Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 01, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WW | ||
Entity Registrant Name | WW INTERNATIONAL, INC. | ||
Entity Central Index Key | 0000105319 | ||
Current Fiscal Year End Date | --12-28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 67,427,547 | ||
Entity Public Float | $ 889,175,384 | ||
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, no par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2020 annual meeting of shareholders are incorporated herein by reference in Part III, Items 10-14. Such Proxy Statement will be filed with the SEC no later than 120 days after the registrant’s fiscal year ended December 28, 2019. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 182,736 | $ 236,974 |
Receivables (net of allowances: December 28, 2019 - $1,813 and December 29, 2018 - $1,743) | 30,519 | 27,247 |
Inventories | 27,204 | 25,851 |
Prepaid income taxes | 8,395 | 33,997 |
Prepaid marketing and advertising | 15,954 | 7,040 |
Prepaid expenses and other current assets | 30,582 | 35,315 |
TOTAL CURRENT ASSETS | 295,390 | 366,424 |
Property and equipment, net | 54,066 | 52,202 |
Operating lease assets | 151,983 | 0 |
Franchise rights acquired | 753,445 | 751,134 |
Goodwill | 157,916 | 152,519 |
Other intangible assets, net | 59,031 | 57,162 |
Deferred income taxes | 14,319 | 16,230 |
Other noncurrent assets | 12,164 | 18,870 |
TOTAL ASSETS | 1,498,314 | 1,414,541 |
CURRENT LIABILITIES | ||
Portion of long-term debt due within one year | 96,250 | 77,000 |
Portion of operating lease liabilities due within one year | 33,236 | 0 |
Accounts payable | 29,064 | 27,098 |
Salaries and wages payable | 66,656 | 64,600 |
Accrued marketing and advertising | 14,815 | 14,052 |
Accrued interest | 24,637 | 28,651 |
Other accrued liabilities | 43,558 | 48,218 |
Derivative payable | 21,597 | 5,578 |
Income taxes payable | 3,644 | 22,618 |
Deferred revenue | 60,613 | 53,501 |
TOTAL CURRENT LIABILITIES | 394,070 | 341,316 |
Long-term debt, net | 1,479,920 | 1,669,708 |
Long-term operating lease liabilities | 128,464 | 0 |
Deferred income taxes | 175,235 | 190,258 |
Other | 2,446 | 18,289 |
TOTAL LIABILITIES | 2,180,135 | 2,219,571 |
Commitments and contingencies (Note 16) | ||
Redeemable noncontrolling interest | 3,722 | 3,913 |
TOTAL DEFICIT | ||
Common stock, $0 par value; 1,000,000 shares authorized; 120,352 shares issued at December 28, 2019 and December 29, 2018 | 0 | 0 |
Treasury stock, at cost, 52,933 shares at December 28, 2019 and 53,396 shares at December 29, 2018 | (3,158,274) | (3,175,624) |
Retained earnings | 2,500,083 | 2,382,438 |
Accumulated other comprehensive loss | (27,352) | (15,757) |
TOTAL DEFICIT | (685,543) | (808,943) |
TOTAL LIABILITIES AND TOTAL DEFICIT | $ 1,498,314 | $ 1,414,541 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 1,813 | $ 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 | 52,933,000 | 53,396,000 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues, net | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 |
Cost of revenues | 626,655 | 647,711 | 614,262 |
Gross profit | 786,682 | 866,410 | 692,649 |
Marketing expenses | 243,998 | 226,319 | 200,797 |
Selling, general and administrative expenses | 254,699 | 251,106 | 211,224 |
Goodwill impairment | 0 | 0 | 13,323 |
Operating income | 287,985 | 388,985 | 267,305 |
Interest expense | 135,267 | 142,346 | 112,784 |
Other expense, net | 1,758 | 2,578 | 472 |
Early extinguishment of debt, net | 0 | 0 | 8,969 |
Income before income taxes | 150,960 | 244,061 | 145,080 |
Provision for (benefit from) income taxes | 31,513 | 20,493 | (18,237) |
Net income | 119,447 | 223,568 | 163,317 |
Net loss attributable to the noncontrolling interest | 169 | 181 | 197 |
Net income attributable to WW International, Inc. | $ 119,616 | $ 223,749 | $ 163,514 |
Earnings Per Share attributable to WW International, Inc. | |||
Basic | $ 1.78 | $ 3.38 | $ 2.54 |
Diluted | $ 1.72 | $ 3.19 | $ 2.40 |
Weighted average common shares outstanding | |||
Basic | 67,188 | 66,280 | 64,329 |
Diluted | 69,550 | 70,115 | 68,248 |
Service | |||
Revenues, net | $ 1,207,266 | $ 1,273,196 | $ 1,081,679 |
Cost of revenues | 502,907 | 508,477 | 486,293 |
Product and Other | |||
Revenues, net | 206,071 | 240,925 | 225,232 |
Cost of revenues | $ 123,748 | $ 139,234 | $ 127,969 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 119,447 | $ 223,568 | $ 163,317 |
Other comprehensive (loss) gain: | |||
Foreign currency translation gain (loss) | 3,676 | (11,462) | 9,848 |
Income tax (expense) benefit on foreign currency translation gain (loss) | (939) | 2,906 | (3,840) |
Foreign currency translation gain (loss), net of taxes | 2,737 | (8,556) | 6,008 |
(Loss) gain on derivatives | (19,222) | 7,205 | 17,393 |
Income tax benefit (expense) on (loss) gain on derivatives | 4,868 | (1,827) | (6,783) |
(Loss) gain on derivatives, net of taxes | (14,354) | 5,378 | 10,610 |
Total other comprehensive (loss) gain | (11,617) | (3,178) | 16,618 |
Comprehensive income | 107,830 | 220,390 | 179,935 |
Net loss attributable to the noncontrolling interest | 169 | 181 | 197 |
Foreign currency translation loss, net of taxes attributable to the noncontrolling interest | 22 | 373 | 35 |
Comprehensive loss attributable to the noncontrolling interest | 191 | 554 | 232 |
Comprehensive income attributable to WW International, Inc. | $ 108,021 | $ 220,944 | $ 180,167 |
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. 31, 2016 | $ (1,207,573) | $ 4,699 | $ 0 | $ (3,237,346) | $ (27,120) | $ 2,056,893 |
Beginning balance (in shares) at Dec. 31, 2016 | 118,947 | 55,021 | ||||
Comprehensive income (loss) | 180,167 | (232) | 16,653 | 163,514 | ||
Issuance of treasury stock under stock plans | (3,529) | $ 28,510 | (32,039) | |||
Issuance of treasury stock under stock plans (in shares) | (763) | |||||
Compensation expense on share-based awards | 14,949 | 14,949 | ||||
Ending balance at Dec. 30, 2017 | (1,015,986) | 4,467 | $ 0 | $ (3,208,836) | (10,467) | 2,203,317 |
Ending balance (in shares) at Dec. 30, 2017 | 118,947 | 54,258 | ||||
Comprehensive income (loss) | 220,944 | (554) | (2,805) | 223,749 | ||
Issuance of treasury stock under stock plans | 2,594 | $ 33,212 | (30,618) | |||
Issuance of treasury stock under stock plans (in shares) | (862) | |||||
Compensation expense on share-based awards | 20,188 | 20,188 | ||||
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 Dec. 29, 2018 | (808,943) | 3,913 | $ 0 | $ (3,175,624) | (15,757) | 2,382,438 |
Ending balance (in shares) at Dec. 29, 2018 | 120,352 | 53,396 | ||||
Comprehensive income (loss) | 108,021 | (191) | (11,595) | 119,616 | ||
Issuance of treasury stock under stock plans | (5,092) | $ 17,350 | (22,442) | |||
Issuance of treasury stock under stock plans (in shares) | (463) | |||||
Compensation expense on share-based awards | 20,471 | 20,471 | ||||
Ending balance at Dec. 28, 2019 | $ (685,543) | $ 3,722 | $ 0 | $ (3,158,274) | $ (27,352) | $ 2,500,083 |
Ending balance (in shares) at Dec. 28, 2019 | 120,352 | 52,933 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating activities: | |||
Net income | $ 119,447 | $ 223,568 | $ 163,317 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 45,017 | 44,061 | 50,880 |
Amortization of deferred financing costs and debt discount | 9,318 | 8,539 | 6,112 |
Goodwill impairment | 0 | 0 | 13,323 |
Impairment of intangible and long-lived assets | 307 | 27 | 682 |
Write-off of net assets due to cessation of Spain operations | 0 | 0 | 70 |
Share-based compensation expense | 20,471 | 20,188 | 14,949 |
Deferred tax benefit | (9,424) | (13,673) | (48,216) |
Allowance for doubtful accounts | (123) | 130 | (587) |
Reserve for inventory obsolescence | 8,710 | 7,906 | 7,823 |
Foreign currency exchange rate loss | 1,235 | 2,036 | 202 |
Early extinguishment of debt, net | 0 | 0 | 8,969 |
Changes in cash due to: | |||
Receivables | 1,331 | (7,999) | 5,444 |
Inventories | (9,127) | (1,148) | (4,504) |
Prepaid expenses | 13,619 | (3,991) | (4,359) |
Accounts payable | 1,347 | 2,224 | (14,507) |
Accrued liabilities | (6,968) | 16,600 | 4,414 |
Deferred revenue | 6,199 | (17,198) | 8,298 |
Other long term assets and liabilities, net | (878) | (13,001) | 5,683 |
Income taxes | (18,098) | 27,323 | 4,281 |
Cash provided by operating activities | 182,383 | 295,592 | 222,274 |
Investing activities: | |||
Capital expenditures | (17,159) | (19,050) | (13,732) |
Capitalized software expenditures | (30,824) | (27,763) | (26,916) |
Cash paid for acquisitions | (4,060) | (7,100) | 0 |
Other items, net | (580) | (10,045) | (143) |
Cash used for investing activities | (52,623) | (63,958) | (40,791) |
Financing activities: | |||
Net (payments) borrowings on revolver | 0 | (25,000) | 25,000 |
Proceeds from new long term debt | 0 | 0 | 1,840,000 |
Financing costs and debt discount | 0 | 0 | (53,636) |
Payments on long-term debt | (177,000) | (57,750) | (2,018,773) |
Taxes paid related to net share settlement of equity awards | (6,582) | (25,020) | (9,548) |
Proceeds from stock options exercised | 1,076 | 33,417 | 5,475 |
Other items, net | (487) | 0 | 0 |
Cash used for financing activities | (182,993) | (74,353) | (211,482) |
Effect of exchange rate changes on cash and cash equivalents | (1,005) | (3,361) | 4,397 |
Net (decrease) increase in cash and cash equivalents | (54,238) | 153,920 | (25,602) |
Cash and cash equivalents, beginning of period | 236,974 | 83,054 | 108,656 |
Cash and cash equivalents, end of period | $ 182,736 | $ 236,974 | $ 83,054 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. The accompanying consolidated financial statements include the accounts of WW International, Inc. and all of its subsidiaries. The terms “Company” and “WW” as used throughout these notes are used to indicate WW 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 + “pay-as-you-go” members. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Fiscal Year: The Company’s fiscal year ends on the Saturday closest to December 31 st Use of Estimates: The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, revenue, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates. Translation of Foreign Currencies: For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive loss. Foreign currency gains and losses arising from the translation of intercompany receivables and intercompany payables with the Company’s international subsidiaries are recorded as a component of other expense, net, unless the receivable or payable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of accumulated other comprehensive loss. Cash Equivalents: Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies. Inventories: Inventories, which consist of finished goods, are stated at the lower of cost or net realizable value on a first-in, first-out basis, net of reserves for obsolescence and shrinkage. Property and Equipment: Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income. Impairment of Long Lived Assets: The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company recorded impairment charges of $307, $0 and $674, respectively, related to internal-use computer software that was not expected to provide substantive service potential. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company recorded impairment charges of $0, $27 and $8, respectively, related to property, plant and equipment that were expected to be disposed of before the end of their estimated useful lives. 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. For the Company’s Brazil reporting unit only, given the then-challenging economic environment, the negative performance trends and the Company’s reduced expectations regarding the future impact of its business growth strategies in the country at December 30, 2017, the Company performed an interim goodwill impairment analysis at such time. In performing the interim goodwill impairment analysis for its Brazil reporting unit, the Company recorded a $13,323 impairment charge at December 30, 2017. 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. 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 impairment assessments 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. For all reporting units, except for Brazil, there was significant headroom in the goodwill impairment analysis for fiscal 2019. 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 December 28, 2019 balance sheet date, for reporting units that of the Company’s goodwill, those units had an estimated fair value at least 60% higher than the respective reporting unit’s carrying amount. impairment test performed for its Brazil reporting unit For all units of account, except for New Zealand, there was significant headroom in the franchise rights acquired impairment analysis for fiscal 2019. Based on the results of the Company’s annual franchise rights acquired impairment analysis performed for all of its units of account, except for New Zealand, as of the December 28, 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% higher than the respective units of account carrying amount. Based on the results of the Company’s annual franchise rights acquired impairment test performed for its New Zealand unit of account, which holds 0.6% of the Company’s franchise rights acquired as of the December 28, 2019 balance sheet date, the estimated fair value of this unit of account exceeded its carrying value by approximately 3.0%. Accordingly, a change in the December 28, 2019 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. The net book values of goodwill in the United States, Canada, Brazil and other countries as of the December 28, 2019 balance sheet date were $102,968, $40,972, $4,399 and $9,577, respectively, totaling $157,916 and the net book values as of the December 29, 2018 balance sheet date were $98,857, $39,300, $4,584 and $9,778, respectively, totaling $152,519. 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. The net book values of these franchise rights in the United States, Canada, United Kingdom, Australia, and New Zealand at December 28, 2019 were $671,914, $55,171, $11,784, $6,273 and $4,742, respectively, totaling $749,884 and the net book values at December 29, 2018 were $671,914, $52,919, $11,441, $6,327 and $4,747, respectively, totaling $747,348. 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. Other Intangible Assets: Other finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs) once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred. Revenue Recognition: 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, as well as 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 platforms and to its franchisees, as well as through several trusted retail partners; collecting royalties 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 amortized 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 partners and title and risk of loss passes to them, 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. Advertising Costs: Advertising costs consist primarily of broadcast and digital media. All costs related to advertising are expensed in the period incurred, except for media production-related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 were $235,826, $218,062 and $193,423, respectively. Income Taxes: Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more-likely-than-not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance. The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of net income. In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases. Derivative Instruments and Hedging: The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes. The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The fair value of the Company’s interest rate swaps are reported as a component of accumulated other comprehensive loss on its balance sheet. See Note 18 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s effective interest rate swap is included in interest expense on the consolidated statements of net income. Deferred Financing Costs: Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fourth quarter of fiscal 2017, the Company incurred fees of $53,832 (which includes $30,800 of a debt discount) in connection with the November 2017 debt refinancing (as described in Note 9). In addition, the Company recorded a loss on extinguishment of debt of $10,524 in connection thereto. This early extinguishment of debt write-off was comprised of $5,716 of deferred financing fees paid in connection with the November 2017 debt refinancing and $4,808 of pre-existing deferred financing fees. During the fiscal year ended December 30, 2017 in connection with the prepayment of debt, the Company wrote-off deferred financing fees of $618, incurred fees of $305 and recorded a gain on early extinguishment of debt of $1,554, inclusive of these fees. Amortization expense for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $9,318, $8,539 and $6,112, respectively. Accumulated Other Comprehensive Loss: The Company’s accumulated other comprehensive loss includes changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2019, December 29, 2018 and December 30, 2017, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $15,529, $1,175 and $5,392, respectively. At December 28, 2019, December 29, 2018 and December 30, 2017, the cumulative balance of the effects of foreign currency translations, net of taxes, was $11,823, $14,582 and $5,075, respectively. |
Accounting Standards Adopted in
Accounting Standards Adopted in Current Year | 12 Months Ended |
Dec. 28, 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 | 12 Months Ended |
Dec. 28, 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 guidanc e. The amounts previously reported in the first quarter of 2019 have been revised by $3,595 due to the impact of prepaid rent. The 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 December 28, 2019, the Company’s lease assets and lease liabilities were as follows: December 28, 2019 Assets: Operating lease assets $ 151,983 Finance lease assets 259 Total leased assets $ 152,242 Liabilities: Current Operating $ 33,236 Finance 126 Noncurrent Operating $ 128,464 Finance 96 Total lease liabilities $ 161,922 For the fiscal year ended December 28, 2019, the components of the Company’s lease expense were as follows: Year Ended December 28, 2019 Operating lease cost: Fixed lease cost $ 51,256 Variable lease cost 0 Total operating lease cost $ 51,256 Finance lease cost: Amortization of leased assets 487 Interest on lease liabilities 20 Total finance lease cost $ 507 Total lease cost $ 51,763 At December 28, 2019, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: December 28, 2019 Weighted Average Remaining Lease Term (years) Operating leases 7.06 Finance leases 2.43 Weighted Average Discount Rate Operating leases 7.02 Finance leases 5.97 The Company’s leases have remaining lease terms of 0 to 13 years with a weighted average lease term of 7.06 years. At December 28, 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 2020 $ 43,595 $ 135 $ 43,730 2021 38,824 52 38,876 2022 27,869 22 27,891 2023 19,803 24 19,827 2024 14,673 5 14,678 Thereafter 65,954 — 65,954 Total lease payments $ 210,718 $ 238 $ 210,956 Less imputed interest 49,018 16 49,034 Present value of lease liabilities $ 161,700 $ 222 $ 161,922 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 fiscal years ended December 29, 2018 and December 30, 2017 was $44,130 and $42,259, respectively. Supplemental cash flow information related to leases for the year ended December 28, 2019 were as follows: Year Ended December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 51,326 Operating cash flows from finance leases $ 20 Financing cash flows from finance leases $ 487 Leased assets obtained in exchange for new operating lease liabilities $ 41,693 Leased assets obtained in exchange for new finance lease liabilities $ 105 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 | 12 Months Ended |
Dec. 28, 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. See Note 2 for further information on the Company’s revenue recognition policies. The following table presents the Company’s revenues disaggregated by revenue source: Fiscal Year Ended December 28, December 29, December 30, 2019 2018 2017 Digital Subscription Revenues $ 609,996 $ 567,767 $ 416,722 Studio + Digital Fees 597,270 705,429 664,957 Service Revenues, net $ 1,207,266 $ 1,273,196 $ 1,081,679 Product sales and other, net 206,071 240,925 225,232 Revenues, net $ 1,413,337 $ 1,514,121 $ 1,306,911 The following tables present the Company’s revenues disaggregated by revenue source and segment: Fiscal Year Ended December 28, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 401,890 $ 167,008 $ 26,898 $ 14,200 $ 609,996 Studio + Digital Fees 446,576 87,962 44,145 18,587 597,270 Service Revenues, net $ 848,466 $ 254,970 $ 71,043 $ 32,787 $ 1,207,266 Product sales and other, net 130,836 38,263 23,514 13,458 206,071 Revenues, net $ 979,302 $ 293,233 $ 94,557 $ 46,245 $ 1,413,337 Fiscal Year Ended December 29, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 378,678 $ 149,571 $ 25,557 $ 13,961 $ 567,767 Studio + Digital Fees 522,372 107,528 52,676 22,853 705,429 Service Revenues, net $ 901,050 $ 257,099 $ 78,233 $ 36,814 $ 1,273,196 Product sales and other, net 146,201 47,226 28,839 18,659 240,925 Revenues, net $ 1,047,251 $ 304,325 $ 107,072 $ 55,473 $ 1,514,121 Fiscal Year Ended December 30, 2017 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 281,432 $ 102,039 $ 21,477 $ 11,774 $ 416,722 Studio + Digital Fees 493,800 93,723 52,161 25,273 664,957 Service Revenues, net $ 775,232 $ 195,762 $ 73,638 $ 37,047 $ 1,081,679 Product sales and other, net 135,117 43,461 26,351 20,303 225,232 Revenues, net $ 910,349 $ 239,223 $ 99,989 $ 57,350 $ 1,306,911 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 7,112 (907 ) Balance as of December 28, 2019 $ 60,613 $ 54 Revenue recognized from amounts included in current deferred revenue as of December 29, 2018 was $53,479 for the fiscal year ended December 28, 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 $54 and $961 at December 28, 2019 and December 29, 2018, respectively, for revenue that will not be recognized during the next fiscal year and is generally 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 customers are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of product sales and other for amounts paid to applicable carriers. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 6 . Acquisitions Acquisition of Kurbo Health, Inc. On August 10, 2018, the Company acquired substantially all of the assets of Kurbo Health, Inc. (“Kurbo”), a family-based healthy lifestyle coaching program, for a net purchase price of $3,063. Payment was in the form of cash. The total purchase price of Kurbo has been allocated to goodwill ($1,101), website development ($1,916), prepaid expenses ($78) and other assets ($32) partially offset by deferred revenue ($57) and other liabilities ($7). The acquisition of Kurbo has been accounted for under the purchase method of accounting and, accordingly, earnings of Kurbo have been included in the consolidated operating results of the Company since the date of acquisition. The goodwill will be deductible annually for tax purposes. Acquisition of Franchisees On October 21, 2019, the Company acquired substantially all of the assets of its franchisee for certain territories in Nevada and Utah, Weight Watchers of Las Vegas, Inc., for a purchase price of $4,500 (the “Las Vegas Acquisition”). Payment was in the form of cash ($4,060) plus cash in reserves ($385) and assumed net liabilities ($55). The total purchase price has been allocated to goodwill ($4,111), customer relationship value ($271) and franchise rights acquired ($118). The acquisition of the franchisee has been accounted for under the purchase method of accounting and, accordingly, earnings of the acquired franchisee have been included in the consolidated operating results of the Company since the date of acquisition. The goodwill will be deductible for tax purposes. On December 10, 2018, the Company acquired substantially all of the assets of its franchisee for certain territories in South Carolina, At Goal, Inc., for a purchase price of $4,000 (the “South Carolina Acquisition”). Payment was in the form of cash ($4,000) and assumed net liabilities ($37). The total purchase price has been allocated to franchise rights acquired ($3,791) and customer relationship value ($209). The acquisition of the franchisee has been accounted for under the purchase method of accounting and, accordingly, earnings of the acquired franchisee have been included in the consolidated operating results of the Company since the date of acquisition. The goodwill will be deductible for tax purposes. |
Franchise Rights Acquired, Good
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Franchise Rights Acquired, Goodwill and Other Intangible Assets | 7 . Franchise Rights Acquired, Goodwill and Other Intangible Assets The Company performed its annual impairment review of goodwill and other indefinite-lived intangible assets for fiscal 2019 and fiscal 2018 on May 5, 2019 and May 6, 2018, respectively. For the Company’s Brazil reporting unit only, given the then-challenging economic environment, the negative performance trends and the Company’s reduced expectations regarding the future impact of its business growth strategies in the country at December 30, 2017, the Company performed an interim goodwill impairment analysis at such time. In performing the interim goodwill impairment analysis for its Brazil reporting unit, the Company recorded a $13,323 impairment charge at December 30, 2017. 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. 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 fiscal year ended December 28, 2019, the change in the carrying value of franchise rights acquired is due to the franchisee acquisition as described in Note 6 and 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 acquisitions 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. See Note 6 for additional information about acquisitions by the Company. For the fiscal year ended December 28, 2019, the change in the carrying amount of goodwill was due to a franchise acquisition and 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 Goodwill acquired during the period 4,111 0 0 0 4,111 Effect of exchange rate changes 1,673 (227 ) 35 (195 ) 1,286 Balance as of December 28, 2019 $ 143,940 $ 7,015 $ 1,213 $ 5,748 $ 157,916 Finite-lived Intangible Assets The below table reflects the carrying values of finite-lived intangible assets as of December 28, 2019 and December 29, 2018: December 28, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 119,537 $ 97,588 $ 121,508 $ 102,659 Website development costs 77,823 50,748 105,710 77,825 Trademarks 11,869 11,228 11,620 11,010 Other 14,003 4,637 13,967 4,149 Trademarks and other intangible assets $ 223,232 $ 164,201 $ 252,805 $ 195,643 Franchise rights acquired 8,180 4,618 8,110 4,319 Total finite-lived intangible assets $ 231,412 $ 168,819 $ 260,915 $ 199,962 Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $29,330, $28,995 and $36,040, for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. The franchise rights acquired related to the South Carolina Acquisition will be amortized ratably over an 18 year period. The franchise rights acquired related to the Las Vegas Acquisition were fully amortized in fiscal 2019. Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: Fiscal 2020 $ 25,042 Fiscal 2021 $ 17,802 Fiscal 2022 $ 7,754 Fiscal 2023 $ 1,413 Fiscal 2024 and thereafter $ 10,582 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 8 . The below table reflects the carrying values of property and equipment as of December 28, 2019 and December 29, 2018: December 28, December 29, 2019 2018 Equipment $ 83,288 $ 75,531 Leasehold improvements 84,079 80,002 167,367 155,533 Less: Accumulated depreciation and amortization (113,301 ) (103,331 ) $ 54,066 $ 52,202 Depreciation and amortization expense of property and equipment for the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017 was $15,687, $15,066 and $14,840, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9 . The components of the Company’s long-term debt were as follows: December 28, 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 1,305,250 6,418 21,634 7.93 % 1,482,250 8,307 26,033 7.53 % Notes due December 1, 2025 300,000 1,028 0 8.72 % 300,000 1,202 0 8.69 % Total $ 1,605,250 $ 7,446 $ 21,634 8.07 % $ 1,782,250 $ 9,509 $ 26,033 7.63 % Less: Current Portion 96,250 77,000 Unamortized Deferred Financing Costs 7,446 9,509 Unamortized Debt Discount 21,634 26,033 Total Long-Term Debt $ 1,479,920 $ 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 he Company incurred fees of $53,832 (which included $30,800 of a debt discount) in connection with the November 2017 debt refinancing. In addition, the Company recorded a loss on early extinguishment of debt of $10,524 in connection thereto. This early extinguishment of debt write-off was comprised of $5,716 of deferred financing fees paid in connection with the November 2017 debt refinancing and $4,808 of pre-existing deferred financing fees. 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 both May 31, 2019 and October 10, 2019 As of December 28, 2019, the Company had $1,305,250 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 December 28, 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 cost 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 cost of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs. As of December 28, 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. In the event that LIBOR is phased out as is currently expected, the Credit Agreement provides that the Company and the administrative agent may amend the Credit Agreement to replace the LIBOR definition therein with a successor rate subject to notifying the lending syndicate of such change and not receiving within five business days of such notification objections to such replacement rate from lenders holding at least a majority of the aggregate principal amount of loans and commitments then outstanding under the Credit Agreement. If the Company fails to do so, its borrowings will be based off of the alternative base rate plus a margin. 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 December 28, 2019, the commitment fee was 0.35% per annum. The Company’s Consolidated First Lien Net Debt Leverage Ratio as of December 28, 2019 was 3.01:1.00. 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 December 28, 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 At December 28, 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 19 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 8.08% and 7.73% Maturities At December 28, 2019, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter were as follows: 2020 $ 96,250 2021 77,000 2022 77,000 2023 77,000 2024 978,000 2025 and thereafter 300,000 $ 1,605,250 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 28, 2019 | |
Class Of Stock Disclosures [Abstract] | |
Treasury Stock | 10 . On October 9, 2003, the Company’s Board of Directors authorized, and the Company announced, a program to repurchase up to $250,000 of the Company’s outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, the Company’s Board of Directors authorized, and the Company announced, the addition of $250,000 to the program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings Sp. z o.o., Succursale de Luxembourg and its parents and subsidiaries under this program. The repurchase program currently has no expiration date. During the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017, the Company repurchased no shares of its common stock under this program or otherwise. As of the end of fiscal 2019, $208,933 remained available to purchase shares of the Company’s common stock under the repurchase program. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 1 . Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of common shares outstanding during the periods presented adjusted for the effect of dilutive common stock equivalents. The following table sets forth the computation of basic and diluted EPS for the fiscal years ended: December 28, December 29, December 30, 2019 2018 2017 Numerator: Net income attributable to WW International, Inc. $ 119,616 $ 223,749 $ 163,514 Denominator: Weighted average shares of common stock outstanding 67,188 66,280 64,329 Effect of dilutive common stock equivalents 2,362 3,835 3,919 Weighted average diluted common shares outstanding 69,550 70,115 68,248 Earnings per share attributable to WW International, Inc. Basic $ 1.78 $ 3.38 $ 2.54 Diluted $ 1.72 $ 3.19 $ 2.40 The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 1,705, 419 and 1,427 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans | 1 2 . Incentive Compensation Plans and Inducement Option On May 6, 2008, the Company’s shareholders approved the 2008 Stock Incentive Plan (the “2008 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 2008 Plan, the “Stock Plans”), which replaced the 2008 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 (“RSUs”) (including performance-based stock unit with both time- and performance-vesting criteria (“PSUs”)) awards. From time to time, the Company has granted fully-vested shares of its common stock to individuals in connection with special circumstances. The Company’s Board of Directors or a committee thereof administers the 2014 Plan. Under the 2014 Plan, grants may take the following forms at the Company’s Board of Directors’ Compensation and Benefit Committee’s (the “Compensation Committee”) discretion: non-qualified stock options, incentive stock options, stock appreciation rights, RSUs, restricted stock and other stock-based awards. As of May 9, 2017, the maximum number of shares of common stock available for grant under the 2014 Plan was 8,500, subject to increase and adjustment as set forth in the 2014 Plan. Under the 2014 Plan, the Company also grants fully-vested shares of its common stock to certain members of its Board of Directors. Additionally, the Company granted such shares to director members of the former Interim Office of the Chief Executive Officer in fiscal 2017. While these shares are fully vested, the directors are restricted from selling these shares while they are still serving on the Company’s Board of Directors subject to limited exceptions. During the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, the Company granted to members of the Company’s Board of Directors an aggregate of 29, 11 and 30 fully-vested shares, respectively, and recognized compensation expense of $756, $754 and $664, respectively. During the fiscal year ended December 30, 2017, the Company granted to director members of the former Interim Office of the Chief Executive Officer an aggregate of 40 fully vested shares and recognized compensation expense of $604. In fiscal 2017, as part of an initial equity award, the Company granted a stock option to purchase 500 shares of its common stock (the “Inducement Option”) to its new President and Chief Executive Officer upon commencement of her employment. The Inducement Option vests proportionately over four years on each anniversary of the grant date and expires on the seven-year The Company issues common stock for share-based compensation awards from treasury stock. The total compensation cost that has been charged against income for share-based compensation awards was $20,471, $20,188 and $14,949 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. Such amounts have been included as a component of selling, general and administrative expenses. The total income tax benefit recognized in the income statement for all share-based compensation awards was $2,141, $4,007 and $3,580 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. The tax benefits realized from options exercised and RSUs and PSUs vested totaled $2,840, $30,268 and $7,210 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. No compensation costs were capitalized. As of December 28, 2019, there was $35,862 of total unrecognized compensation cost related to the Inducement Option and stock options, RSUs and PSUs granted under the Stock Plans. That cost is expected to be recognized over a weighted-average period of approximately 1.4 years. Stock Option Awards Under Stock Plans and Inducement Option Stock Option Awards with Time-Vesting Criteria Stock options with time-vesting criteria (“Time-Vesting Options”) are exercisable based on the terms and conditions outlined in the applicable award agreement. Time-Vesting Options outstanding at December 28, 2019, December 29, 2018 and December 30, 2017 vest over a period of three to five years and the expiration term is seven to ten years. Time-Vesting Options outstanding at December 28, 2019, December 29, 2018 and December 30, 2017 have an exercise price between $3.97 and $63.59 per share. The Company did not grant Time-Vesting Options in fiscal 2019 and fiscal 2018. The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s common stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these options (other than the options with a seven-year December 30, 2017 Dividend yield 0.0% Volatility 51.3%-51.7% Risk-free interest rate 2.17% Expected term (years) 6.0-7.0 Option Activity A summary of all option activity for the fiscal year ended December 28, 2019 is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (Yrs.) Value Outstanding at December 29, 2018 3,789 $ 21.69 Granted 0 $ 0.00 Exercised (74 ) $ 11.76 Cancelled (15 ) $ 49.17 Outstanding at December 28, 2019 3,700 $ 21.77 5.3 $ 72,356 Exercisable at December 28, 2019 3,050 $ 16.61 5.4 $ 71,614 The weighted-average grant-date fair value of all options granted was $0.00, $0.00 and $15.21, for the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively. The total intrinsic value of Time-Vesting Options exercised was $1,105, $105,647 and $5,930 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. Cash received from Time-Vesting Options exercised during the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $1,076, $33,385 and $5,475, respectively. Restricted Stock Unit Awards with Time-Vesting Criteria RSUs are exercisable based on the terms outlined in the applicable award agreement. The RSUs generally vest over a period of 2 to 4 years. The fair value of RSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of RSU activity under the Stock Plans for the fiscal year ended December 28, 2019 is presented below: Weighted-Average Grant-Date Fair Shares Value Outstanding at December 29, 2018 881 $ 37.91 Granted 852 $ 19.09 Vested (387 ) $ 31.67 Forfeited (193 ) $ 29.77 Outstanding at December 28, 2019 1,153 $ 27.46 The weighted-average grant-date fair value of RSUs granted was $19.09, $63.91 and $31.58 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. The total fair value of RSUs vested during the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $12,268, $8,484 and $10,211, respectively. Performance-Based Stock Unit Awards with Time- and Performance-Vesting Criteria In fiscal 2019, the Company granted 280.1 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. Certain of the performance-vesting criteria for these PSUs was satisfied when the Company 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 of the fiscal 2017 and fiscal 2018 performance years. The performance-vesting criteria for the fiscal 2019 performance year was not satisfied. When the performance measure was met, if at all, for a particular 2017 Award Performance Year (i.e., each fiscal year over a three-year In fiscal 2016, the Company granted 289.9 PSUs having both time- and performance-vesting criteria (the “2016 PSUs”). The time-vesting criteria for these PSUs was satisfied upon continued employment (with limited exceptions) on the third anniversary of the grant date. 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 in fiscal 2019 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. The fair value of PSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of PSU activity under the 2014 Plan for the fiscal year ended December 28, 2019 is presented below: Weighted-Average Grant-Date Fair Shares Value Outstanding at December 29, 2018 380 $ 32.56 Granted (a) 368 $ 17.51 Vested (219 ) $ 13.19 Forfeited (92 ) $ 29.08 Outstanding at December 28, 2019 437 $ 30.35 (a) Includes the incremental shares vested with respect to the Company satisfying certain applicable performance vesting criteria for the 2016 PSUs. The weighted-average grant-date fair value of PSUs granted was $17.51, $80.18 and $27.22 during the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. The total fair value of PSUs vested during the fiscal year ended December 28, 2019 was $2,891. No PSUs vested during the fiscal years ended December 29, 2018 and December 30, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 3 . In December 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted. The 2017 Tax Act included a number of changes to previous U.S. tax laws that impacted the Company, most notably a reduction of the U.S. corporate income tax rate from 35 The 2017 Tax Act also included foreign provisions that tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries and provide a special deduction for foreign-derived intangible income (“FDII”). Certain impacts of the 2017 Tax Act generally would have been required to be completed and incorporated into the Company’s fiscal 2017 year-end financial statements. However, due to the complexity of the 2017 Tax Act, the staff of the U.S. Securities and Exchange Commission issued guidance that provided companies with up to a one-year window to finalize the 2017 impact of this new legislation. The Company finalized its accounting related to the 2017 Tax Act during the fourth quarter of fiscal 2018. The Company’s estimates concerning the impact of the 2017 Tax Act on its accounting and business remain subject to developing interpretations of the provisions of the 2017 Tax Act. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the 2017 Tax Act may require further adjustments and changes in the Company’s estimates as new guidance is issued. The following tables summarize the Company’s consolidated provision for U.S. federal, state and foreign taxes on income: December 28, December 29, December 30, 2019 2018 2017 Current: U.S. federal $ 20,900 $ 1,235 $ 9,224 State 1,873 5,918 1,993 Foreign 18,164 27,013 18,762 $ 40,937 $ 34,166 $ 29,979 Deferred: U.S. federal $ (9,137 ) $ (10,367 ) $ (51,788 ) State (2,434 ) (2,566 ) 481 Foreign 2,147 (740 ) 3,091 $ (9,424 ) $ (13,673 ) $ (48,216 ) Total tax provision (benefit) $ 31,513 $ 20,493 $ (18,237 ) The components of the Company’s consolidated income before income taxes consist of the following: December 28, December 29, December 30, 2019 2018 2017 Domestic $ 75,932 $ 126,171 $ 53,045 Foreign 75,028 117,890 92,035 $ 150,960 $ 244,061 $ 145,080 The effective tax rates for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 were 20.9%, 8.4% and (12.6%), respectively. The difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate is as follows: The Company’s effective tax rate for the fiscal year ended December 28, 2019 was impacted by the following items: (i) a $5,148 tax expense related to income earned in foreign jurisdictions and (ii) a $3,524 tax expense related to GILTI. In addition, the effective tax rate for fiscal 2019 was impacted by the following: (i) a $5,650 tax benefit related to FDII, (ii) a $1,375 tax benefit related to the reversal of tax reserves no longer needed, and (iii) a $746 tax benefit related to the cessation of certain publishing operations. The Company’s effective tax rate for the fiscal year ended December 29, 2018 was affected by the following items: (i) a $25,353 tax benefit related to tax windfalls from stock compensation, (ii) a $8,535 tax benefit due to the reversal of a valuation allowance on foreign tax credit carryforwards that have been fully utilized, (iii) a $3,435 tax benefit due to the reversal of a valuation allowance on certain net operating losses that are now expected to be realized, (iv) a $3,430 tax benefit primarily related to the reversal of tax reserves resulting from the closure of various tax audits, (v) a $2,678 tax benefit related to favorable tax return adjustments due to the 2017 Tax Act, and (vi) a $1,858 tax benefit related to the cessation of operations of the Company’s Mexican subsidiary. The Company’s effective tax rate for the fiscal year ended December 30, 2017 was impacted by the 2017 Tax Act which benefited its tax expense by $56,560 and was comprised of the following items: (i) a $68,654 tax benefit related to the revaluation of deferred tax liabilities to reflect the decrease in the corporate tax rate from 35% to 21%, (ii) a $8,964 charge to record a valuation allowance against foreign tax credit carryforwards that as a result of the 2017 Tax Act are no longer expected to be realized, and (iii) a net charge of $3,130 related to other 2017 Tax Act items, which includes the transition tax on foreign earnings. In addition, the effective tax rate for fiscal 2017 was impacted by the following one-time discrete items (i) an $11,633 tax benefit related to the cessation of operations of the Company’s Spanish subsidiary, (ii) a $3,735 tax benefit due to a change in estimate related to the availability of certain foreign tax credits, and (iii) a December 28, December 29, December 30, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal benefit) (0.3 %) 1.1 % 2.5 % Cessation of operations (0.5 %) (0.8 %) (8.0 %) Research and development credit (1.2 %) (0.5 %) (1.3 %) Tax windfall on share-based awards (0.1 %) (8.6 %) (1.1 %) Reserves for uncertain tax positions (0.9 %) (1.4 %) (0.2 %) Tax rate changes 0.0 % 0.3 % (49.6 %) (Decrease) increase in valuation adjustment related to foreign tax credits 0.0 % (3.5 %) 3.5 % GILTI 2.3 % 1.5 % 0.0 % FDII (3.7 %) (1.9 %) 0.0 % Increase (decrease) in valuation allowance due to net operating loss 0.4 % (0.7 %) 3.0 % Goodwill impairment 0.0 % 0.0 % 3.2 % Tax return adjustments related to the 2017 Tax Act (0.7 %) (1.1 %) 0.0 % Impact of foreign operations 3.4 % 3.2 % (0.7 %) Other 1.2 % (0.2 %) 1.1 % Total effective tax rate 20.9 % 8.4 % (12.6 %) The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: December 28, December 29, 2019 2018 Interest expense disallowance $ 38,396 $ 22,418 Operating lease liabilities 39,095 0 Operating loss carryforwards 9,375 9,862 Provision for estimated expenses 2,578 2,320 Salaries and wages 2,037 2,518 Share-based compensation 7,533 7,666 Other comprehensive income 9,816 5,877 Other 4,125 7,481 Less: valuation allowance (6,760 ) (6,191 ) Total deferred tax assets $ 106,195 $ 51,951 Goodwill and intangible assets $ (228,048 ) $ (223,938 ) Operating lease assets (36,670 ) 0 Depreciation (1,082 ) (1,149 ) Prepaid expenses (1,311 ) (886 ) Total deferred tax liabilities $ (267,111 ) $ (225,973 ) Net deferred tax liabilities $ (160,916 ) $ (174,022 ) Certain foreign operations of the Company have generated net operating loss carryforwards. If it has been determined that it is more-likely-than-not that the deferred tax assets associated with these net operating loss carryforwards will not be utilized, a valuation allowance has been recorded. As of December 28, 2019 and December 29, 2018, various foreign subsidiaries had net operating loss carryforwards of approximately $35,534 and $38,098, respectively, some of which have an unlimited carryforward period, while others will begin to expire in fiscal 2020. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company will no longer assert its $19,124 of undistributed foreign earnings as of December 28, 2019 are permanently reinvested. The Company has considered whether there would be any potential future costs of not asserting indefinite reinvestment and does not expect such costs to be significant. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 28, December 29, December 30, 2019 2018 2017 Balance at beginning of year $ 3,665 $ 15,173 $ 10,297 Increases related to tax positions taken in current year 0 60 266 Increases related to tax positions taken in prior years 264 1,207 7,246 Reductions related to tax positions taken in prior years (2,731 ) (10,560 ) (1,268 ) Reductions related to settlements with tax authorities (992 ) (2,215 ) 0 Reductions related to the expiration of statutes of limitations 0 0 (1,369 ) Balance at end of year $ 206 $ 3,665 $ 15,173 At December 28, 2019, the total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate is $206. Given the potential outcome of current examinations, it is reasonably possible that the balance of unrecognized tax benefits could significantly change within the next twelve months. However, an estimate of the range of reasonably possible adjustments cannot be made at this time. In 2019, the Company reached favorable settlements with the IRS for the 2016 tax year, which resulted in a tax benefit of $485, and with South Carolina for tax years 2012 to 2017, which resulted in a tax benefit of $756. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. At December 28, 2019, with few exceptions, the Company was no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2017, or non-U.S. income tax examinations by tax authorities for years prior to 2014. The Company is subject to audits in certain non-U.S. jurisdictions for tax years 2014 to 2017. The resolution of these audits is not expected to be material. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $6 and $186 of accrued interest and penalties at December 28, 2019 and December 29, 2018, respectively. The Company recognized $(257), $(65) and $63 in interest and penalties during the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 1 4 . The Company sponsors the Third Amended and Restated Weight Watchers Savings Plan (the “Savings Plan”) for salaried and certain hourly US employees of the Company. The Savings Plan is a defined contribution plan that provides for employer matching contributions of 50% of the employee’s tax deferred contributions up to 6% of an employee’s eligible compensation for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017. During fiscal 2014, the Company received a favorable determination letter from the IRS that qualifies the Savings Plan under Section 401(a) of the Internal Revenue Code. Pursuant to the Savings Plan, the Company also makes profit sharing contributions for all full-time salaried US employees who are eligible to participate in the Savings Plan (except for certain personnel above a determined compensation level). The profit sharing contribution is a guaranteed monthly employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The Savings Plan also has a discretionary supplemental profit sharing employer contribution component that is determined annually by the Compensation Committee. Expense related to these contributions for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $1,313, $1,317 and $1,195, respectively. For certain US personnel above a determined compensation level, the Company sponsors the Second Amended and Restated Weight Watchers Executive Profit Sharing Plan (“EPSP”). Under the IRS definition, the EPSP is considered a Nonqualified Deferred Compensation Plan. There is a promise of payment by the Company made on the employees’ behalf instead of an individual account with a cash balance. The EPSP provides for a guaranteed employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The EPSP has a discretionary supplemental employer contribution component that is determined annually by the Compensation Committee. The EPSP is valued at the end of each fiscal month, based on an annualized interest rate of prime plus 2%, with an annualized cap of 15%. Expense related to this commitment for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $3,691, $2,913 and $2,382, respectively. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | 1 5 . December 28, December 29, December 30, 2019 2018 2017 Net cash paid during the year for: Interest expense $ 130,081 $ 119,866 $ 115,233 Income taxes (a) $ 34,268 $ 12,095 $ 27,282 Noncash investing and financing activities were as follows: Fair value of net assets acquired in connection with acquisitions $ 118 $ 6,026 $ 0 Change in Capital expenditures and Capitalized software included in accounts payable and accrued expenses $ 583 $ (844 ) $ (3,450 ) (a) Fiscal 2019 includes tax refunds received of $13,309. See Note 4 for disclosures on supplemental cash flow information related to leases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 6 . Commitments and Contingencies 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. A second consolidated amended complaint was filed on September 27, 2019. The operative 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. The Company filed a motion to dismiss the complaint on October 31, 2019. Between March and July 2019 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. Commitments Minimum commitments under non-cancelable purchase obligations at December 28, 2019 was $7,600, of which $5,300 is due in fiscal 2020 and the remaining $2,300 is due in fiscal 2021. See Note 4 for disclosures related to minimum commitments under non-cancelable lease obligations, primarily for office and rental facilities operating leases. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | 1 7 . 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 for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 North America $ 979,302 $ 1,047,251 $ 910,349 Continental Europe 293,233 304,325 239,223 United Kingdom 94,557 107,072 99,989 Other 46,245 55,473 57,350 Total revenue, net $ 1,413,337 $ 1,514,121 $ 1,306,911 Net Income for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Segment operating income: North America $ 281,937 $ 351,599 $ 247,587 Continental Europe 95,201 114,708 73,689 United Kingdom 9,543 18,814 19,939 Other 4,374 9,604 (4,358 ) Total segment operating income 391,055 494,725 336,857 General corporate expenses 103,070 105,740 69,552 Interest expense 135,267 142,346 112,784 Other expense, net 1,758 2,578 472 Early extinguishment of debt, net 0 0 8,969 Provision for (benefit from) income taxes 31,513 20,493 (18,237 ) Net income $ 119,447 $ 223,568 $ 163,317 Net loss attributable to the noncontrolling interest 169 181 197 Net income attributable to WW International, Inc. $ 119,616 $ 223,749 $ 163,514 Depreciation and Amortization for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 North America $ 36,643 $ 37,137 $ 39,501 Continental Europe 1,709 1,347 1,203 United Kingdom 802 1,487 1,205 Other 443 597 626 Total segment depreciation and amortization 39,597 40,568 42,535 General corporate depreciation and amortization 14,738 12,032 14,457 Depreciation and amortization $ 54,335 $ 52,600 $ 56,992 The following tables present information about the Company’s sources of revenue and other information by geographic area. There were no material amounts of sales or transfers among geographic areas and no material amounts of US export sales. Total Revenue, net for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Digital Subscription Revenues $ 609,996 $ 567,767 $ 416,722 Studio + Digital Fees 597,270 705,429 664,957 In-workshop product sales 118,493 148,856 137,855 Licensing, franchise royalties and other 87,578 92,069 87,377 $ 1,413,337 $ 1,514,121 $ 1,306,911 Total Revenue, net for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States $ 913,930 $ 974,843 $ 846,249 Canada 65,372 72,408 64,100 Continental Europe 293,233 304,325 239,223 United Kingdom 94,557 107,072 99,989 Other 46,245 55,473 57,350 $ 1,413,337 $ 1,514,121 $ 1,306,911 Long-Lived Assets for the Year Ended December 28, 2019 (a) December 29, 2018 December 30, 2017 United States $ 43,909 $ 43,772 $ 42,114 Canada 4,997 4,825 2,563 Continental Europe 2,374 1,257 642 United Kingdom 2,068 1,924 1,920 Other 718 424 739 $ 54,066 $ 52,202 $ 47,978 (a) Amounts include finance lease assets Operating lease assets for the year ended December 28, 2019 is as follows: December 28, 2019 United States $ 134,623 Canada 9,270 Continental Europe 4,490 United Kingdom 2,533 Other 1,067 $ 151,983 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 8 . 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 December 28, 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 both December 28, 2019 and December 29, 2018. 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 December 28, 2019 and December 29, 2018, the fair value of the Company’s long-term debt was approximately $1,597,852 and $1,757,717, respectively, as compared to the carrying value (net of deferred financing costs and debt discount) of $1,576,170 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 19 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 December 28, 2019 $ 21,597 $ 0 $ 21,597 $ 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 fiscal years ended December 28, 2019 and December 29, 2018. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | 1 9 . As of December 28, 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 to $1,000,000 on April 1, 2019. This interest rate swap effectively fixed the variable interest rate on the notional amount of this swap at 2.41%. 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 fixed 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 fixed 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 December 28, 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 $15,529 ($20,856 before taxes) and $1,175 ($1,634 before taxes), respectively. As of December 28, 2019, the fair value of the Company’s then-effective swap was a liability of $1,881, which is included in derivative payable in the consolidated balance sheet. As of December 28, 2019, the fair value of the Company’s future swaps was a liability of $19,716, 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 $5,503 ($7,377 before taxes) of derivative losses included in accumulated other comprehensive loss at December 28, 2019, based on current market rates, will be reclassified into earnings within the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 20 . Amounts reclassified out of accumulated other comprehensive loss are as follows: Changes in Accumulated Other Comprehensive Loss by Component (a) Fiscal Year Ended December 28, 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 (13,752 ) 2,737 (11,015 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) (602 ) 0 (602 ) Net current period other comprehensive (loss) income including noncontrolling interest (14,354 ) 2,737 (11,617 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 22 22 Ending Balance at December 28, 2019 $ (15,529 ) $ (11,823 ) $ (27,352 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Fiscal Year Ended December 29, 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 3,263 (8,556 ) (5,293 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) 2,115 0 2,115 Adoption of accounting standard (1,161 ) (1,324 ) (2,485 ) Net current period other comprehensive income (loss) including noncontrolling interest 4,217 (9,880 ) (5,663 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 373 373 Ending Balance at December 29, 2018 $ (1,175 ) $ (14,582 ) $ (15,757 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Fiscal Year Ended December 30, 2017 Loss on Qualifying Hedges Gain (loss) on Foreign Currency Translation Total Beginning Balance at December 31, 2016 $ (16,002 ) $ (11,118 ) $ (27,120 ) Other comprehensive income before reclassifications, net of tax 883 5,221 6,104 Amounts reclassified from accumulated other comprehensive loss, net of tax (b) 9,727 787 10,514 Net current period other comprehensive income including noncontrolling interest 10,610 6,008 16,618 Less: net current period other comprehensive income attributable to the noncontrolling interest 0 35 35 Ending Balance at December 30, 2017 $ (5,392 ) $ (5,075 ) $ (10,467 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Reclassifications out of Accumulated Other Comprehensive Loss (a) Fiscal Year Ended December 28, December 29, December 30, 2019 2018 2017 Details about Other Comprehensive Loss Components 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 $ 807 $ (2,835 ) $ (15,946 ) Interest expense 807 (2,835 ) (15,946 ) Income before income taxes (205 ) 720 6,219 Provision for income taxes $ 602 $ (2,115 ) $ (9,727 ) Net income Loss on Foreign Currency Translation $ 0 $ 0 $ (787 ) Other expense (income), net 0 0 (787 ) Income before income taxes 0 0 0 Provision for income taxes $ 0 $ 0 $ (787 ) Net income ( a) Amounts in parentheses indicate debits to profit/loss |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 2 1 . In August 2018, the FASB issued updated guidance addressing customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, which requires customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs is required to be amortized over the term of the arrangement, beginning when the cloud computing arrangement is ready for its intended use. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In December 2019, the FASB issued updated guidance simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 as well as by improving consistent application of GAAP by clarifying and amending existing guidance. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adoption and impact of the updated guidance on its consolidated financial statements. |
Related Party
Related Party | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party | 2 2 . As previously disclosed, on October 18, 2015, the Company entered into the Strategic Collaboration Agreement with Oprah Winfrey, under which she would 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 for an initial term of five years (the “Initial Term”). As previously disclosed, on December 15, 2019, the Company entered into an amendment of the Strategic Collaboration Agreement with Ms. Winfrey, pursuant to which, among other things, the Initial Term of the Strategic Collaboration Agreement was extended until April 17, 2023 (with no additional successive renewal terms) after which a second 3,276 shares of the Company’s common stock (the "Winfrey Amendment Option") which shall become exercisable at any time after the date on which shareholder approval of such option becomes effective. The amendment to the Strategic Collaboration Agreement will not become operative unless and until the Company's shareholders approve the Winfrey Amendment Option on or before June 30, 2020. The Company will submit the Winfrey Amendment Option for shareholder approval at the Company's 2020 annual meeting of shareholders. If the Company’s shareholders do not approve the Winfrey Amendment Option, Ms. Winfrey could terminate the Strategic Collaboration Agreement with the Company as a result. In addition to the Strategic Collaboration Agreement, Ms. Winfrey and her related entities provided services to the Company totaling $2,791, $2,208 and $4,266 for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively, which services included advertising, production and related fees. Also, during the fiscal year ended December 28, 2019, the Company received advertising services from entities related to Ms. Winfrey at no charge with an estimated value of $330. During fiscal 2017, the Company also purchased $84 of books, authored by Ms. Winfrey, for resale. The Company’s accounts payable to parties related to Ms. Winfrey at December 28, 2019 and December 29, 2018 was $72 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 | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 2 3 . Restructuring As previously disclosed, in the first quarter of fiscal 2019, 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) for the fiscal year ended December 28, 2019 (all expenses were recorded in the first quarter of fiscal 2019). These expenses impacted cost of revenues by $1,425 and selling, general and administrative expense by $4,906 for the fiscal year ended December 28, 2019. The Company 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 fiscal year ended December 28, 2019, the Company made payments of $5,077 towards the liability for these expenses and lowered provision estimates by $83. The Company expects the remaining liability of $1,171 to be paid in full in fiscal 2020. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 2 4 . The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2019 and December 29, 2018. For the Fiscal Quarters Ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 Fiscal year ended December 28, 2019 Revenues, net $ 363,164 $ 369,023 $ 348,567 $ 332,583 Gross profit $ 200,948 $ 215,814 $ 194,769 $ 175,151 Operating income $ 21,897 $ 105,473 $ 94,729 $ 65,886 Net (loss) income attributable to the Company $ (10,687 ) $ 53,834 $ 47,086 $ 29,383 Basic (loss) earnings per share $ (0.16 ) $ 0.80 $ 0.70 $ 0.44 Diluted (loss) earnings per share $ (0.16 ) $ 0.78 $ 0.68 $ 0.42 For the Fiscal Quarters Ended March 31, June 30, September 29, December 29, 2018 2018 2018 2018 Fiscal year ended December 29, 2018 Revenues, net $ 408,223 $ 409,747 $ 365,765 $ 330,386 Gross profit $ 221,003 $ 244,794 $ 215,394 $ 185,220 Operating income $ 62,073 $ 127,708 $ 118,860 $ 80,347 Net income attributable to the Company $ 39,112 $ 70,720 $ 70,132 $ 43,785 Basic earnings per share $ 0.60 $ 1.07 $ 1.05 $ 0.65 Diluted earnings per share $ 0.56 $ 1.01 $ 1.00 $ 0.63 Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 28, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (IN THOUSANDS) Additions Balance at Charged to Charged Balance at Beginning Costs and to Other End of Period Expenses Accounts Deductions (1) of Period FISCAL YEAR ENDED DECEMBER 28, 2019 Allowance for doubtful accounts $ 1,743 $ (123 ) $ 0 $ 193 $ 1,813 Inventory and other reserves $ 3,843 $ 8,710 $ 0 $ (7,868 ) $ 4,685 Tax valuation allowance $ 6,191 $ 709 $ (40 ) $ (100 ) $ 6,760 FISCAL YEAR ENDED DECEMBER 29, 2018 Allowance for doubtful accounts $ 2,001 $ 130 $ 0 $ (388 ) $ 1,743 Inventory and other reserves $ 3,984 $ 7,906 $ 0 $ (8,047 ) $ 3,843 Tax valuation allowance $ 22,760 $ 1,893 $ (403 ) $ (18,059 ) $ 6,191 FISCAL YEAR ENDED DECEMBER 30, 2017 Allowance for doubtful accounts $ 2,973 $ (587 ) $ 0 $ (385 ) $ 2,001 Inventory and other reserves $ 3,703 $ 7,823 $ 0 $ (7,542 ) $ 3,984 Tax valuation allowance $ 18,277 $ 11,515 $ 1,079 $ (8,111 ) $ 22,760 (1) Primarily represents the utilization of established reserves, net of recoveries, where applicable. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year: The Company’s fiscal year ends on the Saturday closest to December 31 st |
Use of Estimates | Use of Estimates: The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, revenue, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates. |
Translation of Foreign Currencies | Translation of Foreign Currencies: For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive loss. Foreign currency gains and losses arising from the translation of intercompany receivables and intercompany payables with the Company’s international subsidiaries are recorded as a component of other expense, net, unless the receivable or payable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of accumulated other comprehensive loss. |
Cash Equivalents | Cash Equivalents: Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies. |
Inventories | Inventories: Inventories, which consist of finished goods, are stated at the lower of cost or net realizable value on a first-in, first-out basis, net of reserves for obsolescence and shrinkage. |
Property and Equipment | Property and Equipment: Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income. |
Impairment of Long Lived Assets | Impairment of Long Lived Assets: The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company recorded impairment charges of $307, $0 and $674, respectively, related to internal-use computer software that was not expected to provide substantive service potential. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company recorded impairment charges of $0, $27 and $8, respectively, related to property, plant and equipment that were expected to be disposed of before the end of their estimated useful lives. |
Goodwill and Franchise Rights Acquired | 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. For the Company’s Brazil reporting unit only, given the then-challenging economic environment, the negative performance trends and the Company’s reduced expectations regarding the future impact of its business growth strategies in the country at December 30, 2017, the Company performed an interim goodwill impairment analysis at such time. In performing the interim goodwill impairment analysis for its Brazil reporting unit, the Company recorded a $13,323 impairment charge at December 30, 2017. 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. 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 impairment assessments 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. For all reporting units, except for Brazil, there was significant headroom in the goodwill impairment analysis for fiscal 2019. 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 December 28, 2019 balance sheet date, for reporting units that of the Company’s goodwill, those units had an estimated fair value at least 60% higher than the respective reporting unit’s carrying amount. impairment test performed for its Brazil reporting unit For all units of account, except for New Zealand, there was significant headroom in the franchise rights acquired impairment analysis for fiscal 2019. Based on the results of the Company’s annual franchise rights acquired impairment analysis performed for all of its units of account, except for New Zealand, as of the December 28, 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% higher than the respective units of account carrying amount. Based on the results of the Company’s annual franchise rights acquired impairment test performed for its New Zealand unit of account, which holds 0.6% of the Company’s franchise rights acquired as of the December 28, 2019 balance sheet date, the estimated fair value of this unit of account exceeded its carrying value by approximately 3.0%. Accordingly, a change in the December 28, 2019 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. The net book values of goodwill in the United States, Canada, Brazil and other countries as of the December 28, 2019 balance sheet date were $102,968, $40,972, $4,399 and $9,577, respectively, totaling $157,916 and the net book values as of the December 29, 2018 balance sheet date were $98,857, $39,300, $4,584 and $9,778, respectively, totaling $152,519. 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. The net book values of these franchise rights in the United States, Canada, United Kingdom, Australia, and New Zealand at December 28, 2019 were $671,914, $55,171, $11,784, $6,273 and $4,742, respectively, totaling $749,884 and the net book values at December 29, 2018 were $671,914, $52,919, $11,441, $6,327 and $4,747, respectively, totaling $747,348. 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. |
Other Intangible Assets | Other Intangible Assets: Other finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs) once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred. |
Revenue Recognition | Revenue Recognition: 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, as well as 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 platforms and to its franchisees, as well as through several trusted retail partners; collecting royalties 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 amortized 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 partners and title and risk of loss passes to them, 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. |
Advertising Costs | Advertising Costs: Advertising costs consist primarily of broadcast and digital media. All costs related to advertising are expensed in the period incurred, except for media production-related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 were $235,826, $218,062 and $193,423, respectively. |
Income Taxes | Income Taxes: Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more-likely-than-not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance. The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of net income. In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases. |
Derivative Instruments and Hedging | Derivative Instruments and Hedging: The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes. The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The fair value of the Company’s interest rate swaps are reported as a component of accumulated other comprehensive loss on its balance sheet. See Note 18 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s effective interest rate swap is included in interest expense on the consolidated statements of net income. |
Deferred Financing Costs | Deferred Financing Costs: Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fourth quarter of fiscal 2017, the Company incurred fees of $53,832 (which includes $30,800 of a debt discount) in connection with the November 2017 debt refinancing (as described in Note 9). In addition, the Company recorded a loss on extinguishment of debt of $10,524 in connection thereto. This early extinguishment of debt write-off was comprised of $5,716 of deferred financing fees paid in connection with the November 2017 debt refinancing and $4,808 of pre-existing deferred financing fees. During the fiscal year ended December 30, 2017 in connection with the prepayment of debt, the Company wrote-off deferred financing fees of $618, incurred fees of $305 and recorded a gain on early extinguishment of debt of $1,554, inclusive of these fees. Amortization expense for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $9,318, $8,539 and $6,112, respectively. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: The Company’s accumulated other comprehensive loss includes changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2019, December 29, 2018 and December 30, 2017, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $15,529, $1,175 and $5,392, respectively. At December 28, 2019, December 29, 2018 and December 30, 2017, the cumulative balance of the effects of foreign currency translations, net of taxes, was $11,823, $14,582 and $5,075, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Lease Liabilities | At December 28, 2019, the Company’s lease assets and lease liabilities were as follows: December 28, 2019 Assets: Operating lease assets $ 151,983 Finance lease assets 259 Total leased assets $ 152,242 Liabilities: Current Operating $ 33,236 Finance 126 Noncurrent Operating $ 128,464 Finance 96 Total lease liabilities $ 161,922 |
Schedule of Components of Lease Expense | For the fiscal year ended December 28, 2019, the components of the Company’s lease expense were as follows: Year Ended December 28, 2019 Operating lease cost: Fixed lease cost $ 51,256 Variable lease cost 0 Total operating lease cost $ 51,256 Finance lease cost: Amortization of leased assets 487 Interest on lease liabilities 20 Total finance lease cost $ 507 Total lease cost $ 51,763 |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates | At December 28, 2019, the Company’s weighted average remaining lease term and weighted average discount rates were as follows: December 28, 2019 Weighted Average Remaining Lease Term (years) Operating leases 7.06 Finance leases 2.43 Weighted Average Discount Rate Operating leases 7.02 Finance leases 5.97 |
Schedule of Maturity of Lease Liabilities | At December 28, 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 2020 $ 43,595 $ 135 $ 43,730 2021 38,824 52 38,876 2022 27,869 22 27,891 2023 19,803 24 19,827 2024 14,673 5 14,678 Thereafter 65,954 — 65,954 Total lease payments $ 210,718 $ 238 $ 210,956 Less imputed interest 49,018 16 49,034 Present value of lease liabilities $ 161,700 $ 222 $ 161,922 |
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 year ended December 28, 2019 were as follows: Year Ended December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 51,326 Operating cash flows from finance leases $ 20 Financing cash flows from finance leases $ 487 Leased assets obtained in exchange for new operating lease liabilities $ 41,693 Leased assets obtained in exchange for new finance lease liabilities $ 105 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 28, 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: Fiscal Year Ended December 28, December 29, December 30, 2019 2018 2017 Digital Subscription Revenues $ 609,996 $ 567,767 $ 416,722 Studio + Digital Fees 597,270 705,429 664,957 Service Revenues, net $ 1,207,266 $ 1,273,196 $ 1,081,679 Product sales and other, net 206,071 240,925 225,232 Revenues, net $ 1,413,337 $ 1,514,121 $ 1,306,911 |
Schedule of Revenues Disaggregated by Revenue Source and Segment | The following tables present the Company’s revenues disaggregated by revenue source and segment: Fiscal Year Ended December 28, 2019 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 401,890 $ 167,008 $ 26,898 $ 14,200 $ 609,996 Studio + Digital Fees 446,576 87,962 44,145 18,587 597,270 Service Revenues, net $ 848,466 $ 254,970 $ 71,043 $ 32,787 $ 1,207,266 Product sales and other, net 130,836 38,263 23,514 13,458 206,071 Revenues, net $ 979,302 $ 293,233 $ 94,557 $ 46,245 $ 1,413,337 Fiscal Year Ended December 29, 2018 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 378,678 $ 149,571 $ 25,557 $ 13,961 $ 567,767 Studio + Digital Fees 522,372 107,528 52,676 22,853 705,429 Service Revenues, net $ 901,050 $ 257,099 $ 78,233 $ 36,814 $ 1,273,196 Product sales and other, net 146,201 47,226 28,839 18,659 240,925 Revenues, net $ 1,047,251 $ 304,325 $ 107,072 $ 55,473 $ 1,514,121 Fiscal Year Ended December 30, 2017 North Continental United America Europe Kingdom Other Total Digital Subscription Revenues $ 281,432 $ 102,039 $ 21,477 $ 11,774 $ 416,722 Studio + Digital Fees 493,800 93,723 52,161 25,273 664,957 Service Revenues, net $ 775,232 $ 195,762 $ 73,638 $ 37,047 $ 1,081,679 Product sales and other, net 135,117 43,461 26,351 20,303 225,232 Revenues, net $ 910,349 $ 239,223 $ 99,989 $ 57,350 $ 1,306,911 |
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 7,112 (907 ) Balance as of December 28, 2019 $ 60,613 $ 54 |
Franchise Rights Acquired, Go_2
Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Change in Carrying Amount of Goodwill | For the fiscal year ended December 28, 2019, the change in the carrying amount of goodwill was due to a franchise acquisition and 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 Goodwill acquired during the period 4,111 0 0 0 4,111 Effect of exchange rate changes 1,673 (227 ) 35 (195 ) 1,286 Balance as of December 28, 2019 $ 143,940 $ 7,015 $ 1,213 $ 5,748 $ 157,916 |
Schedule of Carrying Values of Finite-lived Intangible Assets | The below table reflects the carrying values of finite-lived intangible assets as of December 28, 2019 and December 29, 2018: December 28, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Capitalized software costs $ 119,537 $ 97,588 $ 121,508 $ 102,659 Website development costs 77,823 50,748 105,710 77,825 Trademarks 11,869 11,228 11,620 11,010 Other 14,003 4,637 13,967 4,149 Trademarks and other intangible assets $ 223,232 $ 164,201 $ 252,805 $ 195,643 Franchise rights acquired 8,180 4,618 8,110 4,319 Total finite-lived intangible assets $ 231,412 $ 168,819 $ 260,915 $ 199,962 |
Schedule of Estimated Amortization Expense of Finite-lived Intangible Assets | Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter is as follows: Fiscal 2020 $ 25,042 Fiscal 2021 $ 17,802 Fiscal 2022 $ 7,754 Fiscal 2023 $ 1,413 Fiscal 2024 and thereafter $ 10,582 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | The below table reflects the carrying values of property and equipment as of December 28, 2019 and December 29, 2018: December 28, December 29, 2019 2018 Equipment $ 83,288 $ 75,531 Leasehold improvements 84,079 80,002 167,367 155,533 Less: Accumulated depreciation and amortization (113,301 ) (103,331 ) $ 54,066 $ 52,202 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The components of the Company’s long-term debt were as follows: December 28, 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 1,305,250 6,418 21,634 7.93 % 1,482,250 8,307 26,033 7.53 % Notes due December 1, 2025 300,000 1,028 0 8.72 % 300,000 1,202 0 8.69 % Total $ 1,605,250 $ 7,446 $ 21,634 8.07 % $ 1,782,250 $ 9,509 $ 26,033 7.63 % Less: Current Portion 96,250 77,000 Unamortized Deferred Financing Costs 7,446 9,509 Unamortized Debt Discount 21,634 26,033 Total Long-Term Debt $ 1,479,920 $ 1,669,708 (1) Includes amortization of deferred financing costs and debt discount. |
Schedule of Maturities of Long-term Debt | At December 28, 2019, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter were as follows: 2020 $ 96,250 2021 77,000 2022 77,000 2023 77,000 2024 978,000 2025 and thereafter 300,000 $ 1,605,250 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted EPS for the fiscal years ended: December 28, December 29, December 30, 2019 2018 2017 Numerator: Net income attributable to WW International, Inc. $ 119,616 $ 223,749 $ 163,514 Denominator: Weighted average shares of common stock outstanding 67,188 66,280 64,329 Effect of dilutive common stock equivalents 2,362 3,835 3,919 Weighted average diluted common shares outstanding 69,550 70,115 68,248 Earnings per share attributable to WW International, Inc. Basic $ 1.78 $ 3.38 $ 2.54 Diluted $ 1.72 $ 3.19 $ 2.40 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s common stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these options (other than the options with a seven-year December 30, 2017 Dividend yield 0.0% Volatility 51.3%-51.7% Risk-free interest rate 2.17% Expected term (years) 6.0-7.0 |
Summary of Option Activity | A summary of all option activity for the fiscal year ended December 28, 2019 is presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (Yrs.) Value Outstanding at December 29, 2018 3,789 $ 21.69 Granted 0 $ 0.00 Exercised (74 ) $ 11.76 Cancelled (15 ) $ 49.17 Outstanding at December 28, 2019 3,700 $ 21.77 5.3 $ 72,356 Exercisable at December 28, 2019 3,050 $ 16.61 5.4 $ 71,614 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU activity under the Stock Plans for the fiscal year ended December 28, 2019 is presented below: Weighted-Average Grant-Date Fair Shares Value Outstanding at December 29, 2018 881 $ 37.91 Granted 852 $ 19.09 Vested (387 ) $ 31.67 Forfeited (193 ) $ 29.77 Outstanding at December 28, 2019 1,153 $ 27.46 |
Schedule of Share-based Compensation, Performance Stock Units Award Activity | The fair value of PSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of PSU activity under the 2014 Plan for the fiscal year ended December 28, 2019 is presented below: Weighted-Average Grant-Date Fair Shares Value Outstanding at December 29, 2018 380 $ 32.56 Granted (a) 368 $ 17.51 Vested (219 ) $ 13.19 Forfeited (92 ) $ 29.08 Outstanding at December 28, 2019 437 $ 30.35 (a) Includes the incremental shares vested with respect to the Company satisfying certain applicable performance vesting criteria for the 2016 PSUs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following tables summarize the Company’s consolidated provision for U.S. federal, state and foreign taxes on income: December 28, December 29, December 30, 2019 2018 2017 Current: U.S. federal $ 20,900 $ 1,235 $ 9,224 State 1,873 5,918 1,993 Foreign 18,164 27,013 18,762 $ 40,937 $ 34,166 $ 29,979 Deferred: U.S. federal $ (9,137 ) $ (10,367 ) $ (51,788 ) State (2,434 ) (2,566 ) 481 Foreign 2,147 (740 ) 3,091 $ (9,424 ) $ (13,673 ) $ (48,216 ) Total tax provision (benefit) $ 31,513 $ 20,493 $ (18,237 ) |
Schedule of Income before Income Tax, Domestic and Foreign | The components of the Company’s consolidated income before income taxes consist of the following: December 28, December 29, December 30, 2019 2018 2017 Domestic $ 75,932 $ 126,171 $ 53,045 Foreign 75,028 117,890 92,035 $ 150,960 $ 244,061 $ 145,080 |
Summary of Differences Between U.S. Federal Statutory Tax Rate and Company's Consolidated Effective Tax Rate | The difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate is as follows: December 28, December 29, December 30, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal benefit) (0.3 %) 1.1 % 2.5 % Cessation of operations (0.5 %) (0.8 %) (8.0 %) Research and development credit (1.2 %) (0.5 %) (1.3 %) Tax windfall on share-based awards (0.1 %) (8.6 %) (1.1 %) Reserves for uncertain tax positions (0.9 %) (1.4 %) (0.2 %) Tax rate changes 0.0 % 0.3 % (49.6 %) (Decrease) increase in valuation adjustment related to foreign tax credits 0.0 % (3.5 %) 3.5 % GILTI 2.3 % 1.5 % 0.0 % FDII (3.7 %) (1.9 %) 0.0 % Increase (decrease) in valuation allowance due to net operating loss 0.4 % (0.7 %) 3.0 % Goodwill impairment 0.0 % 0.0 % 3.2 % Tax return adjustments related to the 2017 Tax Act (0.7 %) (1.1 %) 0.0 % Impact of foreign operations 3.4 % 3.2 % (0.7 %) Other 1.2 % (0.2 %) 1.1 % Total effective tax rate 20.9 % 8.4 % (12.6 %) |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows: December 28, December 29, 2019 2018 Interest expense disallowance $ 38,396 $ 22,418 Operating lease liabilities 39,095 0 Operating loss carryforwards 9,375 9,862 Provision for estimated expenses 2,578 2,320 Salaries and wages 2,037 2,518 Share-based compensation 7,533 7,666 Other comprehensive income 9,816 5,877 Other 4,125 7,481 Less: valuation allowance (6,760 ) (6,191 ) Total deferred tax assets $ 106,195 $ 51,951 Goodwill and intangible assets $ (228,048 ) $ (223,938 ) Operating lease assets (36,670 ) 0 Depreciation (1,082 ) (1,149 ) Prepaid expenses (1,311 ) (886 ) Total deferred tax liabilities $ (267,111 ) $ (225,973 ) Net deferred tax liabilities $ (160,916 ) $ (174,022 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 28, December 29, December 30, 2019 2018 2017 Balance at beginning of year $ 3,665 $ 15,173 $ 10,297 Increases related to tax positions taken in current year 0 60 266 Increases related to tax positions taken in prior years 264 1,207 7,246 Reductions related to tax positions taken in prior years (2,731 ) (10,560 ) (1,268 ) Reductions related to settlements with tax authorities (992 ) (2,215 ) 0 Reductions related to the expiration of statutes of limitations 0 0 (1,369 ) Balance at end of year $ 206 $ 3,665 $ 15,173 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | December 28, December 29, December 30, 2019 2018 2017 Net cash paid during the year for: Interest expense $ 130,081 $ 119,866 $ 115,233 Income taxes (a) $ 34,268 $ 12,095 $ 27,282 Noncash investing and financing activities were as follows: Fair value of net assets acquired in connection with acquisitions $ 118 $ 6,026 $ 0 Change in Capital expenditures and Capitalized software included in accounts payable and accrued expenses $ 583 $ (844 ) $ (3,450 ) (a) Fiscal 2019 includes tax refunds received of $13,309. See Note 4 for disclosures on supplemental cash flow information related to leases. |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments | Information about the Company’s reportable segments is as follows: Total Revenue, net for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 North America $ 979,302 $ 1,047,251 $ 910,349 Continental Europe 293,233 304,325 239,223 United Kingdom 94,557 107,072 99,989 Other 46,245 55,473 57,350 Total revenue, net $ 1,413,337 $ 1,514,121 $ 1,306,911 Net Income for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Segment operating income: North America $ 281,937 $ 351,599 $ 247,587 Continental Europe 95,201 114,708 73,689 United Kingdom 9,543 18,814 19,939 Other 4,374 9,604 (4,358 ) Total segment operating income 391,055 494,725 336,857 General corporate expenses 103,070 105,740 69,552 Interest expense 135,267 142,346 112,784 Other expense, net 1,758 2,578 472 Early extinguishment of debt, net 0 0 8,969 Provision for (benefit from) income taxes 31,513 20,493 (18,237 ) Net income $ 119,447 $ 223,568 $ 163,317 Net loss attributable to the noncontrolling interest 169 181 197 Net income attributable to WW International, Inc. $ 119,616 $ 223,749 $ 163,514 Depreciation and Amortization for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 North America $ 36,643 $ 37,137 $ 39,501 Continental Europe 1,709 1,347 1,203 United Kingdom 802 1,487 1,205 Other 443 597 626 Total segment depreciation and amortization 39,597 40,568 42,535 General corporate depreciation and amortization 14,738 12,032 14,457 Depreciation and amortization $ 54,335 $ 52,600 $ 56,992 |
Schedule of Revenue from External Customers, Long-Lived Assets and Operating Lease Assets, by Geographical Areas | The following tables present information about the Company’s sources of revenue and other information by geographic area. There were no material amounts of sales or transfers among geographic areas and no material amounts of US export sales. Total Revenue, net for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Digital Subscription Revenues $ 609,996 $ 567,767 $ 416,722 Studio + Digital Fees 597,270 705,429 664,957 In-workshop product sales 118,493 148,856 137,855 Licensing, franchise royalties and other 87,578 92,069 87,377 $ 1,413,337 $ 1,514,121 $ 1,306,911 Total Revenue, net for the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States $ 913,930 $ 974,843 $ 846,249 Canada 65,372 72,408 64,100 Continental Europe 293,233 304,325 239,223 United Kingdom 94,557 107,072 99,989 Other 46,245 55,473 57,350 $ 1,413,337 $ 1,514,121 $ 1,306,911 Long-Lived Assets for the Year Ended December 28, 2019 (a) December 29, 2018 December 30, 2017 United States $ 43,909 $ 43,772 $ 42,114 Canada 4,997 4,825 2,563 Continental Europe 2,374 1,257 642 United Kingdom 2,068 1,924 1,920 Other 718 424 739 $ 54,066 $ 52,202 $ 47,978 (a) Amounts include finance lease assets Operating lease assets for the year ended December 28, 2019 is as follows: December 28, 2019 United States $ 134,623 Canada 9,270 Continental Europe 4,490 United Kingdom 2,533 Other 1,067 $ 151,983 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 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 December 28, 2019 $ 21,597 $ 0 $ 21,597 $ 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 28, 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) Fiscal Year Ended December 28, 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 (13,752 ) 2,737 (11,015 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) (602 ) 0 (602 ) Net current period other comprehensive (loss) income including noncontrolling interest (14,354 ) 2,737 (11,617 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 22 22 Ending Balance at December 28, 2019 $ (15,529 ) $ (11,823 ) $ (27,352 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Fiscal Year Ended December 29, 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 3,263 (8,556 ) (5,293 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (b) 2,115 0 2,115 Adoption of accounting standard (1,161 ) (1,324 ) (2,485 ) Net current period other comprehensive income (loss) including noncontrolling interest 4,217 (9,880 ) (5,663 ) Less: net current period other comprehensive loss attributable to the noncontrolling interest 0 373 373 Ending Balance at December 29, 2018 $ (1,175 ) $ (14,582 ) $ (15,757 ) (a) Amounts in parentheses indicate debits (b) See separate table below for details about these reclassifications Fiscal Year Ended December 30, 2017 Loss on Qualifying Hedges Gain (loss) on Foreign Currency Translation Total Beginning Balance at December 31, 2016 $ (16,002 ) $ (11,118 ) $ (27,120 ) Other comprehensive income before reclassifications, net of tax 883 5,221 6,104 Amounts reclassified from accumulated other comprehensive loss, net of tax (b) 9,727 787 10,514 Net current period other comprehensive income including noncontrolling interest 10,610 6,008 16,618 Less: net current period other comprehensive income attributable to the noncontrolling interest 0 35 35 Ending Balance at December 30, 2017 $ (5,392 ) $ (5,075 ) $ (10,467 ) (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) Fiscal Year Ended December 28, December 29, December 30, 2019 2018 2017 Details about Other Comprehensive Loss Components 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 $ 807 $ (2,835 ) $ (15,946 ) Interest expense 807 (2,835 ) (15,946 ) Income before income taxes (205 ) 720 6,219 Provision for income taxes $ 602 $ (2,115 ) $ (9,727 ) Net income Loss on Foreign Currency Translation $ 0 $ 0 $ (787 ) Other expense (income), net 0 0 (787 ) Income before income taxes 0 0 0 Provision for income taxes $ 0 $ 0 $ (787 ) Net income ( a) Amounts in parentheses indicate debits to profit/loss |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Consolidated Results of Operations | The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2019 and December 29, 2018. For the Fiscal Quarters Ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 Fiscal year ended December 28, 2019 Revenues, net $ 363,164 $ 369,023 $ 348,567 $ 332,583 Gross profit $ 200,948 $ 215,814 $ 194,769 $ 175,151 Operating income $ 21,897 $ 105,473 $ 94,729 $ 65,886 Net (loss) income attributable to the Company $ (10,687 ) $ 53,834 $ 47,086 $ 29,383 Basic (loss) earnings per share $ (0.16 ) $ 0.80 $ 0.70 $ 0.44 Diluted (loss) earnings per share $ (0.16 ) $ 0.78 $ 0.68 $ 0.42 For the Fiscal Quarters Ended March 31, June 30, September 29, December 29, 2018 2018 2018 2018 Fiscal year ended December 29, 2018 Revenues, net $ 408,223 $ 409,747 $ 365,765 $ 330,386 Gross profit $ 221,003 $ 244,794 $ 215,394 $ 185,220 Operating income $ 62,073 $ 127,708 $ 118,860 $ 80,347 Net income attributable to the Company $ 39,112 $ 70,720 $ 70,132 $ 43,785 Basic earnings per share $ 0.60 $ 1.07 $ 1.05 $ 0.65 Diluted earnings per share $ 0.56 $ 1.01 $ 1.00 $ 0.63 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | May 06, 2018 | Nov. 29, 2017 | May 07, 2017 | Dec. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Property, plant and equipment, impairment charges | $ 0 | $ 27,000 | $ 8,000 | ||||
Goodwill impairment | $ 0 | 0 | 13,323,000 | ||||
Percentage of goodwill hold by reporting units | 97.20% | ||||||
Netbook value | $ 749,884,000 | 747,348,000 | |||||
Net book values of goodwill | $ 157,916,000 | 152,519,000 | |||||
Franchise right maturity period | 7 years | ||||||
Total advertising expenses | $ 235,826,000 | 218,062,000 | 193,423,000 | ||||
Write-off of deferred financing fees | $ 4,808,000 | 4,808,000 | |||||
Discount on debt issuance | 30,800,000 | 21,634,000 | 26,033,000 | ||||
Gain (loss) on early debt extinguishment | $ (10,524,000) | 0 | 0 | (8,969,000) | |||
Deferred financing costs, amortization expense | 9,318,000 | 8,539,000 | 6,112,000 | ||||
The cumulative balance of changes in fair value of derivative instruments, net of taxes | $ 5,392,000 | 15,529,000 | 1,175,000 | 5,392,000 | |||
The cumulative balance of the effects of foreign currency translations, net of taxes | 5,075,000 | $ 11,823,000 | 14,582,000 | 5,075,000 | |||
Prepayment Of Debt | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Write-off of deferred financing fees | 618,000 | ||||||
Deferred financing costs | 305,000 | ||||||
Gain (loss) on early debt extinguishment | 1,554,000 | ||||||
Restructuring Costs | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Deferred financing costs | $ 53,832,000 | ||||||
Revolving Facility due April 2, 2018 | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Deferred financing costs | 5,716,000 | ||||||
Gain (loss) on early debt extinguishment | 10,524,000 | ||||||
Franchise Rights | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Indefinite-lived intangible assets, impairment charges | $ 0 | $ 0 | |||||
Reporting units percentage of rights acquired | 99.40% | ||||||
BRAZIL | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Goodwill impairment | 13,323,000 | ||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 3.00% | ||||||
Goodwill | $ 4,399,000 | ||||||
Net book values of goodwill | $ 4,399,000 | 4,584,000 | |||||
NEW ZEALAND | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Reporting units percentage of rights acquired | 0.60% | ||||||
Netbook value | $ 4,742,000 | 4,747,000 | |||||
NEW ZEALAND | Franchise Rights | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 3.00% | ||||||
Netbook value | $ 4,742,000 | ||||||
United States | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Netbook value | 671,914,000 | 671,914,000 | |||||
Net book values of goodwill | 102,968,000 | 98,857,000 | |||||
Canada | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Netbook value | 55,171,000 | 52,919,000 | |||||
Net book values of goodwill | 40,972,000 | 39,300,000 | |||||
Other Countries | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Net book values of goodwill | 9,577,000 | 9,778,000 | |||||
United Kingdom | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Netbook value | 11,784,000 | 11,441,000 | |||||
AUSTRALIA | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Netbook value | 6,273,000 | 6,327,000 | |||||
Capitalized software costs | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Property, plant and equipment, impairment charges | $ 307,000 | $ 0 | $ 674,000 | ||||
Website development costs | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Finite-lived intangible assets, estimated useful life (in years) | 3 years | ||||||
Minimum | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Equipment, estimated useful life (in years) | 3 years | ||||||
Finite-lived intangible assets, estimated useful life (in years) | 3 years | ||||||
Minimum | Goodwill | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 2.80% | ||||||
Minimum | Franchise Rights | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Reporting unit, percentage of estimated fair value in excess of carrying amount | 40.00% | ||||||
Minimum | Capitalized software costs | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Finite-lived intangible assets, estimated useful life (in years) | 3 years | ||||||
Maximum | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Equipment, estimated useful life (in years) | 10 years | ||||||
Finite-lived intangible assets, estimated useful life (in years) | 20 years | ||||||
Maximum | Franchise Rights | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Finite-lived intangible assets, estimated useful life (in years) | 1 year | ||||||
Maximum | Capitalized software costs | |||||||
Organization And Summary Of Significant Accounting Policies Disclosure [Line Items] | |||||||
Finite-lived intangible assets, estimated useful life (in years) | 5 years |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 30, 2018 | |
Lessee Lease Description [Line Items] | |||||
Operating lease assets | $ 151,983 | $ 0 | |||
Operating lease liabilities | $ 161,700 | ||||
Lease weighted average remaining lease term | 7 years 21 days | ||||
Operating leases, rent expense | $ 44,130 | $ 42,259 | |||
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 | Dec. 28, 2019 | Dec. 29, 2018 |
Assets: | ||
Operating lease assets | $ 151,983 | $ 0 |
Finance lease assets | 259 | |
Total leased assets | 152,242 | |
Current | ||
Operating | 33,236 | 0 |
Finance | 126 | |
Noncurrent | ||
Operating | 128,464 | $ 0 |
Finance | 96 | |
Total lease liabilities | $ 161,922 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Operating lease cost: | |
Fixed lease cost | $ 51,256 |
Variable lease cost | 0 |
Total operating lease cost | 51,256 |
Finance lease cost: | |
Amortization of leased assets | 487 |
Interest on lease liabilities | 20 |
Total finance lease cost | 507 |
Total lease cost | $ 51,763 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rates (Detail) | Dec. 28, 2019 |
Weighted Average Remaining Lease Term (years) | |
Operating leases | 7 years 21 days |
Finance leases | 2 years 5 months 4 days |
Weighted Average Discount Rate | |
Operating leases | 7.02% |
Finance leases | 5.97% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 43,595 |
2021 | 38,824 |
2022 | 27,869 |
2023 | 19,803 |
2024 | 14,673 |
Thereafter | 65,954 |
Total lease payments | 210,718 |
Less imputed interest | 49,018 |
Present value of lease liabilities | 161,700 |
Finance Leases | |
2020 | 135 |
2021 | 52 |
2022 | 22 |
2023 | 24 |
2024 | 5 |
Total lease payments | 238 |
Less imputed interest | 16 |
Present value of lease liabilities | 222 |
Total | |
2020 | 43,730 |
2021 | 38,876 |
2022 | 27,891 |
2023 | 19,827 |
2024 | 14,678 |
Thereafter | 65,954 |
Total lease payments | 210,956 |
Less imputed interest | 49,034 |
Present value of lease liabilities | $ 161,922 |
Leases - Minimum Commitments Un
Leases - Minimum Commitments Under Non-Cancelable Obligations (Detail) - Non Cancelable Obligations $ in Thousands | Dec. 29, 2018USD ($) |
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 | $ 185,006 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 51,326 |
Operating cash flows from finance leases | 20 |
Financing cash flows from finance leases | 487 |
Leased assets obtained in exchange for new operating lease liabilities | 41,693 |
Leased assets obtained in exchange for new finance lease liabilities | $ 105 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Decrease to deferred revenue | $ (60,613) | $ (53,501) | |
Decrease to prepaid expenses and other current assets | (30,582) | (35,315) | |
Increase to deferred income tax liability | 175,235 | 190,258 | |
Deferred revenue recognized | $ 53,479 | ||
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 | $ 54 | $ 961 | |
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 | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | $ 332,583 | $ 348,567 | $ 369,023 | $ 363,164 | $ 330,386 | $ 365,765 | $ 409,747 | $ 408,223 | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 |
Digital Subscription Revenues | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 609,996 | 567,767 | 416,722 | ||||||||
Studio + Digital Fees | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 597,270 | 705,429 | 664,957 | ||||||||
Service Revenues, net | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 1,207,266 | 1,273,196 | 1,081,679 | ||||||||
Product sales and other, net | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | $ 206,071 | $ 240,925 | $ 225,232 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregated by Revenue Source and Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | $ 332,583 | $ 348,567 | $ 369,023 | $ 363,164 | $ 330,386 | $ 365,765 | $ 409,747 | $ 408,223 | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 |
North America | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 979,302 | 1,047,251 | 910,349 | ||||||||
Continental Europe | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 293,233 | 304,325 | 239,223 | ||||||||
United Kingdom | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 94,557 | 107,072 | 99,989 | ||||||||
Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 46,245 | 55,473 | 57,350 | ||||||||
Digital Subscription Revenues | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 609,996 | 567,767 | 416,722 | ||||||||
Digital Subscription Revenues | North America | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 401,890 | 378,678 | 281,432 | ||||||||
Digital Subscription Revenues | Continental Europe | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 167,008 | 149,571 | 102,039 | ||||||||
Digital Subscription Revenues | United Kingdom | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 26,898 | 25,557 | 21,477 | ||||||||
Digital Subscription Revenues | Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 14,200 | 13,961 | 11,774 | ||||||||
Studio + Digital Fees | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 597,270 | 705,429 | 664,957 | ||||||||
Studio + Digital Fees | North America | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 446,576 | 522,372 | 493,800 | ||||||||
Studio + Digital Fees | Continental Europe | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 87,962 | 107,528 | 93,723 | ||||||||
Studio + Digital Fees | United Kingdom | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 44,145 | 52,676 | 52,161 | ||||||||
Studio + Digital Fees | Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 18,587 | 22,853 | 25,273 | ||||||||
Service Revenues, net | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 1,207,266 | 1,273,196 | 1,081,679 | ||||||||
Service Revenues, net | North America | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 848,466 | 901,050 | 775,232 | ||||||||
Service Revenues, net | Continental Europe | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 254,970 | 257,099 | 195,762 | ||||||||
Service Revenues, net | United Kingdom | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 71,043 | 78,233 | 73,638 | ||||||||
Service Revenues, net | Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 32,787 | 36,814 | 37,047 | ||||||||
Product sales and other, net | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 206,071 | 240,925 | 225,232 | ||||||||
Product sales and other, net | North America | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 130,836 | 146,201 | 135,117 | ||||||||
Product sales and other, net | Continental Europe | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 38,263 | 47,226 | 43,461 | ||||||||
Product sales and other, net | United Kingdom | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | 23,514 | 28,839 | 26,351 | ||||||||
Product sales and other, net | Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues, net | $ 13,458 | $ 18,659 | $ 20,303 |
Revenue - Schedule of Accounts
Revenue - Schedule of Accounts Receivable and Deferred Revenues (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 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 | 7,112 |
Deferred Revenue, Ending balance | 60,613 |
Deferred Revenue - Long Term | |
Contract With Customer Asset And Liability [Line Items] | |
Deferred Revenue, Beginning balance | 961 |
Net increase (decrease) during the period | (907) |
Deferred Revenue, Ending balance | $ 54 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 21, 2019 | Dec. 10, 2018 | Aug. 10, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, goodwill | $ 157,916 | $ 152,519 | |||
Kurbo Health, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, net purchase price | $ 3,063 | ||||
Business acquisition, purchase price allocation, goodwill | 1,101 | ||||
Business acquisition, purchase price allocation, prepaid expenses | 78 | ||||
Business acquisition, purchase price allocation, other assets | 32 | ||||
Business acquisition, purchase price allocation, deferred revenue | 57 | ||||
Business acquisition, purchase price allocation, other liabilities | 7 | ||||
Weight Watchers of Las Vegas, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, net purchase price | $ 4,500 | ||||
Business acquisition, purchase price allocation, goodwill | 4,111 | ||||
Business acquisition, net purchase price | 4,060 | ||||
Business acquisition, cash acquired | 385 | ||||
Business acquisition, assumed net liabilities | 55 | ||||
South Carolina Acquisition | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, net purchase price | $ 4,000 | ||||
Business acquisition, assumed net liabilities | 37 | ||||
Website Development | Kurbo Health, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, finite lived intangible assets | $ 1,916 | ||||
Customer Relationships | Weight Watchers of Las Vegas, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, finite lived intangible assets | 271 | ||||
Customer Relationships | South Carolina Acquisition | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, finite lived intangible assets | 209 | ||||
Franchise Rights | Weight Watchers of Las Vegas, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, indefinite lived intangible assets | $ 118 | ||||
Franchise Rights | South Carolina Acquisition | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price allocation, net purchase price | 4,000 | ||||
Business acquisition, purchase price allocation, indefinite lived intangible assets | $ 3,791 |
Franchise Rights Acquired, Go_3
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | May 06, 2018 | May 07, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Goodwill impairment | $ 0 | $ 0 | $ 13,323,000 | ||
Finite-lived intangible assets, aggregate amortization expense | $ 29,330,000 | $ 28,995,000 | 36,040,000 | ||
Franchise Rights | South Carolina Acquisition | |||||
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Amortization period | 18 years | ||||
Franchise Rights | |||||
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Indefinite-lived intangible assets, impairment charges | $ 0 | $ 0 | |||
Brazil | |||||
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Goodwill impairment | $ 13,323,000 |
Franchise Rights Acquired, Go_4
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Change in Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 152,519 |
Ending balance | 157,916 |
Franchisee Acquisition | |
Goodwill [Line Items] | |
Beginning balance | 152,519 |
Goodwill acquired during the period | 4,111 |
Effect of exchange rate changes | 1,286 |
Ending balance | 157,916 |
Franchisee Acquisition | North America | |
Goodwill [Line Items] | |
Beginning balance | 138,156 |
Goodwill acquired during the period | 4,111 |
Effect of exchange rate changes | 1,673 |
Ending balance | 143,940 |
Franchisee Acquisition | Continental Europe | |
Goodwill [Line Items] | |
Beginning balance | 7,242 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | (227) |
Ending balance | 7,015 |
Franchisee Acquisition | United Kingdom | |
Goodwill [Line Items] | |
Beginning balance | 1,178 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | 35 |
Ending balance | 1,213 |
Franchisee Acquisition | Other | |
Goodwill [Line Items] | |
Beginning balance | 5,943 |
Goodwill acquired during the period | 0 |
Effect of exchange rate changes | (195) |
Ending balance | $ 5,748 |
Franchise Rights Acquired, Go_5
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Schedule of Carrying Values of Finite-lived Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 231,412 | $ 260,915 |
Accumulated Amortization | 168,819 | 199,962 |
Capitalized software costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 119,537 | 121,508 |
Accumulated Amortization | 97,588 | 102,659 |
Website development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 77,823 | 105,710 |
Accumulated Amortization | 50,748 | 77,825 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 11,869 | 11,620 |
Accumulated Amortization | 11,228 | 11,010 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 14,003 | 13,967 |
Accumulated Amortization | 4,637 | 4,149 |
Trademarks and other intangible assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 223,232 | 252,805 |
Accumulated Amortization | 164,201 | 195,643 |
Franchise Rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 8,180 | 8,110 |
Accumulated Amortization | $ 4,618 | $ 4,319 |
Franchise Rights Acquired, Go_6
Franchise Rights Acquired, Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Finite-lived Intangible Assets (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Fiscal 2020 | $ 25,042 |
Fiscal 2021 | 17,802 |
Fiscal 2022 | 7,754 |
Fiscal 2023 | 1,413 |
Fiscal 2024 and thereafter | $ 10,582 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property Plant And Equipment [Abstract] | ||
Equipment | $ 83,288 | $ 75,531 |
Leasehold improvements | 84,079 | 80,002 |
Property, Plant and Equipment, Gross, Total | 167,367 | 155,533 |
Less: Accumulated depreciation and amortization | (113,301) | (103,331) |
Property and equipment, net | $ 54,066 | $ 52,202 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense, property and equipment | $ 15,687 | $ 15,066 | $ 14,840 |
Long-Term Debt - Components of
Long-Term Debt - Components of Current and Long-Term Debt (Detail) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 29, 2017 | |
Debt Instrument | ||||
Total Debt | $ 1,605,250,000 | $ 1,782,250,000 | ||
Less: Current Portion | 96,250,000 | 77,000,000 | ||
Unamortized Deferred Financing Costs | 7,446,000 | 9,509,000 | ||
Unamortized Debt Discount | 21,634,000 | 26,033,000 | $ 30,800,000 | |
Total Long-Term Debt | $ 1,479,920,000 | $ 1,669,708,000 | ||
Effective Interest Rate | [1] | 8.07% | 7.63% | |
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% | |
Term Loan due November 29, 2024 | ||||
Debt Instrument | ||||
Total Debt | $ 1,305,250,000 | $ 1,482,250,000 | ||
Unamortized Deferred Financing Costs | 6,418,000 | 8,307,000 | ||
Unamortized Debt Discount | $ 21,634,000 | $ 26,033,000 | ||
Effective Interest Rate | [1] | 7.93% | 7.53% | |
Notes due December 1, 2025 | ||||
Debt Instrument | ||||
Total Debt | $ 300,000,000 | $ 300,000,000 | ||
Unamortized Deferred Financing Costs | 1,028,000 | 1,202,000 | ||
Unamortized Debt Discount | $ 0 | $ 0 | ||
Effective Interest Rate | [1] | 8.72% | 8.69% | |
[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 | Oct. 10, 2019 | May 31, 2019 | Nov. 29, 2017 | Dec. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Instrument | |||||||||
Total Debt | $ 1,605,250,000 | ||||||||
Unamortized Debt Discount | $ 30,800,000 | 21,634,000 | $ 26,033,000 | ||||||
Write-off of deferred financing fees | 4,808,000 | $ 4,808,000 | |||||||
Gain (loss) on early extinguishment of debt | (10,524,000) | 0 | 0 | $ (8,969,000) | |||||
Debt outstanding amount | $ 1,605,250,000 | $ 1,782,250,000 | |||||||
Percentage of equity interests pledged | 100.00% | ||||||||
Effective Interest Rate | [1] | 8.07% | 7.63% | ||||||
Average interest rate on outstanding debt, exclusive the impact of swap | 8.08% | 7.73% | |||||||
Average interest rate on outstanding debt, including the impact of swap | 7.59% | 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 | |||||||
Total Debt | 150,000,000 | 1,576,170,000 | $ 1,746,708,000 | ||||||
Line off credit facility drawn amount | 0 | 0 | |||||||
Unamortized Debt Discount | 0 | 0 | |||||||
Debt outstanding amount | 0 | $ 0 | |||||||
Line of credit facility, issued but undrawn letters of credit | $ 1,159,000 | ||||||||
Effective Interest Rate | [1] | 0.00% | 4.39% | ||||||
Percentage of equity interests pledged | 0.35% | ||||||||
Consolidated first lien net debt leverage ratio | 3.01 | ||||||||
Term Loan Facility | |||||||||
Debt Instrument | |||||||||
Total Debt | 1,540,000,000 | ||||||||
Debt outstanding amount | $ 1,305,250,000 | ||||||||
Notes due December 1, 2025 | |||||||||
Debt Instrument | |||||||||
Total Debt | $ 300,000,000 | $ 300,000,000 | |||||||
Debt Instrument Interest Rate Stated Percentage | 8.625% | 8.625% | |||||||
Unamortized Debt Discount | $ 0 | $ 0 | |||||||
Debt outstanding amount | $ 300,000,000 | $ 300,000,000 | |||||||
Effective Interest Rate | [1] | 8.72% | 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 | $ 526,000 | ||||||||
Debt Instrument, maturity year | 2024 | ||||||||
Prepayment of principal amount | $ 50,000,000 | $ 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 | ||||||||
Term Loan Facility | |||||||||
Debt Instrument | |||||||||
Total Debt | $ 1,305,250,000 | ||||||||
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% | ||||||||
Term Loan Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument | |||||||||
Debt instrument variable rate floor percent determined option one | 1.75% | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument | |||||||||
Total Debt | $ 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% | ||||||||
Credit Facilities | |||||||||
Debt Instrument | |||||||||
Credit Facility, maximum borrowing capacity | $ 1,930,386,000 | ||||||||
Total Debt | 1,565,000,000 | $ 1,605,250,000 | |||||||
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 | ||||||||
[1] | Includes amortization of deferred financing costs and debt discount. |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Maturities (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 96,250 |
2021 | 77,000 |
2022 | 77,000 |
2023 | 77,000 |
2024 | 978,000 |
2025 and thereafter | 300,000 |
Total Debt | $ 1,605,250 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Oct. 09, 2003 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 21, 2010 | May 25, 2006 | Jun. 13, 2005 |
Class Of Stock Disclosures [Abstract] | |||||||
Treasury Stock, value of common stock shares authorized for repurchase | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |||
Treasury Stock, common stock shares repurchased | 0 | 0 | 0 | 0 | |||
Amount remained available to purchase shares under repurchase program | $ 208,933,000 |
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 | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Numerator: | |||||||||||
Net income attributable to WW International, Inc. | $ 29,383 | $ 47,086 | $ 53,834 | $ (10,687) | $ 43,785 | $ 70,132 | $ 70,720 | $ 39,112 | $ 119,616 | $ 223,749 | $ 163,514 |
Denominator: | |||||||||||
Weighted average shares of common stock outstanding | 67,188 | 66,280 | 64,329 | ||||||||
Effect of dilutive common stock equivalents | 2,362 | 3,835 | 3,919 | ||||||||
Weighted average diluted common shares outstanding | 69,550 | 70,115 | 68,248 | ||||||||
Earnings Per Share attributable to WW International, Inc. | |||||||||||
Basic | $ 0.44 | $ 0.70 | $ 0.80 | $ (0.16) | $ 0.65 | $ 1.05 | $ 1.07 | $ 0.60 | $ 1.78 | $ 3.38 | $ 2.54 |
Diluted | $ 0.42 | $ 0.68 | $ 0.78 | $ (0.16) | $ 0.63 | $ 1 | $ 1.01 | $ 0.56 | $ 1.72 | $ 3.19 | $ 2.40 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive common stock equivalents excluded from the calculation of diluted earnings per share | 1,705 | 419 | 1,427 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017 | May 31, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Option awards granted during period | 0 | 0 | ||||
Share-based compensation expense | $ 20,471,000 | $ 20,188,000 | $ 14,949,000 | |||
Total income tax benefit recognized for all share-based compensation awards | 2,141,000 | 4,007,000 | 3,580,000 | |||
Tax benefits realized from options exercised and RSUs and PSUs vested | 2,840,000 | $ 30,268,000 | $ 7,210,000 | |||
Compensation costs capitalized | 0 | |||||
Total unrecognized compensation cost related to inducement option, stock options, RSUs and PSUs granted | $ 35,862,000 | |||||
Compensation expense recognition period | 1 year 4 months 24 days | |||||
Options outstanding, exercise price, lower range | $ 3.97 | $ 3.97 | $ 3.97 | |||
Options outstanding, exercise price, upper range | 63.59 | 63.59 | 63.59 | |||
Weighted-average grant-date fair value of vesting options granted | $ 0 | $ 0 | $ 15.21 | |||
Total intrinsic value of vesting options exercised | $ 1,105,000 | $ 105,647,000 | $ 5,930,000 | |||
Cash received from options exercised | $ 1,076,000 | $ 33,385,000 | $ 5,475,000 | |||
Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expected term | 6 years | |||||
Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expected term | 7 years | |||||
Inducement Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option awards, expiration period | 7 years | |||||
Restricted stock units, vesting period | 4 years | |||||
Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expected term | 7 years | |||||
Stock Option | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option awards, expiration period | 7 years | |||||
Restricted stock units, vesting period | 3 years | 3 years | 3 years | |||
Stock Option | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock option awards, expiration period | 10 years | |||||
Restricted stock units, vesting period | 5 years | 5 years | 5 years | |||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expected term | 7 years | |||||
Granted | $ 19.09 | $ 63.91 | $ 31.58 | |||
Other than options, total fair value | $ 12,268,000 | $ 8,484,000 | $ 10,211,000 | |||
Other than options, granted | 852,000 | |||||
Vested | 387,000 | |||||
Restricted Stock Units | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units, vesting period | 2 years | |||||
Restricted Stock Units | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units, vesting period | 4 years | |||||
Performance-based Stock Unit | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted | $ 17.51 | $ 80.18 | $ 27.22 | |||
Other than options, total fair value | $ 2,891,000 | |||||
Other than options, granted | 47,900 | 98,500 | 280,100 | 81,300 | 289,900 | |
Performance period (years) | 3 years | |||||
Net debt to EBITDA ratio | 450.00% | |||||
Debt ratio achievement percentage | 166.67% | |||||
Vested | 219,000 | 0 | 0 | |||
Chief Executive Officer | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation, fully-vested shares granted | 40,000 | |||||
Share based compensation, value of fully-vested shares granted | $ 604,000 | |||||
Chief Executive Officer | Inducement Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Option awards granted during period | 500,000 | |||||
Stock Incentive Plan 2014 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stocks to be purchased through options | 8,500,000 | |||||
Share based compensation, fully-vested shares granted | 29,000 | 11,000 | 30,000 | |||
Share based compensation, value of fully-vested shares granted | $ 756,000 | $ 754,000 | $ 664,000 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Estimate Fair Value of Option Award on Grand Date (Detail) | 12 Months Ended |
Dec. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Volatility,minimum | 51.30% |
Volatility,maximum | 51.70% |
Risk-free interest rate | 2.17% |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected term (years) | 6 years |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected term (years) | 7 years |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Shares | ||
Beginning Balance | 3,789,000 | |
Granted | 0 | 0 |
Exercised | (74,000) | |
Cancelled | (15,000) | |
Ending Balance | 3,700,000 | 3,789,000 |
Exercisable at December 28, 2019 | 3,050,000 | |
Weighted-Average Exercise Price | ||
Beginning Balance | $ 21.69 | |
Granted | 0 | |
Exercised | 11.76 | |
Cancelled | 49.17 | |
Ending Balance | 21.77 | $ 21.69 |
Exercisable at December 28, 2019 | $ 16.61 | |
Weighted-Average Remaining Contractual Life, Outstanding at December 29, 2018 | 5 years 3 months 18 days | |
Weighted-Average Remaining Contractual Life, Exercisable at December 29, 2018 | 5 years 4 months 24 days | |
Aggregate Intrinsic Value, Outstanding at December 29, 2018 | $ 72,356 | |
Aggregate Intrinsic Value, Exercisable at December 29, 2018 | $ 71,614 |
Summary of RSU Activity Under S
Summary of RSU Activity Under Stock Plans (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Shares | |||
Beginning Balance | 881 | ||
Granted | 852 | ||
Vested | (387) | ||
Forfeited | (193) | ||
Ending Balance | 1,153 | 881 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning Balance | $ 37.91 | ||
Granted | 19.09 | $ 63.91 | $ 31.58 |
Vested | 31.67 | ||
Forfeited | 29.77 | ||
Ending Balance | $ 27.46 | $ 37.91 |
Summary of PSU Activity Under S
Summary of PSU Activity Under Stock Plans (Detail) - Performance-based Stock Unit - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Shares | |||
Beginning Balance | 380 | ||
Granted | 368 | ||
Vested | (219) | 0 | 0 |
Forfeited | (92) | ||
Ending Balance | 437 | 380 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning Balance | $ 32.56 | ||
Granted | 17.51 | $ 80.18 | $ 27.22 |
Vested | 13.19 | ||
Forfeited | 29.08 | ||
Ending Balance | $ 30.35 | $ 32.56 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||
Effective income tax rate reconciliation at federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Effective income tax rate | 20.90% | 8.40% | (12.60%) |
Tax expense related to foreign jurisdictions | $ 5,148 | ||
Tax expense related to global intangible low taxed income | 3,524 | ||
Tax expense (benefit) related to foreign derived intangible income | (5,650) | ||
Reversal of tax reserves | 1,375 | $ 3,430 | $ 2,255 |
Benefit on closure of subsidiary | 746 | 1,858 | 11,633 |
Tax windfall on share-based awards | 25,353 | ||
Reversal of valuation allowance on foreign tax credits carryforwards that have been fully utilized | 8,535 | ||
Reversal of valuation allowance on net operating losses that have been realized | 3,435 | ||
Favorable tax return adjustments | 2,678 | ||
Tax cuts and jobs act of 2017, tax expenses | 56,560 | ||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit | 68,654 | ||
Federal foreign tax credit carryforwards | 8,964 | ||
Net charge from other items | 3,130 | ||
Tax benefit due to change in estimate related to availability of foreign tax credits | 3,735 | ||
Net operating loss carry forwards | 35,534 | 38,098 | |
Tax Cuts and Jobs Act of 2017, undistributed foreign earnings | 19,124 | ||
Total amount of unrecognized tax benefits, if recognized, would affect effective tax rate | 206 | ||
Tax benefit | (31,513) | (20,493) | 18,237 |
Unrecognized tax benefits, accrued interest and penalties | 6 | 186 | |
Unrecognized tax benefits, interest and penalties recognized | $ (257) | $ (65) | $ 63 |
Non-U.S Tax Authority | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax audits year | 2014 | ||
Non-U.S Tax Authority | Latest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax audits year | 2017 | ||
IRS | Tax Years 2016 | |||
Income Taxes [Line Items] | |||
Tax benefit | $ 485 | ||
South Carolina | Tax Years 2012 to 2017 | |||
Income Taxes [Line Items] | |||
Tax benefit | $ 756 |
Income Taxes - Summary of Conso
Income Taxes - Summary of Consolidated Provision for US Federal State and Foreign Taxes on Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current: | |||
U.S. federal | $ 20,900 | $ 1,235 | $ 9,224 |
State | 1,873 | 5,918 | 1,993 |
Foreign | 18,164 | 27,013 | 18,762 |
Current Income Tax Expense (Benefit), Total | 40,937 | 34,166 | 29,979 |
Deferred: | |||
U.S. federal | (9,137) | (10,367) | (51,788) |
State | (2,434) | (2,566) | 481 |
Foreign | 2,147 | (740) | 3,091 |
Deferred tax provision | (9,424) | (13,673) | (48,216) |
Total tax provision (benefit) | $ 31,513 | $ 20,493 | $ (18,237) |
Income Taxes - Components of Co
Income Taxes - Components of Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 75,932 | $ 126,171 | $ 53,045 |
Foreign | 75,028 | 117,890 | 92,035 |
Income before income taxes | $ 150,960 | $ 244,061 | $ 145,080 |
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) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
State income taxes (net of federal benefit) | (0.30%) | 1.10% | 2.50% |
Cessation of operations | (0.50%) | (0.80%) | (8.00%) |
Research and development credit | (1.20%) | (0.50%) | (1.30%) |
Tax windfall on share-based awards | (0.10%) | (8.60%) | (1.10%) |
Reserves for uncertain tax positions | (0.90%) | (1.40%) | (0.20%) |
Tax rate changes | 0.00% | 0.30% | (49.60%) |
(Decrease) increase in valuation adjustment related to foreign tax credits | 0.00% | (3.50%) | 3.50% |
GILTI | 2.30% | 1.50% | 0.00% |
FDII | (3.70%) | (1.90%) | 0.00% |
Increase (decrease) in valuation allowance due to net operating loss | 0.40% | (0.70%) | 3.00% |
Goodwill impairment | 0.00% | 0.00% | 3.20% |
Tax return adjustments related to the 2017 Tax Act | (0.70%) | (1.10%) | 0.00% |
Impact of foreign operations | 3.40% | 3.20% | (0.70%) |
Other | 1.20% | (0.20%) | 1.10% |
Total effective tax rate | 20.90% | 8.40% | (12.60%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Income Tax Disclosure [Abstract] | ||
Interest expense disallowance | $ 38,396 | $ 22,418 |
Operating lease liabilities | 39,095 | 0 |
Operating loss carryforwards | 9,375 | 9,862 |
Provision for estimated expenses | 2,578 | 2,320 |
Salaries and wages | 2,037 | 2,518 |
Share-based compensation | 7,533 | 7,666 |
Other comprehensive income | 9,816 | 5,877 |
Other | 4,125 | 7,481 |
Less: valuation allowance | (6,760) | (6,191) |
Total deferred tax assets | 106,195 | 51,951 |
Goodwill and intangible assets | (228,048) | (223,938) |
Operating lease assets | (36,670) | 0 |
Depreciation | (1,082) | (1,149) |
Prepaid expenses | (1,311) | (886) |
Total deferred tax liabilities | (267,111) | (225,973) |
Net deferred tax liabilities | $ (160,916) | $ (174,022) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 3,665 | $ 15,173 | $ 10,297 |
Increases related to tax positions taken in current year | 0 | 60 | 266 |
Increases related to tax positions taken in prior years | 264 | 1,207 | 7,246 |
Reductions related to tax positions taken in prior years | (2,731) | (10,560) | (1,268) |
Reductions related to settlements with tax authorities | (992) | (2,215) | 0 |
Reductions related to the expiration of statutes of limitations | 0 | 0 | (1,369) |
Balance at end of year | $ 206 | $ 3,665 | $ 15,173 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, contribution cost | $ 1,313 | $ 1,317 | $ 1,195 |
Profit Sharing Plan | Management | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, contribution cost | $ 3,691 | $ 2,913 | $ 2,382 |
EPSP annualized interest rate, added percentage above prime rate | 2.00% | ||
Maximum | Profit Sharing Plan | Management | |||
Defined Contribution Plan Disclosure [Line Items] | |||
EPSP annualized interest rate cap | 15.00% | ||
Savings Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, employer contribution percentage | 6.00% | 6.00% | 6.00% |
Employee benefit plans, contribution cost | $ 2,901 | $ 3,405 | $ 2,676 |
Savings Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plans, employer matching contribution percentage | 50.00% | 50.00% | 50.00% |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Net cash paid during the year for: | ||||
Interest expense | $ 130,081 | $ 119,866 | $ 115,233 | |
Income taxes(a) | [1] | 34,268 | 12,095 | 27,282 |
Noncash investing and financing activities were as follows: | ||||
Fair value of net assets acquired in connection with acquisitions | 118 | 6,026 | 0 | |
Change in Capital expenditures and Capitalized software included in accounts payable and accrued expenses | $ 583 | $ (844) | $ (3,450) | |
[1] | Fiscal 2019 includes tax refunds received of $13,309. |
Cash Flow Information - Sched_2
Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Supplemental Cash Flow Elements [Abstract] | |
Tax refunds received, amount | $ 13,309 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum commitments under non-cancelable purchase obligations | $ 7,600 |
Minimum commitments under non-cancelable purchase obligations, due in 2020 | 5,300 |
Minimum commitments under non-cancelable purchase obligations, due in 2021 | $ 2,300 |
Segment and Geographic Data - A
Segment and Geographic Data - Additional Information (Detail) | 12 Months Ended |
Dec. 28, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment and Geographic Data - I
Segment and Geographic Data - Information About Reportable Segments (Detail) - USD ($) $ in Thousands | Nov. 29, 2017 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | $ 332,583 | $ 348,567 | $ 369,023 | $ 363,164 | $ 330,386 | $ 365,765 | $ 409,747 | $ 408,223 | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 | |
Operating income | 65,886 | 94,729 | 105,473 | 21,897 | 80,347 | 118,860 | 127,708 | 62,073 | 287,985 | 388,985 | 267,305 | |
Interest expense | 135,267 | 142,346 | 112,784 | |||||||||
Other expense, net | 1,758 | 2,578 | 472 | |||||||||
Early extinguishment of debt, net | $ 10,524 | 0 | 0 | 8,969 | ||||||||
Provision for (benefit from) income taxes | 31,513 | 20,493 | (18,237) | |||||||||
Net income | 119,447 | 223,568 | 163,317 | |||||||||
Net loss attributable to the noncontrolling interest | 169 | 181 | 197 | |||||||||
Net income attributable to WW International, Inc. | $ 29,383 | $ 47,086 | $ 53,834 | $ (10,687) | $ 43,785 | $ 70,132 | $ 70,720 | $ 39,112 | 119,616 | 223,749 | 163,514 | |
Depreciation and amortization | 54,335 | 52,600 | 56,992 | |||||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 391,055 | 494,725 | 336,857 | |||||||||
Depreciation and amortization | 39,597 | 40,568 | 42,535 | |||||||||
General corporate expenses | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
General corporate expenses | 103,070 | 105,740 | 69,552 | |||||||||
Depreciation and amortization | 14,738 | 12,032 | 14,457 | |||||||||
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 979,302 | 1,047,251 | 910,349 | |||||||||
North America | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 281,937 | 351,599 | 247,587 | |||||||||
Depreciation and amortization | 36,643 | 37,137 | 39,501 | |||||||||
Continental Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 293,233 | 304,325 | 239,223 | |||||||||
Continental Europe | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 95,201 | 114,708 | 73,689 | |||||||||
Depreciation and amortization | 1,709 | 1,347 | 1,203 | |||||||||
United Kingdom | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 94,557 | 107,072 | 99,989 | |||||||||
United Kingdom | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 9,543 | 18,814 | 19,939 | |||||||||
Depreciation and amortization | 802 | 1,487 | 1,205 | |||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 46,245 | 55,473 | 57,350 | |||||||||
Other | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 4,374 | 9,604 | (4,358) | |||||||||
Depreciation and amortization | $ 443 | $ 597 | $ 626 |
Segment and Geographic Data - S
Segment and Geographic Data - Sources of Revenue and Other Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | $ 332,583 | $ 348,567 | $ 369,023 | $ 363,164 | $ 330,386 | $ 365,765 | $ 409,747 | $ 408,223 | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 | ||
Long-lived assets | 54,066 | [1] | 52,202 | 54,066 | [1] | 52,202 | 47,978 | ||||||
Operating lease assets | 151,983 | 0 | 151,983 | 0 | |||||||||
United States | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 913,930 | 974,843 | 846,249 | ||||||||||
Long-lived assets | 43,909 | [1] | 43,772 | 43,909 | [1] | 43,772 | 42,114 | ||||||
Operating lease assets | 134,623 | 134,623 | |||||||||||
Canada | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 65,372 | 72,408 | 64,100 | ||||||||||
Long-lived assets | 4,997 | [1] | 4,825 | 4,997 | [1] | 4,825 | 2,563 | ||||||
Operating lease assets | 9,270 | 9,270 | |||||||||||
Continental Europe | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 293,233 | 304,325 | 239,223 | ||||||||||
Long-lived assets | 2,374 | [1] | 1,257 | 2,374 | [1] | 1,257 | 642 | ||||||
Operating lease assets | 4,490 | 4,490 | |||||||||||
United Kingdom | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 94,557 | 107,072 | 99,989 | ||||||||||
Long-lived assets | 2,068 | [1] | 1,924 | 2,068 | [1] | 1,924 | 1,920 | ||||||
Operating lease assets | 2,533 | 2,533 | |||||||||||
Other | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 46,245 | 55,473 | 57,350 | ||||||||||
Long-lived assets | 718 | [1] | $ 424 | 718 | [1] | 424 | 739 | ||||||
Operating lease assets | $ 1,067 | 1,067 | |||||||||||
Digital Subscription Revenues | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 609,996 | 567,767 | 416,722 | ||||||||||
Studio + Digital Fees | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 597,270 | 705,429 | 664,957 | ||||||||||
In-Workshop Product sales | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | 118,493 | 148,856 | 137,855 | ||||||||||
Licensing, Franchise Royalties and Other | |||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||
Net revenue | $ 87,578 | $ 92,069 | $ 87,377 | ||||||||||
[1] | Amounts include finance lease assets |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 29, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Debt outstanding amount | $ 1,605,250,000 | ||
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 | 1,597,852,000 | 1,757,717,000 | |
Debt outstanding amount | $ 1,576,170,000 | $ 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 | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap liability | $ 21,597 | $ 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 | 21,597 | 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 |
Derivative Instruments and He_2
Derivative Instruments and Hedging - Additional Information (Detail) - USD ($) | Jun. 07, 2019 | Jun. 11, 2018 | Jul. 26, 2013 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative | ||||||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive loss net of tax | $ (15,529,000) | $ (1,175,000) | $ (5,392,000) | |||
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 | $ 5,503,000 | |||||
Derivative loss included in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next 12 months, before tax | $ 7,377,000 | |||||
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 | $ 15,529,000 | 1,175,000 | ||||
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive loss before tax | 20,856,000 | 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 | 1,881,000 | |||||
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 | $ 19,716,000 | $ 5,578,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ (808,943) | $ (1,015,986) | $ (1,207,573) | |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (11,015) | (5,293) | 6,104 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | (602) | 2,115 | 10,514 |
Adoption of accounting standard | [1] | (2,485) | ||
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | (11,617) | (5,663) | 16,618 |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | 22 | 373 | 35 |
Ending balance | (685,543) | (808,943) | (1,015,986) | |
(Loss) Gain on Qualifying Hedges | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | [1] | (1,175) | (5,392) | (16,002) |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (13,752) | 3,263 | 883 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | (602) | 2,115 | 9,727 |
Adoption of accounting standard | [1] | (1,161) | ||
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | (14,354) | 4,217 | 10,610 |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | 0 | 0 | 0 |
Ending balance | [1] | (15,529) | (1,175) | (5,392) |
Loss on Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | [1] | (14,582) | (5,075) | (11,118) |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | 2,737 | (8,556) | 5,221 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | [1],[2] | 0 | 0 | 787 |
Adoption of accounting standard | [1] | (1,324) | ||
Net current period other comprehensive (loss) income including noncontrolling interest | [1] | 2,737 | (9,880) | 6,008 |
Less: net current period other comprehensive income (loss) attributable to the noncontrolling interest | [1] | 22 | 373 | 35 |
Ending balance | [1] | (11,823) | (14,582) | (5,075) |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | [1] | (15,757) | (10,467) | (27,120) |
Ending balance | [1] | $ (27,352) | $ (15,757) | $ (10,467) |
[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 | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (135,267) | $ (142,346) | $ (112,784) | |
Other expense (income), net | 1,758 | 2,578 | 472 | |
Income before income taxes | (150,960) | (244,061) | (145,080) | |
Provision for (benefit from) income taxes | 31,513 | 20,493 | (18,237) | |
Net income | (119,447) | (223,568) | (163,317) | |
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 | [1] | 807 | (2,835) | (15,946) |
Provision for (benefit from) income taxes | [1] | (205) | 720 | 6,219 |
Net income | [1] | 602 | (2,115) | (9,727) |
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 | [1] | 807 | (2,835) | (15,946) |
Loss on Foreign Currency Translation | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other expense (income), net | [1] | 0 | 0 | (787) |
Income before income taxes | [1] | 0 | 0 | (787) |
Provision for (benefit from) income taxes | [1] | 0 | 0 | 0 |
Net income | [1] | $ 0 | $ 0 | $ (787) |
[1] | Amounts in parentheses indicate debits to profit/loss |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 15, 2019 | Oct. 18, 2015 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Related Party Transaction [Line Items] | |||||
Initial agreement term | 5 years | ||||
Option awards granted during period | 0 | 0 | |||
Stock options exercised | 74,000 | ||||
Ms. Winfrey | |||||
Related Party Transaction [Line Items] | |||||
Option awards granted during period | 3,276 | ||||
Purchased good from related entity | $ 84 | ||||
Accounts payable to related parties | $ 72 | $ 62 | |||
Number of shares purchased from related party | 954,000 | ||||
Stock options exercised | 1,405,000 | ||||
Ms. Winfrey and her related entities | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, service provided by related party | $ 2,791 | $ 2,208 | $ 4,266 | ||
Related Party, advertising expenses | $ 330 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Expenses | $ 6,331 |
Expenses, after tax | 4,727 |
Payments for expenses | 5,077 |
Provisions | 83 |
Restructuring remaining liability | 1,171 |
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 |
Summary of Unaudited Quarterly
Summary of Unaudited Quarterly Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues, net | $ 332,583 | $ 348,567 | $ 369,023 | $ 363,164 | $ 330,386 | $ 365,765 | $ 409,747 | $ 408,223 | $ 1,413,337 | $ 1,514,121 | $ 1,306,911 |
Gross profit | 175,151 | 194,769 | 215,814 | 200,948 | 185,220 | 215,394 | 244,794 | 221,003 | 786,682 | 866,410 | 692,649 |
Operating income | 65,886 | 94,729 | 105,473 | 21,897 | 80,347 | 118,860 | 127,708 | 62,073 | 287,985 | 388,985 | 267,305 |
Net (loss) income attributable to the Company | $ 29,383 | $ 47,086 | $ 53,834 | $ (10,687) | $ 43,785 | $ 70,132 | $ 70,720 | $ 39,112 | $ 119,616 | $ 223,749 | $ 163,514 |
Basic (loss) earnings per share | $ 0.44 | $ 0.70 | $ 0.80 | $ (0.16) | $ 0.65 | $ 1.05 | $ 1.07 | $ 0.60 | $ 1.78 | $ 3.38 | $ 2.54 |
Diluted (loss) earnings per share | $ 0.42 | $ 0.68 | $ 0.78 | $ (0.16) | $ 0.63 | $ 1 | $ 1.01 | $ 0.56 | $ 1.72 | $ 3.19 | $ 2.40 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Allowance for doubtful accounts | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 1,743 | $ 2,001 | $ 2,973 | |
Additions charged to Costs and Expenses | (123) | 130 | (587) | |
Additions charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | 193 | (388) | (385) |
Balance at End of Period | 1,813 | 1,743 | 2,001 | |
Inventory and other reserves | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 3,843 | 3,984 | 3,703 | |
Additions charged to Costs and Expenses | 8,710 | 7,906 | 7,823 | |
Additions charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | (7,868) | (8,047) | (7,542) |
Balance at End of Period | 4,685 | 3,843 | 3,984 | |
Tax valuation allowance | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 6,191 | 22,760 | 18,277 | |
Additions charged to Costs and Expenses | 709 | 1,893 | 11,515 | |
Additions charged to Other Accounts | (40) | (403) | 1,079 | |
Deductions | [1] | (100) | (18,059) | (8,111) |
Balance at End of Period | $ 6,760 | $ 6,191 | $ 22,760 | |
[1] | Primarily represents the utilization of established reserves, net of recoveries, where applicable. |