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EX-99.2 - EX-99.2 - WW INTERNATIONAL, INC.d707019dex992.htm

Exhibit 99.1

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

14. Segment and Geographic Data

Effective December 29, 2013, the Company realigned its organizational structure to better leverage its significant assets and align its innovation efforts by integrating its Weight Watchers International and WeightWatchers.com businesses and assigning responsibility for those integrated businesses on a geographical basis. This resulted in the Company changing the determination of its reportable segments such that the Company now has four reportable segments: North America, United Kingdom, Continental Europe and Rest of World. Rest of World represents Asia Pacific, Emerging Markets and Franchise operations, 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 therefore immaterial for separate disclosure. The Company determined these segments to be its reportable segments due to the fact that discrete financial information for each of these segments is regularly reviewed by the chief operating decision maker (“CODM”). To be consistent with the information that is presented to the CODM, the Company does not include intercompany activity in the segment results. Segment information for all periods presented below has been revised to reflect the new reportable segment structure.

 

     Total Revenue for the Year Ended  
     December 28,
2013
    December 29,
2012
    December 31,
2011
 

North America

   $ 1,164,018      $ 1,258,461      $ 1,234,095   

United Kingdom

     172,783        204,506        227,238   

Continental Europe

     299,403        270,701        247,003   

Rest of World

     87,919        105,764        124,158   
  

 

 

   

 

 

   

 

 

 

Total revenue

   $ 1,724,123      $ 1,839,432      $ 1,832,494   
  

 

 

   

 

 

   

 

 

 
     Net Income for the Year Ended  
     December 28,
2013
    December 29,
2012
    December 31,
2011
 

Segment operating income:

      

North America

   $ 406,109      $ 437,379      $ 460,269   

United Kingdom

     34,429        63,320        62,701   

Continental Europe

     66,273        38,714        36,493   

Rest of World

     13,774        22,690        29,888   
  

 

 

   

 

 

   

 

 

 

Total segment operating income

     520,585        562,103        589,351   

General corporate expenses

     (59,828     (51,298     (43,023

Interest expense

     103,108        90,537        59,850   

Other expense, net

     599        1,979        3,386   

Early extinguishment of debt

     21,685        1,328        0   

Provision for taxes

     130,640        159,535        178,748   
  

 

 

   

 

 

   

 

 

 

Net Income

   $ 204,725      $ 257,426      $ 304,344   
  

 

 

   

 

 

   

 

 

 


     Depreciation and Amortization for the Year Ended  
     December 28,
2013
     December 29,
2012
     December 31,
2011
 

North America

   $ 32,923       $ 26,808       $ 20,033   

United Kingdom

     1,269         1,159         1,152   

Continental Europe

     2,222         2,182         2,133   

Rest of World

     1,965         2,068         2,796   
  

 

 

    

 

 

    

 

 

 

Total segment depreciation and amortization

     38,379         32,217         26,114   

General corporate depreciation and amortization

     14,197         11,493         9,706   
  

 

 

    

 

 

    

 

 

 

Depreciation and amortization

   $ 52,576       $ 43,710       $ 35,820   
  

 

 

    

 

 

    

 

 

 

The following table presents information about the Company’s revenue by source and other information by geographic area. There were no material amounts of sales or transfers among geographic areas and no material amounts of US export sales.

 

     Revenues for the Year Ended  
     December 28,
2013
     December 29,
2012
     December 31,
2011
 

Meeting fees

   $ 851,626       $ 934,933       $ 990,296   

Internet revenues

     522,226         504,338         399,495   

Product sales

     245,319         294,758         334,303   

Franchise royalties

     9,035         12,732         14,461   

Other

     95,917         92,671         93,939   
  

 

 

    

 

 

    

 

 

 
   $ 1,724,123       $ 1,839,432       $ 1,832,494   
  

 

 

    

 

 

    

 

 

 
     Revenues for the Year Ended  
     December 28,
2013
     December 29,
2012
     December 31,
2011
 

United States

   $ 1,068,216       $ 1,169,234       $ 1,151,811   

Canada

     95,802         89,227         82,284   

United Kingdom

     172,783         204,506         227,238   

Continental Europe

     299,403         270,701         247,003   

Rest of World

     87,919         105,764         124,158   
  

 

 

    

 

 

    

 

 

 

Total Foreign

     655,907         670,198         680,683   
  

 

 

    

 

 

    

 

 

 
   $ 1,724,123       $ 1,839,432       $ 1,832,494   
  

 

 

    

 

 

    

 

 

 
     Long-Lived Assets  
     December 28,
2013
     December 29,
2012
     December 31,
2011
 

United States

   $ 79,448       $ 63,147       $ 33,722   

Canada

     3,070         2,561         1,474   

United Kingdom

     1,192         1,645         1,508   

Continental Europe

     2,083         2,431         2,208   

Rest of World

     1,259         1,984         2,160   
  

 

 

    

 

 

    

 

 

 

Total Foreign

     7,604         8,621         7,350   
  

 

 

    

 

 

    

 

 

 
   $ 87,052       $ 71,768       $ 41,072