Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | WW | |
Entity Registrant Name | WEIGHT WATCHERS INTERNATIONAL INC | |
Entity Central Index Key | 0000105319 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 67,297,697 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16769 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 11-6040273 | |
Entity Address, Address Line One | 675 Avenue of the Americas | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10010 | |
City Area Code | (212) | |
Local Phone Number | 589-2700 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 180,645 | $ 236,974 |
Receivables (net of allowances: June 29, 2019 - $1,591 and December 29, 2018 - $1,743) | 30,869 | 27,247 |
Inventories | 30,625 | 25,851 |
Prepaid income taxes | 15,171 | 33,997 |
Prepaid expenses and other current assets | 26,793 | 42,355 |
TOTAL CURRENT ASSETS | 284,103 | 366,424 |
Property and equipment, net | 51,131 | 52,202 |
Operating lease assets | 144,913 | 0 |
Franchise rights acquired | 753,216 | 751,134 |
Goodwill | 154,058 | 152,519 |
Other intangible assets, net | 58,491 | 57,162 |
Deferred income taxes | 16,235 | 16,230 |
Other noncurrent assets | 14,128 | 18,870 |
TOTAL ASSETS | 1,476,275 | 1,414,541 |
CURRENT LIABILITIES | ||
Portion of long-term debt due within one year | 57,750 | 77,000 |
Portion of operating lease liabilities due within one year | 32,003 | 0 |
Accounts payable | 26,761 | 27,098 |
Salaries and wages payable | 56,699 | 64,600 |
Accrued marketing and advertising | 9,796 | 14,052 |
Accrued interest | 28,025 | 28,651 |
Other accrued liabilities | 43,232 | 48,218 |
Derivative payable | 19,330 | 5,578 |
Income taxes payable | 19,679 | 22,618 |
Deferred revenue | 56,923 | 53,501 |
TOTAL CURRENT LIABILITIES | 350,198 | 341,316 |
Long-term debt, net | 1,584,460 | 1,669,708 |
Long-term operating lease liabilities | 121,318 | 0 |
Deferred income taxes | 184,445 | 190,258 |
Other | 2,251 | 18,289 |
TOTAL LIABILITIES | 2,242,672 | 2,219,571 |
Redeemable noncontrolling interest | 3,763 | 3,913 |
TOTAL DEFICIT | ||
Common stock, $0 par value; 1,000,000 shares authorized; 120,352 shares issued at June 29, 2019 and December 29, 2018 | 0 | 0 |
Treasury stock, at cost, 53,089 shares at June 29, 2019 and 53,396 shares at December 29, 2018 | (3,164,409) | (3,175,624) |
Retained earnings | 2,420,958 | 2,382,438 |
Accumulated other comprehensive loss | (26,709) | (15,757) |
TOTAL DEFICIT | (770,160) | (808,943) |
TOTAL LIABILITIES AND TOTAL DEFICIT | $ 1,476,275 | $ 1,414,541 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 1,591 | $ 1,743 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 120,352,000 | 120,352,000 |
Treasury stock, shares | 53,089,000 | 53,396,000 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Revenues, net | $ 369,023 | $ 409,747 | $ 732,188 | $ 817,970 |
Cost of revenues | 153,209 | 164,953 | 315,425 | 352,175 |
Gross profit | 215,814 | 244,794 | 416,763 | 465,795 |
Marketing expenses | 49,967 | 55,421 | 164,216 | 154,340 |
Selling, general and administrative expenses | 60,374 | 61,665 | 125,176 | 121,676 |
Operating income | 105,473 | 127,708 | 127,371 | 189,779 |
Interest expense | 34,732 | 35,866 | 69,927 | 71,732 |
Other expense, net | 438 | 1,333 | 741 | 1,097 |
Income before income taxes | 70,303 | 90,509 | 56,703 | 116,950 |
Provision for income taxes | 16,586 | 19,825 | 13,711 | 7,208 |
Net income | 53,717 | 70,684 | 42,992 | 109,742 |
Net loss attributable to the noncontrolling interest | 117 | 36 | 156 | 90 |
Net income attributable to Weight Watchers International, Inc. | $ 53,834 | $ 70,720 | $ 43,148 | $ 109,832 |
Earnings Per Share attributable to Weight Watchers International, Inc. | ||||
Basic | $ 0.80 | $ 1.07 | $ 0.64 | $ 1.67 |
Diluted | $ 0.78 | $ 1.01 | $ 0.62 | $ 1.57 |
Weighted average common shares outstanding | ||||
Basic | 67,124 | 66,400 | 67,044 | 65,761 |
Diluted | 69,141 | 70,154 | 69,268 | 69,914 |
Service | ||||
Revenues, net | $ 313,768 | $ 343,730 | $ 620,494 | $ 672,399 |
Cost of revenues | 122,121 | 128,159 | 251,078 | 267,939 |
Product and Other | ||||
Revenues, net | 55,255 | 66,017 | 111,694 | 145,571 |
Cost of revenues | $ 31,088 | $ 36,794 | $ 64,347 | $ 84,236 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 53,717 | $ 70,684 | $ 42,992 | $ 109,742 |
Other comprehensive (loss) gain: | ||||
Foreign currency translation gain (loss) | 1,801 | (3,804) | 3,515 | (7,229) |
Income tax (expense) benefit on foreign currency translation gain (loss) | (457) | 965 | (892) | 1,833 |
Foreign currency translation gain (loss), net of taxes | 1,344 | (2,839) | 2,623 | (5,396) |
(Loss) gain on derivatives | (10,819) | 1,130 | (18,180) | 12,297 |
Income tax benefit (expense) on (loss) gain on derivatives | 2,744 | (287) | 4,611 | (3,119) |
(Loss) gain on derivatives, net of taxes | (8,075) | 843 | (13,569) | 9,178 |
Total other comprehensive (loss) gain | (6,731) | (1,996) | (10,946) | 3,782 |
Comprehensive income | 46,986 | 68,688 | 32,046 | 113,524 |
Net loss attributable to the noncontrolling interest | 117 | 36 | 156 | 90 |
Foreign currency translation (gain) loss, net of taxes attributable to the noncontrolling interest | (12) | 137 | (6) | 373 |
Comprehensive loss attributable to the noncontrolling interest | 105 | 173 | 150 | 463 |
Comprehensive income attributable to Weight Watchers International, Inc. | $ 47,091 | $ 68,861 | $ 32,196 | $ 113,987 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Noncontrolling Interest | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning Balance at Dec. 30, 2017 | $ (1,015,986) | $ 4,467 | $ 0 | $ (3,208,836) | $ (10,467) | $ 2,203,317 |
Beginning balance (in shares) at Dec. 30, 2017 | 118,947 | 54,258 | ||||
Comprehensive income (loss) | 113,987 | (463) | 4,155 | 109,832 | ||
Issuance of treasury stock under stock plans | 2,007 | $ 19,040 | (17,033) | |||
Issuance of treasury stock under stock plans (in shares) | (493) | |||||
Compensation expense on share- based awards | 9,675 | 9,675 | ||||
Issuance of common stock | 9,796 | 9,796 | ||||
Issuance of common stock (in shares) | 1,405 | |||||
Cumulative effect of revenue accounting change | 2,933 | 2,933 | ||||
Cumulative effect of tax accounting change | (49,412) | (2,485) | (46,927) | |||
Ending balance at Jun. 30, 2018 | (927,000) | 4,004 | $ 0 | $ (3,189,796) | (8,797) | 2,271,593 |
Ending balance (in shares) at Jun. 30, 2018 | 120,352 | 53,765 | ||||
Beginning Balance at Mar. 31, 2018 | (1,000,101) | 4,177 | $ 0 | $ (3,203,331) | (6,938) | 2,210,168 |
Beginning balance (in shares) at Mar. 31, 2018 | 120,352 | 54,114 | ||||
Comprehensive income (loss) | 68,861 | (173) | (1,859) | 70,720 | ||
Issuance of treasury stock under stock plans | (1,051) | $ 13,535 | (14,586) | |||
Issuance of treasury stock under stock plans (in shares) | (349) | |||||
Compensation expense on share- based awards | 5,291 | 5,291 | ||||
Issuance of common stock | 0 | |||||
Ending balance at Jun. 30, 2018 | (927,000) | 4,004 | $ 0 | $ (3,189,796) | (8,797) | 2,271,593 |
Ending balance (in shares) at Jun. 30, 2018 | 120,352 | 53,765 | ||||
Beginning Balance at Dec. 29, 2018 | (808,943) | 3,913 | $ 0 | $ (3,175,624) | (15,757) | 2,382,438 |
Beginning balance (in shares) at Dec. 29, 2018 | 120,352 | 53,396 | ||||
Comprehensive income (loss) | 32,196 | (150) | (10,952) | 43,148 | ||
Issuance of treasury stock under stock plans | (3,097) | $ 11,215 | (14,312) | |||
Issuance of treasury stock under stock plans (in shares) | (307) | |||||
Compensation expense on share- based awards | 9,684 | 9,684 | ||||
Ending balance at Jun. 29, 2019 | (770,160) | 3,763 | $ 0 | $ (3,164,409) | (26,709) | 2,420,958 |
Ending balance (in shares) at Jun. 29, 2019 | 120,352 | 53,089 | ||||
Beginning Balance at Mar. 30, 2019 | (818,934) | 3,868 | $ 0 | $ (3,174,871) | (19,966) | 2,375,903 |
Beginning balance (in shares) at Mar. 30, 2019 | 120,352 | 53,375 | ||||
Comprehensive income (loss) | 47,091 | (105) | (6,743) | 53,834 | ||
Issuance of treasury stock under stock plans | (3,189) | $ 10,462 | (13,651) | |||
Issuance of treasury stock under stock plans (in shares) | (286) | |||||
Compensation expense on share- based awards | 4,872 | 4,872 | ||||
Ending balance at Jun. 29, 2019 | $ (770,160) | $ 3,763 | $ 0 | $ (3,164,409) | $ (26,709) | $ 2,420,958 |
Ending balance (in shares) at Jun. 29, 2019 | 120,352 | 53,089 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 42,992 | $ 109,742 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 22,693 | 21,774 |
Amortization of deferred financing costs and debt discount | 4,680 | 4,122 |
Share-based compensation expense | 9,684 | 9,675 |
Deferred tax (benefit) provision | (2,294) | 752 |
Allowance for doubtful accounts | (303) | 54 |
Reserve for inventory obsolescence | 4,244 | 8,338 |
Foreign currency exchange rate loss | 527 | 868 |
Changes in cash due to: | ||
Receivables | 982 | (9,650) |
Inventories | (8,608) | 4,999 |
Prepaid expenses | 26,599 | (3,023) |
Accounts payable | 656 | (798) |
Accrued liabilities | (20,447) | (1,696) |
Deferred revenue | 2,920 | 13,259 |
Other long term assets and liabilities, net | (2,185) | (4,309) |
Income taxes | (2,346) | 14,480 |
Cash provided by operating activities | 79,794 | 168,587 |
Investing activities: | ||
Capital expenditures | (7,601) | (7,733) |
Capitalized software expenditures | (16,208) | (13,118) |
Other items, net | 120 | (9,669) |
Cash used for investing activities | (23,689) | (30,520) |
Financing activities: | ||
Net payments on revolver | 0 | (25,000) |
Payments on long-term debt | (107,750) | (38,500) |
Taxes paid related to net share settlement of equity awards | (4,227) | (11,139) |
Proceeds from stock options exercised | 326 | 23,262 |
Other items, net | (218) | 0 |
Cash used for financing activities | (111,869) | (51,377) |
Effect of exchange rate changes on cash and cash equivalents | (565) | (1,989) |
Net (decrease) increase in cash and cash equivalents | (56,329) | 84,701 |
Cash and cash equivalents, beginning of period | 236,974 | 83,054 |
Cash and cash equivalents, end of period | $ 180,645 | $ 167,755 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. The accompanying consolidated financial statements include the accounts of Weight Watchers International, Inc. and all of its subsidiaries. The terms “Company” and “WW” as used throughout these notes are used to indicate Weight Watchers International, Inc. and all of its operations consolidated for purposes of its financial statements. The Company’s “Digital” business refers to providing subscriptions to the Company’s digital product offerings, including the Personal Coaching + Digital product. The Company’s “Studio + Digital” business refers to providing access to the Company’s weekly in-person workshops combined with the Company’s digital subscription product offerings to commitment plan subscribers. The “Studio + Digital” business also includes the provision of access to workshops for members who do not subscribe to commitment plans, including the Company’s 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 consolidated financial statements include all of the Company’s majority-owned subsidiaries. All entities acquired, and any entity of which a majority interest was acquired, are included in the consolidated financial statements from the date of acquisition. All intercompany accounts and transactions have been eliminated in consolidation. 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 for fiscal 2018 filed on February 26, 2019, which includes additional information about the Company, its results of operations, its financial position and its cash flows. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2. For a discussion of the Company’s significant accounting policies, see “Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for fiscal 2018. For a discussion of accounting standards adopted in the current period, see Note 3. |
Accounting Standards Adopted in
Accounting Standards Adopted in Current Year | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Accounting Standards Adopted in Current Year | 3. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued updated guidance regarding leases, requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but will be updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. In July 2018, the FASB issued updated guidance by providing an entity with an additional and optional transition method to adopt the new lease guidance. On December 30, 2018, the Company adopted the updated lease guidance on a modified retrospective basis as of the adoption date. Periods prior to the adoption date continue to be reported under the historical lease accounting guidance. See Note 4 for further details. |
Leases
Leases | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Leases | 4. Leases Adoption of Lease Standard On December 30, 2018, the Company adopted the updated guidance on leases using the modified retrospective transition method. Results for reporting periods beginning on or after December 30, 2018 are presented under the updated guidance, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical lease accounting. The adoption of the standard had a material impact on the Company’s consolidated balance sheets but did not have a material impact on its consolidated statements of net income. The Company recorded $155,178 as a right of use asset, $163,486 of lease liabilities and $ 0 for retained earnings for operating leases upon adoption of the updated guidance. The previously reported amounts have been revised by $ 3,595 due to the impact of prepaid rent. The standard did not have a material impact on the Company’s finance lease contracts. A lease is defined as an arrangement that contractually specifies the right to use and control an identified asset for a specific period of time in exchange for consideration. Operating leases are included in operating lease assets, portion of operating lease liabilities due within one year, and long-term operating lease liabilities in the Company’s 2019 consolidated balance sheet. Finance leases are included in property and equipment, net, other accrued liabilities, and other long-term liabilities in the Company’s 2019 consolidated balance sheet L The Company’s operating and finance leases are primarily for its studios, corporate offices, data centers and certain equipment, including automobiles. At June 29, 2019, the Company’s lease assets and lease liabilities were as follows: June 29, 2019 Assets: Operating lease assets $ 144,913 Finance lease assets 522 Total leased assets $ 145,435 Liabilities: Current Operating $ 32,003 Finance 287 Noncurrent Operating $ 121,318 Finance 152 Total lease liabilities $ 153,760 For the three and six months ended June 29, 2019, the components of the Company’s lease expense were as follows: Three Months Ended Six Months Ended June 29, June 29, 2019 2019 Operating lease cost $ 12,363 $ 25,735 Finance lease cost: Amortization of leased assets 138 218 Interest on lease liabilities 5 13 Total finance lease cost $ 143 $ 231 Total lease cost $ 12,506 $ 25,966 At June 29, 2019, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: June 29, 2019 Weighted Average Remaining Lease Term (years) Operating leases 7.22 Finance leases 1.66 Weighted Average Discount Rate Operating leases 7.04 Finance leases 4.33 The Company’s leases have remaining lease terms of 0 to 13 years with a weighted average lease term of 7.21 years. At June 29, 2019, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows: Operating Leases Finance Leases Total Remainder of fiscal 2019 $ 20,478 $ 286 $ 20,764 2020 39,951 135 40,086 2021 31,371 49 31,420 2022 21,254 20 21,274 2023 15,512 21 15,533 Thereafter 74,253 4 74,257 Total lease payments $ 202,819 $ 515 $ 203,334 Less imputed interest 49,498 76 49,574 Present value of lease liabilities $ 153,321 $ 439 $ 153,760 Minimum commitments under non-cancelable obligations, primarily for office and rental facilities operating leases at December 29, 2018, consisted of the following: 2019 $ 63,261 2020 38,491 2021 22,341 2022 14,017 2023 9,192 2024 and thereafter 37,704 Total $ 185,006 Total rent expense charged to operations for office and rental facilities under these operating leases for the three and six months ended June 30, 2018 was $10,741 and $ Supplemental cash flow information related to leases for the six months ended June 29, 2019 were as follows: Six Months Ended June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 25,738 Operating cash flows from finance leases $ 13 Financing cash flows from finance leases $ 218 Leased assets obtained in exchange for new operating lease liabilities $ 12,084 Leased assets obtained in exchange for new finance lease liabilities $ 92 Practical Expedients and Accounting Policy Elections The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company not to reassess whether any expired or existing contracts contained leases, to carry forward existing lease classifications and not to reassess initial direct costs for existing leases. In addition, the Company elected the benefit of hindsight practical expedient in determining the lease term for existing leases upon adoption of the updated guidance. The Company has lease agreements with lease and non-lease components and has elected the practical expedient not to separate non-lease components from lease components and instead to account for each separate lease component and non-lease component as a single lease component. The Company has elected the short-term lease exception accounting policy, whereby the recognition requirements of the updated guidance is not applied and lease expense is recorded on a straight-line basis with respect to leases with an initial term of 12 months or less. |
Revenue
Revenue | 6 Months Ended |
Jun. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 5 . Revenue Adoption of Revenue from Contracts with Customers On December 31, 2017, the Company adopted the updated guidance on revenue from contracts with customers using the modified retrospective method applied to those contracts which were not completed as of December 31, 2017. Results for reporting periods beginning after December 31, 2017 are presented under the updated guidance, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical revenue accounting. The Company recorded a net increase to opening retained earnings of $2,145 as of December 31, 2017 due to the cumulative impact of adopting the updated guidance, inclusive of a $3,501 decrease to deferred revenue, a decrease of $568 to prepaid expenses and other current assets and an increase to the deferred income tax liability of $788. Revenue Recognition Revenues are recognized when control of the promised services or goods is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services or goods. The Company earns revenue from subscriptions for its digital products and by conducting workshops, for which it charges a fee, predominantly through commitment plans, prepayment plans or the “pay-as-you-go” arrangement. The Company also earns revenue by selling consumer products (including publications) in its workshops, online through its ecommerce platform and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements, selling magazine subscriptions, publishing, selling advertising space on its websites and in copies of its publications and By Mail product sales. Commitment plan revenues, prepaid workshop fees and magazine subscription revenue are recorded to deferred revenue and amortized into revenue as control is transferred over the period earned since these performance obligations are satisfied over time. Digital subscription revenues, consisting of the fees associated with subscriptions for the Company’s Digital products, including its Personal Coaching + Digital product, are deferred and recognized on a straight-line basis as control is transferred over the subscription period. One-time Digital sign-up fees are considered immaterial in the context of the contract and the related revenue is recorded to deferred revenue and amortized into revenue over the commitment period. In the Studio + Digital business, the Company generally charges non-refundable registration and starter fees in exchange for access to the Company’s digital subscription products, an introductory information session and materials it provides to new members. Revenue from these registration and starter fees is considered immaterial in the context of the contract and is recorded to deferred revenue and a mortized into revenue over the commitment period. Revenue from “pay-as-you-go” workshop fees, consumer product sales and By Mail, commissions and royalties is recognized at the point in time control is transferred, which is when services are rendered, products are shipped to customers and title and risk of loss passes to the customers, and commissions and royalties are earned, respectively . Revenue from advertising in magazines and from magazine sales is recognized upon distribution of the magazine. For revenue transactions that involve multiple performance obligations, the amount of revenue recognized is determined using the relative fair value approach, which is generally based on each performance obligation’s stand-alone selling price. 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 websites 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 over the same period. The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Digital Subscription Revenues $ 156,969 $ 151,018 $ 305,824 $ 289,565 Studio + Digital Fees 156,799 192,712 314,670 382,834 Service Revenues, net $ 313,768 $ 343,730 $ 620,494 $ 672,399 Product sales and other, net 55,255 66,017 111,694 145,571 Revenues, net $ 369,023 $ 409,747 $ 732,188 $ 817,970 The following tables present the Company’s revenues disaggregated by segment: Three Months Ended June 29, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 102,851 $ 43,586 $ 6,993 $ 3,539 $ 156,969 Studio + Digital Fees 116,958 23,681 11,498 4,662 156,799 Service Revenues, net $ 219,809 $ 67,267 $ 18,491 $ 8,201 $ 313,768 Product sales and other, net 35,835 10,062 6,034 3,324 55,255 Revenues, net $ 255,644 $ 77,329 $ 24,525 $ 11,525 $ 369,023 Three Months Ended June 30, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 101,099 $ 39,342 $ 6,955 $ 3,622 $ 151,018 Studio + Digital Fees 142,767 29,402 14,551 5,992 192,712 Service Revenues, net $ 243,866 $ 68,744 $ 21,506 $ 9,614 $ 343,730 Product sales and other, net 40,672 12,848 7,704 4,793 66,017 Revenues, net $ 284,538 $ 81,592 $ 29,210 $ 14,407 $ 409,747 Six Months Ended June 29, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 201,611 $ 83,769 $ 13,411 $ 7,033 $ 305,824 Studio + Digital Fees 234,557 47,630 22,761 9,722 314,670 Service Revenues, net $ 436,168 $ 131,399 $ 36,172 $ 16,755 $ 620,494 Product sales and other, net 69,488 22,087 12,964 7,155 111,694 Revenues, net $ 505,656 $ 153,486 $ 49,136 $ 23,910 $ 732,188 Six Months Ended June 30, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 193,338 $ 75,503 $ 13,519 $ 7,205 $ 289,565 Studio + Digital Fees 282,919 58,482 28,933 12,500 382,834 Service Revenues, net $ 476,257 $ 133,985 $ 42,452 $ 19,705 $ 672,399 Product sales and other, net 87,458 30,138 17,043 10,932 145,571 Revenues, net $ 563,715 $ 164,123 $ 59,495 $ 30,637 $ 817,970 Information about Contract Balances For Service Revenues, the Company typically collects payment in advance of providing services. Any amounts collected in advance of services being provided are recorded in deferred revenue. In the case where amounts are not collected, but the service has been provided and the revenue has been recognized, the amounts are recorded in accounts receivable. The opening and ending balances of the Company’s deferred revenues are as follows: Deferred Deferred Revenue Revenue-Long Term Balance as of December 29, 2018 $ 53,501 $ 961 Net increase (decrease) during the period 3,422 (492 ) Balance as of June 29, 2019 $ 56,923 $ 469 Revenue recognized from amounts included in current deferred revenue as of December 29, 2018 was $52,507 for the six months ended June 29, 2019. The Company’s long-term deferred revenue, which is included in other liabilities on the Company’s consolidated balance sheet, had a balance of $469 at June 29, 2019 related to upfront payments received as an inducement for entering into certain sales-based royalty agreements with third party licensees. This revenue is amortized on a straight-line basis over the term of the applicable agreement. Practical Expedients and Exemptions The Company elected to apply the updated guidance only to contracts that were not completed as of December 31, 2017, the date of adoption. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company expenses sales commissions when incurred (amortization period would have been one year or less) and these expenses are recorded within selling, general and administrative expenses. The Company treats shipping and handling fees as fulfillment costs and not as a separate performance obligation, and as a result, any fees received from |
Franchise Rights Acquired, Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 6 . 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 six months ended June 29, 2019, the change in the carrying value of franchise rights acquired is due to the effect of exchange rate changes. Goodwill primarily relates to the acquisition of the Company by The Kraft Heinz Company (successor to H.J. Heinz Company ) in 1978 and the Company’s acquisition s of WW.com, Inc. (formerly known as WeightWatchers.com, Inc. ) in 2005, the Company’s franchised territories and the majority interest in Vigilantes do Peso Marketing Ltda . For the six months ended June 29 , 201 9 , the change in the carrying amount of goodwill wa s due to the effect of exchange rate changes as follows: North Continental United America Europe Kingdom Other Total Balance as of December 29, 2018 $ 138,156 $ 7,242 $ 1,178 $ 5,943 $ 152,519 Effect of exchange rate changes 1,646 (144 ) 0 37 1,539 Balance as of June 29, 2019 $ 139,802 $ 7,098 $ 1,178 $ 5,980 $ 154,058 Goodwill and Franchise Rights Acquired The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired with indefinite lives, 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 May 5, 2019 and May 6, 2018, each the first day of fiscal May, on its goodwill and other indefinite-lived intangible assets. In performing its annual impairment analysis as of May 5, 2019 and May 6, 2018, the Company determined that the carrying amounts of its goodwill reporting units and franchise rights acquired with indefinite lives units of account did not exceed their respective fair values and therefore no impairment existed. For all reporting units, except for Brazil, there was significant headroom in the goodwill impairment analysis. Based on the results of the Company’s annual goodwill impairment test performed for all of its reporting units except for Brazil, as of the June 29, 2019 balance sheet date, for reporting units that hold 97.0% of the Company’s goodwill, those units had an estimated fair value at least 60 For all units of account, except for New Zealand, there was significant headroom in the franchise rights acquired impairment analysis. Based on the results of the Company’s annual franchise rights acquired impairment test performed for all of its units of account except for New Zealand, as of the June 29, 2019 balance sheet date, for units of account that hold 99.4% of the Company’s franchise rights acquired, those units had an estimated fair value at least 40 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 would likely cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts and result in an impairment of those assets. In the event such a result 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 assumptions and believes that these assumptions are appropriate. The following is a discussion of the goodwill and franchise rights acquired impairment analysis. Goodwill 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. For all of the Company’s reporting units except for Brazil (see below), the Company estimated future cash flows by utilizing the historical debt-free cash flows (cash flows provided by operating activities less capital expenditures) attributable to that country and then applied expected future operating income growth rates for such country. The Company utilized operating income as the basis for measuring its potential growth because it believes it is the best indicator of the performance of its business. The Company then discounted the estimated future cash flows utilizing a discount rate which was calculated using the average cost of capital, which included the cost of equity and the cost of debt. The cost of equity was determined by combining a risk-free rate of return and a market risk premium for the Company’s peer group. The risk-free rate of return was determined based on the average rate of long-term U.S. Treasury securities. The market risk premium was determined by reviewing external market data. The cost of debt was determined by estimating the Company’s current borrowing rate. As it relates to the goodwill impairment analysis for Brazil, the Company estimated future debt-free cash flows in contemplation of its growth strategies for that market. In developing these projections, the Company considered the historical impact of similar growth strategies in other markets as well as the current market conditions in Brazil. The Company then discounted the estimated future cash flows utilizing a discount rate which was calculated using the average cost of capital, which included the cost of equity and the cost of debt. The cost of equity was determined by combining a risk-free rate of return and a market risk premium for the Company’s peer group. The risk-free rate of return was determined based on the average rate of long-term U.S. Treasury securities. The market risk premium was determined by reviewing external market data including the current economic conditions in Brazil and the country specific risk thereon, all as reflected in the discount rate. The cost of debt was determined by estimating the Company’s current borrowing rate. Franchise Rights Acquired Finite-lived franchise rights acquired are amortized over the remaining contractual period, which is generally less than one year. Indefinite-lived franchise rights acquired are tested on an annual basis for impairment. In performing the impairment analysis for indefinite-lived franchise rights acquired, the fair value for franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach for franchise rights related to the Company’s Studio + Digital business and a relief from royalty methodology for franchise rights related to the Company’s Digital business. The aggregate estimated fair value for these rights is then compared to the carrying value of the unit of account for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing impairment to be the combination of the rights in both the Studio + Digital business and the Digital business in the country in which the applicable acquisition occurred. In its hypothetical start-up approach analysis for fiscal 2019, the Company assumed that the year of maturity was reached after 7 years. Subsequent to the year of maturity, the Company estimated future cash flows for the Studio + Digital business in each country based on assumptions regarding revenue growth and operating income margins. The cash flows associated with the Digital business in each country were based on the expected Digital revenue for such country and the application of a market-based royalty rate. The cash flows for the Studio + Digital and Digital businesses were discounted utilizing rates consistent with those utilized in the annual goodwill impairment analysis. Finite-lived Intangible Assets The carrying values of finite-lived intangible assets as of June 29, 2019 and December 29, 2018 were as follows: June 29, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 129,091 $ 108,034 $ 121,508 $ 102,659 Website development costs 113,882 86,710 105,710 77,825 Trademarks 11,756 11,116 11,620 11,010 Other 14,021 4,399 13,967 4,149 Trademarks and other intangible assets $ 268,750 $ 210,259 $ 252,805 $ 195,643 Franchise rights acquired 8,120 4,452 8,110 4,319 Total finite-lived intangible assets $ 276,870 $ 214,711 $ 260,915 $ 199,962 Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $7,485 and $15,041 for the three and six months ended June 29, 2019, respectively. Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $6,832 and $14,242 for the three and six months ended June 30, 2018, respectively. Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: Remainder of fiscal 2019 $ 12,273 Fiscal 2020 $ 22,175 Fiscal 2021 $ 13,046 Fiscal 2022 $ 3,533 Fiscal 2023 and thereafter $ 11,132 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7 . The components of the Company’s long-term debt were as follows: June 29, 2019 December 29, 2018 Principal Balance Unamortized Deferred Financing Costs Unamortized Debt Discount Effective Rate (1) Principal Balance Unamortized Deferred Financing Costs Unamortized Debt Discount Effective Rate (1) Revolving Credit Facility due November 29, 2022 $ 0 $ 0 $ 0 0.00 % $ 0 $ 0 $ 0 4.39 % Term Loan Facility due November 29, 2024 1,374,500 7,342 23,833 8.07 % 1,482,250 8,307 26,033 7.53 % Notes due December 1, 2025 300,000 1,115 0 8.62 % 300,000 1,202 0 8.69 % Total $ 1,674,500 $ 8,457 $ 23,833 8.17 % $ 1,782,250 $ 9,509 $ 26,033 7.63 % Less: Current Portion 57,750 77,000 Unamortized Deferred Financing Costs 8,457 9,509 Unamortized Debt Discount 23,833 26,033 Total Long-Term Debt $ 1,584,460 $ 1,669,708 (1) Includes amortization of deferred financing costs and debt discount. On November 29, 2017, the Company refinanced its then-existing credit facilities (hereinafter referred to as “the November 2017 debt refinancing”) consisting of $1,930,386 of borrowings under a term loan facility and an undrawn $50,000 revolving credit facility with $1,565,000 of borrowings under its new credit facilities, consisting of a $1,540,000 term loan facility, and a $150,000 revolving credit facility (of which $25,000 was drawn upon at the time of the November 2017 debt refinancing) (collectively, the “Credit Facilities”), and $300,000 in aggregate principal amount of 8.625% Senior Notes due 2025 (the “Notes”). During the fourth quarter of fiscal 2017, t Senior Secured Credit Facilities The Credit Facilities were issued under a new credit agreement, dated November 29, 2017 (the “Credit Agreement”), among the Company, as borrower, the lenders party thereto, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent and an issuing bank, Bank of America, N.A., as an issuing bank, and Citibank, N.A., as an issuing bank. The Credit Facilities consist of (1) $1,540,000 in aggregate principal amount of senior secured tranche B term loans due in 2024 (the “Term Loan Facility”) and (2) a $150,000 senior secured revolving credit facility (which includes borrowing capacity available for letters of credit) due in 2022 (the “Revolving Credit Facility”). On May 31, 2019, the Company made a voluntary prepayment at par of $50,000 in respect of its outstanding term loans under the Term Loan Facility. As a result of this prepayment, the Company wrote off deferred financing fees of $267 in the second quarter of fiscal 2019. As of June 29, 2019, the Company had $1,374,500 of debt outstanding under the Credit Facilities, with $148,841 of availability and $1,159 in issued but undrawn letters of credit outstanding under the Revolving Credit Facility. There was no outstanding balance under the Revolving Credit Facility as of June 29, 2019. All obligations under the Credit Agreement are guaranteed by, subject to certain exceptions, each of the Company’s current and future wholly-owned material domestic restricted subsidiaries. All obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and each guarantor, subject to customary exceptions, including: • a pledge of 100% of the equity interests directly held by the Company and each guarantor in any wholly-owned domestic material subsidiary of the Company or any guarantor (which pledge, in the case of any non-U.S. subsidiary of a U.S. subsidiary, will not include more than 65% of the voting stock of such first-tier non-U.S. subsidiary), subject to certain exceptions; and • a security interest in substantially all other tangible and intangible assets of the Company and each guarantor, subject to certain exceptions. Under the terms of the Credit Agreement, depending on the Company’s Consolidated First Lien Net Debt Leverage Ratio (as used in the Credit Agreement), on an annual basis on or about the time the Company is required to deliver its financial statements for any fiscal year, the Company is obligated to offer to prepay a portion of the outstanding principal amount of the Term Loan Facility in an aggregate amount determined by a percentage of its annual excess cash flow (as defined in the Credit Agreement) (said payment, a “Cash Flow Sweep”). Borrowings under the Term Loan Facility bear interest at a rate per annum equal to, at the Company’s option, either (1) an applicable margin plus a base rate determined by reference to the highest of (a) 0.50% per annum plus the higher of (i) the Federal Funds Effective Rate and (ii) the Overnight Bank Funding Rate as determined by the Federal Reserve Bank of New York, (b) the prime rate of JPMorgan Chase and (c) the LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00%; provided that such rate is not lower than a floor of 1.75% or (2) an applicable margin plus a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, provided that LIBOR is not lower than a floor of 0.75%. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to an applicable margin based upon a leverage-based pricing grid, plus, at the Company’s option, either (1) a base rate determined by reference to the highest of (a) 0.50% per annum plus the higher of (i) the Federal Funds Effective Rate and (ii) the Overnight Bank Funding Rate as determined by the Federal Reserve Bank of New York, (b) the prime rate of JPMorgan Chase and (c) the LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00% or (2) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs. As of June 29, 2019, the applicable margins for the LIBOR rate borrowings under the Term Loan Facility and the Revolving Credit Facility were 4.75% and 2.25%, respectively. On a quarterly basis, the Company pays a commitment fee to the lenders under the Revolving Credit Facility in respect of unutilized commitments thereunder, which commitment fee fluctuates depending upon the Company’s Consolidated First Lien Net Debt Leverage Ratio. Based on the Company’s Consolidated First Lien Net Debt Leverage Ratio as of June 29, 2019, the commitment fee was 0.35% per annum. The Company’s Consolidated First Lien Net Debt Leverage Ratio as of June 29, 2019 was 2.93 :1.00. The Credit Agreement contains other customary terms, including (1) representations, warranties and affirmative covenants, (2) negative covenants, including limitations on indebtedness, liens, mergers, acquisitions, asset sales, investments, distributions, prepayments of subordinated debt, amendments of material agreements governing subordinated indebtedness, changes to lines of business and transactions with affiliates, in each case subject to baskets, thresholds and other exceptions, and (3) customary events of default. The availability of certain baskets and the ability to enter into certain transactions are also subject to compliance with certain financial ratios. In addition, the Revolving Credit Facility includes a maintenance covenant that will require, in certain circumstances, compliance with certain first lien secured net leverage ratios. As of June 29, 2019, the Company was in compliance with all applicable financial covenants in the Credit Agreement governing the Credit Facilities. Senior Notes The Notes were issued pursuant to an Indenture, dated as of November 29, 2017 (the “Indenture”), among the Company, the guarantors named therein and The Bank of New York Mellon, as trustee. The Indenture contains customary covenants, events of default and other provisions for an issuer of non-investment grade debt securities. These covenants include limitations on indebtedness, liens, mergers, acquisitions, asset sales, investments, distributions, prepayments of subordinated debt and transactions with affiliates, in each case subject to baskets, thresholds and other exceptions. The Notes accrue interest at a rate per annum equal to 8.625% and are due on December 1, 2025. Interest on the Notes is payable semi-annually on June 1 and December 1 of each year, beginning on June 1, 2018. On or after December 1, 2020, the Company may on any one or more occasions redeem some or all of the Notes at a purchase price equal to 104.313% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date, such optional redemption price decreasing to 102.156% on or after December 1, 2021 and to 100.000% on or after December 1, 2022. Prior to December 1, 2020, the Company may on any one or more occasions redeem up to 40% of the aggregate principal amount of the Notes with an amount not to exceed the net proceeds of certain equity offerings at 108.625% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Prior to December 1, 2020, the Company may redeem some or all of the Notes at a make-whole price plus accrued and unpaid interest, if any, to, but not including, the redemption date. If a change of control occurs, the Company must offer to purchase for cash the Notes at a purchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. Following the sale of certain assets and subject to certain conditions, the Company must offer to purchase for cash the Notes at a purchase price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. The Notes are guaranteed on a senior unsecured basis by the Company’s subsidiaries that guarantee the Credit Facilities. Outstanding Debt At June 29, 2019, the Company had $1,674,500 outstanding under the Credit Facilities and the Notes, consisting of the Term Loan Facility of $1,374,500, $0 drawn down on the Revolving Credit Facility and $300,000 in aggregate principal amount of Notes issued and outstanding. At June 29, 2019 and December 29, 2018, the Company’s debt consisted of both fixed and 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. See Note 12 for information on the Company’s interest rate swaps. The weighted average interest rate (which includes amortization of deferred financing costs and debt discount) on the Company’s outstanding debt, exclusive of the impact of the swap in effect, was approximately 8.17% and 7.73% per annum based on interest rates at June 29, 2019 and December 29, 2018, respectively. The weighted average interest rate (which includes amortization of deferred financing costs and debt discount) on the Company’s outstanding debt, including the impact of the swap in effect, was approximately 7.61% and 7.46% per annum based on interest rates at June 29, 2019 and December 29, 2018, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8 . 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 earnings per share: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Numerator: Net income attributable to Weight Watchers International, Inc. $ 53,834 $ 70,720 $ 43,148 $ 109,832 Denominator: Weighted average shares of common stock outstanding 67,124 66,400 67,044 65,761 Effect of dilutive common stock equivalents 2,017 3,754 2,224 4,153 Weighted average diluted common shares outstanding 69,141 70,154 69,268 69,914 Earnings per share attributable to Weight Watchers International, Inc. Basic $ 0.80 $ 1.07 $ 0.64 $ 1.67 Diluted $ 0.78 $ 1.01 $ 0.62 $ 1.57 The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 2,032 and 32 for the three months ended June 29, 2019 and June 30, 2018, respectively. The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 1,975 and 399 for the six months ended June 29, 2019 and June 30, 2018, respectively. |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans | 9 . 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 (as amended and restated, 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 long-term equity incentive compensation program has historically included time-vesting non-qualified stock option and/or restricted stock unit (including performance-based stock unit with both time- and performance-vesting criteria (“PSUs”)) awards. The Company’s Board of Directors or a committee thereof administers the 2014 Plan. In fiscal 2019, the Company granted 275.8 PSUs having both time- and performance-vesting criteria. The time-vesting criteria for these PSUs will be satisfied upon continued employment (with limited exceptions) on the third anniversary of the grant date. The performance-vesting criteria for these PSUs will be satisfied if the Company has achieved a certain annual operating income objective for the performance period of fiscal 2021. Pursuant to these awards, the number of PSUs that become vested, if any, upon the satisfaction of both vesting criteria, shall be equal to (x) the target number of PSUs granted multiplied by (y) the applicable achievement percentage, rounded down to avoid the issuance of fractional shares. The Company is currently accruing compensation expense to what it believes is the probable outcome upon vesting. In fiscal 2018, the Company granted 81.3 PSUs having both time- and performance-vesting criteria. The time-vesting criteria for these PSUs will be satisfied upon continued employment (with limited exceptions) on the third anniversary of the grant date. The performance-vesting criteria for these PSUs will be satisfied if the Company has achieved a certain annual operating income objective for the performance period of fiscal 2020. Pursuant to these awards, the number of PSUs that become vested, if any, upon the satisfaction of both vesting criteria, shall be equal to (x) the target number of PSUs granted multiplied by (y) the applicable achievement percentage, rounded down to avoid the issuance of fractional shares. The applicable achievement percentage shall increase in the event the Company has achieved a certain revenue target during such performance period. The Company is currently accruing compensation expense to what it believes is the probable outcome upon vesting. In fiscal 2017, the Company granted 98.5 PSUs in May 2017 and 47.9 PSUs in July 2017, all having both time- and performance-vesting criteria. The time-vesting criteria for these PSUs will be satisfied upon continued employment (with limited exceptions) on May 15, 2020. The performance-vesting criteria for these PSUs will be satisfied if the Company has achieved, in the case of the May 2017 awards, certain annual operating income objectives and, in the case of the July 2017 award, certain net income or operating income objectives, as applicable, for each performance year, in each fiscal year over a three-year period (i.e., fiscal 2017 through fiscal 2019) (each, a “2017 Award Performance Year”). When the performance measure has been met for a particular 2017 Award Performance Year, that portion of units is “banked” for potential issuance following the satisfaction of the time-vesting criteria. Such portion of units to be “banked” shall be equal to (x) the target number of PSUs granted for the applicable 2017 Award Performance Year multiplied by (y) the applicable achievement percentage, rounded down to avoid the issuance of fractional shares. The Company is currently accruing compensation expense to what it believes is the probable outcome upon vesting. In fiscal 2016, the Company granted 289.9 PSUs having both time- and performance-vesting criteria. The time-vesting criteria for these PSUs was satisfied upon continued employment (with limited exceptions) on the third anniversary of the grant date (i.e., May 16, 2019). The performance-vesting criteria for these PSUs was satisfied when the Company achieved a Debt Ratio (as defined in the applicable term sheet for these PSU awards and based on a Debt to EBITDAS ratio (each, as defined therein)) at levels at or below 4.5x over the performance period from December 31, 2017 to December 29, 2018. Pursuant to these awards, the number of PSUs that became vested upon the satisfaction of the time-vesting criteria of 219.3 was calculated as (x) the target number of PSUs granted multiplied by (y) 166.67%, the applicable Debt Ratio achievement percentage, rounded down to avoid the issuance of fractional shares. The Company accrued compensation expense in an amount equal to the outcome upon vesting. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 0 . The effective tax rates for the three and six months ended June 29, 2019 were 23.6% and 24.2%, respectively. The effective tax rates for the three and six months ended June 30, 2018 were 21.9% and 6.2%, respectively. For the six months ended June 29, 2019, the primary difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was due to $1,798 of tax expense related to global intangible low-taxed income (“GILTI”) and oreign-derived intangible income (“FDII”) The differences between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate were as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 0.4 % 2.2 % 3.1 % 2.3 % Reserves for uncertain tax positions (2.0 %) 0.3 % (2.4 %) 0.2 % Cessation of operations (1.1 %) 0.0 % (1.3 %) (1.6 %) Research and development credit (0.4 %) (0.1 %) (1.1 %) (0.4 %) Tax windfall on share-based awards 0.1 % (4.5 %) 0.2 % (18.9 %) GILTI 1.3 % 2.9 % 3.2 % 4.5 % FDII (0.9 %) (1.2 %) (2.3 %) (1.9 %) Impact of foreign operations 2.2 % 0.6 % 1.8 % (0.4 %) Other 2.8 % 0.7 % 2.0 % 1.4 % Total effective tax rate 23.6 % 21.9 % 24.2 % 6.2 % |
Legal
Legal | 6 Months Ended |
Jun. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal | 1 1. Securities Class Action and Derivative Matters In March 2019, two substantially identical class action complaints alleging violations of the federal securities laws were filed by individual shareholders against the Company, certain of the Company’s current officers and the Company’s former controlling shareholder, Artal Group S.A. (“Artal”) , in the United States District Court for the Southern District of New York. The actions were consolidated and lead plaintiffs were appointed in June 2019. A consolidated amended complaint was filed on July 29, 2019, naming as defendants the Company, certain of the Company’s current officers and directors, and Artal and certain of its affiliates. The consolidated complaint asserts claims on behalf of all purchasers of the Company’s common stock between May 4, 2018 and February 26, 2019, inclusive (the “Class Period”), including purchasers of the Company’s common stock traceable to the May 2018 secondary offering of the Company’s common stock by certain of its shareholders. The complaint alleges that, during the Class Period, the defendants disseminated materially false and misleading statements and/or concealed or recklessly disregarded material adverse facts. The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, and with respect to the secondary offering, under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended . The plaintiffs seek to recover unspecified damages on behalf of the class members. The Company believes that the action is without merit and intends to vigorously defend it. On March 26, 2019, June 4, 2019, July 22, 2019, and July 26, 2019, the Company received shareholder litigation demands alleging breaches of fiduciary duties by certain current and former Company directors and executive officers, to the alleged injury of the Company. On June 13, 2019, a separate shareholder derivative complaint was filed in the Southern District of New York against the Company’s Board of Directors alleging that the directors breached fiduciary duties to the alleged injury of the Company. The plaintiff voluntarily dismissed the complaint on July 8, 2019 and the Company agreed to treat the complaint as a litigation demand. On July 23, 2019, another separate shareholder derivative complaint was filed in the Southern District of New York against the Board of Directors alleging, among other things, that the directors breached fiduciary duties to the alleged injury of the Company. The plaintiff voluntarily dismissed the complaint the same day. The allegations in the demands relate to those contained in the ongoing securities class action litigation. In response to the demands, pursuant to Virginia law, the Board of Directors has created a special committee to investigate and evaluate the claims made in the demands. Other Litigation Matters Due to the nature of the Company’s activities, it is also, at times, subject to other pending and threatened legal actions, including patent and other intellectual property actions, that arise out of the ordinary course of business. In the opinion of management, the disposition of any such matters is not expected, individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that the Company’s results of operations, financial condition or cash flows could be materially adversely affected in any particular period by the unfavorable resolution of one or more legal actions. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 6 Months Ended |
Jun. 29, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | 1 2 . As of June 29, 2019 and December 29, 2018, the Company had in effect an interest rate swap with a notional amount totaling $1,000,000 and $1,250,000, respectively. On July 26, 2013, in order to hedge a 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 decreased from $1,500,000 effective March 31, 2014 to $1,250,000 on April 3, 2017 and $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 2.41%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive loss. On June 11, 2018, in order to hedge a portion of its variable rate debt, the Company entered into a forward-starting interest rate swap (the “2018 swap”) with an effective date of April 2, 2020 and a termination date of March 31, 2024. The initial notional amount of this swap is $500,000. During the term of this swap, the notional amount will decrease from $500,000 effective April 2, 2020 to $250,000 on March 31, 2021. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 3.1005%. On June 7, 2019, in order to hedge a portion of its variable rate debt, the Company entered into a forward-starting interest rate swap (together with the 2018 swap, the “future swaps”) with an effective date of April 2, 2020 and a termination date of March 31, 2024. The notional amount of this swap is $250,000. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 1.901%. The future swaps qualify for hedge accounting and, therefore, changes in the fair value of the future swaps have been recorded in accumulated other comprehensive loss. As of June 29, 2019 and December 29, 2018, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive loss in the amounts of $14,744 ($19,814 before taxes) and $1,175 ($1,634 before taxes), respectively. As of June 29, 2019, the fair value of the Company’s then-effective swap was a liability of $2,068, which is included in derivative payable in the consolidated balance sheet. As of June 29, 2019, the fair value of the Company’s future swaps was a liability of $17,262, which is included in derivative payable in the consolidated balance sheet. As of December 29, 2018, the fair value of the Company’s then-effective swap included a current asset of $3,526 and a noncurrent asset of $398, which are included in other current assets and other noncurrent assets, respectively, in the consolidated balance sheet. As of December 29, 2018, the fair value of the Company’s 2018 swap was a liability of $5,578, which is included in derivative payable in the consolidated balance sheet. The Company is hedging forecasted transactions for periods not exceeding the next five years. The Company expects approximately $2,116 ($2,836 before taxes) of derivative losses included in accumulated other comprehensive loss at June 29, 2019, based on current market rates, will be reclassified into earnings within the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 3 . 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 as of June 29, 2019 and December 29, 2018. The fair value of the Company’s borrowings under the Revolving Credit Facility approximated a carrying value of $0 at June 29, 2019 and December 29, 2018, respectively. The fair value of the Company’s Credit Facilities is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of June 29, 2019 and December 29, 2018, the fair value of the Company’s long-term debt was approximately $1,595,373 and $1,757,717, respectively, as compared to the carrying value (net of deferred financing costs and debt discount) of $1,642,210 and $1,746,708, 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 12 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 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swap liability at June 29, 2019 $ 19,330 $ 0 $ 19,330 $ 0 Interest rate swap asset at December 29, 2018 $ 3,924 $ 0 $ 3,924 $ 0 Interest rate swap liability at December 29, 2018 $ 5,578 $ 0 $ 5,578 $ 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 six months ended June 29, 2019 and the fiscal year ended December 29, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 1 4 . Amounts reclassified out of accumulated other comprehensive loss are as follows: Changes in Accumulated Other Comprehensive Loss by Component (a) Six Months Ended June 29, 2019 Loss on Qualifying Hedges Loss on Foreign Currency Translation Total Beginning Balance at December 29, 2018 $ (1,175 ) $ (14,582 ) $ (15,757 ) Other comprehensive (loss) income before reclassifications, net of tax (12,255 ) 2,623 (9,632 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) (1,314 ) 0 (1,314 ) Net current period other comprehensive (loss) income including noncontrolling interest (13,569 ) 2,623 (10,946 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 (6 ) (6 ) Ending Balance at June 29, 2019 $ (14,744 ) $ (11,965 ) $ (26,709 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Six Months Ended June 30, 2018 (Loss) Gain on Qualifying Hedges Loss on Foreign Currency Translation Total Beginning Balance at December 30, 2017 $ (5,392 ) $ (5,075 ) $ (10,467 ) Other comprehensive income (loss) before reclassifications, net of tax 7,236 (5,396 ) 1,840 Amounts reclassified from accumulated other comprehensive loss, net of tax(b) 1,942 0 1,942 Adoption of accounting standard (1,161 ) (1,324 ) (2,485 ) Net current period other comprehensive income (loss) including noncontrolling interest 8,017 (6,720 ) 1,297 Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 373 373 Ending Balance at June 30, 2018 $ 2,625 $ (11,422 ) $ (8,797 ) (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 Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Details about Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Income is Presented Loss on Qualifying Hedges Interest rate contracts $ 498 $ (346 ) $ 1,760 $ (2,603 ) Interest expense 498 (346 ) 1,760 (2,603 ) Income before income taxes (126 ) 88 (446 ) 661 Provision for income taxes $ 372 $ (258 ) $ 1,314 $ (1,942 ) Net income (a) Amounts in parentheses indicate debits to profit/loss |
Segment Data
Segment Data | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | 1 5 . The Company has four reportable segments based on an integrated geographical structure as follows: North America, Continental Europe (CE), United Kingdom, and Other. Other consists of Australia, New Zealand 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, net Total Revenue, net Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 North America $ 255,644 $ 284,538 $ 505,656 $ 563,715 Continental Europe 77,329 81,592 153,486 164,123 United Kingdom 24,525 29,210 49,136 59,495 Other 11,525 14,407 23,910 30,637 Total revenue, net $ 369,023 $ 409,747 $ 732,188 $ 817,970 Net Income Net Income Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Segment operating income: North America $ 91,169 $ 112,040 $ 132,282 $ 174,393 Continental Europe 30,764 32,478 40,839 50,409 United Kingdom 4,308 6,035 3,557 9,903 Other 1,726 3,452 1,396 5,037 Total segment operating income 127,967 154,005 178,074 239,742 General corporate expenses 22,494 26,297 50,703 49,963 Interest expense 34,732 35,866 69,927 71,732 Other expense, net 438 1,333 741 1,097 Provision for income taxes 16,586 19,825 13,711 7,208 Net income $ 53,717 $ 70,684 $ 42,992 $ 109,742 Net loss attributable to the noncontrolling interest 117 36 156 90 Net income attributable to Weight Watchers International, Inc. $ 53,834 $ 70,720 $ 43,148 $ 109,832 Depreciation and Amortization Depreciation and Amortization Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 North America $ 9,081 $ 9,163 $ 18,386 $ 18,642 Continental Europe 395 317 776 618 United Kingdom 139 350 425 715 Other 107 164 218 309 Total segment depreciation and amortization 9,722 9,994 19,805 20,284 General corporate depreciation and amortization 4,037 2,834 7,568 5,612 Depreciation and amortization $ 13,759 $ 12,828 $ 27,373 $ 25,896 Due to the adoption of the updated lease accounting guidance the Company has a right of use operating lease asset of $144,913 as of June 29, 2019, of which 52% is in the North America reportable segment |
Related Party
Related Party | 6 Months Ended |
Jun. 29, 2019 | |
Related Party Transactions [Abstract] | |
Related Party | 1 6 . As previously disclosed, on October 18, 2015, the Company entered into the Strategic Collaboration Agreement with Oprah Winfrey, under which she will consult with the Company and participate in developing, planning, executing and enhancing the WW program and related initiatives, and provide it with services in her discretion to promote the Company and its programs, products and services. In addition to the Strategic Collaboration Agreement, Ms. Winfrey and her related entities provided services to the Company totaling $720 and $2,003 for the three and six months ended June 29, 2019, respectively, and $689 and $1,988 for the three and six months ended June 30, 2018, respectively, which services included advertising, production and related fees. The Company’s accounts payable to parties related to Ms. Winfrey at June 29, 2019 and December 29, 2018 was $0 and $62, respectively. In March 2018, as permitted by the transfer provisions set forth in the previously disclosed Share Purchase Agreement, dated October 18, 2015, between the Company and Ms. Winfrey, and the Option Agreement, dated October 18, 2015, between the Company and Ms. Winfrey, Ms. Winfrey sold 954 of the shares she purchased under such purchase agreement and exercised a portion of her stock options resulting in the sale of 1,405 shares issuable under such options, respectively. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 29, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 1 7 . Restructuring As previously disclosed, the Company undertook an organizational realignment which resulted in the elimination of certain positions and termination of employment for certain employees The Company recorded expenses in connection with employee termination benefit costs of $6,331 ($4,727 after tax) during the six months ended June 29, 2019. These expenses impacted cost of revenues by $1,425 and selling, general and administrative expense by $4,906 in the six months ended June 29, 2019. The Company recorded all expenses in the first quarter of 2019 and does not anticipate recording additional expenses in connection with this organizational realignment. All expenses were recorded to general corporate expenses and therefore there was no impact to the segments. For the six months ended June 29, 2019, the Company made payments of $3,882 towards the liability for these expenses and lowered provision estimates by $91. The Company expects the remaining liability of $2,358 to be paid in full in fiscal 2019. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Lease Liabilities | At June 29, 2019, the Company’s lease assets and lease liabilities were as follows: June 29, 2019 Assets: Operating lease assets $ 144,913 Finance lease assets 522 Total leased assets $ 145,435 Liabilities: Current Operating $ 32,003 Finance 287 Noncurrent Operating $ 121,318 Finance 152 Total lease liabilities $ 153,760 |
Schedule of Components of Lease Expense | For the three and six months ended June 29, 2019, the components of the Company’s lease expense were as follows Three Months Ended Six Months Ended June 29, June 29, 2019 2019 Operating lease cost $ 12,363 $ 25,735 Finance lease cost: Amortization of leased assets 138 218 Interest on lease liabilities 5 13 Total finance lease cost $ 143 $ 231 Total lease cost $ 12,506 $ 25,966 |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates | At June 29, 2019, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: June 29, 2019 Weighted Average Remaining Lease Term (years) Operating leases 7.22 Finance leases 1.66 Weighted Average Discount Rate Operating leases 7.04 Finance leases 4.33 |
Schedule of Maturity of Lease Liabilities | At June 29, 2019, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows: Operating Leases Finance Leases Total Remainder of fiscal 2019 $ 20,478 $ 286 $ 20,764 2020 39,951 135 40,086 2021 31,371 49 31,420 2022 21,254 20 21,274 2023 15,512 21 15,533 Thereafter 74,253 4 74,257 Total lease payments $ 202,819 $ 515 $ 203,334 Less imputed interest 49,498 76 49,574 Present value of lease liabilities $ 153,321 $ 439 $ 153,760 |
Minimum Commitments Under Non-Cancelable Obligations | Minimum commitments under non-cancelable obligations, primarily for office and rental facilities operating leases at December 29, 2018, consisted of the following: 2019 $ 63,261 2020 38,491 2021 22,341 2022 14,017 2023 9,192 2024 and thereafter 37,704 Total $ 185,006 |
Summary of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the six months ended June 29, 2019 were as follows: Six Months Ended June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 25,738 Operating cash flows from finance leases $ 13 Financing cash flows from finance leases $ 218 Leased assets obtained in exchange for new operating lease liabilities $ 12,084 Leased assets obtained in exchange for new finance lease liabilities $ 92 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source | The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Digital Subscription Revenues $ 156,969 $ 151,018 $ 305,824 $ 289,565 Studio + Digital Fees 156,799 192,712 314,670 382,834 Service Revenues, net $ 313,768 $ 343,730 $ 620,494 $ 672,399 Product sales and other, net 55,255 66,017 111,694 145,571 Revenues, net $ 369,023 $ 409,747 $ 732,188 $ 817,970 |
Schedule of Revenues Disaggregated by Segment | The following tables present the Company’s revenues disaggregated by segment: Three Months Ended June 29, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 102,851 $ 43,586 $ 6,993 $ 3,539 $ 156,969 Studio + Digital Fees 116,958 23,681 11,498 4,662 156,799 Service Revenues, net $ 219,809 $ 67,267 $ 18,491 $ 8,201 $ 313,768 Product sales and other, net 35,835 10,062 6,034 3,324 55,255 Revenues, net $ 255,644 $ 77,329 $ 24,525 $ 11,525 $ 369,023 Three Months Ended June 30, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 101,099 $ 39,342 $ 6,955 $ 3,622 $ 151,018 Studio + Digital Fees 142,767 29,402 14,551 5,992 192,712 Service Revenues, net $ 243,866 $ 68,744 $ 21,506 $ 9,614 $ 343,730 Product sales and other, net 40,672 12,848 7,704 4,793 66,017 Revenues, net $ 284,538 $ 81,592 $ 29,210 $ 14,407 $ 409,747 Six Months Ended June 29, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 201,611 $ 83,769 $ 13,411 $ 7,033 $ 305,824 Studio + Digital Fees 234,557 47,630 22,761 9,722 314,670 Service Revenues, net $ 436,168 $ 131,399 $ 36,172 $ 16,755 $ 620,494 Product sales and other, net 69,488 22,087 12,964 7,155 111,694 Revenues, net $ 505,656 $ 153,486 $ 49,136 $ 23,910 $ 732,188 Six Months Ended June 30, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 193,338 $ 75,503 $ 13,519 $ 7,205 $ 289,565 Studio + Digital Fees 282,919 58,482 28,933 12,500 382,834 Service Revenues, net $ 476,257 $ 133,985 $ 42,452 $ 19,705 $ 672,399 Product sales and other, net 87,458 30,138 17,043 10,932 145,571 Revenues, net $ 563,715 $ 164,123 $ 59,495 $ 30,637 $ 817,970 |
Schedule of Accounts Receivable and Deferred Revenues | The opening and ending balances of the Company’s deferred revenues are as follows: Deferred Deferred Revenue Revenue-Long Term Balance as of December 29, 2018 $ 53,501 $ 961 Net increase (decrease) during the period 3,422 (492 ) Balance as of June 29, 2019 $ 56,923 $ 469 |
Franchise Rights Acquired, Go_2
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Values of Goodwill | For the six months ended June 29 , 201 9 , the change in the carrying amount of goodwill wa s due to the effect of exchange rate changes as follows: North Continental United America Europe Kingdom Other Total Balance as of December 29, 2018 $ 138,156 $ 7,242 $ 1,178 $ 5,943 $ 152,519 Effect of exchange rate changes 1,646 (144 ) 0 37 1,539 Balance as of June 29, 2019 $ 139,802 $ 7,098 $ 1,178 $ 5,980 $ 154,058 |
Schedule of Finite-Lived Intangible Assets by Major Class | The carrying values of finite-lived intangible assets as of June 29, 2019 and December 29, 2018 were as follows: June 29, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 129,091 $ 108,034 $ 121,508 $ 102,659 Website development costs 113,882 86,710 105,710 77,825 Trademarks 11,756 11,116 11,620 11,010 Other 14,021 4,399 13,967 4,149 Trademarks and other intangible assets $ 268,750 $ 210,259 $ 252,805 $ 195,643 Franchise rights acquired 8,120 4,452 8,110 4,319 Total finite-lived intangible assets $ 276,870 $ 214,711 $ 260,915 $ 199,962 |
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 2019 $ 12,273 Fiscal 2020 $ 22,175 Fiscal 2021 $ 13,046 Fiscal 2022 $ 3,533 Fiscal 2023 and thereafter $ 11,132 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The components of the Company’s long-term debt were as follows: June 29, 2019 December 29, 2018 Principal Balance Unamortized Deferred Financing Costs Unamortized Debt Discount Effective Rate (1) Principal Balance Unamortized Deferred Financing Costs Unamortized Debt Discount Effective Rate (1) Revolving Credit Facility due November 29, 2022 $ 0 $ 0 $ 0 0.00 % $ 0 $ 0 $ 0 4.39 % Term Loan Facility due November 29, 2024 1,374,500 7,342 23,833 8.07 % 1,482,250 8,307 26,033 7.53 % Notes due December 1, 2025 300,000 1,115 0 8.62 % 300,000 1,202 0 8.69 % Total $ 1,674,500 $ 8,457 $ 23,833 8.17 % $ 1,782,250 $ 9,509 $ 26,033 7.63 % Less: Current Portion 57,750 77,000 Unamortized Deferred Financing Costs 8,457 9,509 Unamortized Debt Discount 23,833 26,033 Total Long-Term Debt $ 1,584,460 $ 1,669,708 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Numerator: Net income attributable to Weight Watchers International, Inc. $ 53,834 $ 70,720 $ 43,148 $ 109,832 Denominator: Weighted average shares of common stock outstanding 67,124 66,400 67,044 65,761 Effect of dilutive common stock equivalents 2,017 3,754 2,224 4,153 Weighted average diluted common shares outstanding 69,141 70,154 69,268 69,914 Earnings per share attributable to Weight Watchers International, Inc. Basic $ 0.80 $ 1.07 $ 0.64 $ 1.67 Diluted $ 0.78 $ 1.01 $ 0.62 $ 1.57 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Differences Between U.S. Federal Statutory Tax Rate and Company's Consolidated Effective Tax Rate | The differences between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate were as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 0.4 % 2.2 % 3.1 % 2.3 % Reserves for uncertain tax positions (2.0 %) 0.3 % (2.4 %) 0.2 % Cessation of operations (1.1 %) 0.0 % (1.3 %) (1.6 %) Research and development credit (0.4 %) (0.1 %) (1.1 %) (0.4 %) Tax windfall on share-based awards 0.1 % (4.5 %) 0.2 % (18.9 %) GILTI 1.3 % 2.9 % 3.2 % 4.5 % FDII (0.9 %) (1.2 %) (2.3 %) (1.9 %) Impact of foreign operations 2.2 % 0.6 % 1.8 % (0.4 %) Other 2.8 % 0.7 % 2.0 % 1.4 % Total effective tax rate 23.6 % 21.9 % 24.2 % 6.2 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
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 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swap liability at June 29, 2019 $ 19,330 $ 0 $ 19,330 $ 0 Interest rate swap asset at December 29, 2018 $ 3,924 $ 0 $ 3,924 $ 0 Interest rate swap liability at December 29, 2018 $ 5,578 $ 0 $ 5,578 $ 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 six months ended June 29, 2019 and the fiscal year ended December 29, 2018. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Amounts reclassified out of accumulated other comprehensive loss are as follows: Changes in Accumulated Other Comprehensive Loss by Component (a) Six Months Ended June 29, 2019 Loss on Qualifying Hedges Loss on Foreign Currency Translation Total Beginning Balance at December 29, 2018 $ (1,175 ) $ (14,582 ) $ (15,757 ) Other comprehensive (loss) income before reclassifications, net of tax (12,255 ) 2,623 (9,632 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) (1,314 ) 0 (1,314 ) Net current period other comprehensive (loss) income including noncontrolling interest (13,569 ) 2,623 (10,946 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 (6 ) (6 ) Ending Balance at June 29, 2019 $ (14,744 ) $ (11,965 ) $ (26,709 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Six Months Ended June 30, 2018 (Loss) Gain on Qualifying Hedges Loss on Foreign Currency Translation Total Beginning Balance at December 30, 2017 $ (5,392 ) $ (5,075 ) $ (10,467 ) Other comprehensive income (loss) before reclassifications, net of tax 7,236 (5,396 ) 1,840 Amounts reclassified from accumulated other comprehensive loss, net of tax(b) 1,942 0 1,942 Adoption of accounting standard (1,161 ) (1,324 ) (2,485 ) Net current period other comprehensive income (loss) including noncontrolling interest 8,017 (6,720 ) 1,297 Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 373 373 Ending Balance at June 30, 2018 $ 2,625 $ (11,422 ) $ (8,797 ) (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 Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Details about Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Income is Presented Loss on Qualifying Hedges Interest rate contracts $ 498 $ (346 ) $ 1,760 $ (2,603 ) Interest expense 498 (346 ) 1,760 (2,603 ) Income before income taxes (126 ) 88 (446 ) 661 Provision for income taxes $ 372 $ (258 ) $ 1,314 $ (1,942 ) Net income (a) Amounts in parentheses indicate debits to profit/loss |
Segment Data (Tables)
Segment Data (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments | Information about the Company’s reportable segments is as follows: Total Revenue, net Total Revenue, net Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 North America $ 255,644 $ 284,538 $ 505,656 $ 563,715 Continental Europe 77,329 81,592 153,486 164,123 United Kingdom 24,525 29,210 49,136 59,495 Other 11,525 14,407 23,910 30,637 Total revenue, net $ 369,023 $ 409,747 $ 732,188 $ 817,970 Net Income Net Income Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Segment operating income: North America $ 91,169 $ 112,040 $ 132,282 $ 174,393 Continental Europe 30,764 32,478 40,839 50,409 United Kingdom 4,308 6,035 3,557 9,903 Other 1,726 3,452 1,396 5,037 Total segment operating income 127,967 154,005 178,074 239,742 General corporate expenses 22,494 26,297 50,703 49,963 Interest expense 34,732 35,866 69,927 71,732 Other expense, net 438 1,333 741 1,097 Provision for income taxes 16,586 19,825 13,711 7,208 Net income $ 53,717 $ 70,684 $ 42,992 $ 109,742 Net loss attributable to the noncontrolling interest 117 36 156 90 Net income attributable to Weight Watchers International, Inc. $ 53,834 $ 70,720 $ 43,148 $ 109,832 Depreciation and Amortization Depreciation and Amortization Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 North America $ 9,081 $ 9,163 $ 18,386 $ 18,642 Continental Europe 395 317 776 618 United Kingdom 139 350 425 715 Other 107 164 218 309 Total segment depreciation and amortization 9,722 9,994 19,805 20,284 General corporate depreciation and amortization 4,037 2,834 7,568 5,612 Depreciation and amortization $ 13,759 $ 12,828 $ 27,373 $ 25,896 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Lessee Lease Description [Line Items] | ||||
Operating lease assets | $ 144,913 | $ 0 | ||
Operating lease liabilities | $ 153,321 | |||
Lease weighted average remaining lease term | 7 years 2 months 15 days | |||
Operating leases, rent expense | $ 10,741 | $ 21,532 | ||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Leases, remaining lease term | 0 years | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Leases, remaining lease term | 13 years | |||
ASU 2016-02 | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease assets | $ 155,178 | |||
Operating lease liabilities | 163,486 | |||
Retained earnings for operating leases | 0 | |||
Prepaid Rent | ASU 2016-02 | ||||
Lessee Lease Description [Line Items] | ||||
Revised prepaid rent | $ 3,595 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Assets: | ||
Operating lease assets | $ 144,913 | $ 0 |
Finance lease assets | 522 | |
Total leased assets | 145,435 | |
Current | ||
Operating | 32,003 | 0 |
Finance | 287 | |
Noncurrent | ||
Operating | 121,318 | $ 0 |
Finance | 152 | |
Total lease liabilities | $ 153,760 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019 | Jun. 29, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 12,363 | $ 25,735 |
Finance lease cost: | ||
Amortization of leased assets | 138 | 218 |
Interest on lease liabilities | 5 | 13 |
Total finance lease cost | 143 | 231 |
Total lease cost | $ 12,506 | $ 25,966 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates (Detail) | Jun. 29, 2019 |
Weighted Average Remaining Lease Term (years) | |
Operating leases | 7 years 2 months 19 days |
Finance leases | 1 year 7 months 28 days |
Weighted Average Discount Rate | |
Operating leases | 7.04% |
Finance leases | 4.33% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) $ in Thousands | Jun. 29, 2019USD ($) |
Operating Leases | |
Remainder of fiscal 2019 | $ 20,478 |
2020 | 39,951 |
2021 | 31,371 |
2022 | 21,254 |
2023 | 15,512 |
Thereafter | 74,253 |
Total lease payments | 202,819 |
Less imputed interest | 49,498 |
Present value of lease liabilities | 153,321 |
Finance Leases | |
Remainder of fiscal 2019 | 286 |
2020 | 135 |
2021 | 49 |
2022 | 20 |
2023 | 21 |
Thereafter | 4 |
Total lease payments | 515 |
Less imputed interest | 76 |
Present value of lease liabilities | 439 |
Total | |
Remainder of fiscal 2019 | 20,764 |
2020 | 40,086 |
2021 | 31,420 |
2022 | 21,274 |
2023 | 15,533 |
Thereafter | 74,257 |
Total lease payments | 203,334 |
Less imputed interest | 49,574 |
Present value of lease liabilities | $ 153,760 |
Leases - Minimum Commitments Un
Leases - Minimum Commitments Under Non-Cancelable Obligations (Detail) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Lessee Lease Description [Line Items] | ||
2019 | $ 20,478 | |
2020 | 39,951 | |
2021 | 31,371 | |
2022 | 21,254 | |
2023 | 15,512 | |
2024 and thereafter | 74,253 | |
Total lease payments | $ 202,819 | |
Non Cancelable Obligations | ||
Lessee Lease Description [Line Items] | ||
2019 | $ 63,261 | |
2020 | 38,491 | |
2021 | 22,341 | |
2022 | 14,017 | |
2023 | 9,192 | |
2024 and thereafter | 37,704 | |
Total lease payments | $ 185,006 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 25,738 |
Operating cash flows from finance leases | 13 |
Financing cash flows from finance leases | 218 |
Leased assets obtained in exchange for new operating lease liabilities | 12,084 |
Leased assets obtained in exchange for new finance lease liabilities | $ 92 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 29, 2019 | Dec. 29, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Decrease to deferred revenue | $ (56,923) | $ (53,501) | |
Decrease to prepaid expenses and other current assets | (26,793) | (42,355) | |
Increase to deferred income tax liability | 184,445 | $ 190,258 | |
Deferred revenue recognized | $ 52,507 | ||
Revenue, practical expedient, remaining performance obligation, description | contracts with an original expected length of one year or less. | ||
Revenue, remaining performance obligation, optional exemption, performance obligation | true | ||
Other Liabilities | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Long-term deferred revenue | $ 469 | ||
Accounting Standards Update 2014-09 | Retained Earnings | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net increase to opening retained earnings | $ 2,145 | ||
Difference between Revenue Guidance in Effect Before and After Topic 606 | Accounting Standards Update 2014-09 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Decrease to deferred revenue | 3,501 | ||
Decrease to prepaid expenses and other current assets | 568 | ||
Increase to deferred income tax liability | $ 788 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 369,023 | $ 409,747 | $ 732,188 | $ 817,970 |
Digital Subscription Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 156,969 | 151,018 | 305,824 | 289,565 |
Studio + Digital Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 156,799 | 192,712 | 314,670 | 382,834 |
Service Revenues, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 313,768 | 343,730 | 620,494 | 672,399 |
Product sales and other, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 55,255 | $ 66,017 | $ 111,694 | $ 145,571 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregated by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 369,023 | $ 409,747 | $ 732,188 | $ 817,970 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 255,644 | 284,538 | 505,656 | 563,715 |
Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 77,329 | 81,592 | 153,486 | 164,123 |
United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 24,525 | 29,210 | 49,136 | 59,495 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 11,525 | 14,407 | 23,910 | 30,637 |
Digital Subscription Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 156,969 | 151,018 | 305,824 | 289,565 |
Digital Subscription Revenues | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 102,851 | 101,099 | 201,611 | 193,338 |
Digital Subscription Revenues | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 43,586 | 39,342 | 83,769 | 75,503 |
Digital Subscription Revenues | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 6,993 | 6,955 | 13,411 | 13,519 |
Digital Subscription Revenues | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 3,539 | 3,622 | 7,033 | 7,205 |
Studio + Digital Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 156,799 | 192,712 | 314,670 | 382,834 |
Studio + Digital Fees | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 116,958 | 142,767 | 234,557 | 282,919 |
Studio + Digital Fees | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 23,681 | 29,402 | 47,630 | 58,482 |
Studio + Digital Fees | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 11,498 | 14,551 | 22,761 | 28,933 |
Studio + Digital Fees | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 4,662 | 5,992 | 9,722 | 12,500 |
Service Revenues, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 313,768 | 343,730 | 620,494 | 672,399 |
Service Revenues, net | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 219,809 | 243,866 | 436,168 | 476,257 |
Service Revenues, net | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 67,267 | 68,744 | 131,399 | 133,985 |
Service Revenues, net | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 18,491 | 21,506 | 36,172 | 42,452 |
Service Revenues, net | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 8,201 | 9,614 | 16,755 | 19,705 |
Product sales and other, net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 55,255 | 66,017 | 111,694 | 145,571 |
Product sales and other, net | North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 35,835 | 40,672 | 69,488 | 87,458 |
Product sales and other, net | Continental Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 10,062 | 12,848 | 22,087 | 30,138 |
Product sales and other, net | United Kingdom | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | 6,034 | 7,704 | 12,964 | 17,043 |
Product sales and other, net | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues, net | $ 3,324 | $ 4,793 | $ 7,155 | $ 10,932 |
Revenue - Schedule of Accounts
Revenue - Schedule of Accounts Receivable and Deferred Revenues (Detail) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Deferred Revenue - Short Term | |
Contract With Customer Asset And Liability [Line Items] | |
Deferred Revenue, Beginning balance | $ 53,501 |
Net increase (decrease) during the period | 3,422 |
Deferred Revenue, Ending balance | 56,923 |
Deferred Revenue - Long Term | |
Contract With Customer Asset And Liability [Line Items] | |
Deferred Revenue, Beginning balance | 961 |
Net increase (decrease) during the period | (492) |
Deferred Revenue, Ending balance | $ 469 |
Changes in Carrying Values of G
Changes in Carrying Values of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 152,519 |
Ending balance | 154,058 |
Kurbo Health, Inc. | |
Goodwill [Line Items] | |
Beginning balance | 152,519 |
Effect of exchange rate changes | 1,539 |
Ending balance | 154,058 |
Kurbo Health, Inc. | North America | |
Goodwill [Line Items] | |
Beginning balance | 138,156 |
Effect of exchange rate changes | 1,646 |
Ending balance | 139,802 |
Kurbo Health, Inc. | Continental Europe | |
Goodwill [Line Items] | |
Beginning balance | 7,242 |
Effect of exchange rate changes | (144) |
Ending balance | 7,098 |
Kurbo Health, Inc. | United Kingdom | |
Goodwill [Line Items] | |
Beginning balance | 1,178 |
Effect of exchange rate changes | 0 |
Ending balance | 1,178 |
Kurbo Health, Inc. | Other | |
Goodwill [Line Items] | |
Beginning balance | 5,943 |
Effect of exchange rate changes | 37 |
Ending balance | $ 5,980 |
Franchise Rights Acquired, Go_3
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | May 06, 2019 | May 05, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Goodwill | $ 154,058,000 | $ 154,058,000 | $ 152,519,000 | |||||
Finite-lived intangible assets, aggregate amortization expense | $ 7,485,000 | $ 6,832,000 | $ 15,041,000 | $ 14,242,000 | ||||
Scenario, Forecast | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Franchise right maturity period | 7 years | |||||||
Brazil | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 3.00% | 3.00% | ||||||
Goodwill | $ 4,623,000 | $ 4,623,000 | ||||||
Goodwill | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Percentage of goodwill hold by reporting units | 97.00% | 97.00% | ||||||
Minimum | Goodwill | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 60.00% | 60.00% | ||||||
Maximum | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Finite-lived intangible assets, estimated useful life (in years) | 1 year | |||||||
Franchise Rights | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Indefinite-lived intangible assets, impairment charges | $ 0 | $ 0 | ||||||
Reporting units percentage of rights acquired | 99.40% | 99.40% | ||||||
Franchise Rights | NEW ZEALAND | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 3.00% | 3.00% | ||||||
Netbook value | $ 4,754,000 | |||||||
Franchise Rights | Minimum | ||||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 40.00% | 40.00% |
Carrying Amount of Finite-Lived
Carrying Amount of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 276,870 | $ 260,915 |
Accumulated Amortization | 214,711 | 199,962 |
Capitalized software costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 129,091 | 121,508 |
Accumulated Amortization | 108,034 | 102,659 |
Website development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 113,882 | 105,710 |
Accumulated Amortization | 86,710 | 77,825 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 11,756 | 11,620 |
Accumulated Amortization | 11,116 | 11,010 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 14,021 | 13,967 |
Accumulated Amortization | 4,399 | 4,149 |
Trademarks and other intangible assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 268,750 | 252,805 |
Accumulated Amortization | 210,259 | 195,643 |
Franchise Rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 8,120 | 8,110 |
Accumulated Amortization | $ 4,452 | $ 4,319 |
Estimated Amortization Expense
Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) $ in Thousands | Jun. 29, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of fiscal 2019 | $ 12,273 |
Fiscal 2020 | 22,175 |
Fiscal 2021 | 13,046 |
Fiscal 2022 | 3,533 |
Fiscal 2023 and thereafter | $ 11,132 |
Components of Current and Long-
Components of Current and Long-Term Debt (Detail) - USD ($) | Jun. 29, 2019 | Dec. 29, 2018 | |
Debt Instrument | |||
Total Debt | $ 1,674,500,000 | $ 1,782,250,000 | |
Less: Current Portion | 57,750,000 | 77,000,000 | |
Unamortized Deferred Financing Costs | 8,457,000 | 9,509,000 | |
Unamortized Debt Discount | 23,833,000 | 26,033,000 | |
Total Long-Term Debt | $ 1,584,460,000 | $ 1,669,708,000 | |
Effective Interest Rate | [1] | 8.17% | 7.63% |
Term Loan due November 29, 2024 | |||
Debt Instrument | |||
Total Debt | $ 1,374,500,000 | $ 1,482,250,000 | |
Unamortized Deferred Financing Costs | 7,342,000 | 8,307,000 | |
Unamortized Debt Discount | $ 23,833,000 | $ 26,033,000 | |
Effective Interest Rate | [1] | 8.07% | 7.53% |
Notes due December 1, 2025 | |||
Debt Instrument | |||
Total Debt | $ 300,000,000 | $ 300,000,000 | |
Unamortized Deferred Financing Costs | 1,115,000 | 1,202,000 | |
Unamortized Debt Discount | $ 0 | $ 0 | |
Effective Interest Rate | [1] | 8.62% | 8.69% |
Revolving Credit Facility due November 29, 2022 | |||
Debt Instrument | |||
Total Debt | $ 0 | $ 0 | |
Unamortized Deferred Financing Costs | 0 | 0 | |
Unamortized Debt Discount | $ 0 | $ 0 | |
Effective Interest Rate | [1] | 0.00% | 4.39% |
[1] | Includes amortization of deferred financing costs and debt discount. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 30, 2020 | May 31, 2019 | Nov. 29, 2017 | Jun. 29, 2019 | Dec. 30, 2017 | Jun. 29, 2019 | Dec. 29, 2018 | |
Debt Instrument | ||||||||
Unamortized Debt Discount | $ 23,833,000 | $ 23,833,000 | $ 26,033,000 | |||||
Write-off of deferred financing fees | $ 4,808,000 | |||||||
Gain (loss) on early extinguishment of debt | (10,524,000) | |||||||
Debt outstanding amount | $ 1,674,500,000 | $ 1,674,500,000 | $ 1,782,250,000 | |||||
Percentage of equity interests pledged | 100.00% | |||||||
Effective Interest Rate | [1] | 8.17% | 8.17% | 7.63% | ||||
Average interest rate on outstanding debt, exclusive the impact of swap | 8.17% | 8.17% | 7.73% | |||||
Average interest rate on outstanding debt, including the impact of swap | 7.61% | 7.46% | ||||||
Maximum | ||||||||
Debt Instrument | ||||||||
Pledge percentage of first tier foreign subsidiaries directly owned by company or wholly owned subsidiaries | 65.00% | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Credit facility available amount | 50,000,000 | $ 148,841,000 | $ 148,841,000 | |||||
Total Debt | 150,000,000 | 1,642,210,000 | 1,642,210,000 | $ 1,746,708,000 | ||||
Line off credit facility drawn amount | 0 | 0 | 0 | |||||
Unamortized Debt Discount | 0 | 0 | 0 | |||||
Debt outstanding amount | 0 | 0 | $ 0 | |||||
Line of credit facility, issued but undrawn letters of credit | $ 1,159,000 | $ 1,159,000 | ||||||
Effective Interest Rate | [1] | 0.00% | 0.00% | 4.39% | ||||
Percentage of equity interests pledged | 0.35% | |||||||
Consolidated first lien net debt leverage ratio | 2.93 | 2.93 | ||||||
Term Loan Facility | ||||||||
Debt Instrument | ||||||||
Debt outstanding amount | $ 1,374,500,000 | $ 1,374,500,000 | ||||||
Credit Facilities | ||||||||
Debt Instrument | ||||||||
Credit Facility, maximum borrowing capacity | 1,930,386,000 | |||||||
Total Debt | 1,565,000,000 | 1,674,500,000 | 1,674,500,000 | |||||
Line off credit facility drawn amount | 25,000,000 | |||||||
Fees incurred in connection with debt refinancing | $ 53,832,000 | |||||||
Unamortized Debt Discount | 30,800,000 | |||||||
Deferred financing costs | 5,716,000 | |||||||
Term Loan Facility | ||||||||
Debt Instrument | ||||||||
Total Debt | 1,540,000,000 | $ 1,374,500,000 | $ 1,374,500,000 | |||||
Term Loan Facility | Higher of Federal Funds Effective Rate and Overnight Bank Funding Rate | ||||||||
Debt Instrument | ||||||||
Credit facility, interest rate | 0.50% | |||||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument | ||||||||
Credit facility, interest rate | 1.00% | |||||||
Debt instrument variable rate floor percent determined option one | 0.75% | |||||||
Effective Interest Rate | 4.75% | 4.75% | ||||||
Term Loan Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument | ||||||||
Debt instrument variable rate floor percent determined option one | 1.75% | |||||||
Notes due December 1, 2025 | ||||||||
Debt Instrument | ||||||||
Total Debt | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||
Debt Instrument Interest Rate Stated Percentage | 8.625% | 8.625% | 8.625% | |||||
Unamortized Debt Discount | $ 0 | $ 0 | $ 0 | |||||
Debt outstanding amount | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||
Effective Interest Rate | [1] | 8.62% | 8.62% | 8.69% | ||||
Debt instrument issued date | Nov. 29, 2017 | |||||||
Debt instrument, due date | Dec. 1, 2025 | |||||||
Debt instrument interest payment term | Interest on the Notes is payable semi-annually on June 1 and December 1 of each year, beginning on June 1, 2018. | |||||||
Debt Instrument, redemption, description | On or after December 1, 2020, the Company may on any one or more occasions redeem some or all of the Notes at a purchase price equal to 104.313% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date, such optional redemption price decreasing to 102.156% on or after December 1, 2021 and to 100.000% on or after December 1, 2022. | |||||||
Notes due December 1, 2025 | Scenario, Forecast | ||||||||
Debt Instrument | ||||||||
Debt Instrument, percentage of principal can be redeemed | 108.625% | |||||||
Notes due December 1, 2025 | Change of Control | Scenario, Forecast | ||||||||
Debt Instrument | ||||||||
Repurchase price of principal amount of notes plus accrued and unpaid interest | 101.00% | |||||||
Notes due December 1, 2025 | Sale of Assets | Scenario, Forecast | ||||||||
Debt Instrument | ||||||||
Repurchase price of principal amount of notes plus accrued and unpaid interest | 100.00% | |||||||
Notes due December 1, 2025 | Debt Instrument Redemption Date, December 1, 2020 | ||||||||
Debt Instrument | ||||||||
Debt Instrument, percentage of principal can be redeemed | 104.313% | |||||||
Debt Instrument, redemption date | Dec. 1, 2020 | |||||||
Notes due December 1, 2025 | Debt Instrument Redemption Date, December 1, 2021 | ||||||||
Debt Instrument | ||||||||
Debt Instrument, percentage of principal can be redeemed | 102.156% | |||||||
Debt Instrument, redemption date | Dec. 1, 2021 | |||||||
Notes due December 1, 2025 | Debt Instrument Redemption Date, December 1, 2022 | ||||||||
Debt Instrument | ||||||||
Debt Instrument, percentage of principal can be redeemed | 100.00% | |||||||
Debt Instrument, redemption date | Dec. 1, 2022 | |||||||
Notes due December 1, 2025 | Maximum | Scenario, Forecast | ||||||||
Debt Instrument | ||||||||
Percent of principal amount of debt that may be redeemed (up to) | 40.00% | |||||||
Senior Secured Tranche B Term Loan | Term Loan Facility | ||||||||
Debt Instrument | ||||||||
Credit Facility, maximum borrowing capacity | $ 1,540,000,000 | |||||||
Write-off of deferred financing fees | $ 267,000 | |||||||
Debt Instrument, maturity year | 2024 | |||||||
Prepayment of principal amount | $ 50,000,000 | |||||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Credit Facility, maximum borrowing capacity | $ 150,000,000 | |||||||
Debt Instrument, maturity year | 2022 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Total Debt | $ 0 | $ 0 | ||||||
Revolving Credit Facility | Higher of Federal Funds Effective Rate and Overnight Bank Funding Rate | ||||||||
Debt Instrument | ||||||||
Credit facility, interest rate | 0.50% | |||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument | ||||||||
Credit facility, interest rate | 1.00% | |||||||
Effective Interest Rate | 2.25% | 2.25% | ||||||
[1] | Includes amortization of deferred financing costs and debt discount. |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income attributable to Weight Watchers International, Inc. | $ 53,834 | $ 70,720 | $ 43,148 | $ 109,832 |
Denominator: | ||||
Weighted average shares of common stock outstanding | 67,124 | 66,400 | 67,044 | 65,761 |
Effect of dilutive common stock equivalents | 2,017 | 3,754 | 2,224 | 4,153 |
Weighted average diluted common shares outstanding | 69,141 | 70,154 | 69,268 | 69,914 |
Earnings per share attributable to Weight Watchers International, Inc. | ||||
Basic | $ 0.80 | $ 1.07 | $ 0.64 | $ 1.67 |
Diluted | $ 0.78 | $ 1.01 | $ 0.62 | $ 1.57 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted earnings per share | 2,032 | 32 | 1,975 | 399 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - Performance-based stock unit - shares | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | May 31, 2017 | Jun. 29, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Other than options, granted | 47,900 | 98,500 | 275,800 | 81,300 | 289,900 | |
Performance period (years) | 3 years | |||||
Net debt to EBITDA ratio | 450.00% | |||||
Debt ratio achievement percentage | 166.67% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 23.60% | 21.90% | 24.20% | 6.20% |
Effective state income tax expenses | $ 1,766 | |||
Tax expense related to global intangible low taxed income | 1,798 | |||
Reversal of tax reserves | 1,375 | |||
Tax expense (benefit) related to foreign derived intangible income | (1,284) | |||
Tax shortfall on share-based awards | $ (22,155) | |||
Benefit on closure of subsidiary | $ (746) | $ (1,859) |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between U.S. Federal Statutory Tax Rate and Company's Consolidated Effective Tax Rate (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
State income taxes (net of federal benefit) | 0.40% | 2.20% | 3.10% | 2.30% |
Reserves for uncertain tax positions | (2.00%) | 0.30% | (2.40%) | 0.20% |
Cessation of operations | (1.10%) | 0.00% | (1.30%) | (1.60%) |
Research and development credit | (0.40%) | (0.10%) | (1.10%) | (0.40%) |
Tax windfall on share-based awards | 0.10% | (4.50%) | 0.20% | (18.90%) |
GILTI | 1.30% | 2.90% | 3.20% | 4.50% |
FDII | (0.90%) | (1.20%) | (2.30%) | (1.90%) |
Impact of foreign operations | 2.20% | 0.60% | 1.80% | (0.40%) |
Other | 2.80% | 0.70% | 2.00% | 1.40% |
Total effective tax rate | 23.60% | 21.90% | 24.20% | 6.20% |
Derivative Instruments and He_2
Derivative Instruments and Hedging - Additional Information (Detail) - USD ($) | Jun. 07, 2019 | Jun. 11, 2018 | Jul. 26, 2013 | Jun. 29, 2019 | Dec. 29, 2018 |
Derivative | |||||
Maximum length of time hedging forecasted | 5 years | ||||
Derivative loss included in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next 12 months, net of tax | $ 2,116,000 | ||||
Derivative loss included in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next 12 months, before tax | $ 2,836,000 | ||||
Interest Rate Swap | |||||
Derivative | |||||
Forward-starting interest rate swap, effective date | Apr. 2, 2020 | Apr. 2, 2020 | Mar. 31, 2014 | ||
Forward starting interest rate swap, termination date | Mar. 31, 2024 | Mar. 31, 2024 | Apr. 2, 2020 | ||
Derivative interest rate swap percentage | 1.901% | 3.1005% | 2.41% | ||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive loss net of tax | $ 14,744,000 | $ 1,175,000 | |||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive loss before tax | 19,814,000 | 1,634,000 | |||
Interest Rate Swap | Other Noncurrent Asset | |||||
Derivative | |||||
Interest rate swap asset | 398,000 | ||||
Interest Rate Swap | Other Current Asset | |||||
Derivative | |||||
Interest rate swap asset | 3,526,000 | ||||
Interest Rate Swap | Derivative Payable | |||||
Derivative | |||||
Interest rate swap liability | 2,068,000 | ||||
Interest Rate Swap | Cash Flow Hedging | |||||
Derivative | |||||
Notional amount | $ 250,000,000 | $ 500,000,000 | $ 1,500,000,000 | 1,000,000,000 | 1,250,000,000 |
Interest Rate Swap | Cash Flow Hedging | June 30, 2014 | |||||
Derivative | |||||
Notional amount | $ 1,500,000,000 | ||||
Forward-starting interest rate swap, effective date | Mar. 31, 2014 | ||||
Interest Rate Swap | Cash Flow Hedging | April 3, 2017 | |||||
Derivative | |||||
Notional amount | $ 1,250,000,000 | ||||
Forward-starting interest rate swap, effective date | Apr. 3, 2017 | ||||
Interest Rate Swap | Cash Flow Hedging | April 1, 2019 | |||||
Derivative | |||||
Notional amount | $ 1,000,000,000 | ||||
Forward-starting interest rate swap, effective date | Apr. 1, 2019 | ||||
Interest Rate Swap | Cash Flow Hedging | April 2, 2020 | |||||
Derivative | |||||
Notional amount | $ 500,000,000 | ||||
Forward-starting interest rate swap, effective date | Apr. 2, 2020 | ||||
Interest Rate Swap | Cash Flow Hedging | June 30, 2021 | |||||
Derivative | |||||
Notional amount | $ 250,000,000 | ||||
Forward-starting interest rate swap, effective date | Mar. 31, 2021 | ||||
Future Swap | Derivative Payable | |||||
Derivative | |||||
Interest rate swap liability | $ 17,262,000 | $ 5,578,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 29, 2019 | Dec. 29, 2018 | Nov. 29, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Fair value assets, transfer between level 1 to level 2 | $ 0 | $ 0 | |
Fair value liabilities, transfer between level 1 to level 2 | 0 | 0 | |
Fair value assets, transfer between level 2 to level 1 | 0 | 0 | |
Fair value liabilities, transfer between level 2 to level 1 | 0 | 0 | |
Revolving Credit Facility | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying value of long-term debt | 0 | 0 | |
Fair value of long-term debt | 1,595,373,000 | 1,757,717,000 | |
Debt outstanding amount | $ 1,642,210,000 | $ 1,746,708,000 | $ 150,000,000 |
Aggregate Fair Value of Derivat
Aggregate Fair Value of Derivative Financial Instruments (Detail) - Fair Value, Measurements, Recurring - Interest Rate Swap - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap liability | $ 19,330 | $ 5,578 |
Interest rate swap asset | 3,924 | |
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 |
Interest rate swap asset | 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 | 19,330 | 5,578 |
Interest rate swap asset | 3,924 | |
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 |
Interest rate swap asset | $ 0 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ (808,943) | $ (1,015,986) | |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (9,632) | 1,840 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | (1,314) | 1,942 |
Adoption of accounting standard | [1] | (2,485) | |
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | (10,946) | 1,297 |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | (6) | 373 |
Ending balance | (770,160) | (927,000) | |
(Loss) Gain on Qualifying Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | [1] | (1,175) | (5,392) |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (12,255) | 7,236 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | (1,314) | 1,942 |
Adoption of accounting standard | [1] | (1,161) | |
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | (13,569) | 8,017 |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | 0 | 0 |
Ending balance | [1] | (14,744) | 2,625 |
Loss on Foreign Currency Translation | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | [1] | (14,582) | (5,075) |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | 2,623 | (5,396) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | 0 | 0 |
Adoption of accounting standard | [1] | (1,324) | |
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | 2,623 | (6,720) |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | (6) | 373 |
Ending balance | [1] | (11,965) | (11,422) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | [1] | (15,757) | (10,467) |
Ending balance | [1] | $ (26,709) | $ (8,797) |
[1] | Amounts in parentheses indicate debits | ||
[2] | See separate table below for details about these reclassifications |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ (34,732) | $ (35,866) | $ (69,927) | $ (71,732) | ||
Income before income taxes | (70,303) | (90,509) | (56,703) | (116,950) | ||
Provision for income taxes | 16,586 | 19,825 | 13,711 | 7,208 | ||
Net income | (53,717) | (70,684) | (42,992) | (109,742) | ||
Loss on Qualifying Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income taxes | 498 | (346) | 1,760 | [1] | (2,603) | [1] |
Provision for income taxes | (126) | 88 | (446) | [1] | 661 | [1] |
Net income | 372 | (258) | 1,314 | [1] | (1,942) | [1] |
Loss on Qualifying Hedges | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ 498 | $ (346) | $ 1,760 | [1] | $ (2,603) | [1] |
[1] | Amounts in parentheses indicate debits to profit/loss |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019USD ($)Segment | Dec. 29, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Operating lease assets | $ | $ 144,913 | $ 0 |
Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Segment reportable percentage | 52.00% | |
General Corporate | ||
Segment Reporting Information [Line Items] | ||
Segment reportable percentage | 42.00% |
Information About Reportable Se
Information About Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 369,023 | $ 409,747 | $ 732,188 | $ 817,970 |
Operating income | 105,473 | 127,708 | 127,371 | 189,779 |
Interest expense | 34,732 | 35,866 | 69,927 | 71,732 |
Other expense, net | 438 | 1,333 | 741 | 1,097 |
Provision for income taxes | 16,586 | 19,825 | 13,711 | 7,208 |
Net income | 53,717 | 70,684 | 42,992 | 109,742 |
Net loss attributable to the noncontrolling interest | 117 | 36 | 156 | 90 |
Net income attributable to Weight Watchers International, Inc. | 53,834 | 70,720 | 43,148 | 109,832 |
Depreciation and amortization | 13,759 | 12,828 | 27,373 | 25,896 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 127,967 | 154,005 | 178,074 | 239,742 |
Depreciation and amortization | 9,722 | 9,994 | 19,805 | 20,284 |
General corporate expenses | ||||
Segment Reporting Information [Line Items] | ||||
General corporate expenses | 22,494 | 26,297 | 50,703 | 49,963 |
Depreciation and amortization | 4,037 | 2,834 | 7,568 | 5,612 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 255,644 | 284,538 | 505,656 | 563,715 |
North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 91,169 | 112,040 | 132,282 | 174,393 |
Depreciation and amortization | 9,081 | 9,163 | 18,386 | 18,642 |
Continental Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 77,329 | 81,592 | 153,486 | 164,123 |
Continental Europe | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 30,764 | 32,478 | 40,839 | 50,409 |
Depreciation and amortization | 395 | 317 | 776 | 618 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 24,525 | 29,210 | 49,136 | 59,495 |
United Kingdom | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 4,308 | 6,035 | 3,557 | 9,903 |
Depreciation and amortization | 139 | 350 | 425 | 715 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 11,525 | 14,407 | 23,910 | 30,637 |
Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 1,726 | 3,452 | 1,396 | 5,037 |
Depreciation and amortization | $ 107 | $ 164 | $ 218 | $ 309 |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Ms. Winfrey and her related entities | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, service provided by related party | $ 720 | $ 689 | $ 2,003 | $ 1,988 | |
Ms. Winfrey | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable to related parties | $ 0 | $ 0 | $ 62 | ||
Number of shares purchased from related party | 954 | ||||
Stock options exercised | 1,405 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Expenses | $ 6,331 |
Expenses, after tax | 4,727 |
Payments for expenses | 3,882 |
Provisions | 91 |
Restructuring remaining liability | 2,358 |
Cost of Revenues | |
Restructuring Cost And Reserve [Line Items] | |
Expenses | 1,425 |
Selling, General and Administrative Expense | |
Restructuring Cost And Reserve [Line Items] | |
Expenses | $ 4,906 |