) Income | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
Segment operating income (loss): | |||||||||
North America | $ | 18,020 | $ | 57,808 | |||||
United Kingdom | 6,181 | (1,546 | ) | ||||||
Continental Europe | 10,057 | 5,843 | |||||||
Other | 1,498 | 1,088 | |||||||
Total segment operating income | 35,756 | 63,193 | |||||||
General corporate expenses | (17,712 | ) | (12,140 | ) | |||||
Interest expense | 31,104 | 25,262 | |||||||
Other expense, net | 575 | 270 | |||||||
Early extinguishment of debt | (4,776 | ) | 0 | ||||||
Gain on Brazil acquisition | 0 | (10,540 | ) | ||||||
(Benefit) provision for taxes | (3,375 | ) | 14,530 | ||||||
Net (loss) income | (5,484 | ) | 21,531 | ||||||
Net loss attributable to noncontrolling interest | 51 | 0 | |||||||
Net (loss) income attributable to Weight Watchers International, Inc. | $ | (5,433 | ) | $ | 21,531 | ||||
Depreciation and Amortization | |||||||||
Three Months Ended | |||||||||
April 4, 2015 | March 29, 2014 | ||||||||
North America | $ | 11,476 | $ | 7,978 | |||||
United Kingdom | 187 | 358 | |||||||
Continental Europe | 485 | 593 | |||||||
Other | 384 | 348 | |||||||
Total segment depreciation and amortization | 12,532 | 9,277 | |||||||
General corporate depreciation and amortization | 3,223 | 4,136 | |||||||
Depreciation and amortization | $ | 15,755 | $ | 13,413 | |||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Reconciliation of Liability Balance for Restructuring Charges | For the three months ended April 4, 2015, the reconciliation of the liability balance for these restructuring charges was as follows: | ||||
Balance as of January 3, 2015 | $ | 2,570 | |||
Provision | 5,761 | ||||
Payments | (1,658 | ) | |||
Balance as of April 4, 2015 | $ | 6,673 | |||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 | Mar. 29, 2014 | Dec. 28, 2013 |
Disclosure Basis Of Presentation Details [Line Items] | ||||
Long-term debt | $2,287,185 | $2,358,000 | ||
Cash and cash equivalents | 211,009 | 301,212 | 231,633 | 174,557 |
Unused portion of line of credit | 48,181 | |||
Debt Obligations Due April 2016 | ||||
Disclosure Basis Of Presentation Details [Line Items] | ||||
Long-term debt | $228,724 | |||
Long-term debt, payment date | 2016-04 |
Acquisition_of_Weilos_Addition
Acquisition of Weilos - Additional Information (Detail) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 11, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
Business Acquisition | |||
Business acquisition, purchase price allocation, goodwill | $167,738 | $168,279 | |
Weilos | |||
Business Acquisition | |||
Business acquisition, purchase price allocation, net purchase price | 6,674 | ||
Business acquisition, purchase price allocation, common stock issued | 2,810 | ||
Business acquisition, purchase price allocation, restricted stock issued | 114 | ||
Business acquisition, net purchase price | 2,775 | ||
Business acquisition, purchase price allocation, cash held back | 975 | ||
Business acquisition, purchase price allocation, goodwill | 4,251 | ||
Business acquisition, purchase price allocation, identifiable intangibles | 3,933 | ||
Business acquisition, purchase price allocation, fixed assets | 24 | ||
Business acquisition, purchase price allocation, deferred tax liabilities | 1,534 | ||
Restricted shares issued to key employees | $908 |
Changes_in_Carrying_Value_of_I
Changes in Carrying Value of Indefinite-Lived Franchise Rights Acquired (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Franchise Rights Acquired [Line Items] | |
Franchise rights acquired, beginning balance | $759,838 |
Effect of exchange rate changes | -6,216 |
Franchise rights acquired, ending balance | $753,622 |
Changes_in_Carrying_Values_of_
Changes in Carrying Values of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Goodwill [Line Items] | |
Beginning balance | $168,279 |
Goodwill acquired during the period | 4,251 |
Effect of exchange rate changes | -4,792 |
Ending balance | 167,738 |
North America | |
Goodwill [Line Items] | |
Beginning balance | 134,611 |
Goodwill acquired during the period | 4,251 |
Effect of exchange rate changes | -1,178 |
Ending balance | 137,684 |
United Kingdom | |
Goodwill [Line Items] | |
Beginning balance | 1,421 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | -38 |
Ending balance | 1,383 |
Continental Europe | |
Goodwill [Line Items] | |
Beginning balance | 7,661 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | -369 |
Ending balance | 7,292 |
Other | |
Goodwill [Line Items] | |
Beginning balance | 24,586 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | -3,207 |
Ending balance | $21,379 |
Carrying_Amount_of_FiniteLived
Carrying Amount of Finite-Lived Intangible Assets (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $238,263 | $225,883 |
Accumulated Amortization | 165,167 | 156,723 |
Capitalized software costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 112,234 | 107,581 |
Accumulated Amortization | 75,627 | 72,590 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 10,852 | 10,836 |
Accumulated Amortization | 10,270 | 10,213 |
Website development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 101,482 | 95,717 |
Accumulated Amortization | 68,616 | 63,405 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 9,202 | 7,014 |
Accumulated Amortization | 6,874 | 6,825 |
Trademarks and Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 233,770 | 221,148 |
Accumulated Amortization | 161,387 | 153,033 |
Franchise Rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 4,493 | 4,735 |
Accumulated Amortization | $3,780 | $3,690 |
Franchise_Rights_Acquired_Good2
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Goodwill and Intangible Assets Disclosure | ||
Finite-lived intangible assets, aggregate amortization expense | $9,218 | $6,193 |
Estimated_Amortization_Expense
Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) (USD $) | Apr. 04, 2015 |
In Thousands, unless otherwise specified | |
Expected Amortization Expense | |
Remainder of fiscal 2015 | $26,364 |
2016 | 23,695 |
2017 | 18,405 |
2018 | 3,505 |
2019 and thereafter | $1,127 |
Components_of_LongTerm_Debt_De
Components of Long-Term Debt (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ||
Total Debt | $2,287,185 | $2,358,000 |
Less Current Portion | 250,185 | 80,728 |
Effective Interest Rate | 3.90% | 3.86% |
Total Long-Term Debt | 2,037,000 | 2,277,272 |
Tranche B-1 Term Facility due April 2, 2016 | ||
Debt Instrument | ||
Total Debt | 229,185 | 294,750 |
Effective Interest Rate | 3.18% | 3.12% |
Tranche B-2 Term Facility due April 2, 2020 | ||
Debt Instrument | ||
Total Debt | 2,058,000 | 2,063,250 |
Effective Interest Rate | 4.00% | 3.96% |
Revolving Facility due April 2, 2018 | ||
Debt Instrument | ||
Total Debt | $0 | $0 |
Effective Interest Rate | 0.00% | 0.00% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 04, 2015 | Mar. 29, 2014 | Jun. 29, 2013 | Jan. 03, 2015 | Mar. 25, 2015 | Feb. 21, 2014 | Mar. 13, 2015 | Sep. 27, 2014 | Apr. 02, 2013 | Mar. 20, 2015 | Sep. 26, 2014 |
Debt Instrument | ||||||||||||
Fees incurred in connection with debt refinancing | $44,817 | |||||||||||
Payments of term loan | 2,399,904 | 65,139 | 6,000 | |||||||||
Write-off of deferred financing fees | 21,685 | |||||||||||
Gain on early debt extinguishment | 4,776 | 0 | ||||||||||
Credit Facility, aggregate principal amount outstanding | 2,287,185 | 2,358,000 | ||||||||||
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 | 3.92% | 3.90% | ||||||||||
Average interest rate on debt | 4.99% | 4.93% | ||||||||||
Tranche B-1 Term Facility due April 2, 2016 | ||||||||||||
Debt Instrument | ||||||||||||
WWI Credit Facility, maximum borrowing capacity | 300,000 | |||||||||||
Fees incurred in connection with debt refinancing | 574 | |||||||||||
Write-off of deferred financing fees | 326 | |||||||||||
Prepayment of accepted offers | 57,389 | |||||||||||
Accrued and unpaid interest on the amount to be prepaid | 63,065 | |||||||||||
Reduction in obligation | 59,728 | |||||||||||
Debt instrument, voluntary prepayment | 2,500 | |||||||||||
Gain on early debt extinguishment | 4,776 | |||||||||||
Credit Facility, aggregate principal amount outstanding | 229,185 | 294,750 | ||||||||||
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-1 Term Facility due April 2, 2016 | Maximum | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount, discount par value | 75,000 | |||||||||||
Tranche B-1 Term Facility due April 2, 2016 | Minimum | ||||||||||||
Debt Instrument | ||||||||||||
Debt instrument, interest rate, effective percentage | 9.00% | |||||||||||
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 | 2,058,000 | 2,063,250 | ||||||||||
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 | 2,287,185 | |||||||||||
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 | |||||||||||
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% |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted (Loss) Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Numerator: | ||
Net (loss) income attributable to Weight Watchers International, Inc. | ($5,433) | $21,531 |
Denominator: | ||
Weighted average shares of common stock outstanding | 56,806 | 56,428 |
Effect of dilutive common stock equivalents | 0 | 78 |
Weighted average diluted common shares outstanding | 56,806 | 56,506 |
(Loss) Earnings Per Share attributable to Weight Watchers International, Inc. | ||
Basic | ($0.10) | $0.38 |
Diluted | ($0.10) | $0.38 |
Loss_Earnings_Per_Share_Additi
(Loss) Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS | 4,117 | 2,190 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (Subsequent Event, Stock Incentive Plan 2014) | 0 Months Ended |
7-May-15 | |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock conversion ratio | 2 |
Chief Executive Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock conversion ratio | 3.5 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Income Taxes [Line Items] | ||
Effective income tax rate | 38.10% | 40.30% |
Legal_Additional_Information_D
Legal - Additional Information (Detail) | 1 Months Ended |
Mar. 29, 2014 | |
LegalMatter | |
Loss Contingencies | |
Securities class action filed | 2 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Jul. 26, 2013 | Jan. 31, 2009 | Jan. 03, 2015 |
Derivative | ||||
Maximum length of time hedging forecasted | 6 years | |||
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 | $14,818 | |||
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, before tax | 24,292 | |||
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 | -31,536 | -21,856 | ||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), before tax | -51,698 | -35,830 | ||
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative | ||||
Notional amount | 1,500,000 | 1,500,000 | 1,500,000 | |
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 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $1,310,711 | $1,888,051 |
Aggregate_Fair_Value_of_Deriva
Aggregate Fair Value of Derivative Financial Instruments (Detail) (Fair Value, Measurements, Recurring, Interest Rate Swap, USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap liability | $57,815 | $42,423 |
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 | 57,815 | 42,423 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap liability | $0 | $0 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | ($19,950) | [1] | $8,517 | [1] |
Other comprehensive loss before reclassifications, net of tax | -17,027 | [1] | -9,057 | [1] |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | -291 | [1],[2] | 500 | [1],[2] |
Net current period other comprehensive loss | -17,318 | [1] | -8,557 | [1] |
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 448 | [1] | ||
Ending Balance | -36,820 | [1] | -40 | [1] |
Loss on Qualifying Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | -21,856 | [1] | -4,603 | [1] |
Other comprehensive loss before reclassifications, net of tax | -9,389 | [1] | -8,682 | [1] |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | -291 | [1],[2] | 500 | [1],[2] |
Net current period other comprehensive loss | -9,680 | [1] | -8,182 | [1] |
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 0 | [1] | ||
Ending Balance | -31,536 | [1] | -12,785 | [1] |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 1,906 | [1] | 13,120 | [1] |
Other comprehensive loss before reclassifications, net of tax | -7,638 | [1] | -375 | [1] |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 0 | [1],[2] | 0 | [1],[2] |
Net current period other comprehensive loss | -7,638 | [1] | -375 | [1] |
Less: net current period other comprehensive loss attributable to the noncontrolling interest | 448 | [1] | ||
Ending Balance | ($5,284) | [1] | $12,745 | [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 Loss (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | ($31,104) | ($25,262) | ||
(Loss) income before income taxes | -8,859 | 36,061 | ||
(Benefit) provision for income taxes | 3,375 | -14,530 | ||
Net (loss) income | -5,484 | 21,531 | ||
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 | 476 | [1] | -820 | [1] |
(Loss) income before income taxes | 476 | [1] | -820 | [1] |
(Benefit) provision for income taxes | -185 | [1] | 320 | [1] |
Net (loss) income | $291 | [1] | ($500) | [1] |
[1] | Amounts in parentheses indicate debits to profit / loss |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) | 3 Months Ended |
Apr. 04, 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 | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Segment Reporting Information [Line Items] | ||
Net revenue | $322,103 | $409,358 |
Segment operating income (loss) | 18,044 | 51,053 |
Interest expense | 31,104 | 25,262 |
Other expense, net | 575 | 270 |
Early extinguishment of debt | -4,776 | 0 |
Gain on Brazil acquisition | 0 | -10,540 |
(Benefit) provision for taxes | -3,375 | 14,530 |
Net (loss) income | -5,484 | 21,531 |
Less: Net loss attributable to the noncontrolling interest | 51 | 0 |
Net (loss) income attributable to Weight Watchers International, Inc. | -5,433 | 21,531 |
Depreciation and amortization | 15,755 | 13,413 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 35,756 | 63,193 |
Depreciation and amortization | 12,532 | 9,277 |
General corporate expenses | ||
Segment Reporting Information [Line Items] | ||
General corporate expenses | -17,712 | -12,140 |
Depreciation and amortization | 3,223 | 4,136 |
North America | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 205,556 | 264,406 |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 18,020 | 57,808 |
Depreciation and amortization | 11,476 | 7,978 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 34,370 | 42,199 |
United Kingdom | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 6,181 | -1,546 |
Depreciation and amortization | 187 | 358 |
Continental Europe | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 66,743 | 84,231 |
Continental Europe | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 10,057 | 5,843 |
Depreciation and amortization | 485 | 593 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 15,434 | 18,522 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 1,498 | 1,088 |
Depreciation and amortization | $384 | $348 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Employee termination benefit costs, pretax | $5,761 | $3,656 |
Employee termination benefit costs, after tax | 3,514 | 2,235 |
Expected restructuring charges and related cost during remainder of current fiscal year | 4,200 | |
Cost of Revenues | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee termination benefit costs, pretax | 2,009 | 1,512 |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee termination benefit costs, pretax | $3,752 | $2,144 |
Reconciliation_of_Liability_Ba
Reconciliation of Liability Balance for Restructuring Charges (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $2,570 |
Provision | 5,761 |
Payments | -1,658 |
Ending balance | $6,673 |