10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 28, 2013.

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

Commission file number 001-16769

WEIGHT WATCHERS INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Virginia	11-6040273
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

675 Avenue of the Americas, 6^th Floor, New York, New York 10010

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code:

(212) 589-2700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, no par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x    No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  x    No   ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x    Accelerated filer  ¨

Non-accelerated filer  ¨  (Do not check if a smaller reporting company)            Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes  ¨    No   x

The aggregate market value of the registrant’s common stock held by non-affiliates as of June 28, 2013 (based upon the closing price of $46.00 per share of common stock as of June 28, 2013, the last business day of the registrant’s second fiscal quarter of 2013, as quoted on the New York Stock Exchange) was $1,254,625,620. For purposes of this computation, it is assumed that shares of common stock held by our directors, executive officers and our controlling shareholders as of June 28, 2013 would be deemed stock held by affiliates.

The number of shares outstanding of common stock as of January 31, 2014 was 56,426,741.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement for its 2014 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, 2013.

Weight Watchers International, Inc.

Annual Report on Form 10-K

Table of Contents

		Page
Part I
Item 1.	Business		1
Item 1A.	Risk Factors		15
Item 1B.	Unresolved Staff Comments		22
Item 2.	Properties		22
Item 3.	Legal Proceedings		23
Item 4.	Mine Safety Disclosures		23
	Executive Officers and Directors of the Company		24
Part II
Item 5.	Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities		27
Item 6.	Selected Financial Data		28
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		67
Item 8.	Financial Statements and Supplementary Data		68
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure		68
Item 9A.	Controls and Procedures		68
Item 9B.	Other Information		69
Part III
Item 10.	Directors, Executive Officers and Corporate Governance		70
Item 11.	Executive Compensation		70
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters		70
Item 13.	Certain Relationships and Related Transactions, and Director Independence		70
Item 14.	Principal Accountant Fees and Services		70
Part IV
Item 15.	Exhibits and Financial Statement Schedules		71

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BASIS OF PRESENTATION

Weight Watchers International, Inc. is a Virginia corporation with its principal executive offices in New York, New York. In this Annual Report on Form 10-K unless the context indicates otherwise: “we,” “us,” “our” and the “Company” refer to Weight Watchers International, Inc. and all of its businesses consolidated for purposes of its financial statements; “Weight Watchers International” and “WWI” refer to Weight Watchers International, Inc. and all of the Company’s businesses other than WeightWatchers.com; “WeightWatchers.com” refers to WeightWatchers.com, Inc. and all of the Company’s Internet-based businesses; and “NACO” refers to our North American Company-owned meeting operations.

Our fiscal year ends on the Saturday closest to December 31st and consists of either 52- or 53-week periods. In this Annual Report on Form 10-K:

• “fiscal 2008” refers to our fiscal year ended January 3, 2009 (included a 53^rd week);

• “fiscal 2009” refers to our fiscal year ended January 2, 2010;

• “fiscal 2010” refers to our fiscal year ended January 1, 2011;

• “fiscal 2011” refers to our fiscal year ended December 31, 2011;

• “fiscal 2012” refers to our fiscal year ended December 29, 2012;

• “fiscal 2013” refers to our fiscal year ended December 28, 2013; and

• “fiscal 2014” refers to our fiscal year ended January 3, 2015 (includes a 53^rd week).

The following terms used in this Annual Report on Form 10-K are our trademarks: Weight Watchers^®, PointsPlus^®, ProPoints ^® and ActiveLink^®.

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PART I

Item 1. Business

Overview

We are a leading, global-branded consumer company and the world’s leading provider of weight management services, operating globally through a network of Company-owned and franchise operations. With five decades of weight management experience, expertise and know-how, we have established Weight Watchers as one of the most recognized and trusted brand names among weight-conscious consumers. In fiscal 2013, consumers spent approximately $5 billion on Weight Watchers branded products and services, including meetings conducted by us and our franchisees, Internet subscription products sold by WeightWatchers.com, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications.

The high awareness and credibility of our brand among all types of weight-conscious consumers—women and men, consumers online and offline, the support-inclined and the self-help-inclined—provide us with a significant competitive advantage and growth opportunity. As the number of overweight and obese people worldwide grows, we believe our global presence and brand awareness uniquely position us to capture an increasing share of the global weight management market through our core meetings business and our WeightWatchers.com business.

In the 50 years since our founding, we have built our meetings business by helping millions of people around the world lose weight through sensible and sustainable food plans, exercise, behavior modification and group support. Each week, approximately a million members attend over 40,000 Weight Watchers meetings around the world, which are run by more than 10,000 leaders—each of whom has lost weight on our program. We are constantly improving our scientifically-based weight management approaches, and we are one of only a few commercial weight management programs whose efficacy has been clinically proven. Our strong brand, together with the effectiveness of our plans, loyal customer base and unparalleled network and infrastructure, enable us to attract new and returning members efficiently. Our customer acquisition costs are relatively low due to both word of mouth referrals and our efficient mass marketing programs.

Through WeightWatchers.com, we offer Internet subscription weight management products, which include applications for mobile and tablet devices, to consumers and maintain an interactive presence on the Internet for the Weight Watchers brand. We believe WeightWatchers.com is the leading global provider of weight management Internet subscription products. Currently, we provide two Internet subscription offerings: Weight Watchers Online and Weight Watchers eTools. Weight Watchers Online provides interactive and personalized resources that allow users to follow our weight management plans via the Internet or on their mobile device. Weight Watchers eTools is the Internet weight management companion for Weight Watchers meetings members who want to interactively manage the day-to-day aspects of their weight management plans on the Internet or on their mobile device. Weight Watchers eTools is offered for free as part of our Monthly Pass commitment plan, or Monthly Pass, which provides our meetings members with unlimited access to meetings at a discounted monthly rate. We currently offer our two Internet subscription products in eleven countries, including the United States, Canada, the United Kingdom, Germany and Australia.

Change in Segment Reporting

Effective the first day of fiscal 2014 (i.e. December 29, 2013), we realigned our organizational structure to better leverage our significant assets and align our innovation efforts, which resulted in new reporting segments (North America, United Kingdom, Continental Europe, and Rest of World) for the purpose of making operational and resource decisions and assessing financial performance. The segment information presented in this Annual Report on Form 10-K does not reflect this change as the change was not effected internally until our first quarter of fiscal 2014. We will begin reporting segment information based on these new segments in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2014.

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The Global Weight Management Market

We participate in the global weight management market. According to Marketdata Enterprises, the weight management industry had revenue of approximately $62 billion in 2012 in the United States alone. The number of overweight and obese people has steadily increased around the world over the past 20 years and is estimated to reach approximately 3.0 billion by 2015, primarily driven by changing eating patterns and increasingly sedentary lifestyles. Between 2009 and 2010, 69% of Americans at or over the age of 20 were considered overweight and over a third of these were obese. Numerous diseases, including heart disease, high blood pressure and Type II diabetes, are associated with being overweight or obese.

Our Services and Products

Our Weight Management Plans

In each of our markets, we offer services and products that are built upon our weight management program which is comprised of a range of nutritional, exercise and behavioral tools and approaches. Beginning towards the end of fiscal 2013, we launched globally a new, two-week starter plan, known as Simple Start in NACO, built upon a foundation of Weight Watchers Power Foods, which are low in energy density. This starter plan provides an on-ramp to our weight management plan, PointsPlus as it is known in NACO, or ProPoints as it is known in certain of our other geographies. PointsPlus is an innovative weight loss system, developed from a combination of advancements in scientific research and insights of customers who experienced prior Weight Watchers plans. With the PointsPlus system, each food has a PointsPlus value determined by a unique and proprietary formula based on the food’s protein, carbohydrates, fat and dietary fiber content. The formula takes into account how these nutrients are processed by the body as well as their impact on satiety. Subject to certain nutritional guidelines, customers following the PointsPlus system can eat any food as long as the PointsPlus value of their total food consumption stays within their personalized PointsPlus “budget”. Since nutritious foods generally have low PointsPlus values, this approach guides customers toward healthier eating habits. In 2013 we introduced the Weight Watchers 360° plan, which also built upon the benefits of the PointsPlus system by adding education and tools for customers to navigate environments in which they live day-to-day and behavioral steps and strategies to develop routines to help enhance long-term weight management success. We continue to offer the benefits of this education and these tools to our customers.

Our Clinical Efficacy

Our program is one of the most clinically-studied commercial weight management programs, with more than 80 peer-reviewed publications in the last 20 years. For example, in fiscal 2012, a clinical trial funded by the National Institutes of Health in the United States found that individuals following Weight Watchers lost more weight, on average, over a 48-week period than those following a program administered by healthcare professionals preceding a period of time of following Weight Watchers. Similarly, in 2013, a randomized controlled trial conducted by the Baylor College of Medicine researchers and funded by us was published in The American Journal of Medicine and found that overweight and obese adults following Weight Watchers lost significantly more weight at six months than those who tried to lose weight on their own.

Our Meetings

We present our program in a series of weekly meetings of approximately one hour in duration. Meetings are conveniently scheduled throughout the day. Typically, we hold meetings in either meeting rooms in well-located civic or other community centers or space leased in retail centers.

Our group support system remains the cornerstone of our meetings. Members provide each other support by sharing their experiences with, and by providing encouragement and empathy to, other people experiencing similar weight management challenges. This group support provides the reassurance that no one must overcome his or her weight management challenge alone. Group support assists members in building healthy routines that

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support long-term weight management through changes in behavior, eating, and exercise. We facilitate this support through interactive meetings that encourage learning through group activities and discussions and individual goal-setting. In our meetings, our leaders present our program in a manner that combines group support and education with a structured approach to food, activity and lifestyle modification developed by credentialed weight management experts. Our more than 10,000 leaders worldwide run our meetings and educate members on the Weight Watchers method of successful and sustained weight management. Our leaders also provide inspiration and motivation for our members and are examples of our program’s effectiveness because they have lost weight and maintained their weight loss on our program. For meetings, leaders are typically paid a base rate (which varies based on geographic region), plus various types of commissions based on the number of attendances and products sold. Leaders are also typically paid on an hourly basis (which varies based on the nature of the task and their geographic region) for all of their non-meeting activities.

Meetings typically begin with registration and a confidential weigh-in to track each member’s progress. Leaders and receptionists are trained to engage the members at the weigh-in to talk about their weight management efforts during the previous week and to provide encouragement and advice. Part of the meeting is educational, where the leader uses personal anecdotes, games or open questions to demonstrate some of our core weight management strategies, such as self belief and self discipline. During the meeting, members are encouraged to reflect on and share their learnings from the preceding week to get fresh ideas for addressing challenges and be recognized for accomplishments both on the scale and behaviorally. The leader also facilitates a group discussion about a pre-selected topic selected by us related to weight management, such as seasonal eating triggers, emotional eating, planning, and self-monitoring. The leader encourages substantial participation and discusses supporting products and digital tools as appropriate. At the end of each meeting, members are encouraged to define a personal, short-term goal for the coming week. Immediately following each meeting, new members are given an orientation to our current weight management plans.

Our leaders help set a member’s weight goal within a healthy range based on body mass index. When members reach their weight goal and maintain it for six weeks, they achieve lifetime member status. This gives them the privilege to attend our meetings free of charge as long as they maintain their weight within a certain range. Successful members also become eligible to apply for positions as leaders. Field management and current leaders constantly identify potential new leaders from members who have strong interpersonal skills.

The primary payment structure for our meetings business globally is through a monthly commitment plan, referred to as Monthly Pass in NACO and many other geographies. With Monthly Pass, members receive unlimited access to meetings at a discounted monthly price plus free access to Weight Watchers eTools, the Internet weight management companion for Weight Watchers meetings members. We offer the Monthly Pass commitment plan in eleven countries, including the United Kingdom, Germany and Australia. Monthly Pass is generally offered at an approximate 20% to 34% discount to our traditional “pay-as-you-go” weekly fee depending on the country. For example, in the United States, Monthly Pass is sold for $42.95 per month (approximately $9.91 per week) as compared to the average “pay-as-you-go” weekly fee of $14.00. Under the terms of Monthly Pass, a fee is charged automatically to the member’s credit or debit card on a monthly basis until the member elects to cancel. Monthly Pass is available for purchase throughout the year.

The Company’s meetings business payment structure has shifted significantly in recent years toward Monthly Pass. In fiscal 2013, on an aggregate basis across the markets where we offer Monthly Pass, well over three quarters of our meeting paid weeks, and approximately three quarters of our member attendances, were attributable to Monthly Pass. Our traditional payment structure in our meetings business is a “pay-as-you-go” arrangement. Under this traditional method, a new member pays an initial registration fee and then a weekly fee for each meeting attended, although free registration is offered as a promotion during certain times of the year. We also offer prepayment plans consisting of pre-paid meeting vouchers and coupons in some countries.

As of the end of fiscal 2013, approximately 14% of our total worldwide attendance was represented by franchised operations. We estimate that, in fiscal 2013, these franchised operations attracted attendance of

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approximately seven million people. Franchisees typically pay us a fee equal to 10% of their meeting fee revenues. We have enjoyed a mutually beneficial relationship with our franchisees over many years. In our early years, we used an aggressive franchising strategy to quickly establish a meeting infrastructure to pre-empt competition. Since then, we have acquired a large number of franchises and expect to continue to do so opportunistically.

Our franchisees are responsible for operating classes in their franchise class territory using the program and marketing guidelines we have developed. We provide a central support system for the program and our brand. Franchisees purchase products from us at wholesale prices for resale directly to members. Franchisees are obligated to adhere strictly to our program content guidelines, with the freedom to control pricing, class locations, operational structure and local promotions. Franchisees provide local operational expertise, advertising and public relations. Franchisees are required to keep accurate records that we audit from time to time. Most franchise agreements are perpetual and can be terminated only upon a material breach or bankruptcy of the franchisee.

Our Product Sales

We sell a range of products, including bars, snacks, cookbooks, food and restaurant guides with PointsPlus values, Weight Watchers magazines, PointsPlus calculators, fitness kits and ActiveLink, an activity monitor and web experience that tracks activity throughout the day. These products complement our weight management plans and help our customers in their weight management efforts. We have focused on selling products that drive recurring purchases. Our products are designed to be high quality, offer benefits related to the Weight Watchers plans and be easy to merchandise.

We sell our products primarily through our meeting operations and to our franchisees. Excluding sales to or by our franchisees, in fiscal 2013, sales of proprietary products in our meeting operations represented approximately 12% of our revenues. We seek to grow our product sales per attendee in our meeting operations by continuing to optimize our product offerings by updating existing products, selectively introducing new products and sharing best practices across geographies.

Revenues from our WWI reporting segment, including revenues from meetings and product sales, contributed 69.4% of our total revenues in fiscal 2013, 72.2% of our total revenues in fiscal 2012 and 77.8% of our total revenues in fiscal 2011.

Our WeightWatchers.com Offerings

Through WeightWatchers.com, we are well positioned to benefit from the large self-help weight management market as well as several trends taking place in the global Internet marketplace, including an increased willingness of consumers to access digital content and the growth of e-Commerce and digital advertising. According to the U.S. Census Bureau, U.S. retail eCommerce sales as a percent of total U.S. retail sales more than doubled between the third quarter of 2005 and the third quarter of 2013. We offer two Internet subscription products—Weight Watchers Online and Weight Watchers eTools. We have offered these products in the United States since 2001 and currently offer them in ten other countries, including the United Kingdom, Canada, France, Germany and Australia. While these products have similar functionality across markets, each is tailored specifically to the local market.

Revenues from our WeightWatchers.com reporting segment contributed 30.6% of our total revenues in fiscal 2013, 27.8% of our total revenues in fiscal 2012 and 22.2% of our total revenues in fiscal 2011.

Subscription Products

Weight Watchers Online is a product based on the Weight Watchers approach to weight management and is designed to attract self-help-inclined consumers. Weight Watchers Online helps consumers adopt a healthier

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lifestyle, with a view toward long-term behavior modification—a key aspect of the Weight Watchers approach toward sustainable weight loss. Weight Watchers Online allows consumers to learn how to make healthier food choices and lead a more active lifestyle by providing them with online and mobile content, functionality, resources and interactive web-based weight management plans. As of the end of fiscal 2013, WeightWatchers.com had over 1.7 million active Weight Watchers Online subscribers.

Weight Watchers eTools is an Internet weight management product available to consumers who are Weight Watchers meetings members. Weight Watchers eTools allows users to interactively manage the day-to-day aspects of their weight management plans online or via their mobile devices, discover different food options, stay informed and motivated, and keep track of their weight management efforts.

As Weight Watchers Online and Weight Watchers eTools reflect different value propositions, the subscription products are priced differently. Both subscription products currently offer an initial pre-paid subscription term of one or three months, continuing thereafter on a pre-paid month-to-month basis until canceled. In the United States, Weight Watchers Online costs $65.00 for the initial 3-month term or $48.90 for the initial one-month term. The ongoing monthly fee for Weight Watchers Online is $18.95. In the United States, Weight Watchers eTools costs $34.95 for the initial 3-month term or $14.95 for the initial one-month term. The ongoing monthly fee for Weight Watchers eTools is $14.95. From time to time, we offer discounts on these standard pricing terms. In addition, Weight Watchers eTools is included for free in purchases by consumers of Monthly Pass.

Features of Subscription Products

We believe WeightWatchers.com’s personalized and interactive Internet subscription products provide customers with an engaging weight management experience. Our Internet subscription products help customers monitor their weight management efforts, encourage exercise and a more active lifestyle, and provide guidance toward healthier eating habits by offering the following interactive resources:

• Simple Start application

• PointsPlus Tracker

• “Spaces” tool to help manage situations and the environment

• “Routines” tool to help establish healthy routines

• PointsPlus Calculators

• Power Foods lists

• Weight Tracker and Progress Charts

• Nutritional Guidelines

• Hunger Tracker

• Fitness Workouts and Videos

• Recipe and Food Databases

• Recipe Builder

• Meal Ideas

• Restaurant Guides

Mobile Solutions and Other Market Opportunities

We believe that mobile weight management tools and resources are an important market opportunity for us. Our mobile phone applications, the iPhone^® application, which launched in fiscal 2009, and the Android™

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application, which launched in fiscal 2011, provide Monthly Pass purchasers and Weight Watchers Online subscribers with access to a suite of weight-loss tools, such as recipe and tracking tools, as well as other helpful content. In fiscal 2010, we launched our initial iPad^®-optimized application, and a universal application was launched in fiscal 2011. In fiscal 2011, we launched an iPhone^® and Android™ barcode scanning application, which scans the barcodes of food products and provides accurate PointsPlus values. We currently offer our universal iPhone^®, iPad^® and Android™ applications in ten countries. We continue to explore opportunities to enhance the mobility of our plans and products. We also believe we can expand our Internet revenues from sources other than our Internet subscription products, including third-party advertising on our website.

In addition, we believe there are many other markets that will present opportunities for us, including men, for whom we have a customized version of our Internet subscription products.

At-Work Meetings and Healthcare

As healthcare costs continue to be a significant concern on the minds of employers and their employees, we believe that our broad range of services and products uniquely positions us to serve the corporate market and help companies reduce their healthcare costs and improve the overall well-being of their employees. Our strategy is focused on leveraging our organizational capability to serve companies of every size and type by offering convenient and flexible weight-loss solutions that include meetings at the workplace, local community meetings and access to Weight Watchers Online. In addition, we believe our information technology platform can be leveraged to meet the needs of these companies and their employees. As a result of our strategy, we now have, and plan to continue to invest in, the capability to sell, market, and service companies at the local level, the mid-market level, and the national level of the corporate market.

We believe the healthcare market, from the doctor’s office to national and other health plan providers, represents an important channel to reach new consumers. We continue to explore different approaches to this market.

Licensing, Endorsements and Publishing

Licensing and Endorsements

Companies show continued interest in licensing our brand and other intellectual property as a platform to build their businesses since the Weight Watchers brand brings high credibility and access to the weight-conscious consumer. By partnering with carefully selected companies in categories relevant and helpful to weight-conscious consumers, we have created a highly profitable licensing business as well as a powerful vehicle to reinforce the Weight Watchers brand in the minds of our target consumers.

We license the Weight Watchers brand and our other intellectual property in certain categories of food and other relevant consumer products. We also endorse carefully selected branded consumer products. We seek to increase our licensing revenues by targeting sizeable or strategic product categories where the Weight Watchers brand can add real value. In order to achieve this goal, our global licensing team focuses on strategically increasing the number of categories and geographies of our licensed and endorsed products.

We typically partner in our licensing and endorsement arrangements with third parties that excel at new product development and have strong marketing and sales expertise, manufacturing and distribution capabilities, financial strength, prior performance in previous licensing and endorsement deals and senior management committed to building the Weight Watchers brand. In connection with our acquisition from the H.J. Heinz Company, or Heinz, in September 1999, Heinz received a perpetual royalty-free license to continue using our brand in its core food categories. We plan to continue to choose our licensing and endorsement partners carefully after identifying and prioritizing product categories that enhance the Weight Watchers brand and have long-term growth potential.

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Select current licensees and endorsees include:

LICENSEES AND ENDORSEES	PRODUCTS/CATEGORIES
United States
Applebee’s	Select Applebee’s Menu Items
Conair	Scales
Dawn Foods	Sweet Baked Goods
Foster Farms	Frozen Chicken
General Mills	Green Giant Frozen Vegetables, Progresso Light Soups and Yoplait Light Yogurt
Kraft Foods	Boca Frozen Meat Alternatives
Russell Stover	Chocolate Candy
Schreiber Foods	Cheese
Wells Dairy	Ice Cream Novelties
United Kingdom
Finsbury Food Group	Cakes
Greencore Prepared	Ready to Eat Meals
Rivermill	Bakery Accompaniments
Vimto	Fruit Drinks
Walkers	Biscuits and Cookies
Warburtons	Bread
Weetabix	Breakfast Cereal
Yoplait	Yogurt
Continental Europe
Bischofszell Gastina	Chilled Meals
Campofrio Group	Meats
Kuhlmann	Salads, Spreads and Dressings
Marie LDC	Chilled Meals
Parmalat	Milk
Yoplait	Yogurt and Chilled Desserts
Australia and New Zealand
Conair	Scales
Fonterra	Yogurt, Chilled Desserts and Cheese
Tasti	Breakfast Cereal and Cereal and Nut Bars

We ask each of our licensees to include on their packaging certain information about our services and our products, such as our toll free numbers and a URL for WeightWatchers.com. This marketing and promotional support reinforces the value of our brand.

Our licensing and endorsement arrangements give us access to weight-conscious consumers through products sold at retail and increase the awareness of our brand. We continue to believe there are significant opportunities both in the United States and internationally to take advantage of the strength of the Weight Watchers brand and our other intellectual property through additional licensing and endorsement arrangements.

Weight Watchers Magazine

Weight Watchers magazines are published in most of our major markets. In the United States, Weight Watchers Magazine is an important branded marketing platform that continues to show strong circulation and advertiser acceptance. As of fall 2013, our US magazine had a readership of approximately nine million, according to GfK Mediamark Research and Intelligence, LLC, an industry tracking service. In addition to generating revenues from subscription sales and third-party advertising, Weight Watchers Magazine also reinforces the value of our brand and serves as a powerful tool for marketing to both existing and potential customers.

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Marketing and Promotion

Our communications with consumers and other promotional efforts enhance our brand image and awareness, and motivate both former and potential new customers to join Weight Watchers meetings or subscribe to Weight Watchers Online.

Media Advertising

We advertise primarily in national media vehicles (television, digital, print, etc.), which are selected based on their efficiency and effectiveness in reaching our target audience. Through WeightWatchers.com, we develop and maintain a high level of engagement with new and potential customers on various social platforms like Facebook and Twitter. While our traditional advertising schedule generally supports the three key marketing campaigns of the year, winter, spring and fall, we communicate with consumers in the digital space in real time throughout the year. Also, we utilize brand ambassadors, including from time to time celebrity spokespersons, as part of our advertising.

Word of Mouth

The word of mouth generated by our current and former customers is an important source of new customers. These referrals, combined with our strong brand and the effectiveness of our plans, enable us to efficiently attract new and returning customers.

Public Relations

We carry out many of our key public relations initiatives through the efforts of current and former Weight Watchers leaders, members and subscribers, including from time to time celebrities. These leaders, members and subscribers engage in national and local promotions, information presentations and charity events to promote Weight Watchers and demonstrate the program’s efficacy. In addition, some become media-trained ambassadors and represent us in various national and local public relations activities. We currently have over 450 media-trained ambassadors as part of our grass roots network.

In addition, we have a science-based public relations initiative to capitalize on Weight Watchers’ position as one of only a few clinically proven commercial weight management programs. This has included an increased investment in third-party scientific research, the inclusion of a science center on the WeightWatchers.com website and increased efforts to share our consumer and program insights with leaders in the scientific and medical communities as well as the general public.

Customer Relationship Management

We use direct mail and email to attract new and returning customers and to engage current customers. We maintain databases of current and former customers in each country in which we operate, which we use to focus our direct mailings and email. During fiscal 2013, NACO sent over 26 million pieces of direct mail. Most of these mailings are timed to coincide with the start of our marketing campaigns and are intended to encourage former meetings members to re-enroll. In addition, we continue to leverage WeightWatchers.com’s email targeting capabilities. Its email promotional programs are an important customer acquisition vehicle for both our Internet and meetings businesses.

Weight Watchers Magazine

In addition to generating revenues from subscription sales and third-party advertising, Weight Watchers Magazine reinforces the value of our brand and serves as an important marketing tool to both existing and potential customers. We offer Weight Watchers magazines in most of our major markets.

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WeightWatchers.com Website

The WeightWatchers.com website is an important global promotional channel for our brand, services and products. The website is a vehicle for communicating our services and products in greater detail than could be achieved in more traditional advertising vehicles. In addition to being a gateway for our Internet subscription products, the website contributes value to our meetings business by promoting our brand, advertising Weight Watchers meetings, assisting in locating meetings and keeping members involved with Weight Watchers outside of meetings through useful offerings, such as healthy recipes, weight management articles, success stories and social media functionality. In fiscal 2013, our Meeting Finder feature generated on average over 1.3 million meeting searches per month globally. The Meeting Finder makes it easier than ever for our existing and potential members to find a convenient meeting place and time.

Seasonality

Our business is seasonal, with revenues generally decreasing at year end and during the summer months. Our operating income for the first half of the year is generally the strongest, and the first quarter of the fiscal year typically results in the greatest revenue due to the importance of the winter diet season to our overall recruitment environment. Our advertising schedule generally supports the three key recruitment-generating seasons of the year: winter, spring and fall, with winter having the highest concentration of advertising spending. The timing of certain holidays, particularly Easter, which precedes the spring marketing campaign and occurs between March 22 and April 25, may affect our results of operations and the year-to-year comparability of our results. The introduction of Monthly Pass in the meetings business has resulted in less seasonality with regard to our meeting fee revenues because its revenues are amortized over the related subscription period. While WeightWatchers.com experiences seasonality similar to the meetings business in terms of new subscriber sign-ups, its revenue tends to be less seasonal because it amortizes subscription revenue over the related subscription period.

Entrepreneurial Management

We run our company in an entrepreneurial manner that allows us to develop and test new ideas on a local basis and then implement the most successful ideas across our network. In addition, many of our meeting products were developed locally and then introduced successfully in other countries. Local managers have strong incentives to adopt and implement the best practices of other regions and to continue to develop innovative new services and products.

While having strong local leadership has always been a cornerstone of our strategy, we have also been investing in building our global corporate management team. Our management team plays a critical role in driving and facilitating the global coordination necessary to optimize our international assets and share best practices across geographies.

Competition

The weight management market includes self-help weight management regimens and other self-help weight management products, services and publications, such as books, magazines and websites; commercial weight management programs; Internet, mobile and other electronic weight management approaches; dietary supplements and meal replacement products; weight management services administered by doctors, nutritionists and dieticians; surgical procedures; the pharmaceutical industry; government agencies and non-profit groups that offer weight management services; and fitness centers.

Competition among commercial weight management programs is largely based on program recognition and reputation and the effectiveness, safety and price of the program. In the United States, we compete with several other companies in the commercial weight management industry, although we believe that their businesses are

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not comparable to us. For example, many of these competitors’ businesses are based on the sale of pre-packaged meals and meal replacements. Our meetings use group support, education and behavior modification to help our members change their eating habits, in conjunction with flexible food plans that allow members the freedom to choose what they eat. There are no significant group education-based competitors in any of our major markets, except in the United Kingdom.

We believe that food manufacturers that produce meal replacement products are not comparable competition because these businesses’ meal replacement products do not engender behavior modification through education in conjunction with a flexible, healthy food plan.

We also compete with various self-help diets, products and publications, such as free mobile and other weight management applications and activity monitors.

Trademarks, Patents and Other Proprietary Rights

We own numerous domestic and international trademarks, patents and other proprietary rights that are valuable assets and are important to our business. Depending upon the jurisdiction, trademarks are valid as long as they are used in the regular course of trade and/or their registrations are properly maintained. Patent protection extends for varying periods according to the date of patent filing or grant and the legal term of patents in the jurisdiction in which the patent is granted. The actual protection afforded by a patent may vary from country to country depending upon the type of patent, the scope of its coverage and the availability of legal remedies in the country. We believe the protection of our trademarks, copyrights, patents, domain names, trade dress and trade secrets is important to our success. We aggressively protect our intellectual property rights by relying on a combination of trademark, copyright, patent, trade dress and trade secret laws, and through domain name dispute resolution systems.

History

Early Development

In 1961, Jean Nidetch, our founder, attended a New York City obesity clinic and took what she learned from her personal experience at the obesity clinic and began weight-loss meetings with a group of her overweight friends in the basement of a New York apartment building. Under Ms. Nidetch’s leadership, the group members supported each other in their weight-loss efforts, and word of the group’s success quickly spread. Ms. Nidetch and Al and Felice Lippert, who all successfully lost weight through these efforts, formally launched our business in 1963. Weight Watchers International, Inc. was incorporated as a Virginia corporation in 1974 and succeeded to the business started in New York in 1963. Heinz acquired us in 1978.

Artal Ownership

In September 1999, Artal Luxembourg, S.A., or Artal Luxembourg, acquired us from Heinz. Artal Luxembourg is an indirect subsidiary of Artal Group, S.A., which together with its parents and its subsidiaries is referred to in this Annual Report on Form 10-K as Artal. Currently, Artal Luxembourg is the record holder of all our shares owned by Artal.

WeightWatchers.com Acquisition

In July 2005, we acquired control of our licensee and affiliate, WeightWatchers.com, by increasing our ownership interest from approximately 20% to approximately 53%. Subsequently, in December 2005, WeightWatchers.com redeemed all shares owned by Artal in it, resulting in our current ownership of 100% of WeightWatchers.com.

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2012 Tender Offer and Share Repurchase

On February 23, 2012, we commenced a “modified Dutch auction” tender offer for up to $720.0 million in value of our common stock at a purchase price not less than $72.00 and not greater than $83.00 per share, or the Tender Offer. Prior to the Tender Offer, on February 14, 2012, we entered into an agreement, or the Purchase Agreement, with Artal Holdings Sp. z o.o., Succursale de Luxembourg, or Artal Holdings (the then-current record holder of all our shares owned by Artal), whereby Artal Holdings agreed to sell to us, at the same price as was determined in the Tender Offer, such number of its shares of our common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of our common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer. The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 we repurchased approximately 8.8 million shares at a purchase price of $82.00 per share. On April 9, 2012, we repurchased approximately 9.5 million of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, we amended and extended the WWI Credit Facility to finance these repurchases.

Regulation

A number of laws and regulations govern our advertising, services, products, operations and relations with consumers, employees and other service providers in the countries in which we operate. Certain federal, state and foreign agencies, such as the Federal Trade Commission, or FTC, regulate and enforce such laws relating to advertising, disclosures to consumers, privacy, consumer pricing and billing arrangements and other consumer protection matters. Since we operate our meetings business both in the United States and internationally, we are subject to many distinct employment, labor, benefits and tax laws in each country in which we operate, including regulations affecting our employment practices and our relations with our employees and service providers. Laws and regulations directly applicable to communications, operations or commerce over the Internet such as those governing intellectual property, privacy, libel and taxation, are more prevalent and continue to evolve. Our operations are subject to these laws and regulations and we continue to monitor their development and our compliance. In addition, we are subject to other laws and regulations in the United States and internationally.

During the mid-1990s, the FTC filed complaints against a number of commercial weight management providers alleging violations of federal law in connection with the use of advertisements that featured testimonials, claims for program success and program costs. In 1997, we entered into a consent order with the FTC settling all contested issues raised in the complaint filed against us. The consent order requires us to comply with certain procedures and disclosures in connection with our advertisements of services and products.

Employees and Service Providers

As of December 28, 2013, we had approximately 25,000 employees. In addition, in certain of our markets, our service providers are self-employed and are not included in this total. We consider our relations with our employees and service providers to be satisfactory.

Financial Information About Segments and Financial Information About Geographic Areas

Information concerning our reportable segments and our geographic areas is set forth in Note 14 of our consolidated financial statements, contained in Part IV, Item 15 of this Annual Report on Form 10-K. Information concerning some of the risks to which we are exposed resulting from our international operations and foreign currency exchange rates is set forth in “Item 1A. Risk Factors” of this Annual Report on Form 10-K.

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Available Information

Corporate information and our press releases, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments thereto, are available free of charge on our website at www.weightwatchersinternational.com as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission (i.e., generally the same day as the filing). Moreover, we also make available at that site the Section 16 reports filed electronically by our officers, directors and 10 percent shareholders. Usually these are publicly accessible no later than the business day following the filing.

We use our website at www.weightwatchersinternational.com, our corporate Facebook page (www.facebook.com/weightwatchers) and our corporate Twitter account (@WeightWatchers) as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. The contents of our website and social media channels shall not be deemed to be incorporated herein by reference.

Our Code of Business Conduct and Ethics and our Corporate Governance Guidelines are also available on our website at www.weightwatchersinternational.com.

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CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, this Annual Report on Form 10-K includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, including, in particular, the statements about our plans, strategies and prospects under the headings “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We have generally used the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend” and similar expressions in this Annual Report on Form 10-K and the documents incorporated by reference herein to identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. Actual results could differ materially from those projected in these forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things:

• competition from other weight management industry participants or the development of more effective or more favorably perceived weight management methods;

• our ability to continue to develop innovative new services and products and enhance our existing services and products or the failure of our services and products to continue to appeal to the market, or our ability to successfully expand into new channels of distribution;

• the ability to successfully implement new strategic initiatives;

• the effectiveness of our marketing and advertising programs;

• the impact on the Weight Watchers brand of actions taken by our franchisees, licensees and suppliers;

• the impact of our debt service obligations and restrictive debt covenants;

• uncertainties regarding the satisfactory operation of our information technology or systems;

• the recognition of asset impairment charges;

• risks and uncertainties associated with our international operations, including economic, political and social risks and foreign currency risks;

• our ability to successfully make acquisitions or enter into joint ventures, including our ability to successfully integrate, operate or realize the projected benefits of such businesses;

• uncertainties related to a downturn in general economic conditions or consumer confidence;

• the seasonal nature of our business;

• the impact of events that discourage or impede people from gathering with others or accessing resources;

• our ability to enforce our intellectual property rights both domestically and internationally, as well as the impact of our involvement in any claims related to intellectual property rights;

• the impact of security breaches or privacy concerns;

• the impact of disputes with our franchise operators;

• the impact of existing and future laws and regulations;

• the possibility that the interests of our majority owner will conflict with other holders of our common stock; and

• other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission.

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You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” could cause our results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, we do not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this Annual Report on Form 10-K or to reflect the occurrence of unanticipated events or otherwise.

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Item 1A. Risk Factors

You should consider carefully, in addition to the other information contained in this Annual Report on Form 10-K and the exhibits hereto, the following risk factors in evaluating our business. Our business, financial condition or results of operations could be materially adversely affected by any of these risks. The following discussion of risks is not all inclusive but is designed to highlight what we believe are the most significant risks that we face. Additional risks and uncertainties, not presently known to us or that we currently deem immaterial, may also impair our business, financial condition or results of operations.

Competition from other weight management industry participants or the development of more effective or more favorably perceived weight management methods could result in decreased demand for our services and products.

The weight management industry is highly competitive. We compete against a wide range of providers of weight management services and products. Our competitors include: self-help weight management regimens and other self-help weight management products, services and publications, such as books, magazines and websites; commercial weight management programs; Internet, free mobile and other weight management applications, activity monitors and other electronic weight management approaches; dietary supplements and meal replacement products; weight management services administered by doctors, nutritionists and dieticians; surgical procedures; the pharmaceutical industry; government agencies and non-profit groups that offer weight management services; and fitness centers. Additional competitors may emerge as new or different products or methods of weight management are developed and marketed. More effective or more favorably perceived diet and weight management methods, including pharmaceutical treatments, fat and sugar substitutes or other technological and scientific advancements in weight management methods, also may be developed. This competition may reduce demand for our services and products.

The purchasing decisions of weight management customers are highly subjective and can be influenced by many factors, such as brand image, marketing programs, cost and perception of the efficacy of the service and product offerings. Moreover, customers can, and frequently do, change weight management approaches easily and at little cost. For example, our revenue was adversely affected by increased popularity and media exposure of low-carbohydrate diets in 2003 and 2004, and more recently, by the popularity of mobile technology, which has led to increased trial of free mobile and other weight management applications and activity monitors. Any decrease in demand for our services and products may adversely affect our business, financial condition or results of operations.

If we do not continue to develop innovative new services and products or if our services and products do not continue to appeal to the market, or if we are unable to successfully expand into new channels of distribution, our business may suffer.

The weight management industry is subject to changing customer demands based, in large part, on the efficacy and popular appeal of weight management programs. The popularity of weight management programs is dependent, in part, on their ease of use and channels of distribution. Our future success depends on our ability to continue to develop and market new, innovative services and products and to enhance our existing services and products, each on a timely basis to respond to new and evolving customer demands, achieve market acceptance and keep pace with new nutritional, weight management, technological and other developments. We may not be successful in developing, introducing on a timely basis or marketing any new or enhanced services and products, and we cannot assure you that any new or enhanced services or products will appeal to the market. Our future success also will depend, in part, on our ability to successfully distribute our products and services through appealing channels of distribution, such as mobile. Our failure to develop new services and products and to enhance our existing services and products, the failure of our services and products to continue to appeal to the market or the failure to expand into appealing new channels of distribution, could have an adverse impact on our ability to attract and retain members and subscribers and thus adversely affect our business, financial condition or results of operations.

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We may not be able to successfully implement new strategic initiatives, which could adversely impact our business.

We are continuously evaluating changing consumer preferences and the competitive environment of our industry and seeking out opportunities to improve our performance through the implementation of selected strategic initiatives, such as our healthcare initiative. The goal of these efforts is to develop and implement a comprehensive and competitive business strategy which addresses the continuing changes in the weight management industry environment and our position within the industry. We may not be able to successfully implement our strategic initiatives and realize the intended business opportunities, growth prospects, including new business channels, and competitive advantages. Our efforts to capitalize on business opportunities may not bring the intended results. Assumptions underlying expected financial results or customer demand may not be met or economic conditions may deteriorate. We also may be unable to attract and retain highly qualified and skilled personnel to implement our strategic initiatives. If these or other factors limit our ability to successfully execute our strategic initiatives, our business activities, financial condition and results of operations may be adversely affected.

Our business depends on the effectiveness of our marketing and advertising programs to attract and retain members and subscribers.

Our business success depends on our ability to attract and retain members to our meetings and subscribers to WeightWatchers.com. Our ability to attract and retain members and subscribers depends significantly on the effectiveness of our marketing practices. From time to time, we use the success stories of our members and subscribers, including in some cases celebrities, in our marketing and advertising programs to communicate on a personal level with consumers. Actions taken by these members and subscribers that harm their personal reputation, or include the cessation of using our services and products, could have an adverse impact on the marketing and advertising campaigns in which they are featured. We also use social media channels as a means of communicating with consumers. Unauthorized or inappropriate use of these channels could result in harmful publicity or negative consumer experience which could have an adverse impact on the effectiveness of our marketing in these channels. If our marketing and advertising campaigns do not generate a sufficient number of members and subscribers, our results of operations will be adversely affected.

The Weight Watchers brand could be impaired due to actions taken by our franchisees, licensees and suppliers.

We believe that the Weight Watchers brand, including its widespread recognition and strong reputation in the market, is one of our most valuable assets and that it provides us with a competitive advantage. Our franchisees operate their businesses under our brand. In addition, we license the Weight Watchers brand to third parties for the manufacture and sale in retail stores by such parties of a variety of goods, including food products, and also endorse third-party branded consumer products. We also sell in our meeting rooms food and non-food products manufactured by third-party suppliers. Because our franchisees, licensees and suppliers are independent third parties with their own financial objectives, actions taken by them, including breaches of their contractual obligations, such as not following our program or not maintaining our quality and safety standards, could harm our brand. Also, these Weight Watchers-branded products may be subject to product recalls, litigation or other deficiencies. Any negative publicity associated with these actions would adversely affect our brand and may result in decreased meeting attendance, Internet subscriptions and product sales and, as a result, lower revenues and profits.

Our debt service obligations could adversely affect our financial condition, and the restrictions of our debt covenants could impede our operations and flexibility.

Our financial performance could be affected by our level of debt. As of December 28, 2013, our total debt was $2,388.0 million. In addition, at December 28, 2013, we had $248.4 million available under our revolving credit facility. We expect to generate the cash necessary to pay our expenses and to pay the principal and interest

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on all of our outstanding debt from our cash flows provided by operating activities and by opportunistically using other means to repay or refinance our obligations as we determine appropriate. Although we seek to manage our exposure to interest rates through interest rate swaps, our debt consists entirely of variable-rate instruments, so we are subject to the risk of higher interest rates. Our ability to pay our expenses and meet our debt service obligations depends on our future performance, which may be affected by financial, business, economic, demographic and other factors, such as attitudes toward weight management and pressure from our competitors. If we do not have enough money to pay our debt service obligations, we may be required to refinance all or part of our existing debt, sell assets, borrow more money or raise equity. In such an event, we may not be able to refinance our debt, sell assets, borrow more money or raise equity on terms acceptable to us or at all. Also, our ability to carry out any of these activities on favorable terms, if at all, may be further impacted by any financial or credit crisis which may limit access to the credit markets and increase the cost of capital.

While there is no net debt to EBITDAS (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) leverage ratio maintenance requirement on our $2,388.0 million of debt outstanding, our credit facilities contain customary covenants, including covenants that in certain circumstances restrict our ability to incur additional indebtedness, pay dividends on and redeem capital stock, make other payments, including investments, sell our assets and enter into consolidations, mergers and transfers of all or substantially all of our assets. Our Revolving Facility (as defined hereafter) also requires us, in certain circumstances, to not exceed a specified financial ratio. Our ability to meet this financial ratio requirement can be affected by events beyond our control and we cannot assure you that we will meet this financial ratio requirement in any future period. A breach of any of these covenants or this ratio, if applicable, could result in an event of default under the credit facilities. Compliance with this ratio may effectively limit our ability to borrow funds in excess of $50.0 million under our Revolving Facility. If an event of default exists under the credit facilities, the lenders could elect to cease making loans and declare all amounts outstanding thereunder to be immediately due and payable. If the lenders under the credit facilities accelerate the payment of the indebtedness, our assets may not be sufficient to repay in full that indebtedness and our other indebtedness that would become due as a result of any such acceleration.

Any failure of our technology or systems to perform satisfactorily could result in an adverse impact on our business.

We rely on software, hardware, network systems and similar technology that is either developed by us or licensed from or maintained by third parties to operate our websites, subscription offerings and other products and services such as the recurring billing system associated with certain of our commitment plans, and to support our business operations. As much of this technology is complex, there may be future errors, defects or performance problems, including when we update our technology or integrate new technology to expand and enhance our capabilities. Our technology may malfunction or suffer from defects that become apparent only after extended use. In addition, our operations depend on our ability to protect our information technology systems against damage from fire, power loss, water, earthquakes, telecommunications failures, vandalism and other malicious acts and similar unexpected adverse events. Interruptions in our websites, products and services or network systems could result from unknown technical defects, insufficient capacity or the failure of our third party providers to provide continuous and uninterrupted service. While we maintain disaster recovery capabilities to return to normal operation in a timely manner, we do not have a fully redundant system that includes an instantaneous recovery capability.

As a result of such possible defects, failures or other problems, our products and services could be rendered unreliable or be perceived as unreliable by customers, which could result in harm to our reputation and brand. Any failure of our technology or systems could result in an adverse impact on our business.

We may be required to recognize asset impairment charges for franchise rights acquired, goodwill and other indefinite-lived assets.

In accordance with GAAP (as defined hereafter), we perform an annual impairment review of our indefinite-lived assets, which include franchise rights acquired and goodwill, during the fourth quarter of each

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fiscal year. We also continually evaluate whether current factors or indicators, such as a deterioration in general economic conditions, an increased competitive environment, a decline in our financial performance, and/or other prevailing conditions in the capital markets, require the performance of an interim impairment assessment of those assets. The process of testing franchise rights acquired, goodwill and other indefinite-lived assets for impairment involves numerous judgments, assumptions and estimates made by management which inherently reflect a high degree of uncertainty. Certain factors, including the future profitability of our businesses, the price of our stock and macroeconomic conditions, might have a negative impact on the fair value of these assets. In fiscal 2013, we recorded impairment charges in the aggregate of approximately $1.2 million related to franchise rights acquired in connection with our Mexico and Hong Kong operations. We may incur additional impairment charges in the future, which would have an adverse impact on our financial condition and results of operations.

Additionally, we evaluate capitalized software costs for impairment by comparing the net realizable value of the software product to the carrying value of the capitalized costs. If the value of those assets is not deemed to be recoverable an assessment of the fair value of those assets is performed and to the extent the carrying value exceeds the fair value an impairment charge is recognized. Should our investment in capitalized software development costs become impaired, there would also be an adverse impact on our financial condition and results of operations.

Our international operations expose us to economic, political and social risks in the countries in which we operate.

The international nature of our operations involves a number of risks, including changes in US and foreign government regulations, tariffs, taxes and exchange controls, economic downturns, inflation and political and social instability in the countries in which we operate and our dependence on foreign personnel. Foreign government regulations may also restrict our ability to operate in some countries, acquire new businesses or repatriate dividends from foreign subsidiaries back to the United States. We cannot be certain that we will be able to enter and successfully compete in additional foreign markets or that we will be able to continue to compete in the foreign markets in which we currently operate.

We are exposed to foreign currency risks from our international operations that could adversely affect our financial results.

A significant portion of our revenues and operating costs are denominated in foreign currencies. We are therefore exposed to fluctuations in the exchange rates between the US dollar and the currencies in which our foreign operations receive revenues and pay expenses. We do not currently hedge, and have not historically hedged, our operational exposure to foreign currency fluctuations. Our consolidated financial results are presented in US dollars and therefore, during times of a strengthening US dollar, our reported international revenues and earnings will be reduced because the local currency will translate into fewer US dollars. In addition, the assets and liabilities of our non-US subsidiaries are translated into US dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated into US dollars at the average exchange rate for the period. Translation adjustments arising from the use of differing exchange rates from period to period are recorded in shareholders’ equity as accumulated other comprehensive income (loss). Translation adjustments arising from intercompany receivables with our foreign subsidiaries are generally recorded as a component of other expense (income). Accordingly, changes in currency exchange rates will cause our revenues, operating costs, net income and shareholders’ equity to fluctuate.

We may not successfully make acquisitions or enter into joint ventures and we may not successfully integrate, operate or realize the anticipated benefits of such businesses.

As part of our growth strategy, we may pursue selected acquisitions or joint ventures. We cannot assure you that we will be able to effect these transactions on commercially reasonable terms or at all. Any future

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acquisitions or joint ventures may require access to additional capital, and we cannot assure you that we will have access to such capital on commercially reasonable terms or at all. Even if we enter into these transactions, we may not realize the benefits we anticipate or we may experience difficulties in integrating any acquired companies and products into our existing business or in providing our services and products in newly acquired markets; attrition of key personnel from acquired businesses; significant charges or expenses; higher costs of integration than we anticipated; or unforeseen operating difficulties that require significant financial and managerial resources that would otherwise be available for the ongoing development or expansion of our existing operations.

Our ability to influence the control of, or distributions from, our joint ventures may be limited by contract or otherwise. If any of the other investors in one of our joint ventures fails to observe its commitments, or its interests are different than ours, the joint venture may not be able to operate according to its business plan, we may be required to increase our level of commitment, or such entities may take actions which are not in our best interest. If we are unable to maintain our relationships with our joint venture partners, we could lose our ability to operate in the geographies and/or markets in which they operate, which could have a material adverse effect on our business, financial condition or results of operations.

Consummating these transactions could also result in the incurrence of additional debt and related interest expense, as well as unforeseen contingent liabilities, all of which could have a material adverse effect on our business, financial condition or results of operations. We may also issue additional equity in connection with these transactions, which would dilute our existing shareholders.

Our business may decline as a result of a downturn in general economic conditions or consumer confidence.

Our business is highly dependent on meeting fees, Internet product subscriptions and product sales. A downturn in general economic conditions or consumer confidence in any of our major markets could result in people curtailing or reallocating their discretionary spending which, in turn, could reduce attendance at our meetings, Internet product subscriptions and product sales. For example, the continuing, challenging global economic environment has led to a decrease in discretionary spending by consumers and loss of consumer confidence. Any reduction in consumer spending may adversely affect our business, financial condition or results of operations.

The seasonal nature of our business could cause our operating results to fluctuate.

We have experienced and expect to continue to experience fluctuations in our quarterly results of operations. Our business is seasonal with revenues generally decreasing at year end and during the summer months. The first quarter of the fiscal year typically results in the greatest revenue due to the importance of the winter diet season to our overall recruitment environment. This seasonality could cause our share price to fluctuate as the results of an interim financial period may not be indicative of our full year results. Seasonality also impacts relative revenue and profitability of each quarter of the year, both on a quarter-to-quarter and year-over-year basis. The timing of certain holidays, particularly Easter, which precedes our spring marketing campaign and occurs between March 22nd and April 25th, may affect our results of operations and the year-to-year comparability of our quarterly results.

Any event that discourages or impedes people from gathering with others or accessing resources could adversely affect our business.

Our meeting and Internet operations are subject to conditions beyond our control that may prevent or impede current or prospective members from attending or joining meetings, or subscribers from accessing our subscription products, including extreme weather, terrorism, health epidemics, loss of resources such as electricity, national disasters and other extraordinary events. For example, our NACO attendance was adversely

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affected in the fourth quarter of fiscal 2012 by the impact of Hurricane Sandy and its aftermath. The occurrence of any event that discourages people from gathering with others or impedes their ability to access resources could adversely affect our business, financial condition or results of operations.

Third parties may infringe on our brand and other intellectual property rights, which may have an adverse impact on our business.

We currently rely on a combination of trademark, copyright, trade dress, trade secret, patent and other intellectual property laws and domain name dispute resolution systems to establish and protect our proprietary rights, including our brand. If we fail to successfully enforce our intellectual property rights, the value of our brand, services and products could be diminished and our business may suffer. Our precautions may not prevent misappropriation of our intellectual property, particularly in foreign countries where laws or law enforcement practices may not protect our proprietary rights as fully as in the United States. Any legal action that we may bring to protect our brand and other intellectual property could be unsuccessful and expensive and could divert management’s attention from other business concerns. In addition, legal standards relating to the validity, enforceability and scope of protection of intellectual property, especially in Internet-related businesses, are uncertain and evolving. We cannot assure you that these evolving legal standards will sufficiently protect our intellectual property rights in the future.

We may be subject to intellectual property rights claims.

Third parties may make claims against us alleging infringement of their intellectual property rights. Any intellectual property claims, regardless of merit, could be time-consuming and expensive to litigate or settle and could significantly divert management’s attention from other business concerns. In addition, if we were unable to successfully defend against such claims, we may have to pay damages, stop selling the service or product or stop using the software, technology or content found to be in violation of a third party’s rights, seek a license for the infringing service, product, software, technology or content or develop alternative non-infringing services, products, software, technology or content. If we cannot license on reasonable terms, develop alternatives or stop using the service, product, software, technology or content for any infringing aspects of our business, we may be forced to limit our service and product offerings. Any of these results could reduce our revenues or our ability to compete effectively, increase our costs or harm our business.

Our reputation and the appeal of our services and product offerings may be harmed by security breaches or privacy concerns.

Breaches of security could result in unauthorized access to proprietary or customer information or data or cause interruptions to our products and services. Such unauthorized access could harm our reputation, expose us to liability claims and may result in the loss of existing or potential customers. In addition, the transmission of computer viruses, or similar malware, could adversely affect our computer systems and harm our business operations. As a result, it may become necessary to expend significant additional amounts of capital and other resources to protect against, or to alleviate, problems caused by security breaches. These expenditures, however, may not prove to be a sufficient remedy.

Most states require that customers be notified if a security breach results in the disclosure of their personal financial account or other information, and additional states and governmental entities are considering such laws. In addition, other public disclosure laws may require that material security breaches be reported. If we experience a security breach and such notice or public disclosure is required in the future, our reputation and our business may be harmed.

In the ordinary course of our business, we collect and utilize proprietary and customer information and data. Privacy concerns among prospective and existing customers regarding our use of such information or data collected on our websites or through our services and products, such as weight management information, financial data, email addresses and home addresses, could keep them from using our websites or purchasing our

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services or products. We are subject to certain legal obligations and public scrutiny regarding the manner in which we treat such information and data. Industry-wide events or events with respect to our websites, including misappropriation of third-party information, security breaches or changes in industry standards or regulations, or increased enforcement of existing or new laws, could have an adverse effect on our business.

Disputes with our franchise operators could divert management’s attention from their ordinary responsibilities.

In the past, we have had disputes with our franchisees regarding operations and other contractual issues. For example, we have had disputes with some of our franchisees regarding the interpretation of franchisee rights as they relate to the Internet and mail-order products. Any future disputes could divert the attention of management from their ordinary responsibilities.

Our businesses are subject to legislative and regulatory restrictions.

A number of laws and regulations govern our advertising, services, products, operations and relations with consumers, licensees, franchisees, employees and other service providers, and government authorities in the countries in which we operate.

Certain federal, state and foreign agencies, such as the FTC, regulate and enforce such laws relating to advertising, disclosures to consumers, privacy, consumer pricing and billing arrangements, and other consumer protection matters. A determination by a federal, state or foreign agency, or a court in connection with a governmental enforcement action or private litigation, that any of our practices do not meet existing or new laws or regulations could result in liability, adverse publicity, and restrictions of our business operations. For example, during the mid-1990s, the FTC filed complaints against a number of commercial weight management providers alleging violations of federal law in connection with the use of advertisements that featured testimonials, claims for program success and program costs. In 1997, we entered into a consent order with the FTC settling all contested issues raised in the complaint filed against us. The consent order requires us to comply with certain procedures and disclosures in connection with our advertisements of products and services.

Since we operate our meetings business both in the United States and internationally, we are subject to many distinct employment, labor, benefits and tax laws in each country in which we operate, including regulations affecting our employment practices and our relations with our employees and service providers. If we are required to comply with new laws or regulations or new interpretations of existing laws and regulations, are unable to comply with these laws, regulations or interpretations, or are subject to litigation with respect to these laws, regulations or interpretations, our business and results of operations could be adversely affected.

Laws and regulations directly applicable to communications, operations or commerce over the Internet such as those governing intellectual property, privacy, libel and taxation, are more prevalent and continue to evolve. If we are required to comply with new laws or regulations or new interpretations of existing laws or regulations, or if we are unable to comply with these laws, regulations or interpretations, our business could be adversely affected.

Future laws or regulations, including laws or regulations affecting our marketing and advertising practices, consumer pricing and billing arrangements, relations with consumers, employees, service providers, licensees or franchisees, or our services and products, may have an adverse impact on us.

Artal controls us and may have conflicts of interest with other shareholders in the future.

Artal controls us and is able to control the election and removal of our directors and determine our corporate and management policies, including potential mergers or acquisitions, payment of dividends, asset sales, the amendment of our articles of incorporation or bylaws and other significant corporate transactions. This concentration of our ownership may delay or deter possible changes in control of our company, which may

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reduce the value of an investment in our common stock. Even if Artal beneficially owns less than 50% but 10% or more of our common stock, Artal will have the right pursuant to an agreement with us to nominate directors to our Board of Directors in proportion to its stock ownership. The interests of Artal may not coincide with the interests of other holders of our common stock.

We are a “controlled company” within the meaning of the New York Stock Exchange rules and, as a result, qualify for exemptions from certain corporate governance requirements.

Artal controls a majority of the voting power of our outstanding common stock. Under the New York Stock Exchange, or the NYSE, rules, a listed company of which more than 50% of the voting power for the election of directors is held by another person or group of persons acting together is a “controlled company” and such a company may elect not to comply with certain NYSE corporate governance requirements, including (1) the requirement that a majority of the Board of Directors consist of independent directors, (2) the requirement that the nominating and corporate governance committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities, (3) the requirement that the compensation committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities, (4) that the compensation committee be required to consider certain independence factors when engaging compensation consultants, legal counsel and other committee advisors and (5) the requirement for an annual performance evaluation of the nominating and corporate governance and compensation committees. We have elected to be treated as a “controlled company.” Accordingly, our shareholders may not have the same protections afforded to shareholders of companies that are subject to all of the NYSE corporate governance requirements.

Our articles of incorporation and bylaws and Virginia corporate law contain provisions that may discourage a takeover attempt.

Provisions contained in our articles of incorporation and bylaws and the laws of Virginia, the state in which we are incorporated, could make it more difficult for a third party to acquire us, even if doing so might be beneficial to our shareholders. Provisions of our articles of incorporation and bylaws impose various procedural and other requirements, which could make it more difficult for shareholders to effect certain corporate actions. For example, our articles of incorporation authorize our Board of Directors to determine the rights, preferences, privileges and restrictions of unissued series of preferred stock, without any vote or action by our shareholders. Thus, our Board of Directors can authorize and issue shares of preferred stock with voting or conversion rights that could adversely affect the voting or other rights of holders of our common stock. These rights may have the effect of delaying or deterring a change of control of our company. In addition, a change of control of our company may be delayed or deterred as a result of our having three classes of directors. These provisions could limit the price that certain investors might be willing to pay in the future for shares of our common stock.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

We are currently headquartered in New York, New York in leased office space with our US back-office and customer support operations located in leased office spaces elsewhere in the United States. Each of our foreign country operations generally also has leased office space to support its operations. Our WWI reporting segment typically holds its meetings in third-party locations (usually meeting rooms in well-located civic or other community centers) or space leased in retail centers.

Our website, including our subscription products, is hosted on hardware and software co-located at a third-party facility in New York. We also maintain a disaster recovery site with hardware and software co-located at a third-party facility in Arizona.

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Item 3. Legal Proceedings

Due to the nature of our activities, we are also, at times, subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such matters is not expected to have a material effect on our results of operations, financial condition or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that our 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.

Item 4. Mine Safety Disclosures

Not applicable.

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EXECUTIVE OFFICERS AND DIRECTORS OF THE COMPANY

Pursuant to General Instruction G(3) to Form 10-K, the information regarding our directors and executive officers required by Items 401(a), (b) and (e) of Regulation S-K is hereby included in Part I of this Annual Report on Form 10-K.

Set forth below are the names, ages as of December 28, 2013 and current positions of our executive officers and directors. Directors are elected at the annual meeting of shareholders. Executive officers are appointed by, and hold office at, the discretion of our Board of Directors.

Name	Age		Position
James R. Chambers		56	President and Chief Executive Officer, Director
Nicholas P. Hotchkin		48	Chief Financial Officer
Jeanine Lemmens		43	President, United Kingdom
Lesya Lysyj		50	President, North America
Corinne Pollier(-Bousquet)		49	President, Continental Europe
Raymond Debbane(1)		58	Chairman of the Board of Directors
Steven M. Altschuler(1)(2)		60	Director
Philippe J. Amouyal(1)		55	Director
Marsha Johnson Evans(2)		66	Director
Jonas M. Fajgenbaum		41	Director
Sacha Lainovic		57	Director
Christopher J. Sobecki		55	Director

(1) Member of Compensation Committee.

(2) Member of Audit Committee.

James R. Chambers. Mr. Chambers has served as a director and our President and Chief Executive Officer since July 30, 2013. He served as our President and Chief Operating Officer from January 4, 2013 to July 30, 2013. Prior to joining us, Mr. Chambers served as President of the U.S. Snacks and Confectionary business unit and General Manager of the Immediate Consumption Channel of Kraft Foods Inc., a global food and beverage company, from January 2010 to July 2011. Prior to joining Kraft, Mr. Chambers held various positions in the North America business unit at Cadbury plc, a beverage and confectionary company, from September 2005 to January 2010, most recently as the President and Chief Executive Officer. Mr. Chambers began his career at Nabisco, Inc. and also held various executive positions with Rémy Cointreau USA, Paxonix Inc., NetGrocer.com, Inc. and Information Resources, Inc. Mr. Chambers received a Bachelor’s degree in Civil Engineering from Princeton University and an M.B.A. from the Wharton School of Business of the University of Pennsylvania. Mr. Chambers is a director of Big Lots, Inc. Mr. Chambers was previously a director of B&G Foods, a food manufacturer.

Nicholas P. Hotchkin. Mr. Hotchkin has served as our Chief Financial Officer since August 20, 2012. Prior to joining us, Mr. Hotchkin had spent several years at Staples, Inc., a global leader in the office supply industry. Most recently, Mr. Hotchkin served as Senior Vice President of Finance for the U.S. Retail division of Staples based in Massachusetts, a position he held from May 2010 to August 2012. Before assuming that position, he had been Senior Vice President of Finance and Treasurer of Staples, a position he held from November 2006 to April 2010. Prior to joining Staples, Mr. Hotchkin held several corporate finance positions with Delphi Corporation and General Motors Corporation including assignments in the United States, Asia and Europe. Mr. Hotchkin received a B.A. in Economics from Harvard College and an M.B.A. from the Harvard Business School.

Jeanine Lemmens. Ms. Lemmens has served as our President, United Kingdom since May 2013. Prior to that time, Ms. Lemmens served as our Managing Director, Benelux from July 2006 to May 2013. Prior to joining us, beginning in December 1999, Ms. Lemmens held various senior management and strategic positions with

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Center Parcs Europe, an operator of European short holiday break villages, including most recently serving as the Director B2B Strategy / Marketing from November 2005 to July 2006. Prior to joining Center Parcs Europe, Ms. Lemmens was working as an accountant in the audit practice with Ernst & Young LLP where she serviced a range of clients including many commercial clients. Ms. Lemmens holds a Certified Public Accountant degree from Erasmus University in the Netherlands, an M.S. in Business Administration from Nyenrode Business University in the Netherlands and a Bachelors of Art degree in Hospitality Management from Hotel School, The Hague, Hospitality Business School in the Netherlands.

Lesya Lysyj. Ms. Lysyj has served as the Company’s President, North America since November 25, 2013. Prior to joining the Company, Ms. Lysyj served as Senior Vice President and Chief Marketing Officer of Heineken USA, a leading beer importer in the United States, from March 2011 to November 2013. Prior to joining Heineken USA, Ms. Lysyj had worked as Vice President Marketing Confectionery for the United States at Kraft Foods Inc., a global food and beverage company, from March 2010 to March 2011. Prior to joining Kraft, Ms. Lysyj held various positions in the North America business unit at Cadbury plc, a beverage and confectionary company, from 2000 to 2010, most recently as Executive Vice President Marketing, Cadbury US/Canada from 2007 to 2010. Ms. Lysyj also held various marketing and product development positions with Cadbury Schweppes Beverages. Ms. Lysyj received a Bachelor’s degree in Business from the University of Western Ontario and an M.B.A from the University of Toronto.

Corinne Pollier(-Bousquet). Ms. Pollier has served as our President, Continental Europe since May 2013. Prior to that time, Ms. Pollier served as our Senior Vice President of France and Switzerland from October 2008 to May 2013 and our General Manager of France from October 2003 to October 2008. Prior to joining us, Ms. Pollier was with VIVARTE Group (France), a European retailer of footwear and apparel, where she held various positions in the finance and planning analysis department from 1991 to 1995, various senior positions in the organization and strategy department from 1995 to 2000 and as General Manager of Kookai from 2001 to 2003. Ms. Pollier also held various product management and project management positions for the central buying office of Le Printemps department stores from 1987 to 2001. Ms. Pollier is a graduate of HEC Business School Paris.

Raymond Debbane. Mr. Debbane has been the Chairman of our Board of Directors since our acquisition by Artal Luxembourg on September 29, 1999. Mr. Debbane is a co-founder and the Chief Executive Officer of The Invus Group, LLC. Prior to forming The Invus Group, LLC in 1985, Mr. Debbane was a manager and consultant for The Boston Consulting Group in Paris, France. He holds an M.B.A. from Stanford Graduate School of Business, an M.S. in Food Science and Technology from the University of California, Davis and a B.S. in Agricultural Sciences and Agricultural Engineering from American University of Beirut. Mr. Debbane is the Chairman of the Board of Directors of Lexicon Pharmaceuticals, Inc. and a director of Ceres, Inc. He is also the Chief Executive Officer and a director of Artal and the Chairman of the Board of Directors of a number of private companies of which Artal or Invus, L.P. are shareholders.

Steven M. Altschuler. Dr. Altschuler has been a director since September 2012. Dr. Altschuler has served and continues to serve as the Chief Executive Officer of The Children’s Hospital of Philadelphia (CHOP), one of the leading children’s hospitals in the United States, since April 2000. Prior to assuming the role of Chief Executive Officer, Dr. Altschuler held several positions at CHOP, including Physician-in-Chief and chief of the Division of Gastroenterology, Hepatology and Nutrition. Prior to joining CHOP, Dr. Altschuler was faculty member and chair of the Department of Pediatrics at the Perelman School of Medicine at the University of Pennsylvania. Dr. Altschuler received a B.A. in mathematics and an M.D. from Case Western Reserve University. Dr. Altschuler is a director of Mead Johnson Nutrition Company, serves on its Compensation and Management Development Committee and is also Chair of its Nutrition Science and Technology Committee.

Philippe J. Amouyal. Mr. Amouyal has been a director since November 2002. Mr. Amouyal is a Managing Director of The Invus Group, LLC, a position he has held since 1999. Previously, Mr. Amouyal was a Vice President and director of The Boston Consulting Group in Boston, MA. He holds an M.S. in Engineering and a

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DEA in Management from Ecole Centrale de Paris and was a Research Fellow at the Center for Policy Alternatives of the Massachusetts Institute of Technology. Mr. Amouyal is a director and member of the Compensation Committee of Lexicon Pharmaceuticals, Inc. and a number of private companies of which Artal or Invus, L.P. are shareholders.

Marsha Johnson Evans. Ms. Evans has been a director since February 2002. Ms. Evans served as President and Chief Executive Officer of the American Red Cross, the preeminent humanitarian organization in the United States, from August 2002 to December 2005, and previously served as the National Executive Director of Girl Scouts of the U.S.A. from January 1998 to July 2002. A retired Rear Admiral in the United States Navy, Ms. Evans served as superintendent of the Naval Postgraduate School in Monterey, California from 1995 to 1998 and headed the Navy’s worldwide recruiting organization from 1993 to 1995. Ms. Evans also served as the Acting Commissioner of the Ladies Professional Golf Association from July 2009 to January 2010. Ms. Evans received a B.A. from Occidental College and a Master’s Degree from the Fletcher School of Law and Diplomacy at Tufts University. Ms. Evans is also a director of the North Highland Company and The First Tee. Ms. Evans was previously a director of Huntsman Corporation, Office Depot, Inc. and the Estate of Lehman Brothers Holdings, Inc.

Jonas M. Fajgenbaum. Mr. Fajgenbaum has been a director since our acquisition by Artal Luxembourg on September 29, 1999. Mr. Fajgenbaum is a Managing Director of The Invus Group, LLC, which he joined in 1996. Prior to joining The Invus Group, LLC, Mr. Fajgenbaum was a consultant for McKinsey & Company in New York from 1994 to 1996. He graduated with a B.S. in Economics with a concentration in Finance from The Wharton School of the University of Pennsylvania and a B.A. in Economics from the University of Pennsylvania. Mr. Fajgenbaum is a director of a number of private companies of which Artal or Invus, L.P. are shareholders.

Sacha Lainovic. Mr. Lainovic has been a director since our acquisition by Artal Luxembourg on September 29, 1999. Since 2007, Mr. Lainovic has been Managing Partner of Invus Financial Advisors, LLC, a New York-based investment firm, which he co-founded. From 1985 to 2006, Mr. Lainovic was Executive Vice President of The Invus Group, LLC, which he co-founded. Prior to forming The Invus Group, LLC in 1985, Mr. Lainovic was a manager and consultant for The Boston Consulting Group in Paris, France. He holds an M.B.A. from Stanford Graduate School of Business and an M.S. in Engineering from Insa de Lyon in Lyon, France.

Christopher J. Sobecki. Mr. Sobecki has been a director since our acquisition by Artal Luxembourg on September 29, 1999. Mr. Sobecki is a Managing Director of The Invus Group, LLC, which he joined in 1989. He received an M.B.A. from Harvard Business School. He also obtained a B.S. in Industrial Engineering from Purdue University. Mr. Sobecki is a director of Lexicon Pharmaceuticals, Inc. and a number of private companies of which Artal or Invus, L.P. are shareholders. Mr. Sobecki was previously a director of NitroMed Inc.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Our common stock is listed on the NYSE. Our common stock trades on the NYSE under the symbol “WTW.”

The following table sets forth, for the periods indicated, the high and low sales prices per share for our common stock as reported on the NYSE composite price history.

Fiscal 2013 (Year ended December 28, 2013)

	High		Low
First Quarter	$	60.30	$	40.00
Second Quarter	$	48.35	$	40.09
Third Quarter	$	48.63	$	35.58
Fourth Quarter	$	41.44	$	31.24

Fiscal 2012 (Year ended December 29, 2012)

	High		Low
First Quarter	$	82.91	$	53.50
Second Quarter	$	79.99	$	49.10
Third Quarter	$	57.25	$	40.60
Fourth Quarter	$	57.88	$	46.65

On October 9, 2003, our Board of Directors authorized, and we announced, a program to repurchase up to $250.0 million of our outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, our Board of Directors authorized, and we announced, adding $250.0 million to this program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings and its parents and subsidiaries under this program. The repurchase program currently has no expiration date. We repurchased no shares of our common stock during the fourth quarter of fiscal 2013. As of the end of fiscal 2013, $208.9 million remained available to purchase shares of our common stock under the repurchase program.

On February 23, 2012, we commenced a “modified Dutch auction” tender offer for up to $720.0 million in value of our common stock at a purchase price not less than $72.00 and not greater than $83.00 per share, or the Tender Offer. Prior to the Tender Offer, on February 14, 2012, we entered into an agreement, or the Purchase Agreement, with Artal Holdings (the then-current record holder of our shares owned by Artal) whereby Artal Holdings agreed to sell to us, at the same price as was determined in the Tender Offer, such number of its shares of our common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of our common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer. The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 we repurchased approximately 8.8 million shares at a purchase price of $82.00 per share. On April 9, 2012, we repurchased approximately 9.5 million of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, we amended and extended the WWI Credit Facility to finance these repurchases. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Long-Term Debt”. The repurchase of shares of common stock under the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement was not made pursuant to the Company’s existing repurchase program.

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Holders

The approximate number of holders of record of our common stock as of January 31, 2014 was 283. This number does not include beneficial owners of our securities held in the name of nominees.

Dividends

On October 30, 2013, we announced that we suspended our quarterly cash dividend. As a result, no dividend was issued for the fourth quarter of fiscal 2013. We historically had issued a quarterly cash dividend of $0.175 per share of our common stock every quarter for the past several fiscal years. In the fourth quarter of fiscal 2012, our Board of Directors declared such a quarterly cash dividend and accelerated its payment to December 2012 instead of having it paid in January 2013 as it had typically done for the fourth quarter dividend declaration. We currently intend to use the annual cash savings from such dividend suspension to preserve financial flexibility while funding our strategic growth initiatives and building cash for future debt repayments. Any future determination to declare and pay dividends will be made at the discretion of our Board of Directors, after taking into account our financial results, capital requirements and other factors it may deem relevant. The WWI Credit Facility (as defined below) also contains restrictions on our ability to pay dividends on our common stock. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Long-Term Debt” in Part II, and “Item 15. Exhibits and Financial Statement Schedules—Financial Statements—Note 6. Long-Term Debt”, of this Annual Report on Form 10-K for a description of the WWI Credit Facility.

Item 6. Selected Financial Data

The following schedule sets forth our selected financial data for the last five fiscal years.

SELECTED FINANCIAL DATA

(in millions, except per share amounts)

	Fiscal 2013 (52 weeks)			Fiscal 2012 (52 weeks)			Fiscal 2011 (52 weeks)			Fiscal 2010 (52 weeks)			Fiscal 2009 (52 weeks)
Revenues, net(1)	$	1,724.1		$	1,839.4		$	1,832.5		$	1,464.1		$	1,412.6
Net income attributable to the Company	$	204.7		$	257.4		$	304.9		$	194.2		$	177.3
Working capital (deficit)	$	(30.1	)	$	(229.9	)	$	(279.7	)	$	(348.7	)	$	(336.1	)
Total assets	$	1,408.9		$	1,218.6		$	1,121.6		$	1,092.0		$	1,087.5
Long-term debt	$	2,358.0		$	2,291.7		$	926.9		$	1,167.6		$	1,238.0
Earnings per share:
Basic	$	3.65		$	4.27		$	4.16		$	2.57		$	2.30
Diluted	$	3.63		$	4.23		$	4.11		$	2.56		$	2.30
Dividends declared per common share	$	0.53		$	0.70		$	0.70		$	0.70		$	0.70

⁽¹⁾ The classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense. See “Critical Accounting Policies” below for additional information about this reclassification.

Items Affecting Comparability

Several events occurred during each of the last five fiscal years that affect the comparability of our financial statements. The nature of these events and their impact on underlying business trends are as follows:

Early Extinguishment of Debt Charge

Net income and earnings per share, or EPS, for the full year of fiscal 2013 were impacted by a $21.7 million ($13.3 million after tax), or $0.24 per fully diluted share, early extinguishment of debt charge recorded in the second quarter of fiscal 2013 resulting from the write-off of fees in connection with our April 2013 debt refinancing.

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UK Self-Employment Matter

We received an adverse tax ruling in the United Kingdom that our UK leaders should have been classified as employees for UK tax purposes and, as such, we should have withheld tax from our leaders pursuant to the “Pay As You Earn” and national insurance contributions collection rules and remitted such amounts to Her Majesty’s Revenue and Customs, or HMRC. In connection with this ruling, we recorded a charge of approximately $36.7 million, of which approximately $4.2 million was with respect to fiscal 2009 and approximately $32.5 million was with respect to fiscal years 2001 through 2008, to cost of revenues in the fourth quarter of fiscal 2009. We subsequently recorded a charge of approximately $4.1 million and $3.0 million in fiscal 2010 and fiscal 2011, respectively. In December 2012, we reached an agreement with HMRC to settle the matter in its entirety for approximately $36.8 million. Based upon the settlement amount, we determined that $14.5 million of the reserved amount represented an over-accrual and as such was reversed to cost of revenues. As part of the settlement amount, the settlement agreement provided for an amount of interest to be paid which resulted in a $7.1 million increase to interest expense. The net benefit associated with the settlement was an increase of $7.4 million to income before income taxes. The reserve for this matter at the end of the fourth quarter of fiscal 2012 equaled approximately $7.3 million in the aggregate based on the exchange rates at the end of the fourth quarter of fiscal 2012. In January 2013, $6.8 million was paid to HMRC, representing the balance due over the approximately $30.0 million paid to HMRC in February 2012, and the balance of the reserve was used to pay associated costs.

UK VAT Matter

In fiscal 2010, we determined that there was an over-accrual of $2.0 million, which was reversed to revenue, with respect to the previously disclosed adverse ruling in the United Kingdom related to the imposition of UK value added tax, or UK VAT, on meeting fees earned in the United Kingdom.

Restructuring Charges

In fiscal 2009, we recorded $5.5 million of restructuring charges associated with our cost savings initiatives previously announced in the first quarter of fiscal 2009.

Long-Term Debt

On June 26, 2009, we amended our then-existing credit facilities, or collectively, the Prior WWI Credit Facility, to allow us to make loan modification offers to all lenders of any tranche of term loans or revolving loans to extend the maturity date of such loans and/or reduce or eliminate the scheduled amortization. Any such loan modifications would be effective only with respect to such tranche of term loans or revolving loans and only with respect to those lenders that accepted our offer. Loan modification offers could be accompanied by increased pricing and/or fees payable to accepting lenders. This amendment also provided for up to an additional $200.0 million of incremental term loan financing through the creation of a new tranche of term loans, provided that the aggregate principal amount of such new term loans could not exceed the amount then outstanding under our then-existing revolving credit facility. In addition, the proceeds from such new tranche of term loans could only be used to repay certain outstanding revolving loans and to reduce the commitments of certain revolving lenders. In connection with this amendment, we incurred fees of approximately $4.1 million during fiscal 2009.

On April 8, 2010, we amended the Prior WWI Credit Facility pursuant to a loan modification offer to all lenders of all tranches of term loans and revolving loans to, among other things, extend the maturity date of such loans. In connection with this amendment, certain lenders converted a total of $454.5 million of their outstanding term loans under a tranche A loan ($151.8 million) and additional tranche A loan ($302.7 million) into term loans under the new Term C Loan due 2015 (or 2013, upon the occurrence of certain events described in the Prior WWI Credit Facility agreement), and a total of $241.9 million of their outstanding term loans under the Term B Loan into term loans under the new Term D Loan due 2016 (each as defined hereafter). In addition, certain lenders converted a total of $332.6 million of their outstanding Revolver A-1 commitments into commitments

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under the new Revolver A-2 which would have terminated in 2014 (or 2013, upon the occurrence of certain events described in the Prior WWI Credit Facility agreement) (each as defined hereafter), including a proportionate amount of their outstanding Revolver A-1 loans into Revolver A-2 loans. Following these conversions of a total of $1,029.0 million of loans and commitments, at April 8, 2010, we had the same amount of debt outstanding under the Prior WWI Credit Facility and aggregate amount of availability under the Revolver A-1 and Revolver A-2 as we had immediately prior to such conversions. In connection, with this loan modification offer, we incurred fees of approximately $11.5 million during the second quarter of fiscal 2010.

On March 15, 2012, the composition of the Prior WWI Credit Facility changed as a result of our amending and restating the Prior WWI Credit Facility to, among other things, extend the maturity of certain of our term loan facilities and our revolving credit facility and to obtain new commitments for the borrowing of an additional $1,449.4 million of term loans to finance the purchases of shares of our common stock in the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement. Following the amendment of the Prior WWI Credit Facility, (i) $33.1 million in aggregate principal amount of the Term A-1 Loan and $301.8 million in aggregate principal amount of the Term C Loan were converted into, and $849.4 million in aggregate principal amount of commitments to borrow new term loans were provided under, the new Term E Loan (as defined hereafter), (ii) $107.0 million in aggregate principal amount of the Term B Loan and $119.1 million in aggregate principal amount of the Term D Loan were converted into, and $600.0 million in aggregate principal amount of commitments to borrow new term loans were provided under, the new Term F Loan, and (iii) $262.0 million in aggregate principal amount of commitments under the Revolver A-1 were converted into the new revolving credit facility, Revolver A-2. The loans outstanding under each term loan facility existing prior to the amendment of the Prior WWI Credit Facility and the loans and commitments outstanding under the Revolver A-1, in each case that were not converted into the Term E Loan, the Term F Loan or the Revolver A-2, as applicable, continued to remain outstanding under the WWI Credit Facility as the Term A-1 Loan, the Term B Loan, the Term C Loan, the Term D Loan or the Revolver A-1, as applicable. In connection with this amendment, we incurred fees of approximately $26.2 million in the first quarter of fiscal 2012.

On April 2, 2013, we refinanced our credit facilities pursuant to a Credit Agreement, or the New Credit Agreement, among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and an issuing bank, The Bank of Nova Scotia, as revolving agent, swingline lender and an issuing bank, and the other parties thereto. The New Credit Agreement provides for (a) a revolving credit facility (including swing line loans and letters of credit) in an initial aggregate principal amount of $250.0 million that will mature on April 2, 2018, or the Revolving Facility, (b) an initial term B-1 loan credit facility in an aggregate principal amount of $300.0 million that will mature on April 2, 2016, or Tranche B-1 Term Facility, and (c) an initial term B-2 loan credit facility in an aggregate principal amount of $2,100.0 million that will mature on April 2, 2020, or Tranche B-2 Term Facility. We refer herein to the Tranche B-1 Term Facility together with the Tranche B-2 Term Facility as the Term Facilities, and the Term Facilities and Revolving Facility collectively as the WWI Credit Facility. In connection with this refinancing, we used the proceeds from borrowings under the Term Facilities to pay off a total of $2,399.9 million of outstanding loans, consisting of $128.8 million of Term B Loans, $110.6 million of Term C Loans, $117.6 million of Term D Loans, $1,125.0 million of Term E Loans, $817.9 million of Term F Loans, $21.2 million of loans under the Revolver A-1 and $78.8 million of loans under the Revolver A-2. Following the refinancing of a total of $2,399.9 million of loans, at April 2, 2013, we had $2,400.0 million debt outstanding under the Term Facilities and $248.8 million of availability under the Revolving Facility. We incurred fees of approximately $45.0 million during the second quarter of fiscal 2013 in connection with this refinancing. In the second quarter of fiscal 2013, we wrote-off fees associated with this refinancing which resulted in our recording a charge of $21.7 million in early extinguishment of debt.

For additional details on the WWI Credit Facility, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Long-Term Debt” in Part II of this Annual Report on Form 10-K.

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Working Capital

The changes in the working capital deficit are primarily the result of year-over-year increases related to cash in connection with operations and a decrease in the current portion of long-term debt related to the refinancing of our credit facilities as well as the shift in timing of tax payments, accruals related to the UK self-employment matter and other operational items.

Franchise Acquisitions

The following are our key acquisitions since the beginning of fiscal 2009:

Acquisitions of Alberta and Saskatchewan, West Virginia, Columbus, Reno, Manitoba and Franklin and St. Lawrence Counties. On March 4, 2013, we acquired substantially all of the assets of our Alberta and Saskatchewan, Canada franchisees, Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd., for an aggregate purchase price of $35.0 million. On July 15, 2013, we acquired substantially all of the assets of our West Virginia franchisee, Weight Watchers of West Virginia, Inc., for a net purchase price of $16.0 million. On July 22, 2013, we acquired substantially all of the assets of our Columbus, Ohio franchisee, Weight Watchers of Columbus, Inc., for a net purchase price of $23.3 million and our Reno, Nevada franchisee, Weight Watchers of Northern Nevada, Inc., for a net purchase price of $4.0 million. On October 28, 2013, we acquired substantially all of the assets of our Manitoba, Canada franchisee, Weight Watchers of Manitoba Ltd., for a net purchase price of $5.2 million and our Franklin and St. Lawrence Counties, New York franchisee, Weight Watchers of Franklin and St. Lawrence Counties Inc., for a net purchase price of $0.3 million.

Acquisitions of Southeastern Ontario and Ottawa, Adirondacks and Memphis. On September 10, 2012, we acquired substantially all of the assets of our Southeastern Ontario and Ottawa, Canada franchisee, Slengora Limited, for a net purchase price of $16.8 million. On November 2, 2012, we acquired substantially all of the assets of our Adirondacks franchisee, Weight Watchers of the Adirondacks, Inc., for a purchase price of $3.4 million. On December 20, 2012, we acquired substantially all of the assets of our Memphis, Tennessee franchisee, Weight Watchers of the Mid-South, Inc., for a purchase price of $10.0 million.

These acquisitions were financed through cash from operations. These acquisitions have been accounted for as purchases and financial results have been included in our consolidated operating results since their respective dates of acquisition.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion in conjunction with the “Selected Financial Data” included in Item 6 of this Annual Report on Form 10-K and our consolidated financial statements and related notes included in Item 15 of this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. The cautionary statements discussed in “Cautionary Notice Regarding Forward-Looking Statements” and elsewhere in this Annual Report on Form 10-K should be read as applying to all forward-looking statements wherever they appear in this Annual Report on Form 10-K. Our actual results could differ materially from those discussed here. Factors that could cause or contribute to these differences include, without limitation, those discussed in “Risk Factors” included in Item 1A of this Annual Report on Form 10-K.

Overview

We derive our revenues principally from:

• Meeting fees. Members pay us fees to attend our weekly meetings.

• Internet revenues. We generate revenue from our Internet subscription products and from the sale of third-party Internet advertising.

• In-meeting product sales. We sell a range of products that complement our weight management plans, such as bars, snacks, cookbooks, food and restaurant guides with PointsPlus values, Weight Watchers magazines, PointsPlus calculators and ActiveLink activity monitors, to members in our meetings.

• Licensing, franchise royalties and other. We license the Weight Watchers brand and our other intellectual property in certain categories of foods and other relevant consumer products. We also endorse carefully selected branded consumer products. In addition, our franchisees typically pay us a royalty fee of 10% of their meeting fee revenues as well as purchase products for sale in their meetings. We also generate revenues from subscriptions for our magazines and third-party advertising in our publications.

Prior to fiscal 2014, we had two reporting segments: Weight Watchers International and WeightWatchers.com. All sources of revenue, other than Internet revenues, are included in our Weight Watchers International reporting segment. Over the past several years the mix of our revenues has shifted more toward our WeightWatchers.com reporting segment and away from our Weight Watchers International reporting segment. Revenues from our Weight Watchers International reporting segment contributed 69.4% of our total revenues in fiscal 2013, 72.2% of our total revenues in fiscal 2012, and 77.8% of our total revenues in fiscal 2011. Revenues from our WeightWatchers.com reporting segment contributed 30.6% of our total revenues in fiscal 2013, 27.8% of our total revenues in fiscal 2012, and 22.2% of our total revenues in fiscal 2011.

Effective the first day of fiscal 2014 (i.e. December 29, 2013), we realigned our organizational structure to better leverage our significant assets and align our innovation efforts, which resulted in new reporting segments (North America, United Kingdom, Continental Europe, and Rest of World) for the purpose of making operational and resource decisions and assessing financial performance. The segment information presented in this Annual Report on Form 10-K does not reflect this change as the change was not effected internally until our first quarter of fiscal 2014. We will begin reporting segment information based on these new segments in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2014.

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The following table sets forth our revenues by category for the past five fiscal years.

Revenue Sources

(in millions)

	Fiscal 2013		Fiscal 2012		Fiscal 2011		Fiscal 2010		Fiscal 2009
	(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)
Meetings fees	$	851.6	$	934.9	$	990.3	$	819.6	$	817.5
Internet revenues		522.2		504.3		399.5		238.8		196.0
In-meeting product sales		212.0		253.2		281.8		260.5		251.4
Licensing, franchise royalties and other		138.3		147.0		160.9		145.2		147.7
Total	$	1,724.1	$	1,839.4	$	1,832.5	$	1,464.1	$	1,412.6

From fiscal 2009 through fiscal 2013, our revenues increased at a compound annual growth rate of 5.1% primarily driven by paid weeks growth in the WeightWatchers.com business. Additional revenue details are as follows:

• Meeting fees. From fiscal 2009 through fiscal 2013, meeting fees grew at a compound annual growth rate of 1.0%, with growth in our NACO meetings business being partially offset by declines in our UK and Continental European meetings businesses. This increase was driven by growth in our meeting paid weeks, which grew on a global basis at a compound annual growth rate of 0.6%. Beginning in NACO in the second quarter of fiscal 2010, year-over-year growth in recruitment trends, driven by strong new marketing and further fueled by the soft launch in the fourth quarter of fiscal 2010 of PointsPlus and ProPoints in our English-speaking markets, drove global meeting fees by the fourth quarter of fiscal 2010 to increase versus the comparable prior year period. The momentum of the new program launches in our English-speaking markets accelerated our recruitment trends in the first quarter of fiscal 2011, and, supported by strong marketing and public relations, resulted in global meeting fees that increased in every quarter of fiscal 2011 as compared to the respective prior year period. Fiscal 2012 had the challenge of being compared against the high levels of recruitment growth we experienced in fiscal 2011. Although we entered fiscal 2012 with a higher meeting membership base than we had at the beginning of fiscal 2011, lower enrollments in all 2012 fiscal quarters resulted in lower meeting fees for the year as compared to the prior year. Lower enrollments in the meetings business in fiscal 2012 were primarily driven by a decline in the English-speaking markets as we cycled against the momentum of their program innovations in the prior year. Despite the global introduction of the new Weight Watchers 360º plan, enrollments continued to decline in each fiscal 2013 quarter as compared to the prior year period. This negative enrollment trend coupled with a lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 drove a further decline in meeting paid weeks in fiscal 2013 as compared to the prior year.

• Internet revenues. From fiscal 2009 through fiscal 2013, our Internet revenues grew at a compound annual growth rate of 27.8%. The increase was primarily due to growth in the number of WeightWatchers.com end of period active Online subscribers which grew by over 900,000 subscribers from 762,660 at the end of fiscal 2009 to 1,746,182 at the end of fiscal 2013. This increase in Online subscribers drove growth in our Online paid weeks, which grew at a compound annual growth rate of 27.7% during that period. This increase in Online subscribers and paid weeks, which accelerated in fiscal 2011, was driven primarily by continued strong marketing campaigns which began in the second quarter of fiscal 2010 in the United States and the United Kingdom, and further benefited from the new program launches at the end of fiscal 2010. In addition, from fiscal 2009 through fiscal 2011, we had three new country launches which further drove growth in our subscriber base. In fiscal 2012, first-time dedicated television advertising coupled with effective marketing campaigns in Canada and Continental Europe primarily drove strong Online paid weeks growth in the year. Although our active Online subscriber base had a declining growth trend throughout fiscal 2012 which drove declining

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Online paid weeks growth throughout that year, this subscriber base was higher at the beginning of fiscal 2013 than at the beginning of fiscal 2012. In fiscal 2013, the Online paid weeks growth deceleration continued throughout the year driven by declining sign-ups in the US business. By the end of the first half of fiscal 2013, this decline in sign-ups led to our active Online subscriber base dropping below the prior year period. This negative sign-up trend continued in the second half of fiscal 2013 driven primarily by the US business, as the commercial weight loss category continued to be impacted by increasing consumer trial of activity monitors and free apps.

• In-meeting product sales. Global product sales were down 4.2% on a compound annual growth rate from fiscal 2009 through fiscal 2013. Our average product sales per attendee in our meetings business grew from $4.63 to $4.94 at a compound annual growth rate of 1.6% during that period as a result of successful new product and program launches. However, we experienced a decline in the number of members attending meetings which drove a decline in our global product sales during that period.

• Licensing revenues. Licensing revenues declined at a compound annual growth rate of 0.2% from fiscal 2009 through fiscal 2013. Despite our increased focus on expanding the number of Weight Watchers branded and endorsed products worldwide, the decrease in consumer confidence and discretionary spending from the global economic downturn negatively impacted this revenue category during that period. In addition, during fiscal 2012 and fiscal 2013, the licensing business was further negatively impacted by competition from lower priced store branded products.

Metrics and Business Trends

Performance Indicators and Market Trends

Our management reviews and analyzes several key performance indicators in order to manage our business and assess the quality and potential variability of our cash flows and earnings. These key performance indicators include:

• net revenues;

• paid weeks and attendance metrics;

• meeting fees per paid week and in-meeting product sales per attendee;

• the number of end of period Monthly Pass active subscribers and active Online subscribers; and

• gross profit and operating expenses as a percentage of revenue.

We believe that our revenues and profitability can be sensitive to major trends in the weight management industry. In particular, we believe that our business could be adversely impacted by:

• increased competition from Internet, free mobile and other weight management applications, activity monitors and other electronic weight management approaches;

• the development of more favorably perceived or more effective weight management methods, including pharmaceuticals;

• a failure to develop innovative new services and products or to successfully expand into new channels of distribution;

• a failure to successfully implement new strategic initiatives;

• a decrease in the effectiveness of our marketing and advertising programs;

• an impairment of the Weight Watchers brand and our other intellectual property;

• a failure of our technology or systems to perform as designed; and

• a downturn in general economic conditions or consumer confidence.

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Global Operations

The following tables set forth our paid weeks and meeting attendance by geography for the past five fiscal years:

	Paid Weeks in Company-Owned Operations (in millions)
	Fiscal 2013		Fiscal 2012		Fiscal 2011		Fiscal 2010		Fiscal 2009
	(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)
Online Paid Weeks		113.4		111.5		88.0		52.5		42.7
Meeting Paid Weeks:
North America		59.7		66.0		69.9		55.3		55.8
United Kingdom		13.7		16.9		19.1		16.1		16.2
Continental Europe		13.2		13.4		12.2		13.6		12.7
Other International		2.5		2.9		3.6		2.9		2.9
Total Meeting Paid Weeks		89.1		99.2		104.8		87.9		87.6
Total Paid Weeks		202.5		210.7		192.8		140.4		130.3

	Meeting Attendance in Company-Owned Operations (in millions)
	Fiscal 2013		Fiscal 2012		Fiscal 2011		Fiscal 2010		Fiscal 2009
	(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)		(52 weeks)
North America		27.2		31.9		36.0		30.3		32.1
United Kingdom		7.5		9.7		11.6		10.2		11.4
Continental Europe		6.8		7.4		7.2		8.5		8.6
Other International		1.4		1.7		2.2		2.0		2.2
Total		42.9		50.7		57.0		51.0		54.3

The “paid week” metric reports total paid weeks by our customers in Company-owned operations for a given period. For Weight Watchers Online, paid weeks is the total paid Weight Watchers Online subscriber weeks for a given period. For meetings, paid weeks is the sum of total paid commitment plan weeks (e.g., Monthly Pass weeks) and total “pay-as-you-go” weeks for a given period. Before the launch of our commitment plans in the meetings business, our members were largely on a “pay-as-you-go” basis, and accordingly, growth in meeting attendance essentially approximated growth in meeting paid weeks. However, paid weeks and attendance are no longer directly correlated as the percentage of meeting paid weeks attributable to commitment plans far exceeds the percentage attributable to “pay-as-you-go”.

As shown in the table above, our total paid weeks grew from 130.3 million in fiscal 2009 to 202.5 million in fiscal 2013, or 11.7% on a compound annual growth rate basis. Weight Watchers Online paid weeks grew from 42.7 million in fiscal 2009 to 113.4 million in fiscal 2013, or 27.7% on a compound annual growth rate basis. Our total meeting paid weeks grew from 87.6 million in fiscal 2009 to 89.1 million in fiscal 2013, or 0.4% on a compound annual growth rate basis. While franchise acquisitions had a de minimis impact on the compound annual growth rate for total paid weeks, these acquisitions benefited the compound annual growth rate of meeting paid weeks by 0.3%.

As shown in the table above, our annual meeting attendance in our Company-owned operations has declined from 54.3 million for fiscal 2009 to 42.9 million for fiscal 2013, a decline of 5.7% on a compound annual growth rate basis which includes a 0.5% benefit from franchise acquisitions. Our average meeting revenue per attendee, however, increased over the same period, largely as a result of Monthly Pass’ growing penetration in NACO and other markets and growth in product sales per attendee.

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WeightWatchers.com Metrics and Business Trends

From fiscal 2009 to fiscal 2013, Internet revenues grew at a compound annual growth rate of 27.8%. This growth was primarily driven by growth in Online subscription revenue of 29.1% on a compound annual growth rate basis from fiscal 2009 to fiscal 2013. Subscription revenue growth was driven by an increase in Online paid weeks from 42.7 million in fiscal 2009 to 113.4 million in fiscal 2013, a compound annual growth rate of 27.7%. End of period active Online subscribers grew from 0.8 million at the end of fiscal 2009 to 1.7 million at the end of fiscal 2013, a compound annual growth rate of 23.0%. This successful growth resulted primarily from a combination of new subscribers in our major markets and launches of WeightWatchers.com subscription products in three new markets. In addition, WeightWatchers.com, like the meetings business, benefited from the new program launches of PointsPlus and ProPoints in fiscal 2010 and fiscal 2011 and the introduction of new products, including applications for mobile devices such as the iPhone^®, iPad^® and Android™ devices. Marketing, particularly first-time dedicated television advertising coupled with effective marketing campaigns in Canada and Continental Europe in the case of fiscal 2012, continued to drive subscription growth from fiscal 2009 through the first three quarters of fiscal 2013. Although Online paid weeks still grew in fiscal 2013 as compared to fiscal 2012, driven by a higher active Online subscriber base at the beginning of fiscal 2013 versus fiscal 2012, the declining trend of Online paid weeks growth in fiscal 2012 continued into fiscal 2013. For the first and second quarters of fiscal 2013, Online paid weeks grew 10.3% and 4.4% versus the prior year period, respectively. Conversely, for the third and fourth quarters of fiscal 2013, Online paid weeks declined 2.6% and 6.5% versus the prior year period, respectively. The decline was primarily driven by declining sign-ups in the US business as the commercial weight loss category continued to be impacted by increasing consumer trial of activity monitors and free apps. As a result, Online paid weeks in the second half of fiscal 2013 were below those in the prior year period.

In addition to generating revenues from its subscription-based offerings, WeightWatchers.com also provides a means for companies to advertise on our websites. This advertising revenue increased at a compound annual growth rate of 4.4% from fiscal 2009 to fiscal 2013. This increase was driven primarily by advertising growth in the United States followed by Germany.

North America Meeting Metrics and Business Trends

In 2009, the weak economy in the United States had a significant impact on our meetings business. The economic recession, coupled with reduced credit availability, adversely impacted consumer spending. We saw the impact most acutely in enrollments, particularly of new members who had never been to Weight Watchers. In fiscal 2009, meeting paid weeks declined by 8.4% versus fiscal 2008. Attendance also declined versus the prior year.

In fiscal 2010, NACO meeting paid weeks declined 1.0% and attendance declined 5.7% versus the prior year as a result of performance weakness in the early part of the year. In the spring of fiscal 2010, NACO launched a new marketing strategy and campaign focused on member experience, featuring Jennifer Hudson as its new spokesperson. With this change, business performance began an improvement trend in the second quarter of fiscal 2010 that continued through the rest of the year. In addition, NACO initiated other growth strategies during fiscal 2010, including revamping the retail structure in select markets. These new strategies coupled with the launch of the PointsPlus program in late November resulted in a positive end to fiscal 2010, with solid growth in the fourth quarter in both meeting paid weeks and attendance, up 4.2% and 6.8%, respectively, versus the fourth quarter of 2009.

In fiscal 2011, NACO meeting paid weeks increased 26.4% and attendances increased 18.8% versus the prior year level. We entered fiscal 2011 with more active members than at the beginning of fiscal 2010 driven by the momentum of the new program launch and supported by strong marketing and public relation activities. The quarterly growth trend in meeting paid weeks and attendances in fiscal 2011 versus prior year quarters continued to be strong, albeit at a slightly slower pace, as we began to cycle against the highly successful marketing campaign in the second quarter of fiscal 2010 and the soft launch of our new program innovation in the fourth

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quarter of fiscal 2010. For the first, second, third and fourth quarters of fiscal 2011, meeting paid weeks increased 32.6%, 31.9%, 25.9% and 15.0% and attendances increased 33.1%, 19.8%, 13.6% and 5.5%, respectively, as compared to the prior year periods.

In fiscal 2012, NACO meeting paid weeks decreased 5.6% and attendances decreased 11.4% versus the prior year level. Although we entered fiscal 2012 with more active members than at the beginning of fiscal 2011, we experienced lower enrollments in the first quarter of fiscal 2012 as we cycled against the historically high levels of recruitment growth in the first quarter of fiscal 2011. The decline in enrollments in the first quarter of fiscal 2012, caused in part by lack of new program news and execution challenges associated with introducing Monthly Pass in the small accounts portion of its corporate business, drove a meeting paid weeks decline of 6.0% and an attendance decline of 11.9%, and also resulted in entering the second quarter of fiscal 2012 with a lower meeting membership base, as compared to the prior year period. The declining trend in meeting paid weeks and attendance in fiscal 2012 continued through the remainder of the year. For the second, third and fourth quarters of fiscal 2012, meeting paid weeks decreased 5.5%, 3.6% and 7.3% and attendances decreased 9.9%, 9.4% and 14.5%, respectively, as compared to the prior year periods.

In fiscal 2013, NACO meeting paid weeks decreased 9.4% and attendances decreased 14.7% versus the prior year level. The decline in meeting paid weeks primarily resulted from the lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 as well as from lower enrollments in fiscal 2013 versus the prior year, primarily in the United States, due to the difficulty in attracting members to our brand. Although we introduced our new Weight Watchers 360° plan in December 2012, this new plan was not as effective in driving consumer trial as our PointsPlus innovation. For the first, second, third and fourth quarters of fiscal 2013, meeting paid weeks decreased 6.5%, 10.0%, 10.7% and 10.8% and attendances decreased 15.9%, 14.5%, 14.7% and 13.1%, respectively, as compared to the prior year periods. The Company completed three franchise acquisitions in NACO in the second half of fiscal 2012 as well as seven franchise acquisitions in fiscal 2013. These franchise acquisitions benefitted NACO meeting paid weeks by 1.7% and attendances by 2.8% in fiscal 2013.

United Kingdom Meeting Metrics and Business Trends

Despite a weak economy in the United Kingdom in fiscal 2009, effective marketing and promotional activity resulted in an increase in meeting paid weeks, up 8.1% in fiscal 2009 as compared to the prior year, reflecting increased penetration of Monthly Pass in that market. Attendance in fiscal 2009 declined slightly, down 1.5% versus the prior year.

In fiscal 2010, meeting paid weeks declined by 0.4%, and meeting attendance declined 10.5%, compared to fiscal 2009. First quarter fiscal 2010 UK volumes were significantly impacted by weather and cycling against a program innovation in the prior year. The United Kingdom continued to experience steep declines in attendance in 2010 versus the prior year, down 8.5% in the second quarter and 9.4% in the third quarter. The United Kingdom launched its new program, ProPoints, in early November 2010, and saw attendance growth as a result of the launch. However, because of limited marketing prior to the new program launch and bad weather during the launch period, fourth quarter 2010 attendance decreased 11.3% versus the fourth quarter of fiscal 2009.

In fiscal 2011, meeting paid weeks grew 18.3% versus the prior year, benefiting from enrollment growth concurrent with the launch of ProPoints late in fiscal 2010 and early fiscal 2011 and an increase in Monthly Pass penetration. As with NACO, this growth in recruitment resulted in a larger customer base and as a result, attendances also grew, up 13.7% versus the prior year. Despite the negative impact of the Royal Wedding and Easter timing on second quarter fiscal 2011 attendance, meeting paid weeks and attendance grew in each fiscal 2011 quarter versus the prior year period.

In fiscal 2012, meeting paid weeks declined 11.3% and attendances decreased 16.5% versus the prior year level. As with NACO, the United Kingdom entered fiscal 2012 with more active members as compared to the beginning of fiscal 2011, but experienced lower enrollments in the first quarter of fiscal 2012 versus the prior year period. These lower enrollments were driven by cycling against the historically high recruitment levels in

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the first quarter of fiscal 2011 and resulted in a decline in meeting paid weeks. This declining trend continued throughout the rest of fiscal 2012 and was negatively impacted by an advertising campaign that was ineffective at driving enrollment growth and weak macro-economic trends.

In fiscal 2013, meeting paid weeks declined 19.2% and attendances decreased 22.7% versus the prior year level. Meeting paid weeks negative performance in fiscal 2013 was driven by the lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 coupled with lower enrollments in the period as compared to enrollment levels in the prior year. In fiscal 2013, local competition in the United Kingdom significantly contributed to the decline in enrollments. For the first, second, third and fourth quarters of fiscal 2013, meeting paid weeks declined 17.8%, 19.0%, 21.1% and 19.4%, and attendances declined 25.8%, 20.3%, 22.7% and 20.5%, respectively, as compared to the prior year periods.

Continental Europe Meeting Metrics and Business Trends

In fiscal 2009, most of our Continental European markets were deeply affected by difficult recessionary conditions. While Continental Europe experienced meeting paid weeks growth of 1.6% versus the prior year as the market continued to benefit from increased Monthly Pass penetration, attendance declined 11.8% versus the prior year. A major new innovative program, ProPoints, was launched in the fourth quarter of fiscal 2009.

In fiscal 2010, meeting paid weeks, benefiting from enrollment growth early in the year and an increase in Monthly Pass penetration, grew 6.9% versus the prior year, while attendance in Continental Europe declined 1.6% versus the prior year. In the first half of fiscal 2010, the Continental European market experienced attendance growth as a result of the ProPoints program launch in fiscal 2009, which drove an influx of returning members to our meetings. The marketing of this new program, however, was not successful in capturing the attention of new members and, as a result, attendance began to decline in the third quarter of fiscal 2010.

Entering fiscal 2011, Continental European performance continued its downward trend, with meeting paid weeks down 9.8% versus the prior year and attendances down 15.4% versus the prior year. In the first half of fiscal 2011, meeting paid weeks declined by 13.1% and attendance declined by 18.9% versus the prior year period, as the business lapped the momentum of its program launch in the prior year. While still negative versus the prior year period, the trend began to improve in the third quarter of fiscal 2011 with meeting paid weeks down 6.0% and attendances down 15.1%. In the fourth quarter of fiscal 2011, Continental Europe soft launched its updated version of ProPoints in December, resulting in a less negative performance with meeting paid weeks down 4.9% and attendances down 4.3% versus the prior year period.

In fiscal 2012, meeting paid weeks grew 9.2%, and attendances grew 3.3%, versus the prior year. This growth was driven by entering fiscal 2012 with a higher active member base than the prior year and the benefit of higher enrollment growth from the launch of the updated version of ProPoints in late fiscal 2011 and early fiscal 2012, effective new marketing strategies and an increase in Monthly Pass penetration. For the first, second, third and fourth quarters of fiscal 2012, meeting paid weeks grew 5.4%, 11.0%, 12.1% and 9.0%, and attendances grew 4.3%, 2.7%, 4.9% and 1.0%, respectively, as compared to the prior year periods.

In fiscal 2013, meeting paid weeks declined 1.5%, and attendances declined 8.1%, versus the prior year. This decrease in meeting paid weeks was driven by lower enrollments in fiscal 2013 as compared to the prior year. Lower enrollments were the result of cycling against the successful launch of the updated program and the new advertising campaigns in the prior year period. However, the negative impact of enrollments on meeting paid weeks was minimized by the higher meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012. For the first, second, third and fourth quarters of fiscal 2013, meeting paid weeks declined 1.0%, 1.6%, 1.7% and 1.7%, and attendances declined 10.9%, 6.7%, 8.2% and 5.7%, respectively, as compared to the prior year periods.

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Fiscal 2014: Anticipated Business Metrics, Trends and Other Events

Due to increasing competitive pressures, including the impact of the increasing consumer trial of activity monitors and free apps in the commercial weight loss category, and less impactful marketing of our new two-week starter plan, Simple Start, management anticipates negative recruitment trends to continue into 2014. Given the lower starting active base at the beginning of fiscal 2014 versus the beginning of fiscal 2013 and the weak recruitment environment continuing into 2014, management expects declines in paid weeks in fiscal 2014 to be higher than the declines experienced in fiscal 2013. Management expects Online paid weeks in fiscal 2014 to decline at a higher rate than that experienced in the second half of fiscal 2013. For NACO, the United Kingdom and Continental Europe, management anticipates meeting paid weeks and attendances in fiscal 2014 to decline at a higher rate than that experienced in fiscal 2013. Given these expected negative trends, management expects revenues to decline at a higher rate in fiscal 2014 than that experienced in fiscal 2013.

To help offset this anticipated revenue decline, our strategy for fiscal 2014 includes investments in certain key areas to support future growth and plans to reduce costs aggressively elsewhere. As part of this cost savings initiative, the Company is undertaking a plan of termination which will result in the elimination of certain positions and employees worldwide. In connection with this plan, the Company anticipates recording restructuring charges in connection with employee termination benefit costs of approximately $10.0 million (which is expected to be divided equally between general and administrative expenses and operating expenses related to field restructuring) during the first and second quarters of fiscal 2014.

Margins

Gross Margin

The following table sets forth our gross profit and gross margin for the past five fiscal years, as adjusted to exclude the impact of the UK VAT and the UK self-employment matters:

(in millions)	2013			2012			2011			2010			2009
Gross Profit	$	1,001.1		$	1,093.8		$	1,058.5		$	800.8		$	740.8
Gross Margin		58.1	%		59.5	%		57.8	%		54.7	%		52.4	%
Adjustments to Reported Amounts
UK self-employment accrual(1)		—			(14.5	)		—			—			32.5
UK VAT ruling accrual(2)		—			—			—			(2.0	)		—
Gross Profit, as adjusted(1)(2)	$	1,001.1		$	1,079.3		$	1,058.5		$	798.8		$	773.3
Gross Margin impact from above adjustments(1)(2)		—			0.8	%		—			0.0	%		(2.3	%)
Gross Margin, as adjusted(1)(2)		58.1	%		58.7	%		57.8	%		54.6	%		54.7	%

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues related to the settlement of the UK self-employment matter and that adjusts the consolidated statements of net income for fiscal 2009 to exclude $32.5 million in cost of revenues for the impact of the UK self-employment matter.

(2) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2010 to exclude the benefit of a $2.0 million increase to revenues from the reversal of the previously disclosed over-accrual related to the adverse UK VAT ruling.

See “Non-GAAP Financial Measures” below for an explanation of our use of non-GAAP financial measures.

In the period from fiscal 2009 through fiscal 2013 our gross margin ranged from a high of 59.5% in fiscal 2012 to a low of 52.4% in fiscal 2009. Excluding the impact of the UK VAT and UK self-employment matters in the period, our gross margin ranged from a high of 58.7% in fiscal 2012 to a low of 54.6% in fiscal 2010. As the higher margin WeightWatchers.com business grew over the period and became a larger share of our revenue mix, our adjusted gross margin expanded, most notably from fiscal 2010 through fiscal 2012. In addition, with its fixed cost business model, growth within the WeightWatchers.com business resulted in margin expansion in that

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business during the period. Conversely, in the meetings business, our meetings staff is usually paid on a commission basis and space is rented as needed in most instances. When it becomes more cost effective to do so, in various geographies (particularly North America), we rent centers at reasonable rates with relatively short lease terms. Moreover, we adjust the number of meetings according to demand. This variable cost structure has historically enabled us to maintain high margins even as we have experienced a decline in the number of attendances per meeting. When attendances per meeting decline, our gross margins typically decline. In fiscal 2013, the decline in attendances per meeting outpaced our ability to reduce the meetings infrastructure resulting in a decline in the adjusted gross margin versus the prior year.

Operating Margin

The following table sets forth our Operating Income for the past five fiscal years, as adjusted to exclude the impact of the UK VAT and UK self-employment matters as well as the previously reported impact of restructuring charges:

(in millions)	2013			2012			2011			2010			2009
Operating Income	$	460.8		$	510.8		$	546.3		$	390.3		$	356.7
Operating Income Margin		26.7	%		27.8	%		29.8	%		26.7	%		25.2	%
Adjustments to Reported Amounts
UK Self-employment accrual(1)		—			(14.5	)		—			—			32.5
UK VAT ruling accrual(2)		—			—			—			(2.0	)		—
Restructuring charges(1)		—			—			—			—			5.5
Operating Income, as adjusted(1) (2)	$	460.8		$	496.3		$	546.3		$	388.3		$	394.6
Operating Income Margin impact from above adjustments(1)(2)		—			0.8	%		—			0.0	%		(2.7	%)
Operating Income Margin, as adjusted(1) (2)		26.7	%		27.0	%		29.8	%		26.5	%		27.9	%

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues related to the settlement of the UK self-employment matter and that adjusts the consolidated statements of income for fiscal 2009 to exclude $32.5 million in cost of revenues for the impact of the UK self-employment matter and the $5.5 million impact of restructuring charges.

(2) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2010 to exclude the benefit of a $2.0 million increase to revenues from the reversal of the previously disclosed over-accrual related to the adverse UK VAT ruling.

See “Non-GAAP Financial Measures” below for an explanation of our use of non-GAAP financial measures.

In the period from fiscal 2009 through fiscal 2013 our operating income margin ranged from a high of 29.8% in fiscal 2011 to a low of 25.2% in fiscal 2009. Excluding the impact of the UK VAT and UK self-employment matters and the impact of our previously reported restructuring charges in the period, our operating income margin ranged from a high of 29.8% in fiscal 2011 to a low of 26.5% in fiscal 2010. In fiscal 2010, the operating income margin of the Company was driven by significant investment for the preparation and launch of the PointsPlus program in the United States and Canada and ProPoints program in the United Kingdom and Australia, increased marketing for our WeightWatchers.com business, and a charge associated with the settlement of a California labor litigation.

In fiscal 2011, the operating income margin of the Company was 29.8%, the highest in the five-year period. This was despite the increased marketing in WeightWatchers.com stemming from the initiative focused on building awareness and relevance of the Weight Watchers brand with the male demographic, as well as expenses in support of growth initiatives, including technology for the development of our mobile platforms and additions to staff in support of business development. These higher expenses were more than offset by the efficiencies we gained from higher average attendance in our meetings and the impact of the higher margin WeightWatchers.com business becoming a larger component of our revenue mix.

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In fiscal 2012, excluding the impact of the UK self-employment matter, operating income margin declined to 27.0% from 29.8% in the prior year. This decline in operating income margin was primarily driven by costs related to first time Online TV marketing campaigns in several of our international markets and our significant investment in marketing the Weight Watchers Online product to men in the United States, as well as, selling, general and administrative expenses in support of our growth initiatives.

In fiscal 2013, operating income margin further declined to 26.7% from an adjusted operating income margin of 27.0% in the prior year. This decrease in operating income margin was primarily the result of lower gross margin largely offset by lower marketing expense. Lower marketing expense was driven primarily from the elimination of inefficient digital advertising and the lack of a men’s campaign in the United States, in fiscal 2013 versus the prior year.

Non-GAAP Financial Measures

To supplement our consolidated results presented in accordance with accounting principles generally accepted in the United States, or GAAP, we have disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. Net income and earnings per fully diluted share are discussed in this Annual Report on Form 10-K both as reported (on a GAAP basis) and as adjusted (on a non-GAAP basis) to exclude the impact from the early extinguishment of debt charge recorded in connection with our previously announced April 2, 2013 refinancing of our long-term debt. Net revenues, cost of revenues, gross profit and gross margin, operating income and operating income margin, net income, earnings per fully diluted share, and effective tax rate, including components thereof, are discussed in this Annual Report on Form 10-K both as reported (on a GAAP basis) and as adjusted (on a non-GAAP basis) to exclude from fiscal 2012, in connection with the settlement of the UK self-employment matter, the benefit of a partial accrual reversal of a charge originally recorded in the fourth quarter of fiscal 2009, and from fiscal 2010 the revenue benefit of a partial accrual reversal of a charge originally recorded in connection with the previously disclosed adverse UK VAT ruling; and to adjust fiscal 2009 results for both the impact of the UK self-employment matter and the impact of restructuring charges associated with our previously disclosed cost savings initiatives. We generally refer to such non-GAAP measures as excluding or adjusting for the impact of the early extinguishment of debt charge, the settlement, accrual reversal, these rulings, these matters and/or these restructuring charges. Our management believes these non-GAAP financial measures provide supplemental information to investors regarding the performance of our business and are useful for period-over-period comparisons of the performance of our business. While we believe that these financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly entitled measures reported by other companies.

Use of Constant Currency

As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. We use results on a constant currency basis as one measure to evaluate our performance. In this Annual Report on Form 10-K, we calculate constant currency by calculating current-year results using prior-year foreign currency exchange rates. We generally refer to such amounts calculated on a constant currency basis as excluding or adjusting for the impact of foreign currency or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

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Critical Accounting Policies

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. We base our estimates on historical experience and on various other factors and assumptions that we believe 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 results may differ from these estimates.

We believe the following accounting policies are most important to the portrayal of our financial condition and results of operations and require our most significant judgments and estimates.

Revenue Recognition

WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. We charge non-refundable registration fees in exchange for an introductory information session and materials we provide to new members in our meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized.

The classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing first nine months of fiscal 2013, fiscal 2012, fiscal 2011, fiscal 2010 and fiscal 2009 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows:

	Fiscal
	2013		2012		2011		2010		2009
Product sales and other, net	$	12.1	$	12.6	$	13.3	$	12.0	$	13.7
Cost of meetings, products and other	$	1.1	$	1.6	$	2.0	$	1.9	$	0.9
Gross profit	$	11.0	$	11.0	$	11.4	$	10.2	$	12.8
Marketing expenses	$	10.3	$	10.2	$	10.6	$	9.4	$	12.3
Selling, general and administrative expenses	$	0.7	$	0.9	$	0.8	$	0.8	$	0.6

WeightWatchers.com primarily generates revenue from monthly subscriptions for our Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website.

We grant refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid.

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Franchise Rights Acquired, Goodwill and Other Intangible Assets

Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. We review goodwill and other indefinite-lived intangible assets, including franchise rights acquired, for potential impairment on at least an annual basis or more often if events so require. We performed fair value impairment testing as of the end of fiscal 2013 and fiscal 2012 on our goodwill and other indefinite-lived intangible assets.

In performing the impairment analysis for goodwill, the fair value for our 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. We have determined the appropriate reporting unit for purposes of assessing annual impairment to be the country for all reporting units aside from WeightWatchers.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32.7 million, $5.1 million and $3.7 million, respectively, totaling $41.5 million. The value of goodwill for the WeightWatchers.com reporting unit at December 28, 2013 was $37.8 million.

In performing the impairment analysis for franchise rights acquired, the fair value for our franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. We have determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697.3 million, $110.4 million, $14.4 million, $13.7 million and $1.0 million, respectively, totaling $836.8 million.

When determining fair value, we utilize various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease occurred, we would be required to record a corresponding charge, which would impact earnings. We would also be required to reduce the carrying amounts of the related assets on our balance sheet. We continue to evaluate these estimates and assumptions and believe that these assumptions are appropriate.

In performing the impairment analysis for the fiscal year ended December 28, 2013, we determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to our Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and recorded impairment charges of $935 and $231, respectively. We determined that the carrying amounts of our other remaining assets did not exceed their respective fair values, and therefore, no other impairment existed.

We estimate future cash flows for each unit of accounting by utilizing the historical cash flows attributable to the rights in that country and then applying a growth rate using a blend of the historical operating income growth rates for such country and expected future operating income growth rates for such country. We utilize operating income as the basis for measuring our potential growth because we believe it is the best indicator of the performance of our business. For fiscal 2013, the compound annual growth rates used in our discounted cash flow analysis ranged from a decline of approximately 5% to growth of approximately 12%. In applying the hypothetical start-up approach in fiscal 2013, we generally assume the year of maturity is reached after 7 years. Subsequent to the year of maturity we have assumed growth rates ranging from a decline of approximately 2% to growth of approximately 8%. For fiscal 2012, the blended growth rates used in our discounted cash flow analysis ranged from a decline of approximately 3% to growth of approximately 50%. We then discount the estimated future cash flows utilizing a discount rate which is calculated using the average cost of capital, which includes the cost of equity and the cost of debt. The cost of equity is determined by combining a risk-free rate of return and a market risk premium. The risk-free rate of return is generally determined based on the average rate of long-

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term U.S. Treasury securities. The market risk premium is generally determined by reviewing external market data. When appropriate, we further adjust the resulting combined rate to account for certain entity-specific factors such as maturity of the market in order to determine the utilized discount rate. The cost of debt is our average borrowing rate for the period. The discount rates used in our fiscal 2013 year-end impairment test and our fiscal 2012 year-end impairment test averaged approximately 9.1% and 9.2%, respectively.

At the end of fiscal 2013, we estimated that approximately 99% of our goodwill and 87% of our franchise rights acquired had a fair value at least 50% higher than their respective carrying amounts. In the United States, the region which held approximately 41% of the goodwill and 83% of the franchise rights acquired, the aggregate fair value of both our reporting units and franchise rights acquired was at least 50% higher than the aggregate carrying value of the reporting units and franchise rights acquired, respectively. Given that there is a significant difference between the fair value and carrying value of our franchise rights acquired, we believe there are currently no reasonably likely changes in assumptions that would cause a material impairment charge.

Information concerning significant accounting policies affecting us is set forth in Note 2 of our consolidated financial statements, contained in Part IV, Item 15 of this Annual Report on Form 10-K.

RESULTS OF OPERATIONS FOR FISCAL 2013 (52 weeks) COMPARED TO FISCAL 2012 (52 weeks)

OVERVIEW

Fiscal 2012 was a year of modest revenue growth of 0.4%, with growth in the Online business almost fully offset by declines in the meetings business. In fiscal 2012, total paid weeks continued to grow at a decelerating rate in each fiscal quarter versus the prior year period due to a challenging recruitment environment, particularly from our global meetings business.

This challenging recruitment environment continued for both the Online and meetings businesses into fiscal 2013, with increased competitive pressure in the Online business from the increasing consumer trial of activity monitors and free apps. As we entered fiscal 2013, our meetings business active base was lower than the beginning of fiscal 2012. Conversely, though our active Online subscriber base had a declining growth trend throughout fiscal 2012, this subscriber base was higher at the beginning of fiscal 2013 than at the beginning of fiscal 2012. The difficult recruitment environment in fiscal 2013 had the impact of further reducing the active bases in both our meetings and Online businesses as we progressed through fiscal 2013.

Each fiscal 2013 quarter had consistently weak and deteriorating recruitment performance, which further drove declining active bases, as compared to the prior year period resulting in paid weeks and revenue trends that became progressively worse throughout the year with the fourth quarter of fiscal 2013 having the weakest performance. In the first quarter of fiscal 2013, total paid weeks were still above the prior year period by 1.4%. However, in the second, third and fourth quarters of fiscal 2013, driven by this negative recruitment trend, total paid weeks declined 2.5%, 6.6% and 8.5%, respectively, as compared to the prior year period. Online paid weeks in the third quarter of fiscal 2013 declined 2.6% versus the prior year period. This was the first time in our history that Online paid weeks declined on a year-over-year basis.

Driven by the decline in paid weeks, total revenue for fiscal 2013 declined 6.3% as compared to the prior year. This revenue decrease was driven primarily by the meetings business where revenue declined in all four quarters versus the respective prior year periods, with a full year decline of 10.1% versus the prior year. Conversely, Online revenues grew in the first three quarters, but at decelerating rates, such that by the fourth quarter of fiscal 2013, our Online business had its first-ever quarter of declining revenue versus the prior year period, down 5.2%. However, for the full year of fiscal 2013, Online revenues increased 3.5% versus the prior year.

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During fiscal 2013, cost savings initiatives, driven primarily by significant marketing and other cost savings initiatives, partially offset declines in revenues throughout the year. However, despite these initiatives, operating income declined 9.8%, which included the benefit related to the settlement of the previously disclosed UK self-employment matter.

The table below sets forth selected financial information for fiscal 2013 from our consolidated statements of income for fiscal 2013 versus selected financial information for fiscal 2012 from our consolidated statements of income for fiscal 2012, on both a reported basis and an adjusted basis. Results for fiscal 2012 are adjusted to exclude the $4.1 million (after-tax) benefit related to the settlement of the previously disclosed UK self-employment matter. See “Non-GAAP Financial Measures” above.

Summary of Selected Financial Data as Reported and Adjusted

	(In millions, except per share amounts)
	Fiscal			Fiscal			Increase/			%
	2013			2012			(Decrease)			Change
Revenues	$	1,724.1		$	1,839.4		$	(115.3	)		(6.3	%)
Cost of revenues (as adjusted)(1)		723.0			760.2			(37.1	)		(4.9	%)
UK Self-employment settlement(1)		—			(14.5	)		14.5
Cost of revenues		723.0			745.6			(22.6	)		(3.0	%)
Gross Profit		1,001.1			1,093.8			(92.7	)		(8.5	%)
Gross Margin %		58.1	%		59.5	%
Marketing expenses		295.6			353.7			(58.0	)		(16.4	%)
Selling, general & administrative expenses		244.7			229.3			15.4			6.7	%
Operating income		460.8			510.8			(50.0	)		(9.8	%)
Operating Income Margin %		26.7	%		27.8	%
Interest expense (as adjusted)(1)		103.1			83.4			19.7			23.6	%
UK Self-employment settlement(1)		—			7.1			(7.1	)		(100.0	%)
Interest expense		103.1			90.5			12.6			13.9	%
Other expense, net		0.6			2.0			(1.4	)		(69.7	%)
Early extinguishment of debt		21.7			1.3			20.4
Income before income taxes		335.4			417.0			(81.6	)		(19.6	%)
Provision for income taxes (as adjusted)(1)		130.6			156.2			(25.6	)		(16.4	%)
UK Self-employment settlement(1)		—			3.3			(3.3	)
Provision for income taxes		130.6			159.5			(28.9	)		(18.1	%)
Net income	$	204.7		$	257.4		$	(52.7	)		(20.5	%)
Weighted average diluted shares outstanding		56.4			60.9			(4.5	)		(7.4	%)
Diluted EPS	$	3.63		$	4.23		$	(0.60	)		(14.1	%)

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues and $7.1 million increase to interest expense related to the settlement of the UK Self-employment matter. See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.

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The following table sets forth a reconciliation of certain selected financial data for fiscal 2013:

(in millions, except per share amounts)	Income Before Taxes		Provision for Income Taxes		Net Income		Diluted EPS
Fiscal 2013	$	335.4	$	130.6	$	204.7	$	3.63
Adjustments to Reported Amounts(1)
Early extinguishment of debt charge(1)		21.7		8.4		13.3		0.24
Total Adjustments		21.7		8.4		13.3		0.24
Fiscal 2013, as adjusted(1)	$	357.0	$	139.0	$	218.0	$	3.87

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts certain selected financial data for fiscal 2013.

See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.

The following table sets forth a reconciliation of certain selected financial data for fiscal 2012:

(in millions, except per share amounts)	Gross Profit			Gross Profit Margin			Operating Income			Operating Income Margin			Interest Expense			Net Income			Diluted EPS
Fiscal 2012	$	1,093.8			59.5	%	$	510.8			27.8	%	$	90.5		$	257.4		$	4.23
Adjustments to Reported Amounts(1)
UK self-employment accrual reversal(1)		(14.5	)					(14.5	)					(7.1	)		(4.1	)		(0.07	)
Total Adjustments		(14.5	)					(14.5	)					(7.1	)		(4.1	)		(0.07	)
Fiscal 2012, as adjusted(1)	$	1,079.3			58.7	%	$	496.3			27.0	%	$	83.4		$	253.3		$	4.16

Note: Totals may not sum due to rounding

⁽¹⁾ “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues and the $7.1 million increase to interest expense related to the settlement of the UK self-employment matter .

See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.

Consolidated Results

Revenues

Net revenues were $1,724.1 million in fiscal 2013, as compared to $1,839.4 million in fiscal 2012. Excluding the impact of foreign currency, which negatively impacted our revenues for fiscal 2013 by $1.0 million, net revenues in fiscal 2013 declined 6.2% versus the prior year. This revenue decline in fiscal 2013 was driven by revenue declines in the meetings business globally, most notably in the NACO and the UK meetings businesses. The revenue decline in the NACO and UK meetings businesses was driven in large part by a lower incoming active base at the start of fiscal 2013 as compared to the start of fiscal 2012, as well as enrollment declines in fiscal 2013 caused by an inability to attract new members into the brand and, in the case of the United Kingdom, competitive pressure from another meetings business. Our Continental European meetings business, which benefitted from a higher incoming active base at the start of fiscal 2013 as compared to the start of fiscal 2012, was also negatively impacted by lower enrollments as we cycled against a new program launch and new advertising campaigns in the prior year. As a result of these factors, meeting revenues declined modestly on a constant currency basis as compared to the prior year. The revenue decline in the meetings business was partially offset by revenue growth in WeightWatchers.com which benefited from a higher active Online subscriber base at the start of fiscal 2013 as compared to the start of fiscal 2012 that offset in part the impact of declining sign-ups particularly in the United States. However, WeightWatchers.com experienced decelerating revenue growth for fiscal 2013 and in the fourth quarter experienced a decline versus the prior year period. End of period active Online subscribers decreased by 6.7% to 1.7 million at the end of fiscal 2013 as compared to the end fiscal 2012 driven by sign-up weakness, particularly in the United States.

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The combination of declining recruitments and the lower incoming active base at the start of fiscal 2013 in the meetings business led to a decline in global meeting paid weeks in fiscal 2013 versus the prior year. With the benefit of starting fiscal 2013 with a higher active Online subscriber base, WeightWatchers.com experienced growth of 1.7% in Online paid weeks versus the prior fiscal year. The increase in Online paid weeks did not fully offset the decline in meeting paid weeks, resulting in a 3.9% decrease in global paid weeks in fiscal 2013 versus the prior year. Global attendance in fiscal 2013 declined 15.5% in comparison to fiscal 2012.

Gross Profit and Operating Income

Gross profit for fiscal 2013 of $1,001.1 million decreased $92.7 million, or 8.5%, from $1,093.8 million in fiscal 2012. Excluding the impact of the settlement in fiscal 2012 of the UK self-employment matter noted in the above table, and of foreign currency which negatively impacted gross profit for fiscal 2013 by $0.3 million, gross profit in fiscal 2013 decreased by $77.9 million, or 7.2%, versus the prior year. Operating income for fiscal 2013 was $460.8 million, a decrease of $50.0 million, or 9.8%, from $510.8 million in fiscal 2012. Excluding the impact of the settlement in fiscal 2012 of the UK self-employment matter and of foreign currency which negatively impacted operating income for fiscal 2013 by $0.5 million, operating income in fiscal 2013 decreased by $35.0 million, or 7.0%, versus the prior year. This decrease in operating income was primarily the result of lower meeting revenues in fiscal 2013 versus the prior year that were partially offset by lower marketing expense, primarily from the elimination of inefficient digital advertising and the lack of a men’s campaign in the United States, in fiscal 2013. As adjusted for the settlement in fiscal 2012, our gross margin in fiscal 2013 decreased to 58.1% from 58.7% in fiscal 2012, and operating income margin in fiscal 2013 decreased to 26.7% from 27.0% in fiscal 2012. See “—Components of Expenses and Margins” for additional details.

Net Income and Earnings Per Share

Net income in fiscal 2013 declined 20.5% from $257.4 million in fiscal 2012 to $204.7 million. This decline in net income was driven by the decrease in operating income in fiscal 2013 versus the prior year as well as a charge of $21.7 million in early extinguishment of debt and higher interest expense resulting from our long-term debt refinancing in the second quarter of fiscal 2013. Excluding this early extinguishment of debt charge (after tax), net income would have been $218.0 million in fiscal 2013.

Earnings per fully diluted share in fiscal 2013 were $3.63, a decrease of $0.60 from $4.23 in fiscal 2012. Excluding the early extinguishment of debt charge, EPS would have been $3.87 in fiscal 2013. EPS in fiscal 2013 benefited from our repurchase of shares in the Tender Offer and the related share repurchase from Artal Holdings as the number of our weighted average diluted shares outstanding for fiscal 2013 decreased to 56.4 million from 60.9 million in the prior year. See “—Liquidity and Capital Resources—Stock Transactions” for a description of the Tender Offer and related share repurchase from Artal Holdings.

Components of Revenue and Volumes

We derive our revenues principally from meeting fees, Internet revenues, products sold in meetings, and licensed products sold in retail channels. In addition, we generate other revenue from royalties paid to us by our franchisees, subscriptions to our branded magazines, and advertising in our publications.

Meeting Fees

Global meeting fees for fiscal 2013 were $851.6 million, a decrease of $83.3 million, or 8.9%, from $934.9 million in the prior year. Excluding the impact of foreign currency, which decreased our global meeting fees for fiscal 2013 by $0.7 million, global meeting fees in fiscal 2013 decreased by 8.8% versus the prior year. The decline in meeting fees was driven by a 10.1% decline in global meeting paid weeks in fiscal 2013 to 89.1 million from 99.2 million in the prior year. The decline in meeting paid weeks was driven by a lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 as well as by the lower

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enrollments in fiscal 2013 as compared to the prior year. The meetings active base is primarily comprised of Monthly Pass active subscribers which declined 10.8% to 1.2 million at the end of fiscal 2013 from 1.4 million at the end of fiscal 2012. Global attendance decreased 15.5% to 42.9 million in fiscal 2013 from 50.7 million in fiscal 2012.

In NACO, meeting fees in fiscal 2013 were $595.1 million, a decrease of $58.3 million, or 8.9%, from $653.4 million in fiscal 2012. The decline in meeting fees was driven primarily by a 9.4% decline in NACO meeting paid weeks from 66.0 million in fiscal 2012 to 59.7 million in fiscal 2013. The decline in meeting paid weeks primarily resulted from the lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 as well as by lower enrollments in fiscal 2013 versus the prior year. Lower enrollments in the United States in fiscal 2013 were driven by difficulty in attracting members into our brand. Although we introduced our new Weight Watchers 360° plan in December 2012, this new program was not as effective in driving consumer trial as our PointsPlus innovation. Partially offsetting the decline in NACO meeting fees was a 0.6% increase in meeting fees per paid week in fiscal 2013 as compared to the prior year. This increase in meeting fees per paid week was driven in part by a 2011 US price increase for new members, the impact of which was more significant in fiscal 2013 due to the cycling of new members paying this higher price throughout 2012. In addition, this increase in meeting fees per paid week was driven by a discounted offer in the United States in the Spring of fiscal 2012 that was not repeated until the Fall of fiscal 2013, and was less impactful in fiscal 2013. In fiscal 2013, NACO attendance decreased 14.7% to 27.2 million from 31.9 million in fiscal 2012. The Company completed seven franchise acquisitions in NACO in fiscal 2013 as compared to three franchise acquisitions in the second half of fiscal 2012. Franchise acquisitions benefited NACO meeting fees by 2.2% and NACO meeting paid weeks by 1.7% in fiscal 2013, but had a de minimis impact on NACO meeting fees and volumes in fiscal 2012.

International meeting fees in fiscal 2013 were $256.5 million, a decrease of $25.0 million, or 8.9%, from $281.5 million in the prior year. Excluding the impact of foreign currency, which increased international meeting fees for fiscal 2013 by $0.8 million, international meeting fees declined by 9.2% in fiscal 2013 versus the prior year. In fiscal 2013, the decline in meeting fees was driven by an 11.5% decline in international meeting paid weeks in the year versus the prior year. Meeting paid weeks performance in fiscal 2013 was driven by declines in enrollments in most of our international markets in the year versus the prior year. Partially offsetting the decline in international meeting fees was a 2.9% increase in meeting fees per paid week. This increase in meeting fees per paid week was primarily driven by the shift of volumes from the UK meetings business toward the Continental Europe meetings business where a meeting fee per paid week is priced higher. In addition, a UK price increase in the third quarter of fiscal 2012 for all members also contributed to the increase in meeting fees per paid week in fiscal 2013. International attendance decreased by 16.8% in fiscal 2013 versus the prior year.

In fiscal 2013, UK meeting fees decreased by 18.4% to $85.2 million from $104.4 million in fiscal 2012. Excluding the impact of foreign currency, which decreased UK meeting fees for fiscal 2013 by $1.3 million, UK meeting fees declined by 17.1% in fiscal 2013 versus the prior year. Fiscal 2013 meeting fees were driven lower primarily by a decline of 19.2% in UK meeting paid weeks versus the prior year. Meeting paid weeks performance in fiscal 2013 was driven by the lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 coupled with lower enrollments as compared to enrollment levels in the prior year. In fiscal 2013, local competition in the United Kingdom primarily drove the decline in enrollments. Partially offsetting the decline in UK meeting fees was an increase in meeting fees per paid week of 1.0%, or 2.6% on a constant currency basis, versus the prior year. This increase in meeting fees per paid week was driven primarily by a UK price increase in the third quarter of fiscal 2012 for all members. UK attendance decreased by 22.7% in fiscal 2013 versus the prior year.

Meeting fees in Continental Europe in fiscal 2013 were $137.3 million, an increase of $1.3 million, or 1.0%, from $136.0 million in the prior year. Excluding the impact of foreign currency, which increased Continental

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European meeting fees in fiscal 2013 by $3.9 million, Continental European meeting fees decreased by 1.8% in fiscal 2013 as compared to the prior year. The decrease in meeting fees on a constant currency basis was driven by a decrease of 1.5% in Continental European meeting paid weeks in fiscal 2013 versus the prior year. The decrease in meeting paid weeks was driven by lower enrollments in fiscal 2013 as compared to the prior year. These lower enrollments were the result of cycling against the successful launch of the new program and the new advertising campaigns in the prior year. However, the impact of enrollments on meeting paid weeks was minimized by the higher meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012. In Continental Europe, attendance decreased by 8.1% in fiscal 2013 versus the prior year.

In-Meeting Product Sales

Global in-meeting product sales for fiscal 2013 were $212.0 million, a decrease of $41.3 million, or 16.3%, from $253.2 million in fiscal 2012. This decrease resulted primarily from a 15.5% decline in global meeting attendance in fiscal 2013 versus the prior year. Additionally, product sales per attendee decreased 1.0% in fiscal 2013 versus the prior year. This decrease in global in-meeting product sales per attendee in fiscal 2013 was driven by declines in NACO, which were only partially offset by strong per attendee sales of consumables across Continental Europe.

In NACO, fiscal 2013 in-meeting product sales of $119.1 million decreased by $26.8 million, or 18.4%, versus the prior year. This decrease resulted primarily from a 14.7% attendance decline in fiscal 2013 as compared to the prior year. In-meeting product sales per attendee decreased by 4.3% in fiscal 2013 versus the prior year as sales declines in consumables, enrollment products and electronics more than offset strong sales of the new ActiveLink product, which was first introduced in the third quarter of fiscal 2012. Enrollment weakness in NACO in fiscal 2013 contributed to these sales declines.

International in-meeting product sales were $92.9 million in fiscal 2013, a decrease of 13.5%, or 13.7% on a constant currency basis, versus the prior year. This decrease was driven primarily by an attendance decline of 16.8% in fiscal 2013 as compared to fiscal 2012, which was largely driven by the United Kingdom. In-meeting product sales per attendee in fiscal 2013 increased by 4.0%, or 3.7% on a constant currency basis, as compared to the prior year. This increase was the result of strong sales of consumables in Continental Europe driven in part by new product introductions and successful promotions.

Internet Revenues

Internet revenues, which include subscription revenues from sales of our Weight Watchers Online and Weight Watchers eTools products as well as Internet advertising revenues, increased $17.9 million, or 3.5%, to $522.2 million in fiscal 2013 from $504.3 million in fiscal 2012. Excluding the impact of foreign currency, which increased Internet revenues for fiscal 2013 by $0.3 million, Internet revenues grew by 3.5% in fiscal 2013 versus the prior year. This increase was driven primarily by the benefit of an increase in pricing for Online in many of our markets and, to a lesser extent, the higher active Online subscriber base at the beginning of fiscal 2013, up 18.0%, versus the beginning of fiscal 2012, and Online paid weeks growth of 1.7% in fiscal 2013 versus the prior year. This growth in Online paid weeks was driven by effective marketing campaigns in Continental Europe in fiscal 2013. However, the trend of Online paid weeks growth slowed in fiscal 2013. This deceleration was driven largely by declining sign-ups, particularly in the United States, as the commercial weight loss category continued to be impacted by increasing consumer trial of activity monitors and free apps. End of period active Online subscribers decreased by 6.7% to 1.7 million at the end of fiscal 2013 as compared to the end of fiscal 2012.

Other Revenues

Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of products by mail and to our franchisees, and revenues from our publications, were $138.3 million for fiscal 2013,

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a decrease of $8.6 million, or 5.9%, from $146.9 million for fiscal 2012. Excluding the impact of foreign currency, which decreased other revenues for fiscal 2013 by $0.5 million, other revenues were 5.5% lower in fiscal 2013 compared to the prior year. Franchise commissions and sales of products to our franchisees declined in the aggregate by 35.1%, or 34.8% on a constant currency basis, in fiscal 2013 versus the prior year. This decline in franchise commissions and sales of products to our franchisees was driven in part by our recent franchise acquisitions. Our by mail product sales and revenues from our publications also declined in the aggregate by 3.2%, or 2.6% on a constant currency basis, in fiscal 2013 versus the prior year. Global licensing revenues increased by 2.1%, or 2.4% on a constant currency basis, in fiscal 2013 versus the prior year. Included in global licensing revenues in fiscal 2012 was a $2.0 million one-time termination fee which benefited that period. Excluding this one-time termination fee, global licensing revenues in fiscal 2013 increased 4.9%, or 5.2% on a constant currency basis versus the prior year.

Components of Expenses and Margins

Cost of Revenues and Gross Margin

Total cost of revenues in fiscal 2013 was $723.0 million, a decline of $22.6 million from $745.6 million in the prior year. Excluding the impact of the settlement of the UK self-employment matter, total cost of revenues in fiscal 2013 would have declined $37.1 million, or 4.9%, from $760.2 million in the prior year. As adjusted for this 2012 settlement, gross profit in fiscal 2013 of $1,001.1 million decreased $78.2 million, or 7.2%, from $1,079.3 million in 2012. Gross margin in fiscal 2013 was 58.1%, as compared to adjusted gross margin of 58.7% in fiscal 2012. Gross margin compression was driven by operating cost deleverage in both the meetings and Weight Watchers.com businesses. This margin compression was partially offset by the shift of revenue towards the higher margin WeightWatchers.com business. The decline in the meetings business gross margin was driven by the lower average number of members per meeting, the impact of the US service provider compensation changes, an increase in product discounting globally as well as higher product and freight costs in NACO. Price increases taken in some of our markets and reduced cost of meeting materials in NACO were partially offsetting. The WeightWatchers.com business gross margin also declined in fiscal 2013 driven partially by the change in cost allocations for call center and technology expenses as well as operating cost deleverage.

Marketing

Marketing expenses for fiscal 2013 were $295.6 million, a decrease of $58.0 million, or 16.4%, versus fiscal 2012. Excluding the impact of foreign currency, which increased marketing expenses for fiscal 2013 by $0.5 million, marketing expenses were 16.5% lower in fiscal 2013 compared to the prior year. The decline was primarily driven by the absence of a Weight Watchers Online US men’s specific marketing campaign, achieving lower and more efficient digital marketing spend in the United States in fiscal 2013 and lower TV advertising and production costs globally. Marketing expenses as a percentage of revenue were 17.1% in fiscal 2013 as compared to 19.2% in the prior year.

Selling, General and Administrative

Selling, general and administrative expenses were $244.7 million for fiscal 2013 versus $229.3 million for fiscal 2012, an increase of $15.4 million, or 6.7%. Excluding the impact of foreign currency, which decreased selling, general and administrative expenses for fiscal 2013 by $0.2 million, fiscal 2013 selling, general and administrative expenses increased by 6.8% versus fiscal 2012. The increase in expenses was primarily related to higher bonus expenses, investments in technology for the development of our mobile, field systems and customer relationship management platforms in support of our healthcare initiatives, one-time costs associated with the impairment of intangible and long-lived assets, severance, China shutdown costs and costs related to our acquisitions partially offset by lower stock compensation expense in fiscal 2013. Selling, general and administrative expenses as a percentage of revenue for fiscal 2013 increased to 14.2% from 12.5% for fiscal 2012.

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Operating Income Margin

Excluding the impact of the settlement of the UK self-employment matter, our operating income margin in fiscal 2013 decreased to 26.7% from 27.0% in fiscal 2012. This decline in operating income margin was primarily driven by the decline in gross margin and higher selling, general and administrative expenses, which were partially offset by the absence of a Weight Watchers Online US men’s specific marketing campaign, achieving lower and more efficient digital marketing spend in the United States in fiscal 2013 and lower TV advertising and production costs globally versus fiscal 2012. In fiscal 2013, marketing expenses decreased as a percentage of revenue, but this decrease was slightly offset by the increase in selling, general and administrative expenses as a percentage of revenue, as compared to the prior year.

Interest Expense

Interest expense was $103.1 million for fiscal 2013, an increase of $12.6 million, or 13.9%, from $90.5 million in fiscal 2012. Excluding the impact of the 2012 settlement of the UK self-employment matter, interest expense increased $19.7 million or 23.6% versus the prior year. The increase was primarily driven by an increase in our average debt outstanding and higher interest rates on our debt. Our average debt outstanding increased by $294.4 million to $2,397.3 million in fiscal 2013 from $2,102.9 million in fiscal 2012. The increase in average debt outstanding was driven by the additional borrowings under our then existing credit facilities in March and April 2012 in connection with our repurchase of shares in the Tender Offer and the related share repurchase from Artal Holdings (see “—Liquidity and Capital Resources—Stock Transactions”). The effective interest rate on our debt increased by 0.58% to 3.49% in fiscal 2013 from 2.91% in fiscal 2012 as a result of our April 2, 2013 debt refinancing. Interest expense was partially offset by a decrease in the notional value of our interest rate swap, which resulted in a higher effective interest rate of 3.92% in fiscal 2013, as compared to 3.60% in fiscal 2012.

Other Expense

The Company incurred $0.6 million of other expense in fiscal 2013 as compared to $2.0 million of other expense in the prior year. While both years include the impact of foreign currency on intercompany transactions, the prior year also includes $2.4 million of expense resulting from a write-off associated with an investment.

Early Extinguishment of Debt

In the second quarter of fiscal 2013, we wrote-off $21.7 million of fees in connection with the April 2013 refinancing of our debt that we recorded as an early extinguishment of debt charge. In the first quarter of fiscal 2012, we wrote-off $1.3 million of fees in connection with the March 2012 refinancing of our debt that we recorded as an early extinguishment of debt charge.

Tax

Our effective tax rate was 39.0% for fiscal 2013 as compared to 38.3% for fiscal 2012. For fiscal 2012, the UK self-employment matter impacted our effective tax rate. Excluding the impact of the settlement of the UK self-employment matter, our effective tax rate for fiscal 2012 would have been 38.1%. The difference in period-over-period effective tax rates is primarily the result of the lack of a tax benefit recorded for certain non-deductible impairments charges recorded in fiscal 2013 as well as the impact of a non-recurring tax benefit recorded in fiscal 2012 associated with a reduction in certain international tax rates.

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RESULTS OF OPERATIONS FOR FISCAL 2012 (52 weeks) COMPARED TO FISCAL 2011 (52 weeks)

OVERVIEW

Fiscal 2011 was a year of revenue and volume growth in all fiscal quarters as compared to the prior year periods. We experienced accelerated period-over-period volume growth in our North American and UK meetings and Weight Watchers.com businesses throughout the year. The momentum of our new program launches, PointsPlus in North America and ProPoints in our other English-speaking markets, and strong marketing and public relations efforts drove this accelerated growth and historically high volumes in fiscal 2011.

Fiscal 2012 had the challenge of being compared against the high levels of recruitment growth and related results of fiscal 2011. Fiscal 2012 versus the prior year had similar performance trends as each of the individual fiscal 2012 quarters. Net revenues were $1,839.4 million in fiscal 2012, as compared to $1,832.5 million in fiscal 2011. Growth in Internet revenues in fiscal 2012 versus the prior year was almost fully offset by revenue declines in the meetings business. Gross margin for fiscal 2012 grew to 59.5%, including an 80 basis point benefit from the accrual reversal associated with the settlement of the UK self-employment matter, from 57.8% in fiscal 2011. Both marketing expenses and selling, general and administrative expenses increased as a percentage of revenue in fiscal 2012 versus the prior year due to our investments in growth initiatives. As a result, operating income margin for fiscal 2012, which, like gross margin, also benefited by 80 basis points related to the accrual reversal associated with the settlement of the UK self-employment matter, declined 2.0% to 27.8% from 29.8% in fiscal 2011. Consequently, and as a result of higher interest expense and a higher tax rate, net income attributable to the Company in fiscal 2012 declined 15.6% versus the prior year to $257.4 million.

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The table below sets forth selected financial information for fiscal 2012 from our consolidated statements of income for fiscal 2012 versus selected financial information for fiscal 2011 from our consolidated statements of income for fiscal 2011, on both a reported basis and an adjusted basis. Results for fiscal 2012 are adjusted to exclude the $4.1 million (after-tax) benefit related to the settlement of the previously disclosed UK self-employment matter. See “Non-GAAP Financial Measures” above.

Summary of Selected Financial Data as Reported and Adjusted

	(In millions, except per share amounts)
	Fiscal     2012			Fiscal     2011			Increase/     (Decrease)			% Change
Revenues	$	1,839.4		$	1,832.5		$	6.9			0.4	%
Cost of revenues (as adjusted)(1)		760.2			774.0			(13.8	)		(1.8	%)
UK Self-employment settlement(1)		(14.5	)		—			(14.5	)
Cost of revenues		745.6			774.0			(28.4	)		(3.7	%)
Gross Profit		1,093.8			1,058.5			35.3			3.3	%
Gross Margin %		59.5	%		57.8	%
Marketing expenses		353.7			302.9			50.8			16.8	%
Selling, general & administrative expenses		229.3			209.3			20.1			9.6	%
Operating income		510.8			546.3			(35.5	)		(6.5	%)
Operating Income Margin %		27.8	%		29.8	%
Interest expense (as adjusted)(1)		83.4			59.9			23.6			39.4	%
UK Self-employment settlement(1)		7.1			—			7.1
Interest expense		90.5			59.9			30.7			51.3	%
Other expense, net		2.0			3.4			(1.4	)		(41.6	%)
Early extinguishment of debt		1.3			—			1.3
Income before income taxes		417.0			483.1			(66.1	)		(13.7	%)
Provision for income taxes (as adjusted)(1)		156.2			178.7			(22.5	)		(12.6	%)
UK Self-employment settlement(1)		3.3			—			3.3
Provision for income taxes		159.5			178.7			(19.2	)		(10.7	%)
Net income		257.4			304.3			(46.9	)		(15.4	%)
Net loss attributable to the noncontrolling interest		—			0.5			(0.5	)
Net income attributable to the Company	$	257.4		$	304.9		$	(47.4	)		(15.6	%)
Weighted average diluted shares outstanding		60.9			74.1			(13.2	)		(17.8	%)
Diluted EPS	$	4.23		$	4.11		$	0.11			2.7	%

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues and $7.1 million increase to interest expense related to the settlement of the UK Self-employment matter. See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.

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The following table sets forth a reconciliation for fiscal 2012 of certain selected financial data:

(in millions, except per share amounts)	Gross Profit			Gross Profit Margin			Operating Income			Operating Income Margin			Interest Expense			Net Income			Diluted EPS
Fiscal 2012	$	1,093.8			59.5	%	$	510.8			27.8	%	$	90.5		$	257.4		$	4.23
Adjustments to Reported Amounts(1)
UK self-employment accrual reversal(1)		(14.5	)					(14.5	)					(7.1	)		(4.1	)		(0.07	)
Total Adjustments		(14.5	)					(14.5	)					(7.1	)		(4.1	)		(0.07	)
Fiscal 2012, as adjusted(1)	$	1,079.3			58.7	%	$	496.3			27.0	%	$	83.4		$	253.3		$	4.16

Note: Totals may not sum due to rounding

(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2012 to exclude the impact of a $14.5 million decrease to cost of revenues and the $7.1 million increase to interest expense related to the settlement of the UK self-employment matter .

See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.

Consolidated Results

Revenues

Net revenues were $1,839.4 million in fiscal 2012, as compared to $1,832.5 million in fiscal 2011. Excluding the impact of foreign currency, which negatively impacted our revenues for fiscal 2012 by $24.1 million, net revenues in fiscal 2012 grew 1.7% versus the prior year. Revenue growth in fiscal 2012 was driven primarily by WeightWatchers.com which benefited from a higher active Online subscriber base at the start of fiscal 2012 as compared to fiscal 2011 and effective marketing in fiscal 2012. Our Continental European meetings business, which benefited from new marketing strategies, also contributed to revenue growth on a constant currency basis. This revenue growth in our Continental European meetings business was more than offset by revenue declines in the NACO and UK meetings businesses as they cycled against the momentum of their new program innovations and stronger and more effective marketing and public relations efforts in fiscal 2011. In addition, in fiscal 2012, meeting revenues were negatively impacted by the execution challenges associated with introducing the Monthly Pass commitment plan to NACO’s small accounts portion of its corporate business in the first half of fiscal 2012, as well as by macro-economic factors, particularly consumer confidence, in NACO and the United Kingdom.

The combination of the above factors also led to a 5.4% decline in global meeting paid weeks in fiscal 2012 versus the prior year. However, with the benefits of starting the fiscal year with a higher active Online subscriber base and effective marketing, WeightWatchers.com experienced growth of 26.7% in Online paid weeks, as well as an 18.0% increase in end of period active Online subscribers, in fiscal 2012 versus the prior year. The increase in Online paid weeks more than offset the decline in meeting paid weeks, which resulted in a 9.3% increase in global paid weeks in fiscal 2012 versus the prior year. Global attendance in fiscal 2012 declined 11.0% in comparison to fiscal 2011.

Gross Profit and Operating Income

Gross profit for fiscal 2012 of $1,093.8 million increased $35.3 million, or 3.3%, from $1,058.5 million in fiscal 2011. Excluding the impact of the settlement of the UK self-employment matter noted in the above table, and of foreign currency which negatively impacted gross profit for fiscal 2012 by $13.8 million, gross profit in fiscal 2012 increased by $34.6 million, or 3.3%, versus the prior year. Operating income for fiscal 2012 was $510.8 million, a decrease of $35.5 million, or 6.5%, from $546.3 million in fiscal 2011. Excluding the impact of the settlement of the UK self-employment matter, and of foreign currency which negatively impacted operating income for fiscal 2012 by $7.2 million, operating income in fiscal 2012 decreased by $42.9 million, or 7.9%,

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versus the prior year. This decline was primarily the result of an increase in marketing investments and selling, general and administrative expenses in fiscal 2012 versus the prior year. As adjusted for the settlement, our gross margin in fiscal 2012 increased to 58.7% from 57.8% in fiscal 2011, but operating income margin in fiscal 2012 declined to 27.0% from 29.8% in fiscal 2011. See “—Components of Expenses and Margins” for additional details.

Net Income and Earnings Per Share

Net income attributable to the Company in fiscal 2012 declined 15.6% from $304.9 million in fiscal 2011 to $257.4 million. Excluding the impact of the settlement of the UK self-employment matter noted in the table above, net income attributable to the Company would have been $253.3 million in fiscal 2012, a decline of 16.9%. In addition to the decline in operating income, higher interest expense resulting from our financing of our repurchase of shares in the Tender Offer and related share repurchase from Artal Holdings and a higher tax rate further reduced net income in fiscal 2012. See “—Components of Expenses and Margins—Tax” for additional details on our higher tax rate in fiscal 2012.

Earnings per fully diluted share in fiscal 2012 were $4.23, an increase of $0.11 from $4.11 in fiscal 2011. Excluding the impact of the UK self-employment matter noted in the table above, earnings per fully diluted share would have been $4.16, an increase of $0.05 or 1.1%. Earnings per fully diluted share in fiscal 2012, except for the first quarter of fiscal 2012, benefited from our repurchase of shares in the Tender Offer and the related share repurchase from Artal Holdings as our weighted average diluted shares outstanding for fiscal 2012 decreased to 60.9 million from 74.1 million in the prior year. See “—Liquidity and Capital Resources—Stock Transactions” for a description of the Tender Offer and related share repurchase from Artal Holdings.

Components of Revenue and Volumes

We derive our revenues principally from meeting fees, Internet revenues, products sold in meetings, and licensed products sold in retail channels. In addition, we generate other revenue from royalties paid to us by our franchisees, subscriptions to our branded magazines, and advertising in our publications.

Meeting Fees

Global meeting fees for fiscal 2012 were $934.9 million, a decrease of $55.4 million, or 5.6%, from $990.3 million in the prior year. Excluding the impact of foreign currency, which decreased our global meeting fees for fiscal 2012 by $12.2 million, global meeting fees in fiscal 2012 decreased by 4.4% versus the prior year. The decline in meeting fees was driven by a 5.4% decline in global meeting paid weeks in fiscal 2012 to 99.2 million from 104.8 million in the prior year. The decline in meeting paid weeks was driven by lower enrollments in fiscal 2012 as compared to the high enrollment levels in the prior year. However, the impact of enrollments on meeting paid weeks was minimized by the higher meeting membership base at the beginning of fiscal 2012 versus the beginning of fiscal 2011. Global attendance decreased 11.0% to 50.7 million in fiscal 2012 from 57.0 million in fiscal 2011.

In NACO, meeting fees in fiscal 2012 were $653.4 million, a decrease of $33.4 million, or 4.9%, from $686.8 million in fiscal 2011. The decline in meeting fees was driven primarily by a 5.6% decline in NACO meeting paid weeks from 69.9 million in fiscal 2011 to 66.0 million in fiscal 2012. The decline in meeting paid weeks primarily resulted from lower enrollments in fiscal 2012 as compared to the high enrollment levels in the prior year. Lower enrollments in fiscal 2012 were driven in part by the execution challenges associated with introducing Monthly Pass to the small accounts portion of NACO’s corporate business. However, the impact of enrollments on meeting paid weeks was minimized by the higher meeting membership base at the beginning of fiscal 2012 versus the beginning of fiscal 2011. In fiscal 2012, NACO attendance decreased 11.4% to 31.9 million from 36.0 million in fiscal 2011. Franchise acquisitions had a de minimis impact on NACO meeting fees and metrics in fiscal 2012.

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International meeting fees in fiscal 2012 were $281.5 million, a decrease of $22.0 million, or 7.2%, from $303.5 million in the prior year. Excluding the impact of foreign currency, which decreased international meeting fees for fiscal 2012 by $11.6 million, international meeting fees declined by 3.4% in fiscal 2012 versus the prior year. In fiscal 2012, the decline in meeting fees was driven by a 4.9% decline in international meeting paid weeks in the year versus the prior year. Meeting paid weeks performance in fiscal 2012 was driven by declines in enrollments in our international English-speaking markets in the year versus the prior year, which were partially offset by enrollment growth in Continental Europe. International attendance decreased by 10.5% in fiscal 2012 versus the prior year.

In fiscal 2012, UK meeting fees decreased by 11.7% to $104.4 million from $118.3 million in fiscal 2011. Excluding the impact of foreign currency, which decreased UK meeting fees for fiscal 2012 by $1.5 million, UK meeting fees declined by 10.5% in fiscal 2012 versus the prior year. Fiscal 2012 meeting fees were driven lower primarily by a decline of 11.3% in UK meeting paid weeks versus the prior year. Meeting paid weeks performance in fiscal 2012 was driven by lower enrollments in the period as compared to the high enrollment levels in the prior year. In addition, in fiscal 2012, the United Kingdom introduced an advertising campaign that was ineffective in driving enrollment growth. Weak macro-economic trends in the United Kingdom also contributed to the decline in enrollments. However, the impact of enrollments on meeting paid weeks was minimized by the higher meeting membership base at the beginning of fiscal 2012 versus the beginning of fiscal 2011. UK attendance decreased by 16.5% in fiscal 2012 versus the prior year.

Meeting fees in Continental Europe were $136.0 million in both fiscal 2012 and fiscal 2011. Excluding the impact of foreign currency, which decreased Continental European meeting fees in fiscal 2012 by $10.4 million, Continental European meeting fees increased by 7.6% in fiscal 2012 as compared to the prior year. The increase in meeting fees on a constant currency basis was driven by an increase of 9.2% in Continental European meeting paid weeks in fiscal 2012 versus the prior year. The increase in meeting paid weeks was driven by higher enrollments in fiscal 2012 as compared to the prior year. These higher enrollments were the result of effective new marketing strategies in this region. In Continental Europe, attendance increased by 3.3% in fiscal 2012 versus the prior year.

In-Meeting Product Sales

Global in-meeting product sales for fiscal 2012 were $253.2 million, a decrease of $28.6 million, or 10.1%, from $281.8 million in fiscal 2011. Excluding the impact of foreign currency, which decreased in-meeting product sales for fiscal 2012 by $4.4 million, global in-meeting product sales in fiscal 2012 declined 8.6% versus the prior year. This decrease resulted primarily from an 11.0% decline in global meeting attendance in fiscal 2012 versus the prior year. Slightly offsetting this decline was an increase in product sales per attendee in fiscal 2012 versus the prior year. On a per attendee basis, in fiscal 2012 global in-meeting product sales increased 1.0%, or 2.8% on a constant currency basis, versus the prior year. This increase in in-meeting product sales per attendee in fiscal 2012 was driven by very strong per attendee sales of consumables and new products, including ActiveLink, in NACO and consumables in the United Kingdom in the fourth quarter of fiscal 2012, which more than offset a weak 2012 first nine months. This weakness was primarily the result of cycling against abnormally strong first quarter fiscal 2011 sales of enrollment products in connection with the launch of the new programs in our English-speaking markets in late fiscal 2010.

In NACO, fiscal 2012 in-meeting product sales of $145.9 million decreased by $12.0 million, or 7.6%, versus the prior year. This decrease resulted primarily from an 11.4% attendance decline in fiscal 2012 as compared to the prior year. In-meeting product sales per attendee increased by 4.2% in fiscal 2012 versus the prior year as strong fourth quarter fiscal 2012 sales of consumables and new products, including ActiveLink, offset the decline in sales of enrollment products earlier in the year.

International in-meeting product sales were $107.3 million in fiscal 2012, a decrease of 13.4%, or 9.9% on a constant currency basis, versus the prior year. This decrease was driven primarily by an attendance decline of 10.5% in fiscal 2012 as compared to fiscal 2011, which was largely driven by the United Kingdom. In-meeting product sales per attendee in fiscal 2012 declined by 3.2%, but increased by 0.6% on a constant currency basis, as compared to the prior year.

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Internet Revenues

Internet revenues, which include subscription revenues from sales of our Weight Watchers Online and Weight Watchers eTools products as well as Internet advertising revenues, increased $104.8 million, or 26.2%, to $504.3 million in fiscal 2012 from $399.5 million in fiscal 2011. Excluding the impact of foreign currency, which decreased Internet revenues for fiscal 2012 by $5.9 million, Internet revenues grew by 27.7% in fiscal 2012 versus the prior year. The combination of a higher active Online subscriber base at the start of fiscal 2012, up 50.5%, versus the beginning of fiscal 2011, and effective marketing campaigns in North America and Continental Europe contributed to Online paid weeks growth of 26.7% in fiscal 2012 versus the prior year. Additionally, end of period active Online subscribers increased by 18.0% to 1.9 million at the end of fiscal 2012 as compared to 1.6 million at the end of fiscal 2011.

Other Revenues

Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of products by mail and to our franchisees, and revenues from our publications, were $146.9 million for fiscal 2012, a decrease of $14.0 million, or 8.7%, from $160.9 million for fiscal 2011. Excluding the impact of foreign currency, which decreased other revenues for fiscal 2012 by $1.5 million, other revenues were 7.7% lower in fiscal 2012 compared to the prior year. Franchise commissions and sales of products to our franchisees declined in the aggregate by 22.4%, or 21.9% on a constant currency basis, in fiscal 2012 versus the prior year. Our by mail product sales and revenues from our publications also declined in the aggregate by 14.3%, or 12.9% on a constant currency basis, in fiscal 2012 versus the prior year. These declines were primarily the result of comparing against the prior year which had the benefit of the new program launches in our English-speaking markets in late fiscal 2010. Global licensing revenues increased by 1.5%, or 2.2% on a constant currency basis, in fiscal 2012 versus the prior year. A one-time termination fee in the second quarter of fiscal 2012 which was included in licensing revenues primarily accounted for the increase. Excluding this one-time termination fee of $2.0 million from licensing revenues, global licensing revenues in fiscal 2012 decreased 0.5% on a constant currency basis versus the prior year.

Components of Expenses and Margins

Cost of Revenues and Gross Margin

Excluding the impact of the settlement of the UK self-employment matter, cost of revenues in fiscal 2012 would have been $760.2 million, a decline of $13.8 million, or 1.8%, from $774.0 million in the prior year. Cost of revenues declined due to the shift of revenue towards the higher margin WeightWatchers.com business. As adjusted for the settlement, gross profit in fiscal 2012 of $1,079.3 million increased $20.8 million, or 2.0%, from $1,058.5 million in fiscal 2011. Adjusted gross margin in fiscal 2012 was 58.7%, as compared to 57.8% in fiscal 2011. Gross margin expansion was primarily the result of the shift of revenue towards the higher margin WeightWatchers.com business. This margin expansion was partially offset by a decline in the meetings business gross margin. This decline in the meetings business gross margin was primarily driven by the impact of higher costs associated with our future growth initiatives and lower average number of members per meeting.

Marketing

Marketing expenses for fiscal 2012 were $353.7 million, an increase of $50.8 million, or 16.8%, versus fiscal 2011. Excluding the impact of foreign currency, which decreased marketing expenses for fiscal 2012 by $4.2 million, marketing expenses were 18.1% higher in fiscal 2012 compared to the prior year. Included in our fiscal 2012 marketing expenses were investments in two initiatives: first time Online TV marketing campaigns in several of our international markets and marketing the Weight Watchers Online product to men in the United States. In addition, we invested in TV advertising for Continental Europe’s meetings business, which also contributed to the increase in marketing expenses in fiscal 2012. The increase in marketing expenses also reflected the impact of higher volumes on online advertising costs. Marketing expenses as a percentage of revenue were 19.2% in fiscal 2012 as compared to 16.5% in the prior year.

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Selling, General and Administrative

Selling, general and administrative expenses were $229.3 million for fiscal 2012 versus $209.3 million for fiscal 2011, an increase of $20.1 million, or 9.6%. Excluding the impact of foreign currency, which decreased selling, general and administrative expenses for fiscal 2012 by $2.5 million, fiscal 2012 selling, general and administrative expenses increased by 10.8% versus fiscal 2011. The increase in expenses was primarily related to investments in growth initiatives, including NACO’s corporate business, technology for the development of our mobile and customer relationship management platforms and additions to staff in support of these initiatives. Lower bonus expense globally related to business performance partially offset this increase. Selling, general and administrative expenses as a percentage of revenue for fiscal 2012 increased to 12.5% from 11.4% for fiscal 2011.

Operating Income Margin

Excluding the impact of the settlement of the UK self-employment matter, our operating income margin in fiscal 2012 decreased to 27.0% from 29.8% in fiscal 2011. This decline in operating income margin was primarily driven by costs related to first time Online TV marketing campaigns in several of our international markets and our significant investment in marketing the Weight Watchers Online product to men in the United States. Both marketing expenses and selling, general and administrative expenses increased as a percentage of revenue in fiscal 2012 as compared to the prior year.

Interest Expense and Other

Interest expense was $90.5 million for fiscal 2012, an increase of $30.7 million, or 51.3%, from $59.9 million in fiscal 2011. Excluding the impact of the settlement of the UK self-employment matter noted in the table above, interest expense was $83.4 million, an increase of $23.6 million or 39.4% versus the prior year. The increase was primarily driven by an increase in our average debt outstanding and higher interest rates on our debt. The effective interest rate on our debt increased by 0.76% to 2.91% in fiscal 2012 from 2.15% in fiscal 2011. Our average debt outstanding increased by $920.0 million to $2,102.9 million in fiscal 2012 from $1,182.9 million in fiscal 2011. The increase in average debt outstanding was driven by the additional borrowings under the WWI Credit Facility (defined below) in connection with our repurchase of shares in the Tender Offer and the related share repurchase from Artal Holdings (see “—Liquidity and Capital Resources—Stock Transactions”). Interest expense was partially offset by a decrease in the notional value and interest rates of our interest rate swaps, which resulted in a lower effective interest rate of 3.60% in fiscal 2012, as compared to 4.62% in fiscal 2011. In the first quarter of fiscal 2012, we wrote-off $1.3 million of fees in connection with the refinancing of our debt, which we recorded as an early extinguishment of debt charge.

The Company incurred $2.0 million of other expense in fiscal 2012 as compared to $3.4 million of other expense in the prior year, both years include the write-off associated with an investment and the impact of foreign currency on intercompany transactions.

Tax

Our effective tax rate was 38.3% for fiscal 2012 as compared to 37.0% for fiscal 2011. For fiscal 2012, the UK self-employment matter impacted our effective tax rate. Excluding the impact of the settlement of the UK self-employment matter, our effective tax rate for fiscal 2012 would have been 38.1%. The difference in period-over-period effective tax rates is primarily the result of a tax benefit recorded in fiscal 2012 associated with a reduction in certain international tax rates. This was offset by tax benefits recorded in fiscal 2011 associated with the closure of our Finland business and reversing certain tax reserves upon expiration of the applicable statutes of limitations.

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Liquidity and Capital Resources

Cash flows provided by operating activities have historically supplied us with a significant source of liquidity. We use these cash flows, supplemented with long-term debt and short-term borrowings, to fund our operations and global initiatives, repurchase stock, pay down debt and opportunistically engage in franchise and other acquisitions. On October 30, 2013, we announced that we suspended our quarterly cash dividend, as described below (see “—Dividends”). We believe that cash flows from operating activities, together with borrowings available under our revolving credit facility, will be sufficient for the next 12 months to fund currently anticipated capital expenditure requirements, debt service requirements and working capital requirements.

Balance Sheet Working Capital

The following table sets forth certain relevant measures of the Company’s balance sheet working capital for the fiscal years ended:

	December 28, 2013			December 29, 2012			Increase/ (Decrease)
	(in millions)
Total current assets	$	315.7		$	218.0		$	97.7
Total current liabilities		345.8			447.9			(102.1	)
Working capital deficit		(30.1	)		(229.9	)		(199.8	)
Cash and cash equivalents		174.6			70.2			104.4
Current portion of long-term debt		30.0			114.7			(84.7	)
Working capital deficit, excluding change in cash and cash equivalents and current portion of long-term debt	$	(174.7	)	$	(185.4	)	$	(10.7	)

We generally operate with negative working capital. This is driven in part by our commitment plans which are our primary payment method. These plans require members and subscribers to pay us for meetings and subscription products, respectively, before we pay for our obligations in the normal course of business. These prepayments are recorded as a current liability on our balance sheet which results in negative working capital. Our working capital deficit decreased $199.8 million, to $30.1 million at December 28, 2013 from $229.9 million at December 29, 2012. Of this decline, the debt refinancing we undertook in April 2013, as well as scheduled debt repayments of $88.4 million which were offset by revolver borrowings of $70.0 million, lowered the current portion of our long-term debt by $84.7 million versus the end of fiscal 2012 as described below (see “—Long-Term Debt”).

Excluding the changes in cash and cash equivalents and current portion of long-term debt from both periods, the working capital deficit at December 28, 2013 decreased by $10.7 million to $174.7 million from $185.4 million at December 29, 2012. The primary factors contributing to this decrease in our working capital deficit were a timing related increase of $7.0 million in income tax liabilities, a $5.9 million reduction in inventory, a $1.1 million decrease in accounts receivable and a $24.7 million net decrease to the working capital deficit resulting from other operational items.

These other operational items that resulted in the net decrease of $24.7 million to the working capital deficit included a $9.8 million decrease in deferred revenue from declines in our Online and Monthly Pass active bases, a $6.3 million decrease in the derivative payable, a $1.3 million increase in other accrued liabilities and a $7.3 million reduction in the previously reported UK self-employment liability related to a $6.8 million payment to HMRC in January 2013 with the balance of professional fees paid shortly thereafter.

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Cash Flows

The following table sets forth a summary of the Company’s cash flows for the fiscal years ended:

	December 28, 2013			December 29, 2012			December 31, 2011
	(in millions)
Net cash provided by operating activities	$	323.5		$	336.7		$	407.0
Net cash used in investing activities	$	(145.3	)	$	(109.5	)	$	(45.2	)
Net cash used in financing activities	$	(74.4	)	$	(211.1	)	$	(352.0	)

Operating Activities

Fiscal 2013

Cash flows provided by operating activities of $323.5 million for fiscal 2013 decreased by $13.2 million from $336.7 million in fiscal 2012. The decrease in cash provided by operating activities was primarily the result of lower net income in fiscal 2013 as compared to the prior year offset by the non-cash early extinguishment of debt charge and the intangible and long-lived asset impairment charges in fiscal 2013 as well as a payment to HMRC in fiscal 2012 in connection with the previously reported UK self-employment liability.

The $323.5 million of cash flows provided by operating activities for fiscal 2013 exceeded the period’s net income by $118.8 million. The excess of cash flows provided by operating activities over net income arose primarily from changes in our working capital as described above (see “—Balance Sheet Working Capital”), non-cash expenses and differences between book and cash taxes.

Fiscal 2012

Cash flows provided by operating activities of $336.7 million in fiscal 2012 decreased by $70.3 million from $407.0 million in fiscal 2011. The decrease in cash provided by operating activities was primarily the result of lower net income in fiscal 2012 versus the prior year, a payment of $30.0 million to HMRC, as well as a $7.4 million accrual reversal based on the settlement of the UK self-employment matter.

The $336.7 million of cash flows provided by operating activities for fiscal 2012 exceeded the period’s net income attributable to the Company by $79.3 million. The excess of cash flows provided by operating activities over net income arose primarily from changes in our working capital as described above (see “—Balance Sheet Working Capital”), non-cash expenses and differences between book and cash taxes.

Investing Activities

Fiscal 2013

Net cash used for investing activities totaled $145.3 million in fiscal 2013, an increase of $35.9 million as compared to fiscal 2012. This increase was primarily attributable to the $83.8 million aggregate purchase price paid for franchise acquisitions completed in 2013. In fiscal 2013, we acquired substantially all of the assets of the following franchisees: Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd. for an aggregate purchase price of $35.0 million, Weight Watchers of West Virginia, Inc. for a net purchase price of $16.0 million, Weight Watchers of Columbus, Inc. for a net purchase price of $23.3 million, Weight Watchers of Northern Nevada, Inc. for a net purchase price of $4.0 million, Weight Watchers of Manitoba Ltd. for a net purchase price of $5.2 million, and Weight Watchers of Franklin and St. Lawrence Counties Inc. for a net purchase price of $0.3 million. In addition, we incurred capital expenditures in connection with the move of our headquarters, our retail initiative and capitalized software expenditures to support our customer relationship management platform and other global systems initiatives.

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Fiscal 2012

Net cash used for investing activities totaled $109.5 million in fiscal 2012, an increase of $64.3 million as compared to fiscal 2011. This increase was primarily attributable to additional capital expenditures in connection with our retail initiative and capitalized software expenditures to support global systems initiatives, as well as the $30.4 million paid in connection with our acquisitions of substantially all of the assets of our following franchisees: Slengora Limited, Weight Watchers of the Adirondacks, Inc. and Weight Watchers of the Mid-South, Inc.

Financing Activities

Fiscal 2013

Net cash used for financing activities totaled $74.4 million in fiscal 2013 and included $44.8 million of deferred financing fees in connection with our April 2013 debt refinancing. Additionally, term loan payments under our then existing credit facility of $2.41 billion were offset by new borrowings of $2.40 billion in connection with our April 2013 debt refinancing. In addition, we paid $29.6 million of dividends to our shareholders which offset $18.3 million in proceeds from stock options exercised and the tax benefit thereon in fiscal 2013.

Fiscal 2012

Net cash used for financing activities totaled $211.1 million in fiscal 2012 and included proceeds from new term loans under our then existing credit facilities of $1.45 billion and additional revolver borrowings of $30.0 million which were used to finance stock repurchases of $1.5 billion and deferred financing costs of $26.2 million in connection with the Tender Offer and related Artal Holdings share repurchase. See “—Stock Transactions” for a description of the Tender Offer and the related Artal Holdings share repurchase. In addition, we paid $52.0 million of dividends to our shareholders and received $12.7 million in proceeds from stock options exercised in fiscal 2012.

Fiscal 2011

Net cash used for financing activities totaled $352.0 million in fiscal 2011 and consisted primarily of payments on our then existing revolving credit facility of $174.0 million and long-term debt repayments of $139.3 million, as well as stock repurchases of $34.9 million and dividend payments to our shareholders of $51.6 million. Offsetting these payments were proceeds from stock options exercised of $42.0 million in fiscal 2011.

Long-Term Debt

We currently plan to meet our long-term debt obligations by using cash flows provided by operating activities and opportunistically using other means to repay or refinance our obligations as we determine appropriate.

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The following schedule sets forth our long-term debt obligations (and interest rates, exclusive of the impact of swaps) at December 28, 2013:

Long-Term Debt

At December 28, 2013

(Balances in millions)

	Balance		Alternative Base Rate or LIBOR			Applicable Margin			Interest Rate
Revolving Facility due April 2, 2018	$	—		0.000	%		0.000	%		0.000	%
Tranche B-1 Term Facility due April 2, 2016		298.5		0.170	%		2.750	%		2.920	%
Tranche B-2 Term Facility due April 2, 2020		2,089.5		0.750	%		3.000	%		3.750	%
Total Debt		2,388.0
Less Current Portion		30.0
Total Long-Term Debt	$	2,358.0

On April 2, 2013, we refinanced our credit facilities pursuant to a Credit Agreement, or the New Credit Agreement, among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and an issuing bank, The Bank of Nova Scotia, as revolving agent swingline lender and an issuing bank, and the other parties thereto. The New Credit Agreement provides for (a) a revolving credit facility (including swing line loans and letters of credit) in an initial aggregate principal amount of $250.0 million that will mature on April 2, 2018, or the Revolving Facility, (b) an initial term B-1 loan credit facility in an aggregate principal amount of $300.0 million that will mature on April 2, 2016, or Tranche B-1 Term Facility, and (c) an initial term B-2 loan credit facility in an aggregate principal amount of $2,100.0 million that will mature on April 2, 2020, or Tranche B-2 Term Facility. We refer herein to the Tranche B-1 Term Facility together with the Tranche B-2 Term Facility as the Term Facilities, and the Term Facilities and Revolving Facility collectively as the WWI Credit Facility. In connection with this refinancing, we used the proceeds from borrowings under the Term Facilities to pay off a total of $2,399.9 million of outstanding loans, consisting of $128.8 million of Term B Loans, $110.6 million of Term C Loans, $117.6 million of Term D Loans, $1,125.0 million of Term E Loans, $817.9 million of Term F Loans, $21.2 million of loans under the Revolver A-1 and $78.8 million of loans under the Revolver A-2. Following the refinancing of a total of $2,399.9 million of loans, at April 2, 2013, we had $2,400.0 million debt outstanding under the Term Facilities and $248.8 million of availability under the Revolving Facility. We incurred fees of approximately $45.0 million during the second quarter of fiscal 2013 in connection with this refinancing. In the second quarter of fiscal 2013, we wrote-off fees associated with this refinancing which resulted in our recording a charge of $21.7 million in early extinguishment of debt.

At December 28, 2013, we had $2,388.0 million outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at December 28, 2013, the Revolving Facility had $1.6 million in issued but undrawn letters of credit outstanding thereunder and $248.4 million in available unused commitments thereunder. The proceeds from borrowings under the Revolving Facility (including swing line loans and letters of credit) will be used for working capital and general corporate purposes.

At the end of fiscal 2013, fiscal 2012 and fiscal 2011, our debt consisted entirely of variable-rate instruments. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with our variable-rate borrowings. The average interest rate on our debt, exclusive of the impact of swaps, was approximately 3.6%, 3.0% and 2.4% per annum at the end of fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The average interest rate on our debt, including the impact of swaps, was approximately 4.1%, 3.5% and 4.5% per annum at the end of fiscal 2013, fiscal 2012 and fiscal 2011, respectively.

Borrowings under the New Credit Agreement bear interest at a rate equal to, at our option, LIBOR plus an applicable margin or a base rate plus an applicable margin. LIBOR under the Tranche B-2 Term Facility is

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subject to a minimum interest rate of 0.75% and the base rate under the Tranche B-2 Term Facility is subject to a minimum interest rate of 1.75%. The applicable margin relating to both of the Term Facilities will increase by 25 basis points in the event that we receive a corporate rating of BB- (or lower) from S&P and a corporate rating of Ba3 (or lower) from Moody’s. The applicable margin relating to the Revolving Facility will fluctuate depending upon our Consolidated Leverage Ratio (as defined in the New Credit Agreement). At December 28, 2013, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 2.75% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.00%. At our Consolidated Leverage Ratio as of December 28, 2013, had there been any borrowings under the Revolving Facility, it would have borne interest at LIBOR plus an applicable margin of 2.25% or base rate plus an applicable margin of 1.25%. On February 21, 2014, both S&P and Moody’s issued revised corporate ratings of the Company of B+ and B1, respectively. As a result, effective February 21, 2104, the applicable margin on borrowings under the Tranche B-1 Term Facility went from 2.75% to 3.00% and on borrowings under the Tranche B-2 Term Facility went from 3.00% to 3.25%.

On a quarterly basis, we will pay a commitment fee to the lenders under the Revolving Facility in respect of unutilized commitments thereunder, which commitment fee will fluctuate, but in no event exceed 0.50% per annum, depending upon our Consolidated Leverage Ratio. At our Consolidated Leverage Ratio as of December 28, 2013, the commitment fee was 0.40% per annum. We also will pay customary letter of credit fees and fronting fees under the Revolving Facility.

The New Credit Agreement contains customary covenants including covenants that, in certain circumstances, restrict our ability to incur additional indebtedness, pay dividends on and redeem capital stock, make other payments, including investments, sell our assets and enter into consolidations, mergers and transfers of all or substantially all of our assets. The Revolving Facility requires us to not exceed a specified Consolidated Leverage Ratio, but only if borrowings under the Revolving Facility exceed 20.0% of revolving commitments as of the end of such fiscal quarter. As of December 28, 2013, the maximum Consolidated Leverage Ratio was 5.00:1.00 and borrowings in excess of $50 million would require us to not exceed such ratio. As of December 28, 2013, our actual Consolidated Leverage Ratio was 4.21:1.00 and there were no borrowings under our Revolving Facility and total letters of credit issued were $1.6 million. The requirement to not exceed the Consolidated Leverage Ratio may effectively limit our ability to borrow funds in excess of $50.0 million under the Revolving Facility. The Term Facilities do not require us to maintain any financial ratios. The WWI Credit Facility is guaranteed by certain of our existing and future subsidiaries. Substantially all of our assets secure the WWI Credit Facility.

During the first quarter of fiscal 2012, the composition of our then existing WWI Credit Facility changed as a result of our amending and restating our then existing WWI Credit Facility to, among other things, extend the maturity of certain of our term loan facilities and our revolving credit facility and to obtain new commitments for the borrowing of an additional $1,449.4 million of term loans to finance the purchases of shares of our common stock in the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement.

Immediately prior to the amendment of our then existing WWI Credit Facility, the term loan facilities consisted of a tranche A-1 loan, or Term A-1 Loan, a tranche B loan, or Term B Loan, a tranche C loan, or Term C Loan, and a tranche D loan, or Term D Loan, and a revolving credit facility, or Revolver A-1. The aggregate principal amount then outstanding under (i) the Term A-1 Loan was $128.6 million, (ii) the Term B Loan was $237.5 million, (iii) the Term C Loan was $420.4 million and (iv) the Term D Loan was $238.2 million. Immediately prior to the amendment of our then existing WWI Credit Facility, the Revolver A-1 had no loans outstanding under it, $1.0 million of issued but undrawn letters of credit and $331.6 million in available unused commitments thereunder.

Following the amendment of our then existing WWI Credit Facility on March 15, 2012, (i) $33.1 million in aggregate principal amount of the Term A-1 Loan and $301.8 million in aggregate principal amount of the Term C Loan were converted into, and $849.4 million in aggregate principal amount of commitments to borrow new term loans were provided under, a new tranche E loan, or Term E Loan, (ii) $107.0 million in aggregate

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principal amount of the Term B Loan and $119.1 million in aggregate principal amount of the Term D Loan were converted into, and $600.0 million in aggregate principal amount of commitments to borrow new term loans were provided under, a new tranche F loan, or Term F Loan, and (iii) $262.0 million in aggregate principal amount of commitments under the Revolver A-1 were converted into a new revolving credit facility, or Revolver A-2. The loans outstanding under each term loan facility existing prior to the amendment of the our then existing WWI Credit Facility and the loans and commitments outstanding under the Revolver A-1, in each case that were not converted into the Term E Loan, the Term F Loan or the Revolver A-2, as applicable, continued to remain outstanding under our then existing WWI Credit Facility as the Term A-1 Loan, the Term B Loan, the Term C Loan, the Term D Loan or the Revolver A-1, as applicable. In connection with this amendment, we incurred fees of approximately $26.2 million in the first quarter of fiscal 2012. On March 27, 2012, we borrowed an aggregate of $726.0 million under the Term E Loan and the Term F Loan to finance the purchase of shares in the Tender Offer and to pay a portion of the related fees and expenses. On April 9, 2012, we borrowed an aggregate of approximately $723.4 million under the Term E Loan to finance the purchase of shares from Artal Holdings.

Dividends

On October 30, 2013, we announced that we suspended our quarterly cash dividend. As a result, no dividend was issued for the fourth quarter of fiscal 2013. We historically had issued a quarterly cash dividend of $0.175 per share of our common stock every quarter for the past several fiscal years. We currently intend to use the annual cash savings from such dividend suspension to preserve financial flexibility while funding our strategic growth initiatives and building cash for future debt repayments. Any future determination to declare and pay dividends will be made at the discretion of our Board of Directors, after taking into account our financial results, capital requirements and other factors it may deem relevant. The WWI Credit Facility also contains restrictions on our ability to pay dividends on our common stock.

The WWI Credit Facility provides that we are permitted to pay dividends and extraordinary dividends, as well as repurchase shares of our common stock, so long as we are not in default under the WWI Credit Facility agreement. However, payment of extraordinary dividends and stock repurchases shall not exceed $100.0 million in the aggregate in any fiscal year if the Consolidated Leverage Ratio is greater than 3.25:1. As of December 28, 2013, our Consolidated Leverage Ratio was greater than 3.25:1 and we expect that it will remain above 3.25:1 for the foreseeable future.

Contractual Obligations

We are obligated under non-cancelable operating leases primarily for office and rent facilities. Consolidated rent expense charged to operations under all our leases for fiscal 2013 was approximately $46.3 million.

The following table summarizes our future contractual obligations as of the end of fiscal 2013:

			Payment Due by Period
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
			(in millions)
Long-Term Debt(1)
Principal	$	2,388.0	$	30.0	$	331.5	$	42.0	$	1,984.5
Interest		521.3		108.4		166.6		133.3		113.0
Operating leases		265.4		41.1		67.3		39.0		118.0
Other long-term obligations(2)		10.6		0.1		1.1		0.2		9.2
Total	$	3,185.3	$	179.6	$	566.5	$	214.5	$	2,224.7

(1) Due to the fact that all of our debt is variable rate based, we have assumed for purposes of this table that the interest rate on all of our debt as of the end of fiscal 2013 remains constant for all periods presented.

(2) “Other long-term obligations” primarily consist of deferred rent costs. The provision for income tax contingencies included in other long-term liabilities on the consolidated balance sheet is not included in the table above due to the fact that the Company is unable to estimate the timing of payment for this liability.

64

We currently plan to meet our long-term debt obligations by using cash flows provided by operating activities and opportunistically using other means to repay or refinance our obligations as we determine appropriate. We believe that cash flows from operating activities, together with borrowings available under our Revolver, will be sufficient for the next 12 months to fund currently anticipated capital expenditure requirements, debt service requirements and working capital requirements.

Franchise Acquisitions

We did not acquire any franchises in fiscal 2011. In fiscal 2012 and fiscal 2013, we made the following franchise acquisitions:

In September 2012, we acquired substantially all of the assets of our Southeastern Ontario and Ottawa, Canada franchisee, Slengora Limited, for a net purchase price of $16.8 million.

In November 2012, we acquired substantially all of the assets of our Adirondacks franchisee, Weight Watchers of the Adirondacks, Inc., for a purchase price of $3.4 million.

In December 2012, we acquired substantially all of the assets of our Memphis, Tennessee franchisee, Weight Watchers of the Mid-South, Inc., for a purchase price of $10.0 million.

In March 2013, we acquired substantially all of the assets of our Alberta and Saskatchewan, Canada franchisees, Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd., for an aggregate purchase price of $35.0 million.

In July 2013, we acquired substantially all of the assets of our West Virginia franchisee, Weight Watchers of West Virginia, Inc., for a net purchase price of $16.0 million, our Columbus, Ohio franchisee, Weight Watchers of Columbus, Inc., for a net purchase price of $23.3 million and our Reno, Nevada franchisee, Weight Watchers of Northern Nevada, Inc., for a net purchase price of $4.0 million.

In October 2013, we acquired substantially all of the assets of our Manitoba, Canada franchisee, Weight Watchers of Manitoba Ltd., for a net purchase price of $5.2 million and our Franklin and St. Lawrence Counties, New York franchisee, Weight Watchers of Franklin and St. Lawrence Counties Inc., for a net purchase price of $0.3 million.

Stock Transactions

On October 9, 2003, our Board of Directors authorized and we announced a program to repurchase up to $250.0 million of our outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, our Board of Directors authorized and we announced adding $250.0 million to this program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings and its parents and subsidiaries under this program. The repurchase program currently has no expiration date. During the twelve months ended December 28, 2013 and December 29, 2012, the Company repurchased no shares of its common stock in the open market under this program. The repurchase of shares of common stock under the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement, as discussed further below, was not made pursuant to the repurchase program. During the twelve months ended December 31, 2011, the Company repurchased in its first quarter 0.8 million shares of its common stock in the open market under this program for a total cost of $31.6 million, and in its second, third and fourth quarters no shares of its common stock under this program.

On February 23, 2012, we commenced a “modified Dutch auction” tender offer for up to $720.0 million in value of our common stock at a purchase price not less than $72.00 and not greater than $83.00 per share, or the Tender Offer. Prior to the Tender Offer, on February 14, 2012, we entered into an agreement, or the Purchase

65

Agreement, with Artal Holdings whereby Artal Holdings agreed to sell to us, at the same price as was determined in the Tender Offer, such number of its shares of our common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of our common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer.

The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 we repurchased approximately 8.8 million shares at a purchase price of $82.00 per share. On April 9, 2012, we repurchased approximately 9.5 million of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, we amended and extended our then existing credit facilities to finance these repurchases. See “—Long-Term Debt”.

The WWI Credit Facility provides that we are permitted to pay dividends and extraordinary dividends, as well as repurchase shares of our common stock, so long as we are not in default under the WWI Credit Facility agreement. However, payment of extraordinary dividends and stock repurchases shall not exceed $100.0 million in the aggregate in any fiscal year if the Consolidated Leverage Ratio is greater than 3.25:1. As of December 28, 2013, our Consolidated Leverage Ratio was greater than 3.25:1 and we expect that it will remain above 3.25:1 for the foreseeable future.

Factors Affecting Future Liquidity

Any future acquisitions, joint ventures or other similar transactions could require additional capital and we cannot be certain that any additional capital will be available on acceptable terms or at all. Our ability to fund our capital expenditure requirements, interest, principal and dividend payment obligations and working capital requirements and to comply with all of the financial covenants under our debt agreements depends on our future operations, performance and cash flow. These are subject to prevailing economic conditions and to financial, business and other factors, some of which are beyond our control.

Off-Balance Sheet Transactions

As part of our ongoing business, we do not participate in transactions that generate relationships with unconsolidated entities or financial partnerships established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes, such as entities often referred to as structured finance or special purpose entities.

Related Parties

For a discussion of related party transactions affecting us, see “Item 12. Certain Relationships and Related Transactions, and Director Independence” in Part III of this Annual Report on Form 10-K.

Seasonality

Our business is seasonal, with revenues generally decreasing at year end and during the summer months. Our operating income for the first half of the year is generally the strongest, and the first quarter of the fiscal year typically results in the greatest revenue due to the importance of the winter diet season to our overall recruitment environment. Our advertising schedule generally supports the three key recruitment-generating seasons of the year: winter, spring and fall, with winter having the highest concentration of advertising spending. The timing of certain holidays, particularly Easter, which precedes the spring marketing campaign and occurs between March 22 and April 25, may affect our results of operations and the year-to-year comparability of our results. The introduction of Monthly Pass in the meetings business has resulted in less seasonality with regard to our meeting fee revenues because its revenues are amortized over the related subscription period. While

66

WeightWatchers.com experiences seasonality similar to the meetings business in terms of new subscriber sign-ups, its revenue tends to be less seasonal because it amortizes subscription revenue over the related subscription period.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks relating to interest rate changes and foreign currency fluctuations. All of our market risk sensitive instruments were entered into for purposes other than trading. As of the end of fiscal 2013, there have been no material changes to the Company’s exposure to market risk since the end of fiscal 2012.

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates to interest expense of variable rate debt, in particular changes in LIBOR or the base rates which are used to determine the applicable interest rates for borrowings under the WWI Credit Facility. As of the end of fiscal 2013, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 2.75% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.00%, and we had no borrowings under the Revolving Facility. As of the end of fiscal 2013, we had in effect an interest rate swap with a notional amount totaling $466.2 million to hedge a portion of our variable rate debt. As of such date, we had $2,388.0 million of variable rate debt, of which $1,921.8 million remained unhedged. This interest rate swap that went effective on January 4, 2010 and terminated on January 27, 2014 had an initial notional amount of $425.0 million, which amount fluctuated during the remainder of its term to a maximum of $466.2 million. From December 29, 2012 through April 1, 2013, this swap had qualified for hedge accounting, and therefore changes in the fair value of this derivative were recorded in accumulated other comprehensive income (loss). Effective April 2, 2013, due to our debt refinancing, we ceased the application of hedge accounting for this swap. Accordingly, changes in the fair value of this swap were recorded in earnings subsequent to April 2, 2013 and were immaterial for fiscal 2013.

On July 26, 2013, in order to hedge an additional portion of our variable rate debt, we 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 is $1.5 billion. During the term of this swap, the notional amount will decrease from $ 1.5 billion effective March 31, 2014 to $ 1.25 billion on April 3, 2017 with a further reduction to $ 1.0 billion on April 1, 2019. This interest rate swap in effect converts the variable interest rate on a portion of our debt equal to the notional amount of this swap to a fixed rate of 2.38125%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive income (loss).

As of the end of fiscal 2013, based on the amount of our variable rate debt and the interest rate swap agreement at that time, a hypothetical 50 basis point increase or decrease in interest rates on our variable rate debt would increase or decrease our annual interest expense by approximately $9.6 million. This change in market risk exposure from the end of fiscal 2012 was primarily driven by the reduction of the notional amount of our interest rate swap from $583.2 million at the end of fiscal 2012 to $466.2 million at the end of fiscal 2013.

Foreign Currency Risk

Other than inter-company transactions between our domestic and foreign entities, we generally do not have significant transactions that are denominated in a currency other than the functional currency applicable to each entity. As a result, substantially all of our revenues and expenses in each jurisdiction in which we operate are in the same functional currency. In general, we are a net receiver of currencies other than the US dollar. Accordingly, changes in exchange rates may negatively affect our revenues and gross margins as expressed in US dollars. In the future, we may enter into forward and swap contracts to hedge transactions denominated in foreign currencies to reduce the currency risk associated with fluctuating exchange rates. Realized and unrealized gains and losses from any of these transactions may be included in net income for the period.

67

Fluctuations in currency exchange rates, particularly with respect to the euro and pound sterling, may impact our shareholders’ equity. The assets and liabilities of our non-US subsidiaries are translated into US dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated into US dollars at the average exchange rate for the period. The resulting translation adjustments are recorded in shareholders’ equity as a component of accumulated other comprehensive income (loss). In addition, exchange rate fluctuations will cause the US dollar translated amounts to change in comparison to prior periods.

Item 8. Financial Statements and Supplementary Data

This information is incorporated by reference to our consolidated financial statements on pages F-1 through F-33 and our financial statement schedule on page S-1, including the report thereon of PricewaterhouseCoopers LLP on page F-2.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that the design and operation of our disclosure controls and procedures are effective at the reasonable assurance level.

Internal Control Over Financial Reporting

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Our management assessed the effectiveness of our internal control over financial reporting as of December 28, 2013, the end of fiscal 2013. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (1992). Based on this assessment, our management, under the supervision and with the participation of our principal executive officer and principal financial officer, concluded that, as of December 28, 2013, our internal control over financial reporting was effective based on those criteria.

The effectiveness of our internal control over financial reporting as of December 28, 2013 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears on page F-2 to our consolidated financial statements.

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Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during our most recent fiscal quarter (the fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

On February 13, 2014, in connection with its cost saving initiative, the Company committed to a plan of termination which will result in the elimination of certain positions and employees worldwide. The Company determined that it will notify affected employees following the commitment date. In connection with this plan, the Company anticipates recording restructuring charges in connection with employee termination benefit costs of approximately $10.0 million (which is expected to be divided equally between general and administrative expenses and operating expenses related to field restructuring) during the first and second quarters of fiscal 2014. Substantially all of these costs are expected to result in cash expenditures related to separation payments and other employee termination expenses. The Company expects the plan to be fully executed by the end of fiscal 2014.

69

PART III

Items 10, 11, 12, 13 and 14. Directors, Executive Officers and Corporate Governance; Executive Compensation; Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters; Certain Relationships and Related Transactions, and Director Independence; Principal Accountant Fees and Services

Information called for by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K is incorporated by reference from our definitive Proxy Statement to be filed in connection with our 2014 Annual Meeting of Shareholders pursuant to Regulation 14A, except that (i) the information regarding our directors and executive officers called for by Items 401(a), (b) and (e) of Regulation S-K has been included in Part I of this Annual Report on Form 10-K; (ii) the information regarding certain Company equity compensation plans called for by Item 201(d) of Regulation S-K is set forth below and (iii) the information regarding our Code of Business Conduct and Ethics called for by Item 406 of Regulation S-K is set forth below.

Securities Authorized for Issuance Under Equity Compensation Plans

The following table summarizes our equity compensation plan information as of December 28, 2013:

Equity Compensation Plan Information

Plan category	Number of securities to be issued upon exercise of  outstanding options, warrants and rights(1) (a)		Weighted-average exercise price of outstanding options, warrants and rights(2) (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))(3) (c)
Equity compensation plans approved by security holders		2,466,045	$	35.09		1,445,780
Equity compensation plans not approved by security holders		—		—		—
Total		2,466,045	$	35.09		1,445,780

(1) Consists of 2,213,356 shares of our common stock issuable upon the exercise of outstanding options and 252,689 shares of our common stock issuable upon the vesting of restricted stock units awarded under our 2008 Stock Incentive Plan, or 2008 Plan, our 2004 Stock Incentive Plan, or 2004 Plan, and our 1999 Stock Purchase and Option Plan, or 1999 Plan.

(2) Includes weighted-average exercise price of stock options outstanding of $39.09 and restricted stock units of $0.

(3) Consists of shares of our common stock issuable under our 2008 Plan and 2004 Plan pursuant to various awards the Compensation and Benefits Committee may make, including non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units, restricted stock and other equity-based awards. Our 1999 Plan terminated on December 16, 2009 pursuant to its terms and in connection with such termination no additional securities can be issued under the plan. Pursuant to the terms of our 2008 Plan, the number of shares of our common stock available for issuance under the 2008 Plan was increased by 550,272 shares, the remaining number of shares of our common stock with respect to which awards could be granted under the 1999 Plan upon its termination.

Code of Business Conduct and Ethics

We have adopted a Code of Business Conduct and Ethics for our officers, including our principal executive officer, principal financial officer, principal accounting officer or controller, and our employees and directors. Our Code of Business Conduct and Ethics is available on our website at www.weightwatchersinternational.com.

In addition to any disclosures required under the Exchange Act, the date and nature of any substantive amendment of our Code of Business Conduct and Ethics or waiver thereof applicable to any of our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, and that relates to any element of the code of ethics definition enumerated in Item 406(b) of Regulation S-K of the Exchange Act, will be disclosed on our website at www.weightwatchersinternational.com within four business days of the date of such amendment or waiver. In the case of a waiver, the name of the person to whom the waiver was granted will also be disclosed on our website within four business days of the date of such waiver.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

1. Financial Statements

The financial statements listed in the Index to Financial Statements and Financial Statement Schedule on page F-1 are filed as part of this Annual Report on Form 10-K.

2. Financial Statement Schedule

The financial statement schedule listed in the Index to Financial Statements and Financial Statement Schedule on page F-1 is filed as part of this Annual Report on Form 10-K.

3. Exhibits

The exhibits listed in the Exhibit Index are filed as part of this Annual Report on Form 10-K.

71

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE COVERED BY REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Items 15(a) (1) & (2)

	Pages
Report of Independent Registered Public Accounting Firm		F-2
Consolidated Balance Sheets at December 28, 2013 and December 29, 2012		F-3
Consolidated Statements of Income for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011		F-4
Consolidated Statements of Comprehensive Income for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011		F-5
Consolidated Statements of Changes in Total Deficit for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011		F-6
Consolidated Statements of Cash Flows for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011		F-7
Notes to Consolidated Financial Statements		F-8
Schedule II—Valuation and Qualifying Accounts and Reserves for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011		S-1

All other schedules are omitted for the reason that they are either not required, not applicable, not material or the information is included in the consolidated financial statements or notes thereto.

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Weight Watchers International, Inc.:

In our opinion, the consolidated financial statements listed in the accompanying index appearing on page F-1 present fairly, in all material respects, the financial position of Weight Watchers International, Inc. and its subsidiaries (the “Company”) at December 28, 2013 and December 29, 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 28, 2013 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index on page F-1 presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 28, 2013, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992). The Company’s management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 26, 2014

F-2

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AT

(IN THOUSANDS)

	December 28, 2013			December 29, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	174,557		$	70,215
Receivables (net of allowances: December 28, 2013—$3,477 and December 29, 2012—$3,447)		36,248			37,363
Inventories		40,939			46,846
Deferred income taxes		24,457			21,757
Prepaid expenses and other current assets		39,524			41,786
TOTAL CURRENT ASSETS		315,725			217,967
Property and equipment, net		87,052			71,768
Franchise rights acquired		836,835			783,695
Goodwill		79,294			62,726
Trademarks and other intangible assets, net		45,297			52,480
Deferred financing costs, net		42,046			26,571
Other noncurrent assets		2,682			3,400
TOTAL ASSETS	$	1,408,931		$	1,218,607
LIABILITIES AND TOTAL DEFICIT
CURRENT LIABILITIES
Portion of long-term debt due within one year	$	30,000		$	114,695
Accounts payable		45,496			49,349
Salaries and wages payable		65,810			56,490
Accrued marketing and advertising		15,509			27,437
Accrued interest		22,776			13,552
Other accrued liabilities		89,899			100,171
Deferred revenue		76,330			86,161
TOTAL CURRENT LIABILITIES		345,820			447,855
Long-term debt		2,358,000			2,291,669
Deferred income taxes		164,064			129,431
Other		15,669			15,111
TOTAL LIABILITIES		2,883,553			2,884,066
Commitments and contingencies (Note 13)
TOTAL DEFICIT
Common stock, $0 par value; 1,000,000 shares authorized; 111,988 shares issued		0			0
Treasury stock, at cost, 55,562 shares at December 28, 2013 and 56,234 shares at December 29, 2012		(3,256,406	)		(3,281,831	)
Retained earnings		1,773,267			1,603,513
Accumulated other comprehensive income		8,517			12,859
TOTAL DEFICIT		(1,474,622	)		(1,665,459	)
TOTAL LIABILITIES AND TOTAL DEFICIT	$	1,408,931		$	1,218,607

The accompanying notes are an integral part of the consolidated financial statements.

F-3

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME FOR THE FISCAL YEARS ENDED

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	December 28, 2013		December 29, 2012		December 31, 2011
	(52 weeks)		(52 weeks)		(52 weeks)
Meeting fees, net	$	851,626	$	934,933	$	990,296
Product sales and other, net		350,271		400,161		442,703
Internet revenues		522,226		504,338		399,495
Revenues, net		1,724,123		1,839,432		1,832,494
Cost of meetings, products and other		652,283		681,972		718,284
Cost of Internet revenues		70,728		63,642		55,705
Cost of revenues		723,011		745,614		773,989
Gross profit		1,001,112		1,093,818		1,058,505
Marketing expenses		295,628		353,673		302,923
Selling, general and administrative expenses		244,727		229,340		209,254
Operating income		460,757		510,805		546,328
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
Income before income taxes		335,365		416,961		483,092
Provision for income taxes		130,640		159,535		178,748
Net income		204,725		257,426		304,344
Net loss attributable to the noncontrolling interest		0		0		523
Net income attributable to Weight Watchers International, Inc.	$	204,725	$	257,426	$	304,867
Earnings Per Share attributable to Weight Watchers International, Inc.
Basic	$	3.65	$	4.27	$	4.16
Diluted	$	3.63	$	4.23	$	4.11
Weighted average common shares outstanding
Basic		56,144		60,294		73,344
Diluted		56,394		60,923		74,131
Dividends declared per common share	$	0.53	$	0.70	$	0.70

The accompanying notes are an integral part of the consolidated financial statements.

F-4

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(IN THOUSANDS)

	December 28, 2013			December 29, 2012			December 31, 2011
	(52 weeks)			(52 weeks)			(52 weeks)
Net income	$	204,725		$	257,426		$	304,344
Other comprehensive income:
Foreign currency translation adjustments		(10,363	)		763			(1,111	)
Income tax effect on foreign currency translation adjustments		4,022			(225	)		433
Foreign currency translation adjustments, net of taxes		(6,341	)		538			(678	)
Changes in fair value of derivatives		3,277			11,016			17,698
Income tax effect on changes in fair value of derivatives		(1,278	)		(4,296	)		(6,902	)
Changes in fair value of derivatives, net of taxes		1,999			6,720			10,796
Total other comprehensive (loss) income		(4,342	)		7,258			10,118
Comprehensive income		200,383			264,684			314,462
Comprehensive loss attributable to the noncontrolling interest		0			0			523
Comprehensive income attributable to Weight Watchers International, Inc.	$	200,383		$	264,684		$	314,985

The accompanying notes are an integral part of the consolidated financial statements.

F-5

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT

(IN THOUSANDS)

	Weight Watchers International, Inc.
	Common Stock				Treasury Stock						Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest			Total
	Shares		Amount		Shares			Amount
Balance at January 1, 2011		111,988	$	0		38,618		$	(1,794,066	)	$	(4,517	)	$	1,103,817		$	4,042		$	(690,724	)
Purchase of noncontrolling interest															(953	)		(3,519	)		(4,472	)
Comprehensive Income												10,118			304,867			(523	)		314,462
Issuance of treasury stock under stock plans						(1,042	)		31,633						8,337						39,970
Tax benefit of restricted stock units vested and stock options exercised															5,093						5,093
Cash dividends declared															(51,612	)					(51,612	)
Purchase of treasury stock						814			(31,550	)											(31,550	)
Compensation expense on share-based awards															9,067						9,067
Balance at December 31, 2011		111,988	$	0		38,390		$	(1,793,983	)	$	5,601		$	1,378,616		$	0		$	(409,766	)
Comprehensive Income												7,258			257,426			0			264,684
Issuance of treasury stock under stock plans						(435	)		16,341						(5,678	)					10,663
Tax benefit of restricted stock units vested and stock options exercised															3,408						3,408
Cash dividends declared															(39,104	)					(39,104	)
Purchase of treasury stock						18,279			(1,498,902	)											(1,498,902	)
Tender Offer fees									(5,287	)											(5,287	)
Compensation expense on share-based awards															8,845						8,845
Balance at December 29, 2012		111,988	$	0		56,234		$	(3,281,831	)	$	12,859		$	1,603,513		$	0		$	(1,665,459	)
Comprehensive Income												(4,342	)		204,725			0			200,383
Issuance of treasury stock under stock plans						(672	)		25,425						(10,304	)					15,121
Tax benefit of restricted stock units vested and stock options exercised															537						537
Cash dividends declared															(29,459	)					(29,459	)
Compensation expense on share-based awards															4,255						4,255
Balance at December 28, 2013		111,988	$	0		55,562		$	(3,256,406	)	$	8,517		$	1,773,267		$	0		$	(1,474,622	)

The accompanying notes are an integral part of the consolidated financial statements.

F-6

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED

(IN THOUSANDS)

	December 28, 2013			December 29, 2012			December 31, 2011
	(52 Weeks)			(52 Weeks)			(52 Weeks)
Operating activities:
Net income	$	204,725		$	257,426		$	304,344
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		44,904			36,640			30,995
Amortization of deferred financing costs		7,672			7,070			4,825
Impairment of intangible and long-lived assets		5,426			0			0
Share-based compensation expense		4,255			8,845			9,067
Deferred tax provision		35,380			26,765			25,291
Allowance for doubtful accounts		596			(1,067	)		1,441
Reserve for inventory obsolescence		9,580			10,491			13,203
Foreign currency exchange rate loss/(gain)		659			(722	)		(80	)
Loss on disposal of assets		1,417			590			500
Loss on investment		0			2,697			3,585
Early extinguishment of debt		21,685			1,328			0
Other items, net		0			0			105
Changes in cash due to:
Receivables		345			5,870			(563	)
Inventories		(2,226	)		(1,341	)		(24,456	)
Prepaid expenses		1,037			(639	)		2,531
Accounts payable		(3,607	)		(11,794	)		17,495
UK self-employment liability		(7,272	)		(37,441	)		2,931
Accrued liabilities		4,988			28,042			2,348
Deferred revenue		(10,521	)		1,539			10,555
Income taxes		4,473			2,408			2,922
Cash provided by operating activities		323,516			336,707			407,039
Investing activities:
Capital expenditures		(40,657	)		(48,807	)		(21,750	)
Capitalized software expenditures		(21,277	)		(29,926	)		(23,086	)
Cash paid for acquisitions		(83,825	)		(30,400	)		0
Other items, net		411			(323	)		(374	)
Cash used for investing activities		(145,348	)		(109,456	)		(45,210	)
Financing activities:
Proceeds from new term loans		2,400,000			1,449,397			0
Net borrowings/(payments) on revolver		70,000			30,000			(174,000	)
Payments on long-term debt		(2,488,364	)		(124,833	)		(139,285	)
Payment of dividends		(29,571	)		(51,961	)		(51,624	)
Payments to acquire treasury stock		0			(1,504,189	)		(34,924	)
Deferred financing costs		(44,817	)		(26,248	)		0
Proceeds from stock options exercised		16,187			12,688			42,040
Tax benefit of restricted stock units vested and stock options exercised		2,132			4,026			5,831
Cash used for financing activities		(74,433	)		(211,120	)		(351,962	)
Effect of exchange rate changes on cash and cash equivalents and other		607			885			(13	)
Net increase in cash and cash equivalents		104,342			17,016			9,854
Cash and cash equivalents, beginning of fiscal year		70,215			53,199			43,345
Cash and cash equivalents, end of fiscal year	$	174,557		$	70,215		$	53,199

The accompanying notes are an integral part of the consolidated financial statements.

F-7

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

1. Basis of Presentation

The accompanying consolidated financial statements include the accounts of Weight Watchers International, Inc. and all of its subsidiaries. The term “Company” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of its businesses consolidated for purposes of its financial statements. The term “WWI” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of the Company’s businesses other than WW.com. The term “WW.com” as used throughout these notes is used to indicate WeightWatchers.com, Inc. and all of the Company’s Internet-based businesses.

As further discussed in Note 3, effective with its formation in February 2008, the Company consolidated the financial statements of Weight Watchers China Limited.

Revisions:

The Company identified a correction in the statements of cash flows for the year ended 2012 and 2011 as it relates to foreign currency activity, resulting in a reclassification between accrued liabilities and effect of exchange rate changes on cash and cash equivalents and other. The effects of this revision on the previously reported amounts are as follows:

	December 29, 2012			December 31, 2011
Cash provided by operating activities	$	(12,684	)	$	2,231
Effect of exchange rate changes on cash and cash equivalents	$	12,684		$	(2,231	)

In addition, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Product sales and other, net	$	12,058	$	12,620	$	13,338
Cost of meetings, products and other	$	1,078	$	1,589	$	1,974
Gross profit	$	10,979	$	11,031	$	11,364
Marketing expenses	$	10,279	$	10,158	$	10,572
Selling, general and administrative expenses	$	701	$	873	$	792

These adjustments were not considered to be material, individually or in the aggregate, to previously issued financial statements. However, because of the significance of these adjustments, the Company revised its fiscal 2012 and fiscal 2011 consolidated statements of cash flows and its first nine months of fiscal 2013, fiscal 2012 and fiscal 2011 consolidated statements of income. These revisions had no impact on the consolidated balance sheets, consolidated statements of comprehensive income or consolidated statements of changes in stockholders’ equity included in these financial statements.

2. Summary of Significant Accounting Policies

Fiscal Year:

The Company’s fiscal year ends on the Saturday closest to December 31^st and consists of either 52 or 53-week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on December 31^st of each year. This difference in fiscal years does not have a material effect on the consolidated financial statements.

F-8

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Use of Estimates:

The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates.

Translation of Foreign Currencies:

For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss).

Foreign currency gains and losses arising from the translation of intercompany receivables with the Company’s international subsidiaries are recorded as a component of other expense (income), net, unless the receivable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of comprehensive income (loss).

Cash Equivalents:

Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies.

Inventories:

Inventories, which consist of finished goods, are stated at the lower of cost or market on a first-in, first-out basis, net of reserves for obsolescence and shrinkage.

Property and Equipment:

Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income.

F-9

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

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 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $1,607 related to property, plant and equipment ($372) and amortizable intangible assets ($1,235). The Company also recorded an impairment charge of $2,653 in fiscal 2013 related to internal-use computer software that was not expected to provide substantive service potential.

Franchise Rights Acquired, Goodwill and Other Intangible Assets:

Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired, for potential impairment on at least an annual basis or more often if events so require. The Company performed fair value impairment testing as of the end of fiscal 2013 and fiscal 2012 on its goodwill and other indefinite-lived intangible assets.

In performing the impairment analysis for goodwill, the fair value for the Company’s reporting units is estimated using a discounted cash flow approach. This approach involves projecting future cash flows attributable to the reporting unit and discounting those estimated cash flows using an appropriate discount rate. The estimated fair value is then compared to the carrying value of the reporting unit. The Company has determined the appropriate reporting unit for purposes of assessing annual impairment to be the country for all reporting units aside from WW.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32,668, $5,124 and $3,677, respectively, totaling $41,469. The value of goodwill for the WW.com reporting unit at December 28, 2013 was $37,825.

In performing the impairment analysis for franchise rights acquired, the fair value for the Company’s franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697,334, $110,346, $14,401, $13,740 and $1,014, respectively, totaling $836,835.

When determining fair value, the Company utilizes various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease occurred, the Company would be required to record a corresponding charge, which would impact earnings. The Company would also be required to reduce the carrying amounts of the related assets on its balance sheet. The Company continues to evaluate these estimates and assumptions and believes that these assumptions are appropriate.

In performing the impairment analysis for the fiscal year ended December 28, 2013, the Company determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to its Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and

F-10

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

recorded impairment charges of $935 and $231, respectively, for such rights. The Company determined that the carrying amounts of the remainder of these assets did not exceed their respective fair values, and therefore, no other impairment existed.

The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs), once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred.

Revenue Recognition:

WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. WWI charges non-refundable registration fees in exchange for an introductory information session and materials it provides to new members in its meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized.

WW.com primarily generates revenue from monthly subscriptions for its Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website.

The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid.

Advertising Costs:

Advertising costs consist primarily of television and digital media. All costs related to advertising are expensed in the period incurred, except for media production related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $274,160, $334,422 and $283,674, respectively.

F-11

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Income Taxes:

Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance.

The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of income.

In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases.

Derivative Instruments and Hedging:

The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes.

The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The fair value of the Company’s interest rate swaps is reported in derivative payable and prepaid expenses and other current assets on its balance sheet. See Note 15 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s interest rate swaps is included in interest expense on the statement of income.

Investments:

The Company uses the cost method to account for investments in which it holds 20% or less of the investee’s voting stock and over which it does not have significant influence.

Deferred Financing Costs:

Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fiscal year ended December 28, 2013, the Company incurred fees of $44,817 associated with the refinancing of the WWI Credit Facility (as defined in Note 6). The Company wrote-off fees in connection with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. During the fiscal year ended December 29, 2012, the Company

F-12

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

incurred deferred financing costs of $26,248 associated with the Tender Offer (as defined in Note 7). The Company wrote-off fees in connection with the Tender Offer which resulted in the Company recording a charge of $1,328 in early extinguishment of debt. During the fiscal year ended January 1, 2011, the Company incurred deferred financing costs of $11,483 associated with the refinancing of the Company’s then existing credit facilities. Such costs are being amortized using the straight-line method over the term of the related debt. Amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $7,672, $7,070 and $4,825, respectively.

Accumulated Other Comprehensive Income:

The Company’s accumulated other comprehensive income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2013 and December 29, 2012, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(4,603) and $(6,602), respectively. At December 28, 2013 and December 29, 2012, the cumulative balance of the effects of foreign currency translations, net of taxes, was $13,120 and $19,461, respectively.

Reclassification:

Certain prior year amounts have been reclassified to conform to the current year presentation.

3. Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture

Acquisitions of Franchisees

The acquisitions of franchisees have been accounted for under the purchase method of accounting and, accordingly, earnings of acquired franchisees have been included in the consolidated operating results of the Company since the applicable date of acquisition. During fiscal 2013 and fiscal 2012, the Company acquired certain assets of its franchisees as outlined below. There were no key franchise acquisitions in fiscal 2011.

On September 10, 2012, the Company acquired substantially all of the assets of its Southeastern Ontario and Ottawa, Canada franchisee, Slengora Limited, for a net purchase price of $16,755 plus assumed liabilities of $245. The total purchase price has been allocated to franchise rights acquired ($9,871), goodwill ($6,779), customer relationship value ($180), fixed assets ($81), inventory ($66) and prepaid expenses ($23).

On November 2, 2012, the Company acquired substantially all of the assets of its Adirondacks franchisee, Weight Watchers of the Adirondacks, Inc., for a purchase price of $3,400. The total purchase price has been allocated to franchise rights acquired ($2,216), goodwill ($1,156), customer relationship value ($37), inventory ($29) and prepaid expenses ($10) offset by deferred revenue of $48.

On December 20, 2012, the Company acquired substantially all of the assets of its Memphis, Tennessee franchisee, Weight Watchers of the Mid-South, Inc., for a purchase price of $10,000. The total purchase price has been allocated to franchise rights acquired ($8,396), goodwill ($1,461), customer relationship value ($209), inventory ($35), receivables ($9) and fixed assets ($4) offset by deferred revenue of $114.

On March 4, 2013, the Company acquired substantially all of the assets of its Alberta and Saskatchewan, Canada franchisees, Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd., for an aggregate purchase price of $35,000. The total purchase price has been allocated to franchise rights acquired ($30,633), goodwill ($4,626), customer relationship value ($473), inventory ($218), fixed assets ($182) and prepaid expenses ($3) offset by deferred revenue of $1,135.

F-13

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

On July 15, 2013, the Company acquired substantially all of the assets of its West Virginia franchisee, Weight Watchers of West Virginia, Inc., for a net purchase price of $16,028 less assumed assets, plus assumed liabilities, net of $28. The total purchase price has been allocated to franchise rights acquired ($10,131), goodwill ($5,212), customer relationship value ($448) and fixed assets ($209).

On July 22, 2013, the Company acquired substantially all of the assets of its Columbus, Ohio franchisee, Weight Watchers of Columbus, Inc., for a net purchase price of $23,357 plus assumed liabilities of $143 and its Reno, Nevada franchisee, Weight Watchers of Northern Nevada, Inc., for a net purchase price of $3,969 plus assumed liabilities of $31. The aggregate total purchase price has been allocated to franchise rights acquired ($19,643), goodwill ($7,220), customer relationship value ($494), fixed assets ($116) and inventory ($27).

On October 28, 2013, the Company acquired substantially all of the assets of its Manitoba, Canada franchisee, Weight Watchers of Manitoba Ltd., for a net purchase price of $5,197 plus assumed liabilities of $28 and its Franklin and St. Lawrence Counties, New York franchisee, Weight Watchers of Franklin and St. Lawrence Counties Inc., for a net purchase price of $274 plus assumed liabilities of $1. The total purchase price of the Manitoba, Canada franchisee has been preliminarily allocated to franchise rights acquired ($4,525), goodwill ($449), customer relationship value ($249), inventory ($1) and prepaid expenses ($1). The total purchase price of the Franklin and St. Lawrence Counties, New York franchisee has been preliminarily allocated to franchise rights acquired ($238), goodwill ($23), customer relationship value ($13) and prepaid expenses ($1).

The weighted-average amortization period of the customer relationships acquired in the above acquisitions was approximately 15 weeks. Due to the short-term nature of this asset, its estimated fair value has been recorded as a component of prepaid expenses and other current assets. The acquisitions resulted in goodwill related to, among other things, expected synergies in operations. The goodwill recorded in connection with these acquisitions represents the intangible assets that did not qualify for separate recognition in the financial statements. The Company expects that $16,953 of the total $17,530 of goodwill recorded in connection with the above acquisitions will be deductible for tax purposes. The effect of these franchise acquisitions was not material to the Company’s consolidated financial position, results of operations, or operating cash flows in the periods presented.

Acquisition of Minority Equity Interest in China Joint Venture

On February 5, 2008, Weight Watchers Asia Holdings Ltd. (“Weight Watchers Asia”), a direct, wholly-owned subsidiary of the Company, and Danone Dairy Asia (“Danone Asia”), an indirect, wholly-owned subsidiary of Groupe DANONE S.A., entered into a joint venture agreement to establish a weight management business in the People’s Republic of China. Pursuant to the terms of the joint venture agreement, Weight Watchers Asia and Danone Asia owned 51% and 49%, respectively, of the joint venture entity, Weight Watchers China Limited (together with all of its businesses, the “China Joint Venture”). Because the Company had a direct controlling financial interest in the China Joint Venture, it consolidated the entity from the first quarter of fiscal 2008.

On April 27, 2011, Weight Watchers Asia entered into a share purchase agreement with Danone Asia, pursuant to which Weight Watchers Asia acquired Danone Asia’s 49% minority equity interest in the China Joint Venture as of that date for consideration of $1. Effective April 27, 2011, the date of the acquisition of Danone Asia’s minority equity interest by Weight Watchers Asia, the Company owns 100% of the China Joint Venture and no longer accounts for a non-controlling interest in the China Joint Venture. The noncontrolling interest that had been reflected on the Company’s balance sheet was reclassified to retained earnings.

F-14

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

On December 12, 2013, the Company made a strategic decision to shut down its China operations. As a result of this decision, the Company incurred a charge of $2,500 related to severance and the impairment of property, plant and equipment and amortizable intangible assets.

4. Franchise Rights Acquired, Goodwill and Other Intangible Assets

The Company performed its annual impairment review of goodwill and other indefinite-lived intangible assets as of December 28, 2013 and December 29, 2012. As a result of this review, the Company recorded a $1,166 franchise rights acquired impairment charge related to its Mexico and Hong Kong operations in fiscal 2013 and determined that no impairment existed in fiscal 2012. Franchise rights acquired are due to acquisitions of the Company’s franchised territories. The franchise rights acquired allocated to the WW.com reporting segment relate to the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the year ended December 28, 2013, the change in the carrying value of franchise rights acquired is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	774,514		$	9,181		$	783,695
Franchise rights acquired during the year		34,501			30,669			65,170
Impairment charge		(1,166	)		0			(1,166	)
Effect of exchange rate changes		(9,703	)		(1,161	)		(10,864	)
Balance as of December 28, 2013	$	798,146		$	38,689		$	836,835

Goodwill is due to the acquisition of the Company by H.J. Heinz Company (“Heinz”) in 1978, the acquisition of WW.com in 2005 and the acquisitions of the Company’s franchised territories. For the year ended December 28, 2013, the change in the carrying amount of goodwill is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	32,033		$	30,693		$	62,726
Goodwill acquired during the year		9,998			7,532			17,530
Effect of exchange rate changes		(562	)		(400	)		(962	)
Balance as of December 28, 2013	$	41,469		$	37,825		$	79,294

Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $24,562, $17,796, and $16,545 for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

F-15

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The carrying amount of finite-lived intangible assets as of December 28, 2013 and December 29, 2012 was as follows:

	December 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Capitalized software costs	$	85,095	$	62,418	$	86,857	$	54,134
Trademarks		10,691		9,955		10,342		9,615
Website development costs		69,660		48,060		57,042		38,357
Other		7,021		6,737		7,034		6,689
	$	172,467	$	127,170	$	161,275	$	108,795

As described in Note 2, in fiscal 2013, the Company recorded an impairment charge of $1,235 for amortizable intangible assets related to the shutdown of its China operations and an impairment charge of $2,653 related to internal-use computer software that was not expected to provide substantive service potential.

Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows:

2014	$	20,841
2015	$	14,997
2016	$	7,593
2017	$	1,765
2018 and thereafter	$	101

5. Property and Equipment

The components of property and equipment were:

	December 28, 2013			December 29, 2012
Equipment	$	123,210		$	113,301
Leasehold improvements		77,771			70,229
		200,981			183,530
Less: Accumulated depreciation and amortization		(113,929	)		(111,762	)
	$	87,052		$	71,768

As described in Note 2, in fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $372 related to property, plant and equipment.

Depreciation and amortization expense of property and equipment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $20,342, $18,844 and $14,450, respectively.

F-16

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

6. Long-Term Debt

The components of the Company’s long-term debt were as follows:

	December 28, 2013					December 29, 2012
	Balance		Effective Rate			Balance		Effective Rate
Revolving Facility due April 2, 2018	$	0		0.00	%	$	0		0.00	%
Tranche B-1 Term Facility due April 2, 2016		298,500		2.97	%		0		0.00	%
Tranche B-2 Term Facility due April 2, 2020		2,089,500		3.75	%		0		0.00	%
Revolver A-1 due June 30, 2014		0		0.00	%		6,374		3.12	%
Revolver A-2 due March 15, 2017		0		0.00	%		23,626		2.56	%
Term A-1 Loan due January 26, 2013		0		0.00	%		38,226		1.53	%
Term B Loan due January 26, 2014		0		0.00	%		129,445		1.90	%
Term C Loan due June 30, 2015		0		0.00	%		113,808		2.72	%
Term D Loan due June 30, 2016		0		0.00	%		118,217		2.77	%
Term E Loan due March 15, 2017		0		0.00	%		1,154,651		2.53	%
Term F Loan due March 15, 2019		0		0.00	%		822,017		3.92	%
Total Debt		2,388,000		3.49	%		2,406,364		2.91	%
Less Current Portion		30,000					114,695
Total Long-Term Debt	$	2,358,000				$	2,291,669

The Company’s credit facilities at the end of the first quarter of fiscal 2013 consisted of the following term loan facilities and revolving credit facilities: a tranche A-1 loan (“Term A-1 Loan”), a tranche B loan (“Term B Loan”), a tranche C loan (“Term C Loan”), a tranche D loan (“Term D Loan”), a tranche E loan (“Term E Loan”), a tranche F loan (“Term F Loan”), revolving credit facility A-1 (“Revolver A-1” ) and revolving credit facility A-2 (“Revolver A-2”).

On April 2, 2013, the Company refinanced its credit facilities pursuant to a Credit Agreement (the “New Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and an issuing bank, The Bank of Nova Scotia, as revolving agent, swingline lender and an issuing bank, and the other parties thereto. The New Credit Agreement provides for (a) a revolving credit facility (including swing line loans and letters of credit) in an initial aggregate principal amount of $250,000 that will mature on April 2, 2018 (the “Revolving Facility”), (b) an initial term B-1 loan credit facility in an aggregate principal amount of $300,000 that will mature on April 2, 2016 (the “Tranche B-1 Term Facility”) and (c) an initial term B-2 loan credit facility in an aggregate principal amount of $2,100,000 that will mature on April 2, 2020 (the “Tranche B-2 Term Facility”, and together with the Tranche B-1 Term Facility, the “Term Facilities”; the Term Facilities and Revolving Facility collectively, the “WWI Credit Facility”). In connection with this refinancing, the Company used the proceeds from borrowings under the Term Facilities to pay off a total of $2,399,904 of outstanding loans, consisting of $128,759 of Term B Loans, $110,602 of Term C Loans, $117,612 of Term D Loans, $1,125,044 of Term E Loans, $817,887 of Term F Loans, $21,247 of loans under the Revolver A-1 and $78,753 of loans under the Revolver A-2. Following the refinancing of a total of $2,399,904 of loans, at April 2, 2013, the Company had $2,400,000 debt outstanding under the Term Facilities and $248,848 of availability under the Revolving Facility. The Company incurred fees of $44,817 during the second quarter of fiscal 2013 in connection with this refinancing. In the second quarter of fiscal 2013, the Company wrote-off fees associated with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt.

F-17

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

At December 28, 2013, the Company had $2,388,000 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at December 28, 2013, the Revolving Facility had $1,554 in issued but undrawn letters of credit outstanding thereunder and $248,446 in available unused commitments thereunder. The proceeds from borrowings under the Revolving Facility (including swing line loans and letters of credit) will be used for working capital and general corporate purposes.

Borrowings under the New Credit Agreement bear interest at a rate equal to, at the Company’s option, LIBOR plus an applicable margin or a base rate plus an applicable margin. LIBOR under the Tranche B-2 Term Facility is subject to a minimum interest rate of 0.75% and the base rate under the Tranche B-2 Term Facility is subject to a minimum interest rate of 1.75%. The applicable margin relating to both of the Term Facilities will increase by 25 basis points in the event that the Company receives a corporate rating of BB- (or lower) from S&P and a corporate rating of Ba3 (or lower) from Moody’s. The applicable margin relating to the Revolving Facility will fluctuate depending upon the Company’s Consolidated Leverage Ratio (as defined in the New Credit Agreement). At December 28, 2013, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 2.75% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.00%. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, had there been any borrowings under the Revolving Facility, it would have borne interest at LIBOR plus an applicable margin of 2.25% or base rate plus an applicable margin of 1.25%. On a quarterly basis, the Company will pay a commitment fee to the lenders under the Revolving Facility in respect of unutilized commitments thereunder, which commitment fee will fluctuate depending upon the Company’s Consolidated Leverage Ratio. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, the commitment fee was 0.40% per annum. The Company also will pay customary letter of credit fees and fronting fees under the Revolving Facility.

The New Credit Agreement contains customary covenants including covenants that, in certain circumstances, restrict the Company’s ability to incur additional indebtedness, pay dividends on and redeem capital stock, make other payments, including investments, sell its assets and enter into consolidations, mergers and transfers of all or substantially all of its assets. The Revolving Facility requires the Company to not exceed a specified Consolidated Leverage Ratio, but only if borrowings under the Revolving Facility exceed 20.0% of revolving commitments as of the end of such fiscal quarter. As of December 28, 2013, borrowings in excess of $50,000 would require us to not exceed such ratio. As of December 28, 2013, there were no borrowings under our Revolving Facility and total letters of credit issued were $1,554. The Term Facilities do not require the Company to maintain any financial ratios. The WWI Credit Facility is guaranteed by certain of the Company’s existing and future subsidiaries. Substantially all of the Company’s assets secure the WWI Credit Facility.

At December 28, 2013 and December 29, 2012, the Company’s debt consisted entirely of variable-rate instruments. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The average interest rate on the Company’s debt, exclusive of the impact of swaps, was approximately 3.65% and 2.99% per annum at December 28, 2013 and December 29, 2012, respectively. The average interest rate on our debt, including the impact of swaps, was approximately 4.08% and 3.50% per annum at December 28, 2013 and December 29, 2012, respectively.

F-18

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Maturities

At December 28, 2013, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter are as follows:

2014	$	30,000
2015		24,000
2016		307,500
2017		21,000
2018		21,000
Thereafter		1,984,500
	$	2,388,000

7. Treasury Stock

On February 23, 2012, the Company commenced a “modified Dutch auction” tender offer for up to $720,000 in value of its common stock at a purchase price not less than $72.00 and not greater than $83.00 per share (the “Tender Offer”). Prior to the Tender Offer, on February 14, 2012, the Company entered into an agreement (the “Purchase Agreement”) with Artal Holdings Sp. z o.o., Succursale de Luxembourg (“Artal Holdings”) (the then-current record holder of all of the Company’s shares owned by Artal Group, S.A. and its affiliates) whereby Artal Holdings agreed to sell to the Company, at the same price as was determined in the Tender Offer, such number of its shares of the Company’s common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of the Company’s common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer.

The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 the Company repurchased 8,780 shares at a purchase price of $82.00 per share. On April 9, 2012, the Company repurchased 9,499 of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, the Company amended and extended the WWI Credit Facility to finance these repurchases. See Note 6.

On October 9, 2003, the Company’s Board of Directors authorized and the Company announced a program to repurchase up to $250,000 of the Company’s outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, the Company’s Board of Directors authorized and the Company announced adding $250,000 to the program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings and its parents and subsidiaries under the program. The repurchase program currently has no expiration date.

During the fiscal years ended December 28, 2013 and December 29, 2012, the Company purchased no shares of its common stock in the open market under the repurchase program. During the fiscal year ended December 31, 2011, the Company purchased 814 shares of its common stock in the open market under the repurchase program for a total cost of $31,550. The repurchase of shares of common stock under the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement was not made pursuant to the Company’s existing repurchase program.

F-19

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

8. Earnings Per Share

Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of common shares outstanding during the periods presented adjusted for the effect of dilutive common stock equivalents.

The following table sets forth the computation of basic and diluted EPS for the fiscal years ended:

	December 28, 2013		December 29, 2012		December 31, 2011
Numerator:
Net income attributable to Weight Watchers International, Inc.	$	204,725	$	257,426	$	304,867
Denominator:
Weighted average shares of common stock outstanding		56,144		60,294		73,344
Effect of dilutive common stock equivalents		250		629		787
Weighted average diluted common shares outstanding		56,394		60,923		74,131
EPS attributable to Weight Watchers International, Inc.
Basic	$	3.65	$	4.27	$	4.16
Diluted	$	3.63	$	4.23	$	4.11

The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 1,285, 536 and 188 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

9. Stock Plans

Incentive Compensation Plans

On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan” and together with the 2008 Plan, the “Stock Plans”). These plans are designed to promote the long-term financial interests and growth of the Company by attracting, motivating and retaining employees with the ability to contribute to the success of the business and to align compensation for the Company’s employees over a multi-year period directly with the interests of the shareholders of the Company. The Company’s Board of Directors or a committee thereof administers the Stock Plans.

Under the 2008 Plan, grants may take the following forms at the Compensation and Benefit Committee’s discretion: non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2008 Plan was 3,000, subject to increase and adjustment as set forth in the 2008 Plan. Pursuant to the terms of the 2008 Plan, the number of shares of our common stock available for issuance under the 2008 Plan was increased by 550, the remaining number of shares of our common stock with respect to which awards could be granted under the Company’s 1999 Stock Purchase and Option Plan upon its termination.

F-20

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Under the 2004 Plan, grants may take the following forms at the Company’s Board of Directors or its committee’s sole discretion: non-qualified stock options, incentive stock options, stock appreciation rights, RSUs, restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2004 Plan was 2,500.

Under the Stock Plans, the Company also grants fully-vested shares of its common stock to certain members of its Board of Directors. While these shares are fully vested, beginning with stock grants made in the fourth quarter of 2006, the directors are restricted from selling these shares while they are still serving on the Company’s Board of Directors. During the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company granted 14, 13, and 13 fully-vested shares, respectively, and recognized compensation expense of $524, $707 and $772, respectively.

The Company issues common stock for share-based compensation awards from treasury stock. The total compensation cost that has been charged against income for these plans was $4,255, $8,845 and $9,067 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. Such amounts have been included as a component of selling, general and administrative expenses. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $1,174, $2,742 and $2,895 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The tax benefits realized from options exercised and RSUs vested totaled $4,217, $5,847 and $11,309 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. No compensation costs were capitalized. As of December 28, 2013, there was $24,881 of total unrecognized compensation cost related to stock options and RSUs granted under the Stock Plans. That cost is expected to be recognized over a weighted-average period of approximately 2.5 years.

While the Stock Plans permit various types of awards, other than the aforementioned shares issued to directors, grants under the plans have historically been either non-qualified stock options or RSUs. In fiscal 2013, the Company also granted special performance-based stock option awards. The following describes some further details of these awards.

Stock Option Awards

Option Awards with Time Vesting Criteria

Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with time vesting criteria (“Time Vesting Options”). The options are exercisable based on the terms outlined in the agreements. Time Vesting Options outstanding at December 28, 2013 vest over a period of three to five years and the expiration term is ten years. Time Vesting Options outstanding at December 28, 2013 have an exercise price between $19.74 and $79.55 per share.

F-21

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these option grants to be the midpoint between the vesting period and the contractual term of each award. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time Vesting Options. The dividend yield is based on our historic average dividend yield. For Time Vesting Options granted in the fourth quarter of fiscal 2013, the dividend yield is zero because there is no longer a dividend.

	December 28, 2013	December 29, 2012	December 31, 2011
Dividend yield	0.8%	1.6%	1.8%
Volatility	36.5%	35.5%	33.6%
Risk-free interest rate	1.3% - 2.2%	1.0% - 1.4%	1.5% - 2.8%
Expected term (years)	6.5	6.5	6.5

Option Awards with Time and Performance Vesting Criteria

Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with both time and performance vesting criteria (“T&P Vesting Options”). The options are exercisable based on the terms outlined in the agreements. During the fourth quarter of fiscal 2013, the Company granted 686,549 T&P Vesting Options to certain employees that will vest based on the achievement of both time and performance vesting criteria. The time-vesting criteria will be 100% satisfied on the third anniversary of the date of the grant and the performance criteria is contingent upon meeting or exceeding certain stock price hurdles. With respect to the performance-vesting criteria, the stock options will fully vest in 20% increments upon the first date that the average closing stock price for the 20 consecutive preceding trading days is equal to or greater than specified stock price hurdles. The fair value of the T&P Vesting Options was estimated on the date of grant and was based on the likelihood of the Company achieving the performance conditions. The Company estimated the fair value of the T&P Vesting Options to be $8.46. The Company estimated this fair value using a Monte Carlo simulation that used various assumptions that included expected volatility of 36.48%, a risk free rate of 1.55% and an expected term of 3.0 years. Expected volatility was based on the historical volatility of the Company’s stock. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the performance measurement period. The expected term represents the period from the grant date to the end of the five year performance period. Compensation expense on T&P Vesting Options is recognized ratably over the three year required service period as this period is longer than the derived service period calculated by the Monte Carlo simulation.

A summary of all option activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at December 29, 2012		2,239		$	42.75
Granted		1,551		$	36.35
Exercised		(620	)	$	26.09
Canceled		(957	)	$	51.62
Outstanding at December 28, 2013		2,213		$	39.09		7.2	$	2,372
Exercisable at December 28, 2013		362		$	32.03		5.5	$	2,166

F-22

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The weighted-average grant-date fair value of all options granted was $11.37, $16.60 and $20.44 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total intrinsic value of Time Vesting Options exercised was $9,858, $12,734 and $27,808 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

Cash received from Time Vesting Options exercised during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $16,187, $12,688 and $42,040, respectively.

Restricted Stock Units

Pursuant to the restricted stock components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received RSUs. The RSUs are exercisable based on the terms outlined in the agreements. The RSUs vest over a period of three to five years. The fair value of RSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of RSU activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted-Average Grant-Date Fair Value
Outstanding at December 29, 2012		246		$	50.67
Granted		155		$	38.40
Vested		(63	)	$	27.08
Forfeited		(85	)	$	56.23
Outstanding at December 28, 2013		253		$	47.11

The weighted-average grant-date fair value of RSUs granted was $38.40, $55.54 and $64.32 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total fair value of RSUs vested during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,705, $5,536 and $3,657, respectively.

10. Income Taxes

The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income:

	December 28, 2013			December 29, 2012		December 31, 2011
Current:
US federal	$	60,556		$	99,437	$	121,860
State		9,583			12,719		18,298
Foreign		25,121			20,614		13,299
	$	95,260		$	132,770	$	153,457
Deferred:
US federal	$	31,801		$	23,002	$	23,410
State		3,634			2,629		2,675
Foreign		(55	)		1,134		(794	)
	$	35,380		$	26,765	$	25,291
Total tax provision	$	130,640		$	159,535	$	178,748

F-23

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The components of the Company’s consolidated income before income taxes consist of the following:

	December 28, 2013		December 29, 2012		December 31, 2011
Domestic	$	255,183	$	337,321	$	400,310
Foreign		80,182		79,640		82,782
	$	335,365	$	416,961	$	483,092

The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
US federal statutory rate		35.0	%		35.0	%		35.0	%
Federal and state tax reserve provision		(0.1	)		0.2			(0.6	)
States income taxes (net of federal benefit)		2.7			2.6			3.0
Foreign taxes		0.3			(0.3	)		(0.4	)
Increase in valuation allowance		0.9			0.7			0.5
Loss on closure of Finland		0.0			0.0			(0.8	)
Other		0.2			0.1			0.3
Effective tax rate		39.0	%		38.3	%		37.0	%

The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows:

	December 28, 2013			December 29, 2012
Provision for estimated expenses	$	8,593		$	8,561
Operating loss carryforwards		40,587			34,714
Salaries and wages		6,238			4,522
Share-based compensation		4,705			6,958
Other		6,562			6,336
Less: valuation allowance		(36,372	)		(31,015	)
Total deferred tax assets	$	30,313		$	30,076
Depreciation	$	(6,381	)	$	(2,844	)
Other comprehensive income		(5,446	)		(8,180	)
Other		(1,046	)		0
Amortization		(157,047	)		(126,726	)
Total deferred tax liabilities	$	(169,920	)	$	(137,750	)
Net deferred tax liabilities	$	(139,607	)	$	(107,674	)

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, 2013 and December 29, 2012, various foreign subsidiaries had net operating loss carryforwards of approximately $148,107 and $126,219, respectively, most of which can be carried forward indefinitely.

F-24

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The Company’s undistributed earnings of foreign subsidiaries are not considered to be reinvested permanently. Accordingly, the Company has recorded all taxes, after taking into account foreign tax credits, on the undistributed earnings of foreign subsidiaries.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
Balance at beginning of year	$	5,319		$	5,040		$	15,794
Additions based on tax positions related to the current year		1,428			1,647			1,537
Additions based on tax positions of prior years		0			0			0
Reductions for tax positions of prior years		(963	)		(1,219	)		(11,901	)
Settlements		0			(149	)		(390	)
Balance at end of year	$	5,784		$	5,319		$	5,040

At December 28, 2013, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $4,824. As of December 28, 2013, given the nature of the Company’s uncertain tax positions, it is reasonably possible that there will not be a significant change in the Company’s uncertain tax benefits within the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $2,217 and $3,405 of accrued interest and penalties at December 28, 2013 and December 29, 2012, respectively. The Company recognized $(1,188), $823 and $(256) in interest and penalties during the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. At December 28, 2013, with few exceptions, the Company was no longer subject to US federal, state or local income tax examinations by tax authorities for years prior to 2010, or non-US income tax examinations by tax authorities for years prior to 2004.

11. Employee Benefit Plans

The Company sponsors the Second Amended and Restated Weight Watchers Savings Plan (the “Savings Plan”) for salaried and certain hourly US employees of the Company. The Savings Plan is a defined contribution plan that provides for employer matching contributions of 100% of the employee’s tax deferred contributions up to 3% of an employee’s eligible compensation. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,888, $2,730 and $2,466, respectively.

During fiscal 2011, the Company received a favorable determination letter from the IRS that qualifies the Savings Plan under Section 401(a) of the Internal Revenue Code.

Pursuant to the Savings Plan, the Company also makes profit sharing contributions for all full-time salaried US employees who are eligible to participate in the Savings Plan (except for certain management personnel). The profit sharing contribution is a guaranteed monthly employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The Savings Plan also has a discretionary supplemental profit sharing employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,658, $2,779 and $3,704, respectively.

F-25

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

For certain US management personnel, the Company sponsors the Second Amended and Restated Weight Watchers Executive Profit Sharing Plan (“EPSP”). Under the IRS definition, the EPSP is considered a Nonqualified Deferred Compensation Plan. There is a promise of payment by the Company made on the employees’ behalf instead of an individual account with a cash balance. The EPSP provides for a guaranteed employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The EPSP has a discretionary supplemental employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. The account is valued at the end of each fiscal month, based on an annualized interest rate of prime plus 2%, with an annualized cap of 15%. Expense related to this commitment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,651, $2,954 and $2,369, respectively.

12. Cash Flow Information

	December 28, 2013		December 29, 2012		December 31, 2011
Net cash paid during the year for:
Interest expense	$	88,860	$	68,808	$	52,591
Income taxes	$	87,071	$	133,131	$	144,925
Noncash investing and financing activities were as follows:
Fair value of net assets/(liabilities) acquired in connection with acquisitions	$	175	$	0	$	0
Dividends declared but not yet paid at year-end	$	177	$	289	$	13,145

13. Commitments and Contingencies

UK Self-Employment Matter

In July 2007, Her Majesty’s Revenue and Customs (“HMRC”) issued to the Company notices of determination and decisions that, for the period April 2001 to April 2007, its leaders and certain other service providers in the United Kingdom should have been classified as employees for tax purposes and, as such, it should have withheld tax from the leaders and certain other service providers pursuant to the “Pay As You Earn” (“PAYE”) and national insurance contributions (“NIC”) collection rules and remitted such amounts to HMRC. HMRC also issued a claim to the Company in October 2008 in respect of NIC which corresponds to the prior notices of assessment with respect to PAYE previously raised by HMRC.

In September 2007, the Company appealed to the UK First Tier Tribunal (Tax Chamber) (formerly known as the UK VAT and Duties Tribunal and hereinafter referred to as the “First Tier Tribunal”) against HMRC’s notices as to these classifications and against any amount of PAYE and NIC liability claimed to be owed by the Company. In February 2010, the First Tier Tribunal issued a ruling that the Company’s UK leaders should have been classified as employees for UK tax purposes and, as such, the Company should have withheld tax from its leaders pursuant to the PAYE and NIC collection rules for the period from April 2001 to April 2007 with respect to services performed by the leaders for the Company. The Company appealed the First Tier Tribunal’s adverse ruling to the UK Upper Tribunal (Tax and Chancery Chamber) (the “Upper Tribunal”), and in October 2011, the Upper Tribunal issued a ruling dismissing the Company’s appeal. In January 2012, the Company sought permission from the UK Court of Appeal to appeal the Upper Tribunal’s ruling, which the UK Court of Appeal refused in March 2012. In March 2012, the Company applied to the UK Court of Appeal for an oral hearing to seek permission to appeal to the UK Court of Appeal against the Upper Tribunal’s ruling. At the hearing in June 2012, the UK Court of Appeal granted the Company permission to appeal. A hearing date for the appeal was set for January 2013.

F-26

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

In December 2011, HMRC’s claim in respect of NIC was amended to increase the claimed amount for the period April 2002 to April 2007 and include the interest accrued thereon through December 2011. In addition, in February 2012, HMRC asserted a claim in respect of PAYE for the period April 2007 to April 2011 similar to what it had claimed for the period April 2001 to April 2007. The Company was granted permission to appeal this PAYE claim with the First Tier Tribunal and the First Tier Tribunal directed that the appeal be stayed until following the decision of the UK Court of Appeal with respect to the Company’s appeal of the Upper Tribunal’s ruling.

In light of the First Tier Tribunal’s adverse ruling and in accordance with accounting guidance for contingencies, the Company recorded in the fourth quarter of fiscal 2009 a reserve for the period from April 2001 through the end of fiscal 2009, inclusive of estimated accrued interest. On a quarterly basis, beginning in the first quarter of fiscal 2010 and through the second quarter of fiscal 2011, the Company recorded a reserve for UK withholding taxes with respect to its UK leaders consistent with this ruling. The reserve at the end of the second quarter of fiscal 2011 equaled approximately $43,671 in the aggregate based on the exchange rates at the end of fiscal 2011. As of the beginning of the third quarter of fiscal 2011, the Company began employing its UK leaders and therefore has ceased recording any further reserves for this matter. In February 2012, the Company paid HMRC, on a without prejudice basis, a portion of the amount previously reserved equal to approximately $30,018 based on the exchange rates at the payment date for estimated amounts claimed to be owed by the Company with respect to PAYE and interest thereon for the period April 2001 to July 2011. In December 2012, the Company reached an agreement with HMRC to settle the matter in its entirety for approximately $36,770. In January 2013, $6,752 was paid to HMRC, representing the balance due over the amount previously paid to HMRC in February 2012. In January 2013, the UK Court of Appeal dismissed the case and the First Tier Tribunal confirmed withdrawal of the Company’s appeal against HMRC.

Other Litigation Matters

Due to the nature of the Company’s activities, it is also, at times, subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows.

Lease Commitments

Minimum rental commitments under non-cancelable operating leases, primarily for office and rental facilities, at December 28, 2013, consist of the following:

2014	$	41,095
2015		36,642
2016		30,704
2017		22,076
2018		16,898
2019 and thereafter		118,001
Total	$	265,416

Total rent expense charged to operations under these leases for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $46,300, $40,485 and $36,572, respectively.

F-27

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

14. Segment and Geographic Data

The Company has two reportable segments: WWI and WW.com. WWI has multiple operating segments which have been aggregated into one reportable segment. WWI and WW.com are two separate and distinct businesses for which discrete financial information is available. This discrete financial information is maintained and managed separately and is reviewed regularly by the chief operating decision maker. All intercompany activity is eliminated in consolidation.

Information about the Company’s reportable operating segments is as follows:

	Year Ended December 28, 2013
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,197,375	$	526,748	$	0		$	1,724,123
Depreciation and amortization	$	41,468	$	11,108	$	0		$	52,576
Operating income	$	154,745	$	306,012	$	0		$	460,757
Interest expense									103,108
Other expense, net									599
Early extinguishment of debt									21,685
Provision for taxes									130,640
Net income								$	204,725
Total assets	$	1,733,464	$	776,515	$	(1,101,048	)	$	1,408,931

	Year Ended December 29, 2012
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,331,916	$	507,516	$	0		$	1,839,432
Depreciation and amortization	$	34,073	$	9,637	$	0		$	43,710
Operating income	$	250,335	$	260,470	$	0		$	510,805
Interest expense									90,537
Other expense, net									1,979
Early extinguishment of debt									1,328
Provision for taxes									159,535
Net income								$	257,426
Total assets	$	1,539,434	$	567,478	$	(888,305	)	$	1,218,607

F-28

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Year Ended December 31, 2011
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,428,690	$	403,804	$	0		$	1,832,494
Depreciation and amortization	$	25,744	$	10,076	$	0		$	35,820
Operating income	$	339,963	$	206,365	$	0		$	546,328
Interest expense									59,850
Other income, net									3,386
Provision for taxes									178,748
Net income								$	304,344
Total assets	$	1,413,109	$	392,381	$	(683,862	)	$	1,121,628

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

	Revenues for the Year Ended
	December 28, 2013		December 29, 2012		December 31, 2011
NACO meeting fees	$	595,097	$	653,396	$	686,758
International Company-owned meeting fees		256,529		281,537		303,538
Product sales		245,319		294,758		334,303
Franchise royalties		9,035		12,732		14,461
Internet revenues		522,226		504,338		399,495
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
North America	$	1,181,696	$	1,283,232	$	1,266,005
United Kingdom		172,783		204,506		227,238
Continental Europe		299,403		270,701		247,003
Australia, New Zealand and other		70,241		80,993		92,248
	$	1,724,123	$	1,839,432	$	1,832,494

	Long-Lived Assets
	December 28, 2013		December 29, 2012		December 31, 2011
North America	$	82,518	$	65,708	$	35,196
United Kingdom		1,192		1,645		1,508
Continental Europe		2,083		2,431		2,208
Australia, New Zealand and other		1,259		1,984		2,160
	$	87,052	$	71,768	$	41,072

F-29

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Effective the first day of fiscal 2014 (i.e. December 29, 2013), the Company realigned its organizational structure to better leverage its significant assets and align its innovation efforts, which resulted in new reporting segments (North America, United Kingdom, Continental Europe, and Rest of World) for the purpose of making operational and resource decisions and assessing financial performance. The segment information presented in these financial statements does not reflect this change as the change was not effected internally until the Company’s first quarter of fiscal 2014. The Company will begin reporting segment information based on these new segments in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2014.

15. Fair Value Measurements

Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

When measuring fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs.

Fair Value of Financial Instruments

The Company’s significant financial instruments include long-term debt and interest rate swap agreements.

The fair value of the Company’s long-term debt is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of December 28, 2013, and December 29, 2012, the fair value of the Company’s long-term debt was approximately $2,169,908 and $2,410,724, respectively.

Derivative Financial Instruments

The fair values for the Company’s derivative financial instruments are determined using observable current market information such as the prevailing LIBOR interest rate and LIBOR yield curve rates and include consideration of counterparty credit risk. See Note 16 for disclosures related to derivative financial instruments.

The following table presents the aggregate fair value of the Company’s derivative financial instruments:

			Fair Value Measurements Using:
	Total 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, 2013	$	7,578	$	0	$	7,578	$	0
Interest rate swap liability at December 29, 2012	$	13,871	$	0	$	13,871	$	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, 2013 and December 29, 2012.

F-30

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

16. Derivative Instruments and Hedging

As of December 28, 2013 and December 29, 2012, the Company had in effect an interest rate swap with a notional amount totaling $466,250 and $583,250, respectively. In January 2009, the Company entered into this forward-starting interest rate swap with an effective date of January 4, 2010 and a termination date of January 27, 2014. During the term of this forward-starting interest rate swap, the notional amount fluctuated, but was no higher than the amount outstanding as of the end of fiscal 2013. The initial notional amount was $425,000 and the highest notional amount was $755,000. Effective April 2, 2013, due to the Company’s debt refinancing, the Company ceased the application of hedge accounting for this swap. Accordingly, changes in the fair value of this swap have been recorded in earnings subsequent to April 2, 2013 and were immaterial for the fiscal year ended December 28, 2013.

On July 26, 2013, in order to hedge an additional portion of its variable rate debt, the Company entered into a forward-starting interest rate swap with an effective date of March 31, 2014 and a termination date of April 2, 2020. The initial notional amount of this swap is $1,500,000. During the term of this swap, the notional amount will decrease from $1,500,000 effective March 31, 2014 to $1,250,000 on April 3, 2017 with a further reduction to $1,000,000 on April 1, 2019. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 2.38%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive income (loss).

As of December 28, 2013 and December 29, 2012, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive income (loss) in the amounts of $4,603 ($7,546 before taxes) and $6,602 ($10,824 before taxes), respectively.

The Company is hedging forecasted transactions for periods not exceeding the next seven years. The Company expects approximately $12,017 ($19,700 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at December 28, 2013, based on current market rates, will be reclassified into earnings within the next 12 months.

17. Accumulated Other Comprehensive Income

Amounts reclassified out of accumulated other comprehensive income are as follows:

Changes in Accumulated Other Comprehensive Income by Component^(a)

	Fiscal year ended December 28, 2013
	Loss on Qualifying Hedges			Foreign Currency Translation Adjustments			Total
Beginning Balance at December 29, 2012	$	(6,602	)	$	19,461		$	12,859
Other comprehensive loss before reclassifications, net of tax		(4,124	)		(6,341	)		(10,465	)
Amounts reclassified from accumulated other comprehensive income, net of tax(b)		6,123			0			6,123
Net current period other comprehensive income (loss)		1,999			(6,341	)		(4,342	)
Ending Balance at December 28, 2013	$	(4,603	)	$	13,120		$	8,517

(a) Amounts in parentheses indicate debits

(b) See separate table below for details about these reclassifications

F-31

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Reclassifications out of Accumulated Other Comprehensive Income^(a)

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Other Comprehensive Income Components	Fiscal Year Ended December 28, 2013			Affected Line Item in the Statement Where Net Income is Presented
Loss on Qualifying Hedges
Interest rate contracts	$	(10,037	)	Interest expense
		(10,037	)	Income before income taxes
		3,914		Provision for income taxes
	$	(6,123	)	Net income

(a) Amounts in parentheses indicate debits to profit / loss

18. Quarterly Financial Information (Unaudited)

The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2013 and December 29, 2012.

	For the Fiscal Quarters Ended
	March 30, 2013		June 29, 2013		September 28, 2013		December 28, 2013
Fiscal year ended December 28, 2013
Revenues, net	$	490,790	$	470,888	$	396,334	$	366,111
Gross profit		283,637		283,715		231,980		201,780
Operating income		103,119		153,976		124,520		79,142
Net income		48,753		64,916		60,258		30,798
Basic EPS	$	0.87	$	1.16	$	1.07	$	0.55
Diluted EPS	$	0.87	$	1.15	$	1.07	$	0.54

	For the Fiscal Quarters Ended
	March 31, 2012		June 30, 2012		September 29, 2012		December 29, 2012
Fiscal year ended December 29, 2012
Revenues, net	$	506,786	$	488,610	$	432,903	$	411,133
Gross profit		291,171		297,032		257,651		247,964
Operating income		102,774		153,508		131,984		122,539
Net income		54,605		77,462		67,364		57,995
Basic EPS	$	0.74	$	1.37	$	1.21	$	1.04
Diluted EPS	$	0.74	$	1.36	$	1.20	$	1.03

Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year.

In the second quarter of fiscal 2013, net income and EPS were impacted by a $21,685 ($13,336 after tax), or $0.24 per fully diluted share, early extinguishment of debt charge resulting from the write-off of fees associated with the Company’s April 2013 debt refinancing. In the first quarter of fiscal 2012, the Company

F-32

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

wrote-off $1,328 of fees in connection with the March 2012 refinancing of its debt that the Company recorded as an early extinguishment of debt charge.

As discussed in further detail in Note 13, in the fourth quarter of fiscal 2012, the Company recognized a $4,099 net benefit ($7,423 pre-tax), or $0.07 per fully diluted share, from an accrual reversal associated with the settlement in the quarter of the previously reported UK self-employment tax litigation. The $7,423 pre-tax net benefit associated with the settlement consisted of an over-accrual reversal to cost of revenues of $14,544 partially offset by an additional interest accrual of $7,130.

As discussed in further detail in Note 1, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing revenues and gross profit the first nine months of fiscal 2013 and all four quarters of fiscal 2012.

F-33

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(IN THOUSANDS)

			Additions
	Balance at Beginning of Period		Charged to Costs and Expenses			Charged to Other Accounts		Deductions(1)			Balance at End of Period
FISCAL YEAR ENDED DECEMBER 28, 2013
Allowance for doubtful accounts	$	3,447	$	596		$	0	$	(566	)	$	3,477
Inventory and other reserves	$	6,942	$	9,580		$	0	$	(10,663	)	$	5,859
Tax valuation allowance	$	31,015	$	3,821		$	2,429	$	(893	)	$	36,372
FISCAL YEAR ENDED DECEMBER 29, 2012
Allowance for doubtful accounts	$	5,315	$	(1,067	)	$	26	$	(827	)	$	3,447
Inventory and other reserves	$	7,397	$	10,491		$	0	$	(10,946	)	$	6,942
Tax valuation allowance	$	25,781	$	3,387		$	2,322	$	(475	)	$	31,015
FISCAL YEAR ENDED DECEMBER 31, 2011
Allowance for doubtful accounts	$	5,191	$	1,441		$	0	$	(1,317	)	$	5,315
Inventory and other reserves	$	3,948	$	13,203		$	0	$	(9,754	)	$	7,397
Tax valuation allowance	$	24,989	$	2,512		$	970	$	(2,690	)	$	25,781

(1) Primarily represents the utilization of established reserves, net of recoveries, where applicable.

S-1

EXHIBIT INDEX

Exhibit Number		Description
	**3.1	Amended and Restated Articles of Incorporation of Weight Watchers International, Inc. (filed as Exhibit 3.1 to Amendment No. 1 to the Company’s Registration Statement on Form 8-A as filed on January 6, 2012 (File No. 001-16769), and incorporated herein by reference).
	**3.2	Articles of Amendment to the Articles of Incorporation, as Amended and Restated, of Weight Watchers International, Inc. to Create a New Series of Preferred Stock Designated as Series B Junior Participating Preferred Stock, adopted as of November 14, 2001 (filed as Exhibit 3.2 to Amendment No. 1 to the Company’s Registration Statement on Form 8-A, as filed on January 6, 2012 (File No. 001-16769), and incorporated herein by reference).
	**3.3	Amended and Restated Bylaws of Weight Watchers International, Inc., as of November 14, 2013 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed on November 18, 2013 (File No. 001-16769), and incorporated herein by reference).
	**4.1	Specimen of stock certificate representing Weight Watchers International, Inc.’s common stock, no par value (filed as Exhibit 4.1 to Amendment No. 1 to the Company’s Registration Statement on Form 8-A, as filed on January 6, 2012 (File No. 001-16769), and incorporated herein by reference).
	**10.1	License Agreement, dated as of September 29, 1999, between WW Foods, LLC and Weight Watchers International, Inc. (filed as Exhibit 10.4 to the Company’s Registration Statement on Form S-4, as filed on December 2, 1999 (File No. 333-92005), and incorporated herein by reference).
	**10.2	LLC Agreement, dated as of September 29, 1999, between H.J. Heinz Company and Weight Watchers International, Inc. (filed as Exhibit 10.7 to the Company’s Registration Statement on Form S-4, as filed on December 2, 1999 (File No. 333-92005), and incorporated herein by reference).
	**10.3	Operating Agreement, dated as of September 29, 1999, between Weight Watchers International, Inc. and H.J. Heinz Company (filed as Exhibit 10.8 to the Company’s Registration Statement on Form S-4, as filed on December 2, 1999 (File No. 333-92005), and incorporated herein by reference).
	†**10.4	1999 Stock Purchase and Option Plan of Weight Watchers International, Inc. and Subsidiaries (filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2000, as filed on July 28, 2000 (File No. 000-03389), and incorporated herein by reference).
	†**10.5	Weight Watchers International, Inc. 2004 Stock Incentive Plan (filed as Appendix A of the Company’s Definitive Proxy Statement on Schedule 14A filed on April 8, 2004 (File No. 001-16769), and incorporated herein by reference).
	†**10.6	Amendment to Weight Watchers International, Inc. 2004 Stock Incentive Plan (filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2005, as filed on August 11, 2005 (File No. 001-16769), and incorporated herein by reference).
	†**10.7	Weight Watchers International, Inc. 2008 Stock Incentive Plan (filed as Appendix A of the Company’s Definitive Proxy Statement on Schedule 14A filed on March 31, 2008 (File No. 001-16769), and incorporated herein by reference).
	**10.8	Corporate Agreement, dated as of November 5, 2001, between Weight Watchers International, Inc. and Artal Luxembourg S.A. (filed as Exhibit 10.36 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, as filed on November 9, 2001 (File No. 333-69362), and incorporated herein by reference).

Exhibit Number		Description
	**10.9	Amendment, dated as of July 1, 2005, to the Corporate Agreement, dated as of November 5, 2001, by and between Weight Watchers International, Inc. and Artal Luxembourg S.A. (filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2005, as filed on August 11, 2005 (File No. 001-16769), and incorporated herein by reference).
	**10.10	Registration Rights Agreement, dated as of September 29, 1999, among Weight Watchers International, Inc., H.J. Heinz Company and Artal Luxembourg S.A. (filed as Exhibit 10.38 to Amendment No. 1 to the Company’s Registration Statement on Form S-1, as filed on October 29, 2001 (File No. 333-69362), and incorporated herein by reference).
	†**10.11	Form of Amended and Restated Continuity Agreement, between Weight Watchers International, Inc. and certain key executives (Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and General Counsel) (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2011, as filed on August 11, 2011 (File No. 001-16769), and incorporated herein by reference).
	†**10.12	Form of Amended and Restated Continuity Agreement, between Weight Watchers International, Inc. and certain key executives (certain executive officers) (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2011, as filed on August 11, 2011 (File No. 001-16769), and incorporated herein by reference).
	**10.13	Principal Stockholders Agreement among Weight Watchers International, Inc., WeightWatchers.com, Inc. and Artal Luxembourg S.A. dated as of June 13, 2005 (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2005, as filed on August 11, 2005 (File No. 001-16769), and incorporated herein by reference).
	†**10.14	Form of Term Sheet for Employee Stock Awards and Form of Terms and Conditions for Employee Stock Awards for the 1999 Stock Purchase and Option Plan of Weight Watchers International, Inc. and Subsidiaries, the Weight Watchers International, Inc. 2004 Stock Incentive Plan and the Weight Watchers International, Inc. 2008 Stock Incentive Plan (filed as Exhibit 10.34 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, as filed on February 27, 2006 (File No. 001-16769), and incorporated herein by reference).
	†**10.15	Form of Term Sheet for Employee Restricted Stock Unit Awards and Form of Terms and Conditions for Employee Restricted Stock Unit Awards for the 1999 Stock Purchase and Option Plan of Weight Watchers International, Inc. and Subsidiaries, the Weight Watchers International, Inc. 2004 Stock Incentive Plan and the Weight Watchers International, Inc. 2008 Stock Incentive Plan (filed as Exhibit 10.35 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, as filed on February 27, 2006 (File No. 001-16769), and incorporated herein by reference).
	†**10.16	Form of Directors Restricted Stock Agreement for Weight Watchers International, Inc. non-employee director restricted stock issued under the Weight Watchers International, Inc. 2004 Stock Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2006, as filed on November 9, 2006 (File No. 001-16769), and incorporated herein by reference).
	†**10.17	Summary of Non-Employee Director Compensation (filed as Exhibit 10 to the Company’s Current Report on Form 8-K, as filed on July 18, 2006 (File No. 001-16769), and incorporated herein by reference).
	†**10.18	Statement of Amendments to the 1999 Stock Purchase and Option Plan (filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K, as filed on December 15, 2006 (File No. 001-16769), and incorporated herein by reference).

Exhibit Number		Description
	†**10.19	Statement of Amendments to the Weight Watchers International, Inc. 2004 Stock Incentive Plan (filed as Exhibit 99.4 to the Company’s Current Report on Form 8-K, as filed on December 15, 2006 (File No. 001-16769), and incorporated herein by reference).
	**10.20	Amendment to Agreements, dated as of October 1, 2002, by and between Weight Watchers International, Inc., WW Foods, LLC and H.J. Heinz Company (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2009, as filed on November 12, 2009 (File No. 001-16769), and incorporated herein by reference).
	**10.21	Amendment to Operating Agreement, dated August 4, 2009, by and between Weight Watchers International, Inc. and H.J. Heinz Company (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2009, as filed on November 12, 2009 (File No. 001-16769), and incorporated herein by reference).
	**10.22	Stock Purchase Agreement, dated as of February 14, 2012, by and between Weight Watchers International, Inc. and Artal Holdings Sp. z o.o., Succursale de Luxembourg (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed on February 16, 2012 (File No. 001-16769), and incorporated herein by reference).
	**10.23	Amendment Agreement, dated as of March 15, 2012, among Weight Watchers International, Inc., the guarantors party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A. and Credit Suisse Securities (USA) LLC, as syndication agents, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Nova Scotia, as joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A., as an issuer, and The Bank of Nova Scotia, as administrative agent for the lenders, as swing line lender and as an issuer, relating to the Seventh Amended and Restated Credit Agreement dated as of March 15, 2012, attached as Annex A thereto (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012, as filed on May 10, 2012 (File No. 001-16769), and incorporated herein by reference).
	†**10.24	Second Amended and Restated Weight Watchers Executive Profit Sharing Plan, August 1, 2012 (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 29, 2012, as filed on November 8, 2012 (File No. 001-16769), and incorporated herein by reference).
	†**10.25	Offer Letter, dated as of July 2, 2012, by and between Weight Watchers International, Inc. and Nicholas P. Hotchkin (filed as Exhibit 10.31 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012, as filed on February 27, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.26	Offer Letter, dated as of November 8, 2011, by and between Weight Watchers International, Inc. and Bruce Rosengarten (filed as Exhibit 10.32 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012, as filed on February 27, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.27	Letter Agreement, dated January 25, 2012, between Fortuity Pty Ltd. and Bruce Rosengarten (filed as Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012, as filed on February 27, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.28	Offer Letter, dated as of December 6, 2012, by and between Weight Watchers International, Inc. and James Chambers (filed as Exhibit 10.34 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012, as filed on February 27, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.29	Letter Agreement, dated as of February 12, 2013, by and between Weight Watchers International, Inc. and Michael Basone (filed as Exhibit 10.35 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012, as filed on February 27, 2013 (File No. 001-16769), and incorporated herein by reference).

Exhibit Number		Description
	**10.30	Credit Agreement, dated as of April 2, 2013, among Weight Watchers International, Inc., as the borrower, the lenders party thereto, JPMorgan Chase Bank, N.A., as the administrative agent and an issuing bank, and The Bank of Nova Scotia, as the revolving agent, a swingline lender and an issuing bank (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2013, as filed on May 9, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.31	Separation Agreement, dated as of July 30, 2013, by and between Weight Watchers International, Inc. and David Kirchhoff (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed on August 1, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.32	Severance Amendment, dated as of July 30, 2013, by and between Weight Watchers International, Inc. and James Chambers (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed on August 1, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.33	Letter Agreement, dated as of May 8, 2013, by and between Weight Watchers International, Inc. and Nicholas Hotchkin (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2013, as filed on August 8, 2013 (File No. 001-16769), and incorporated herein by reference).
	†**10.34	Letter Agreement, dated as of May 8, 2013, by and between Weight Watchers International, Inc. and James Chambers (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2013, as filed on August 8, 2013 (File No. 001-16769), and incorporated herein by reference).
	†*10.35	Form of Term Sheet for Employee Performance Stock Option Awards and Form of Terms and Conditions for Employee Performance Stock Option Awards for the Weight Watchers International, Inc. 2008 Stock Incentive Plan (for certain executive officers party to continuity agreements).
	†*10.36	Form of Term Sheet for Employee Performance Stock Option Awards and Form of Terms and Conditions for Employee Performance Stock Option Awards for the Weight Watchers International, Inc. 2008 Stock Incentive Plan.
	*21.1	Subsidiaries of Weight Watchers International, Inc.
	*23.1	Consent of Independent Registered Public Accounting Firm.
	*31.1	Rule 13a-14(a) Certification by James Chambers, Chief Executive Officer.
	*31.2	Rule 13a-14(a) Certification by Nicholas P. Hotchkin, Chief Financial Officer.
	*32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	*Exhibit 101
	*EX-101.INS	XBRL Instance Document
	*EX-101.SCH	XBRL Taxonomy Extension Schema
	*EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase
	*EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase
	*EX-101.LAB	XBRL Taxonomy Extension Label Linkbase
	*EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith.

** Previously filed.

† Represents a management arrangement or compensatory plan.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WEIGHT WATCHERS INTERNATIONAL, INC.
Date: February 26, 2014	By:	/S/    JAMES CHAMBERS
		James Chambers
		President, Chief Executive Officer and Director
		(Principal Executive Officer)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: February 26, 2014	By:	/S/    JAMES CHAMBERS
		James Chambers
		President, Chief Executive Officer and Director
		(Principal Executive Officer)
Date: February 26, 2014	By:	/S/    NICHOLAS P. HOTCHKIN
		Nicholas P. Hotchkin
		Chief Financial Officer
		(Principal Financial and Accounting Officer)
Date: February 26, 2014	By:	/S/    RAYMOND DEBBANE
		Raymond Debbane
		Director
Date: February 26, 2014	By:	/S/    STEVEN M. ALTSCHULER
		Steven M. Altschuler
		Director
Date: February 26, 2014	By:	/S/    PHILIPPE J. AMOUYAL
		Philippe J. Amouyal
		Director
Date: February 26, 2014	By:	/S/    MARSHA JOHNSON EVANS
		Marsha Johnson Evans
		Director
Date: February 26, 2014	By:	/S/    JONAS M. FAJGENBAUM
		Jonas M. Fajgenbaum
		Director
Date: February 26, 2014	By:	/S/    SACHA LAINOVIC
		Sacha Lainovic
		Director
Date: February 26, 2014	By:	/S/    CHRISTOPHER J. SOBECKI
		Christopher J. Sobecki
		Director

EX-10.35

Exhibit 10.35

WEIGHT WATCHERS INTERNATIONAL, INC.

TERM SHEET FOR

EMPLOYEE PERFORMANCE STOCK OPTION AWARDS

FOR GOOD AND VALUABLE CONSIDERATION, Weight Watchers International, Inc., a Virginia corporation (the “Company”), hereby grants to the employee of the Company or its Affiliates as identified below (the “Employee”) an Option to purchase the aggregate number of shares of Common Stock of the Company specified below (the “Option Award”) at the purchase price per share specified below (the “Exercise Price”). The Option Award is granted upon the terms, and subject to the conditions, set forth in this Term Sheet, the Company’s stock incentive plan specified below (the “Plan”), and the Terms and Conditions for Employee Performance Stock Option Awards promulgated under such Plan and as attached hereto (the “Terms and Conditions”), each hereby incorporated herein by this reference and each as amended from time to time (capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Terms and Conditions or the Plan).

Key Terms and Conditions
Name of Employee:
Grant Date:	December 12, 2013
Plan:	2008 Stock Incentive Plan
Number of Shares subject to Option:
Exercise Price:	US$ 32.65 per Share
Expiration Date:	5th anniversary of the Grant Date
Vesting Terms:	See Article III of the Terms and Conditions

By accepting this Term Sheet, (1) the Employee acknowledges that he or she has received and read, and agrees that the Option granted herein is awarded pursuant to the Plan, and is subject to and qualified in its entirety by this Term Sheet, the Plan, and the Terms and Conditions, and shall be subject to the terms and conditions of this Term Sheet, the Plan and the Terms and Conditions attached hereto, and (2) the Employee acknowledges and agrees that any right to acceleration or other benefit with respect to the Option Award upon or following a “Change in Control” (as defined in the Plan) under the Continuity Agreement, by and between the Employee and the Company, as amended from time to time, or any other agreement entered into by and between the Employee and the Company or any of its Affiliates, as may be amended from time to time (collectively, “Other Agreements”), is hereby waived with respect to this Option Award, and the Terms and Conditions, as may be amended in accordance with their terms, represent the entire agreement with respect to the Option Award granted hereunder.

If the Employee does not sign and return this Term Sheet and the Terms and Conditions by January 20, 2014, this Option Award shall be forfeited and shall be of no further force and effect.

WEIGHT WATCHERS INTERNATIONAL, INC.
By:
Name:	James R. Chambers	Employee Signature
Title:	Chief Executive Officer

WEIGHT WATCHERS INTERNATIONAL, INC.

TERMS AND CONDITIONS FOR

EMPLOYEE PERFORMANCE STOCK OPTION AWARDS

Weight Watchers International, Inc., a Virginia corporation (the “Company”), grants to the Employee who is identified on the Term Sheet for Employee Performance Stock Option Awards provided to the Employee herewith (the “Term Sheet”) the Option specified in the Term Sheet, upon the terms and subject to the conditions set forth in (i) the Term Sheet, (ii) the Company stock incentive plan specified in the Term Sheet (the “Plan”) and (iii) these Terms and Conditions for Employee Performance Stock Option Awards promulgated under the Plan (these “Terms and Conditions”), each hereby incorporated herein by this reference and each as amended from time to time.

ARTICLE I

DEFINITIONS

Capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Term Sheet or the Plan.

Section 1.1 Cause

“Cause” shall mean (i) the Employee’s willful and continued failure to perform his or her material duties with respect to the Company or its Affiliates which continues beyond 10 days after a written demand for substantial performance is delivered to the Employee by the Company or one of its Affiliates, (ii) willful misconduct by the Employee involving dishonesty or breach of trust in connection with the Employee’s employment which results in a demonstrable injury (which is other than de minimis) to the Company or its Affiliates, (iii) conviction of the Employee for any felony or any misdemeanor involving moral turpitude, or (iv) any material breach by the Employee of the Employee’s restrictive covenants set forth in Section 7.10 below.

Section 1.2 Committee

“Committee” shall mean the Compensation and Benefits Committee of the Board of Directors of the Company.

Section 1.3 Common Stock

“Common Stock” shall mean the common stock, no par value per share, of the Company.

Section 1.4 Company

“Company” shall mean Weight Watchers International, Inc.

Section 1.5 Expiration Date

“Expiration Date” shall mean, with respect to the Option, the expiration date specified on the Term Sheet.

Section 1.6 Grant Date

“Grant Date” shall mean the date specified on the Term Sheet on which the Option Award was granted.

Section 1.7 Option

“Option” shall mean the non-qualified stock option to purchase shares of Common Stock as granted under the Term Sheet and these Terms and Conditions in accordance with the Plan.

Section 1.8 Performance Condition

“Performance Condition” shall mean the vesting conditions described in Section 3.1(a)(ii) hereof.

Section 1.9 Permanent Disability

The Employee shall be deemed to have a “Permanent Disability” if the Employee is unable to engage in the activities required by the Employee’s job by reason of any medically determined physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months (in each case, as determined in good faith by a majority of the Committee, which determination shall be conclusive).

Section 1.10 Plan

“Plan” shall mean the Company’s stock incentive plan specified on the Term Sheet.

Section 1.11 Secretary

“Secretary” shall mean the Secretary of the Company.

Section 1.12 Service Condition

“Service Condition” shall mean the vesting condition described in Section 3.1(a)(i) hereof.

Section 1.13 Trading Price

“Trading Price” shall mean, on any given date, the average closing price of the Common Stock on the New York Stock Exchange (or other national securities exchange) for the 20 consecutive preceding trading days.

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ARTICLE II

GRANT OF OPTION AWARD

Section 2.1 Grant of Option

On and as of the Grant Date, the Company irrevocably grants to the Employee an Option to purchase the number of shares of its Common Stock specified on the Term Sheet, upon the terms and conditions set forth in the Term Sheet, these Terms and Conditions and the Plan. The Option shall vest and become non-forfeitable in accordance with Article III hereof.

Section 2.2 Exercise Price for Option

Subject to Section 2.4 below, the exercise price of a share of Common Stock covered by an Option shall be the Exercise Price per share specified on the Term Sheet, without commission or other charge.

Section 2.3 Consideration to the Company

In consideration of the granting of the Option Award by the Company, the Employee agrees to render faithful and efficient services to the Company or its Affiliates with such duties and responsibilities as the Company or its Affiliates shall from time to time prescribe. Nothing in the Term Sheet, in these Terms and Conditions or in the Plan shall confer upon the Employee any right to continue in the employment of the Company or its Affiliates, or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to terminate the employment of the Employee at any time for any reason whatsoever, with or without Cause. Employee hereby acknowledges and agrees that neither the Company or its Affiliates nor any other person has made any representations or promises whatsoever to the Employee concerning the Employee’s employment or continued employment by the Company or its Affiliates.

Section 2.4 Adjustments

The terms of the Option shall be subject to adjustment in accordance with Section 10 of the Plan in the event of any transaction or event described in such Section 10. Any such adjustment made by the Committee in its sole discretion and in accordance with the provisions of the Plan shall be final and binding upon the Employee, the Company and all other interested persons.

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ARTICLE III

VESTING AND EXERCISABILITY

Section 3.1 Commencement of Vesting and Exercisability

(a) Generally. Unless otherwise provided in the Term Sheet or these Terms and Conditions or the Plan, the Option Award shall become vested and exercisable in whole or in part, upon the achievement of both the Service Condition and the applicable Performance Condition and subject to the Employee’s continued employment with the Company or its Affiliates through any such applicable vesting date, and shall remain vested and exercisable until the earlier of the Expiration Date or such earlier date as set forth under Section 3.2.

(i) The “Service Condition” shall be deemed satisfied with respect to 100% of the Option Award on the third anniversary of the Grant Date.

(ii) The “Performance Condition” shall be deemed satisfied with respect to an incremental 20% of the Option Award on the first date that the Trading Price is equal to or greater than (A) 150% of the Exercise Price; (B) 175% of the Exercise Price; (C) 200% of the Exercise Price; (D) 225% of the Exercise Price; and (E) 250% of the Exercise Price (each, a “Share Price Hurdle”, and any such date, a “Performance Vesting Date”). For the avoidance of doubt, only one Performance Vesting Date shall occur in respect of each Share Price Hurdle, and only 20% of the Option Award shall vest in respect to each Share Price Hurdle; provided, however, that nothing herein shall be deemed to limit the ability to satisfy more than one Share Price Hurdle upon a single Performance Vesting Date.

(b) Change in Control. Notwithstanding any provision in an Other Agreement applicable to equity-based awards held by the Employee regarding the treatment of such awards upon or following the occurrence of a Change in Control, upon the consummation of a Change in Control, the Option Award granted hereunder shall only vest and become exercisable in accordance with this Section 3.1(b).

(i) Upon the consummation of a Change in Control while the Option Award remains outstanding:

(A) The Service Condition shall be deemed satisfied with respect to 100% of the Option Award on the date of such Change in Control; and

(B) For the purposes of determining whether any Share Price Hurdle which has not been satisfied prior to the date of the Change in Control shall become satisfied as of the date of such Change in Control, the “Trading Price” on such date shall be deemed to be equal to the per share consideration received by a holder of Common Stock in such transaction (without regard to the average closing price of the Shares on the 20 preceding trading dates), if any, or otherwise the closing price of the Common Stock on the New York Stock Exchange (or other national securities exchange) on the last trading day immediately prior to the date of such Change in Control.

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(ii) Immediately following the consummation of a Change in Control, any portion of the Option Award which remains unvested after giving effect to Section Section 3.1(b)(i) shall cease any additional vesting and such unvested portion of the Option shall be canceled without payment therefor and be of no further force and effect.

Section 3.2 Expiration of Option

(a) Option Award. The Option shall remain outstanding unless earlier exercised or terminated (as described below or in Section 3.1(b)) until the Expiration Date. The Employee shall cease any additional vesting in his or her Option following any termination of his employment and the portion of the Option that does not become vested on or prior to such termination of employment date shall be canceled without payment therefor immediately following any termination of his employment and shall be of no further force and effect. Except as otherwise provided herein, the Option may not be exercised to any extent by Employee after the first to occur of the following events:

(i) The Expiration Date;

(ii) The first anniversary of the date of the Employee’s termination of employment by reason of death or Permanent Disability;

(iii) The first business day which is ninety calendar days after the date of the Employee’s termination of employment for any reason other than for Cause, death or Permanent Disability; or

(iv) The date of an Employee’s termination of employment by the Company or any of its Affiliates for Cause.

(b) Termination of Option upon Certain Events. If (i) the Company or any of its Affiliates terminates the employment of the Employee for Cause, (ii) the beneficiaries of an Employee’s Trust shall include any person or entity other than the Employee, his or her spouse or his or her lineal descendants, or (iii) the Employee shall effect a transfer of any Option other than as permitted in these Terms and Conditions or the Plan (each, an “Event”), all portions of the Option held by the Employee or an Employee’s Trust, as the case may be, whether or not exercisable prior to such Event, will terminate immediately without payment therefor.

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ARTICLE IV

EXERCISE OF OPTION AND STOCKHOLDER RIGHTS

Section 4.1 Person Eligible to Exercise

During the lifetime of the Employee, only he or the trustee of an Employee’s Trust may exercise the Option or any portion thereof. After the death of the Employee, any exercisable portion of the Option may, prior to the time when an Option becomes unexercisable under Section 3.2, be exercised by his personal representative or by any person empowered to do so under the Employee’s will or under the then applicable laws of descent and distribution.

Section 4.2 Partial Exercise

Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.2; provided, however, that any partial exercise shall be for whole shares of Common Stock only.

Section 4.3 Manner of Exercise

(a) Generally. The Option, or any exercisable portion thereof, may be exercised solely by delivering to the Secretary or his office all of the following prior to the time when the Option or such portion become unexercisable under Section 3.2:

(i) Notice in writing signed by the Employee or the other person then entitled to exercise the Option or portion thereof, stating that the Option or portion thereof are thereby exercised, such notice complying with all applicable rules established by the Committee;

(ii) Full payment (in cash, by check or by a combination thereof) for the shares with respect to which such Option or portion thereof are exercised;

(iii) If requested by the Committee, a bona fide written representation and agreement, in a form satisfactory to the Committee, signed by the Employee or other person then entitled to exercise such Option or portion thereof, stating that the shares of stock are being acquired for his own account, for investment and without any present intention of distributing or reselling said shares or any of them except as may be permitted under the Securities Act of 1933, as amended, or any successor thereto (the “1933 Act”), and then applicable rules and regulations thereunder, and that the Employee or other person then entitled to exercise such Option or portion thereof will indemnify the Company and its Affiliates against and hold it free and harmless from any loss, damage, expense or liability resulting to the Company or its Affiliates if any sale or distribution of the shares by such person is contrary to the representation and agreement referred to above; provided, however, that the Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to ensure the observance and performance of such representation and agreement and to effect compliance with the 1933 Act and any other federal or state securities laws or regulations;

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(iv) Full payment to the Company of all amounts which, under federal, state or local law, it is required to withhold upon exercise of the Option; and

(v) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Employee, appropriate proof of the right of such person or persons to exercise the Option.

(b) Securities Laws. Without limiting the generality of the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect that any subsequent transfer of shares acquired on exercise of the Option does not violate the 1933 Act, and may issue stop-transfer orders covering such shares. Share certificates evidencing stock issued on exercise of the Option may bear an appropriate legend referring to the provisions of subsection (iii) above and the agreements herein. The written representation and agreement referred to in subsection (iii) above shall, however, not be required if the shares to be issued pursuant to such exercise have been registered under the 1933 Act, and such registration is then effective in respect of such shares.

Section 4.4 Conditions to Issuance of Stock Certificates

The shares of Common Stock deliverable upon the exercise of the Option, or any portion thereof, shall be fully paid and nonassessable. The Company shall not be required to deliver any certificate or certificates for shares of stock purchased upon the exercise of the Option, or any portion thereof, prior to fulfillment of all of the following conditions:

(a) The obtaining of approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and

(b) The lapse of such reasonable period of time following the exercise of the Option, as the Committee may from time to time establish for reasons of administrative convenience.

Section 4.5 Rights as Stockholder

(a) Optionholder Rights. The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of the Option or any portion thereof unless and until certificates representing such shares shall have been issued to such holder as provided under this Article IV. As soon as practicable following the date that the Employee becomes entitled to receive the shares of Common Stock pursuant to this Article IV, certificates for the Common Stock shall be delivered to the Employee or to the Employee’s legal guardian or representative (or if such Common Stock is evidenced by uncertificated securities registered or recorded in records maintained by or on behalf of the Company in the name of a clearing agency, the Company will cause the Common Stock to be entered in the records of such clearing agency as owned by the Employee).

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(b) Tax Advice. The Employee is hereby advised to seek his or her own tax counsel regarding the taxation of an award of an Option made hereunder.

ARTICLE V

TRANSFERS

Section 5.1 Representations, Warranties and Agreements

The Employee agrees and acknowledges that he or she will not, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of any shares of Common Stock issuable upon exercise of the Option (or any portion thereof) unless such offer, transfer, sale, assignment, pledge, hypothecation or other disposition is permitted pursuant to the Term Sheet and these Terms and Conditions and (i) the offer, transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to an effective registration statement under the 1933 Act, or (ii) counsel for the Employee (which counsel shall be acceptable to the Company) shall have furnished the Company with an opinion, satisfactory in form and substance to the Company, that no such registration is required because of the availability of an exemption from registration under the 1933 Act and (iii) if the Employee is a citizen or resident of any country other than the United States, or the Employee desires to effect any such transaction in any such country, counsel for the Employee (which counsel shall be acceptable to the Company) shall have furnished the Company with an opinion or other advice, satisfactory in form and substance to the Company, that such transaction will not violate the laws of such country.

Section 5.2 Acknowledgement by the Company

Notwithstanding the foregoing, the Company acknowledges and agrees that any of the following transfers are deemed to be in compliance with the 1933 Act and the Term Sheet and these Terms and Conditions and no opinion of counsel is required in connection therewith: (w) a transfer made pursuant to a normal exercise of the Option pursuant to the terms hereof, (x) a transfer upon the death of the Employee to his or her executors, administrators, testamentary trustees, legatees or beneficiaries, provided that such transfer is made expressly subject to the Term Sheet and these Terms and Conditions and that such transferee shall execute a Joinder (in the form attached hereto as Exhibit A), agreeing to be bound by the provisions of the Term Sheet and these Terms and Conditions and (y) a transfer made after the Grant Date in compliance with the federal securities laws to a trust or custodianship the beneficiaries of which may include only the Employee, his or her spouse or his or her lineal descendants (an “Employee’s Trust”), provided that such transfer is made expressly subject to the Term Sheet and these Terms and Conditions and that such transferee shall execute a Joinder (in the form attached hereto as Exhibit A), agreeing to be bound by the provisions of the Term Sheet and these Terms and Conditions. Immediately prior to any transfer to an Employee’s Trust, the Employee shall provide the Company with a copy of the instruments creating

8

an Employee’s Trust and with the identity of the beneficiaries of such Employee’s Trust. The Employee shall notify the Company immediately prior to any change in the identity of any beneficiary of an Employee’s Trust.

Section 5.3 Transfer Restrictions

(a) Except as otherwise provided herein, neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Employee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.3 shall not prevent transfers by will or by the applicable laws of descent and distribution.

(b) (i) If the Employee is a Senior Employee (and the Committee has not otherwise provided that this Section 5.3 does not apply to him or her), or (ii) in the case of an Employee who is not a Senior Employee if requested by the Committee, the Employee agrees that if shares of capital stock of the Company or any other securities of the Company that are convertible into or exchangeable or exercisable for capital stock of the Company (collectively, “Securities”) are registered pursuant to a registration statement filed with the U.S. Securities and Exchange Commission (the “SEC”) (other than a registration statement on Form S-8), the Employee will not sell or otherwise transfer any Securities of the Company from the date of filing such registration statement (or in the case of “shelf” registration statement, from the earlier of (x) the date of the initial preliminary prospectus and (y) the date of the final prospectus), until up to 90 days after the public offering date set forth in the final prospectus. For purposes of this Section 5.3, a “Senior Employee” shall mean any chief executive officer, president, chief financial officer, general counsel, corporate secretary, chief operating officer, senior vice president, vice president or their equivalents of the Company or any of its Affiliates, or any officer or employee of the Company or any of its Affiliates so designated by the Committee as a Senior Employee.

ARTICLE VI

THE COMPANY’S REPRESENTATIONS AND WARRANTIES

Section 6.1 Authorization

The Company represents and warrants to the Employee that (i) the Term Sheet and these Terms and Conditions have been duly authorized, executed and delivered by the Company, and (ii) upon exercise of the Option (or any portion thereof), the Common Stock, when issued and delivered in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable.

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Section 6.2 Registration

(i) The Company shall use reasonable efforts to register the Common Stock and the Option on a Form S-8 Registration Statement or any successor to Form S-8 to the extent that such registration is then available with respect to such Common Stock and Option, and (ii) the Company will file the reports required to be filed by it under the 1933 Act and the Securities Exchange Act of 1934, as amended, or any successor thereto (the “Act”), and the rules and regulations adopted by the U.S. Securities and Exchange Commission (the “SEC”) thereunder, to the extent required from time to time to enable the Employee to sell his or her shares of Common Stock without registration under the 1933 Act within the limitations of the exemptions provided by (A) Rule 144 under the 1933 Act, as such rule may be amended from time to time, or (B) any similar rule or regulation hereafter adopted by the SEC. Notwithstanding anything contained in this Section 6.2, the Company may deregister under Section 12 of the Act if it is then permitted to do so pursuant to the Act and the rules and regulations thereunder. Nothing in this Section 6.2 shall be deemed to limit in any manner the restrictions on sales of Common Stock contained in the Term Sheet and these Terms and Conditions.

ARTICLE VII

MISCELLANEOUS

Section 7.1 Administration

The Committee shall have the power to interpret the Plan, the Term Sheet and these Terms and Conditions and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Employee, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Option. In its absolute discretion, the Board of Directors of the Company may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan, the Term Sheet and these Terms and Conditions.

Section 7.2 Shares to Be Reserved

The Company shall at all times during the term of the Option Award reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of the Term Sheet and these Terms and Conditions.

Section 7.3 Recapitalizations, etc.

The provisions of the Term Sheet and these Terms and Conditions shall apply, to the full extent set forth herein with respect to the Option Award, to any and all shares of capital stock of the Company or any capital stock, partnership units or any other security evidencing ownership interests in any successor or assign of the Company or its

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Affiliates (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for, or substitution of the Option Award, by reason of any stock dividend, split, reverse split, combination, recapitalization, liquidation, reclassification, merger, consolidation or otherwise.

Section 7.4 State Securities Laws

The Company hereby agrees to use its best efforts to comply with all state securities or “blue sky” laws which might be applicable to the issuance of the shares underlying the Option to the Employee.

Section 7.5 Binding Effect

The provisions of the Term Sheet and these Terms and Conditions shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. In the case of a transferee permitted under the Term Sheet and these Terms and Conditions, such transferee shall be deemed the Employee hereunder; provided, however, that no transferee shall derive any rights under the Term Sheet and these Terms and Conditions unless and until such transferee has delivered to the Company a Joinder (in the form attached hereto as Exhibit A) and becomes bound by the terms of the Term Sheet and these Terms and Conditions.

Section 7.6 Miscellaneous

In the Term Sheet and these Terms and Conditions, (i) all references to “dollars” or “$” are to United States dollars and (ii) the word “or” is not exclusive. If any provision of the Term Sheet and these Terms and Conditions shall be declared illegal, void or unenforceable by any court of competent jurisdiction, the other provisions shall not be affected, but shall remain in full force and effect.

Section 7.7 Notices

Any notice to be given under the terms of the Term Sheet and these Terms and Conditions to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to the Employee shall be addressed to him at the address given on the Term Sheet. By a notice given pursuant to this Section 7.7, either party may hereafter designate a different address for notices to be given to him. Any notice which is required to be given to the Employee shall, if the Employee is then deceased, be given to the Employee’s personal representative if such representative has previously informed the Company of his status and address by written notice under this Section 7.7. Any notice shall have been deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

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Section 7.8 Titles

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Term Sheet and these Terms and Conditions.

Section 7.9 Applicability of Plan

The Common Stock issued to the Employee upon exercise of the Option shall be subject to all of the terms and provisions of the Plan, to the extent applicable to the Option and any shares of Common Stock issuing upon the exercise of the Option (or any portion thereof). In the event of any conflict between the Term Sheet and these Terms and Conditions, these Terms and Conditions shall control. In the event of any conflict between the Term Sheet or these Terms and Conditions and the Plan, the terms of the Plan shall control.

Section 7.10 Covenant Not to Compete; Confidential Information; No Raid; Specific Performance

(a) In consideration of the Company entering into the Term Sheet and these Terms and Conditions with the Employee, the Employee hereby agrees effective as of the Grant Date, for so long as the Employee is employed by the Company or one of its Affiliates and for a period of one year thereafter (the “Noncompete Period”), the Employee shall not, without the Company’s prior written consent, directly or indirectly, engage in, be employed by, act as a consultant for or have a financial interest (other than an ownership position of less than 1% in any company whose shares are publicly traded or any non-voting, non-convertible debt securities in any company) in any business engaged in Company Business, or work for or provide services to any Competitor of the Company or its Affiliates, within the United States or within any foreign country in which the Company or its Affiliates (i) has an office, (ii) is or has engaged in Company Business or (iii) proposes to engage in Company Business, as of the date of the termination of the Employee’s association with the Company. For the purposes of these provisions, (A) the term “Company Business” shall mean any business related to weight loss or weight management programs, products, services and/or other similar activities; and (B) the term “Competitor” means any natural person, corporation, limited liability company, firm, organization, trust, partnership, association, joint venture, government agency or other entity (including, but not limited to, the websites and other electronic or digital media of such entities) that engages, or proposes to engage, in Company Business, including, but not limited to, (x) entities which are directly engaged in Company Business; and (y) entities which have a primary focus in broader topic areas, but who nevertheless engage in Company Business such as Unilever (Slimfast) (provided, however, only the part of such entities that are engaged in or oversee Company Business shall be deemed a “Competitor” for purposes of these provisions).

(b) The Employee will not disclose or use at any time, any Confidential Information (as defined below) of which the Employee is or becomes aware, whether or not such information is developed by him or her, except (i) to the extent that such disclosure or use is directly related to and required by the Employee performance of

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duties, if any, assigned to the Employee by the Company or its Affiliates or (ii) pursuant to the order of any court or administrative agency. As used herein, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company or its Affiliates in connection with its business, including but not limited to (i) products or services, (ii) fees, costs and pricing structures, (iii) business and financial results, plans, budgets, and projections, (iv) designs, content and other creative elements associated with products and services or marketing and promotional campaigns and programs, (v) computer software, including operating systems, applications and program listings, (vi) flow charts, manuals and documentation, (vii) data bases, (viii) accounting and business methods, (ix) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (x) customers and clients and customer or client lists, (xi) other copyrightable works, (xii) all technology and trade secrets, and (xiii) all similar and related information in whatever form. Confidential Information will not include any information that has been published in a form generally available to the public by a person or entity other than the Employee prior to the date the Employee proposes to disclose or use such information. The Employee acknowledges and agrees that all copyrights, works, inventions, innovations, improvements, developments, patents, trademarks and all similar or related information which relate to the actual or anticipated business of the Company and its subsidiaries (including its predecessors) and conceived, developed or made by the Employee while employed by the Company or its Affiliates belong to the Company. The Employee will perform all actions reasonably requested by the Company (whether during or after the Noncompete Period) to establish and confirm such ownership at the Company’s expense (including without limitation assignments, consents, powers of attorney and other instruments).

(c) The Employee shall disclose promptly in writing and assign immediately, and hereby assigns to the Company, all of the Employee’s right, title and interest in and to, any original works of authorship, formulas, processes, programs, benchmarking, solutions, tools, content, databases, techniques, know-how, data, developments, innovations, inventions, improvements, trademarks, patents, copyrights or discoveries, whether or not copyrightable, patentable or otherwise legally protectable, and whether or not they exist in electronic form, print form or other tangible or intangible form of medium (hereinafter referred to collectively as “Work Product”), which the Employee makes or conceives, or first reduces to practice or learns, either solely or jointly with others, during his or her employment period with the Company or its Affiliates, through the Employee’s work with the Company or its Affiliates, or with any other person or entity pursuant to an assignment by the Company or its Affiliates. The Employee acknowledges the special interest the Company and its Affiliates hold in its processes, techniques and technologies and agrees that such processes, techniques and technologies shall not be directly or indirectly used or distributed by the Employee for the interests of any person or entity besides the Company or its Affiliates.

(i) All disclosures and assignments made pursuant to these Terms and Conditions are made without royalty or any additional consideration to the Employee other than the regular compensation paid to the Employee by the Company or its Affiliates.

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(ii) The Employee shall execute, acknowledge and deliver to the Company or its Affiliates all necessary documents, and shall take such other action as may be necessary to assist the Company in obtaining by statute, copyrights, patents, trademarks or other statutory or common law protections for the Work Product covered by these Terms and Conditions, vesting title and right in such copyrights, patents, trademarks and other protections in the Company and its designees. The Employee hereby agrees that the Work Product constitutes a “work made for hire” in accordance with the definition of that term under the U.S. copyright laws. The Employee shall further assist the Company or its Affiliates in every proper and reasonable way to enforce such copyrights, patents, trademarks and other protections as the Company may desire. The Employee’s obligation to deliver documents and assist the Company or its Affiliates under these Terms and Conditions applies both during and subsequent to the term of his/her employment.

(iii) Any Work Product which the Employee may disclose to anyone within six (6) months after the termination of his/her employment, or for which the Company or its Affiliates may file an application for copyright, patent, trademark or other statutory or common law protection within twelve (12) months after the termination of said employment, shall be presumed to have been made, conceived, first reduced to practice or learned during the term of the Employee’s employment and fully subject to the terms and conditions set forth herein; provided that if the Employee in fact, conceived any such Work Product subsequent to the termination of the employment and such Work Product is not based upon or derived from Confidential Information of the Company or its Affiliates or does not relate to the scope of work performed by the Employee pursuant to his/her employment duties with the Company or its Affiliates, then such Work Product shall belong to the Employee and shall be the Employee’s sole property. The Employee assumes the responsibility of establishing by competent legal evidence that such Work Product is not based on such Confidential Information and that the Employee conceived any such Work Product after the termination of his/her employment.

(iv) The Employee represents that the Work Product does not infringe any copyright, patent or other proprietary right of any person or entity.

(v) Attached to and made as part of these Terms and Conditions as Exhibit B (if applicable) is a complete list of all Work Product, whether or not copyrighted, which has been made or conceived or first reduced to practice by the Employee alone or jointly prior to the date of his employment with the Company or its Affiliates. Such Work Product shall be excluded from the operation of these Terms and Conditions. If there is no such list on Exhibit B, the Employee represents that no such Work Product exists at the time of execution of these Terms and Conditions.

(d) Without the Company’s prior written consent, the Employee will not, during the Noncompete Period, directly or indirectly, solicit or offer employment to any person who has been employed by the Company or its Affiliates at any time during the twelve months immediately preceding such solicitation.

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(e) Notwithstanding clauses (a), (b), (c) and (d) above, if at any time a court holds that the restrictions stated in such clauses (a), (b), (c) and (d) are unreasonable or otherwise unenforceable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographic area determined to be reasonable under such circumstances by such court will be substituted for the stated period, scope or area. Because the Employee’s services are unique and because the Employee has had access to Confidential Information, the parties hereto agree that money damages will be an inadequate remedy for any breach of these Terms and Conditions. In the event of a breach or threatened breach of these Terms and Conditions, the Company or its Affiliates or their successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent any violations of, the provisions hereof (without the posting of a bond or other security).

Section 7.11 Amendment

The Term Sheet and these Terms and Conditions may be amended only by a writing executed by the parties hereto which specifically states that it is amending the Term Sheet or these Terms and Conditions, as applicable.

Section 7.12 Governing Law

The Term Sheet and these Terms and Conditions shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

Section 7.13 Jurisdiction

The parties to the Term Sheet and these Terms and Conditions agree that jurisdiction and venue in any action brought by any party hereto pursuant to the Term Sheet and these Terms and Conditions shall properly lie and shall be brought in any federal or state court located in the Borough of Manhattan, City and State of New York. By execution and delivery of Term Sheet and these Terms and Conditions, each party hereto irrevocably submits to the jurisdiction of such courts for itself, himself or herself and in respect of its, his or her property with respect to such action. The parties hereto irrevocably agree that venue would be proper in such court, and hereby irrevocably waive any objection that such court is an improper or inconvenient forum for the resolution of such action.

Section 7.14 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates.

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Section 7.15 Counterparts

The Term Sheet and these Terms and Conditions may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

Section 7.16 Code Section 409A

If any payment of money, delivery of shares of Common Stock or other benefits due to the Employee hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payment, delivery of shares of Common Stock or other benefits shall be deferred if deferral will make such payment, delivery of shares of Common Stock or other benefits compliant under Section 409A of the Code, otherwise such payment, delivery of shares of Common Stock or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company and reasonably acceptable to the Employee, that does not cause such an accelerated or additional tax.

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EXHIBIT A

JOINDER

By execution of this Joinder, the undersigned agrees to become a party to that certain Term Sheet for Employee Performance Stock Option Awards and that certain Terms and Conditions for Employee Performance Stock Option Awards, effective as of                     (collectively, the “Agreement”), among WEIGHT WATCHERS INTERNATIONAL, INC. (the “Company”) and                                         (the “Employee”). By execution of this Joinder, the undersigned shall have all the rights, and shall observe all the obligations, applicable to the Employee (except as otherwise set forth in the Agreement), and to have made on the date hereof all representations and warranties made by such Employee, modified, if necessary, to reflect the nature of the undersigned as a trust, estate or other entity.

Name:
Address for Notices:	With copies to:

Signature:

Date:

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EX-10.36

Exhibit 10.36

WEIGHT WATCHERS INTERNATIONAL, INC.

TERM SHEET FOR

EMPLOYEE PERFORMANCE STOCK OPTION AWARDS

FOR GOOD AND VALUABLE CONSIDERATION, Weight Watchers International, Inc., a Virginia corporation (the “Company”), hereby grants to the employee of the Company or its Affiliates as identified below (the “Employee”) an Option to purchase the aggregate number of shares of Common Stock of the Company specified below (the “Option Award”) at the purchase price per share specified below (the “Exercise Price”). The Option Award is granted upon the terms, and subject to the conditions, set forth in this Term Sheet, the Company’s stock incentive plan specified below (the “Plan”), and the Terms and Conditions for Employee Performance Stock Option Awards promulgated under such Plan and as attached hereto (the “Terms and Conditions”), each hereby incorporated herein by this reference and each as amended from time to time (capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Terms and Conditions or the Plan).

Key Terms and Conditions
Name of Employee:
Grant Date:	December 12, 2013
Plan:	2008 Stock Incentive Plan
Number of Shares subject to Option:
Exercise Price:	US$ 32.65 per Share
Expiration Date:	5th anniversary of the Grant Date
Vesting Terms:	See Article III of the Terms and Conditions

By accepting this Term Sheet, (1) the Employee acknowledges that he or she has received and read, and agrees that the Option granted herein is awarded pursuant to the Plan, and is subject to and qualified in its entirety by this Term Sheet, the Plan, and the Terms and Conditions, and shall be subject to the terms and conditions of this Term Sheet, the Plan and the Terms and Conditions attached hereto, and (2) the Employee acknowledges and agrees that any right to acceleration or other benefit with respect to the Option Award upon or following a “Change in Control” (as defined in the Plan) under any agreement entered into by and between the Employee and the Company or any of its Affiliates, as may be amended from time to time (collectively, “Other Agreements”), is hereby waived with respect to this Option Award, and the Terms and Conditions, as may be amended in accordance with their terms, represent the entire agreement with respect to the Option Award granted hereunder.

If the Employee does not sign and return this Term Sheet and the Terms and Conditions by January 20, 2014, this Option Award shall be forfeited and shall be of no further force and effect.

WEIGHT WATCHERS INTERNATIONAL, INC.
By:
Name:	James R. Chambers	Employee Signature
Title:	Chief Executive Officer

WEIGHT WATCHERS INTERNATIONAL, INC.

TERMS AND CONDITIONS FOR

EMPLOYEE PERFORMANCE STOCK OPTION AWARDS

Weight Watchers International, Inc., a Virginia corporation (the “Company”), grants to the Employee who is identified on the Term Sheet for Employee Performance Stock Option Awards provided to the Employee herewith (the “Term Sheet”) the Option specified in the Term Sheet, upon the terms and subject to the conditions set forth in (i) the Term Sheet, (ii) the Company stock incentive plan specified in the Term Sheet (the “Plan”) and (iii) these Terms and Conditions for Employee Performance Stock Option Awards promulgated under the Plan (these “Terms and Conditions”), each hereby incorporated herein by this reference and each as amended from time to time.

ARTICLE I

DEFINITIONS

Capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Term Sheet or the Plan.

Section 1.1 Cause

“Cause” shall mean (i) the Employee’s willful and continued failure to perform his or her material duties with respect to the Company or its Affiliates which continues beyond 10 days after a written demand for substantial performance is delivered to the Employee by the Company or one of its Affiliates, (ii) willful misconduct by the Employee involving dishonesty or breach of trust in connection with the Employee’s employment which results in a demonstrable injury (which is other than de minimis) to the Company or its Affiliates, (iii) conviction of the Employee for any felony or any misdemeanor involving moral turpitude, or (iv) any material breach by the Employee of the Employee’s restrictive covenants set forth in Section 7.10 below.

Section 1.2 Committee

“Committee” shall mean the Compensation and Benefits Committee of the Board of Directors of the Company.

Section 1.3 Common Stock

“Common Stock” shall mean the common stock, no par value per share, of the Company.

Section 1.4 Company

“Company” shall mean Weight Watchers International, Inc.

Section 1.5 Expiration Date

“Expiration Date” shall mean, with respect to the Option, the expiration date specified on the Term Sheet.

Section 1.6 Grant Date

“Grant Date” shall mean the date specified on the Term Sheet on which the Option Award was granted.

Section 1.7 Option

“Option” shall mean the non-qualified stock option to purchase shares of Common Stock as granted under the Term Sheet and these Terms and Conditions in accordance with the Plan.

Section 1.8 Performance Condition

“Performance Condition” shall mean the vesting conditions described in Section 3.1(a)(ii) hereof.

Section 1.9 Permanent Disability

The Employee shall be deemed to have a “Permanent Disability” if the Employee is unable to engage in the activities required by the Employee’s job by reason of any medically determined physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months (in each case, as determined in good faith by a majority of the Committee, which determination shall be conclusive).

Section 1.10 Plan

“Plan” shall mean the Company’s stock incentive plan specified on the Term Sheet.

Section 1.11 Secretary

“Secretary” shall mean the Secretary of the Company.

Section 1.12 Service Condition

“Service Condition” shall mean the vesting condition described in Section 3.1(a)(i) hereof.

Section 1.13 Trading Price

“Trading Price” shall mean, on any given date, the average closing price of the Common Stock on the New York Stock Exchange (or other national securities exchange) for the 20 consecutive preceding trading days.

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ARTICLE II

GRANT OF OPTION AWARD

Section 2.1 Grant of Option

On and as of the Grant Date, the Company irrevocably grants to the Employee an Option to purchase the number of shares of its Common Stock specified on the Term Sheet, upon the terms and conditions set forth in the Term Sheet, these Terms and Conditions and the Plan. The Option shall vest and become non-forfeitable in accordance with Article III hereof.

Section 2.2 Exercise Price for Option

Subject to Section 2.4 below, the exercise price of a share of Common Stock covered by an Option shall be the Exercise Price per share specified on the Term Sheet, without commission or other charge.

Section 2.3 Consideration to the Company

In consideration of the granting of the Option Award by the Company, the Employee agrees to render faithful and efficient services to the Company or its Affiliates with such duties and responsibilities as the Company or its Affiliates shall from time to time prescribe. Nothing in the Term Sheet, in these Terms and Conditions or in the Plan shall confer upon the Employee any right to continue in the employment of the Company or its Affiliates, or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to terminate the employment of the Employee at any time for any reason whatsoever, with or without Cause. Employee hereby acknowledges and agrees that neither the Company or its Affiliates nor any other person has made any representations or promises whatsoever to the Employee concerning the Employee’s employment or continued employment by the Company or its Affiliates.

Section 2.4 Adjustments

The terms of the Option shall be subject to adjustment in accordance with Section 10 of the Plan in the event of any transaction or event described in such Section 10. Any such adjustment made by the Committee in its sole discretion and in accordance with the provisions of the Plan shall be final and binding upon the Employee, the Company and all other interested persons.

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ARTICLE III

VESTING AND EXERCISABILITY

Section 3.1 Commencement of Vesting and Exercisability

(a) Generally. Unless otherwise provided in the Term Sheet or these Terms and Conditions or the Plan, the Option Award shall become vested and exercisable in whole or in part, upon the achievement of both the Service Condition and the applicable Performance Condition and subject to the Employee’s continued employment with the Company or its Affiliates through any such applicable vesting date, and shall remain vested and exercisable until the earlier of the Expiration Date or such earlier date as set forth under Section 3.2.

(i) The “Service Condition” shall be deemed satisfied with respect to 100% of the Option Award on the third anniversary of the Grant Date.

(ii) The “Performance Condition” shall be deemed satisfied with respect to an incremental 20% of the Option Award on the first date that the Trading Price is equal to or greater than (A) 150% of the Exercise Price; (B) 175% of the Exercise Price; (C) 200% of the Exercise Price; (D) 225% of the Exercise Price; and (E) 250% of the Exercise Price (each, a “Share Price Hurdle”, and any such date, a “Performance Vesting Date”). For the avoidance of doubt, only one Performance Vesting Date shall occur in respect of each Share Price Hurdle, and only 20% of the Option Award shall vest in respect to each Share Price Hurdle; provided, however, that nothing herein shall be deemed to limit the ability to satisfy more than one Share Price Hurdle upon a single Performance Vesting Date.

(b) Change in Control. Notwithstanding any provision in an Other Agreement applicable to equity-based awards held by the Employee regarding the treatment of such awards upon or following the occurrence of a Change in Control, upon the consummation of a Change in Control, the Option Award granted hereunder shall only vest and become exercisable in accordance with this Section 3.1(b).

(i) Upon the consummation of a Change in Control while the Option Award remains outstanding:

(A) The Service Condition shall be deemed satisfied with respect to 100% of the Option Award on the date of such Change in Control; and

(B) For the purposes of determining whether any Share Price Hurdle which has not been satisfied prior to the date of the Change in Control shall become satisfied as of the date of such Change in Control, the “Trading Price” on such date shall be deemed to be equal to the per share consideration received by a holder of Common Stock in such transaction (without regard to the average closing price of the Shares on the 20 preceding trading dates), if any, or otherwise the closing price of the Common Stock on the New York Stock Exchange (or other national securities exchange) on the last trading day immediately prior to the date of such Change in Control.

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(ii) Immediately following the consummation of a Change in Control, any portion of the Option Award which remains unvested after giving effect to Section Section 3.1(b)(i) shall cease any additional vesting and such unvested portion of the Option shall be canceled without payment therefor and be of no further force and effect.

Section 3.2 Expiration of Option

(a) Option Award. The Option shall remain outstanding unless earlier exercised or terminated (as described below or in Section 3.1(b)) until the Expiration Date. The Employee shall cease any additional vesting in his or her Option following any termination of his employment and the portion of the Option that does not become vested on or prior to such termination of employment date shall be canceled without payment therefor immediately following any termination of his employment and shall be of no further force and effect. Except as otherwise provided herein, the Option may not be exercised to any extent by Employee after the first to occur of the following events:

(i) The Expiration Date;

(ii) The first anniversary of the date of the Employee’s termination of employment by reason of death or Permanent Disability;

(iii) The first business day which is ninety calendar days after the date of the Employee’s termination of employment for any reason other than for Cause, death or Permanent Disability; or

(iv) The date of an Employee’s termination of employment by the Company or any of its Affiliates for Cause.

(b) Termination of Option upon Certain Events. If (i) the Company or any of its Affiliates terminates the employment of the Employee for Cause, (ii) the beneficiaries of an Employee’s Trust shall include any person or entity other than the Employee, his or her spouse or his or her lineal descendants, or (iii) the Employee shall effect a transfer of any Option other than as permitted in these Terms and Conditions or the Plan (each, an “Event”), all portions of the Option held by the Employee or an Employee’s Trust, as the case may be, whether or not exercisable prior to such Event, will terminate immediately without payment therefor.

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ARTICLE IV

EXERCISE OF OPTION AND STOCKHOLDER RIGHTS

Section 4.1 Person Eligible to Exercise

During the lifetime of the Employee, only he or the trustee of an Employee’s Trust may exercise the Option or any portion thereof. After the death of the Employee, any exercisable portion of the Option may, prior to the time when an Option becomes unexercisable under Section 3.2, be exercised by his personal representative or by any person empowered to do so under the Employee’s will or under the then applicable laws of descent and distribution.

Section 4.2 Partial Exercise

Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.2; provided, however, that any partial exercise shall be for whole shares of Common Stock only.

Section 4.3 Manner of Exercise

(a) Generally. The Option, or any exercisable portion thereof, may be exercised solely by delivering to the Secretary or his office all of the following prior to the time when the Option or such portion become unexercisable under Section 3.2:

(i) Notice in writing signed by the Employee or the other person then entitled to exercise the Option or portion thereof, stating that the Option or portion thereof are thereby exercised, such notice complying with all applicable rules established by the Committee;

(ii) Full payment (in cash, by check or by a combination thereof) for the shares with respect to which such Option or portion thereof are exercised;

(iii) If requested by the Committee, a bona fide written representation and agreement, in a form satisfactory to the Committee, signed by the Employee or other person then entitled to exercise such Option or portion thereof, stating that the shares of stock are being acquired for his own account, for investment and without any present intention of distributing or reselling said shares or any of them except as may be permitted under the Securities Act of 1933, as amended, or any successor thereto (the “1933 Act”), and then applicable rules and regulations thereunder, and that the Employee or other person then entitled to exercise such Option or portion thereof will indemnify the Company and its Affiliates against and hold it free and harmless from any loss, damage, expense or liability resulting to the Company or its Affiliates if any sale or distribution of the shares by such person is contrary to the representation and agreement referred to above; provided, however, that the Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to ensure the observance and performance of such representation and agreement and to effect compliance with the 1933 Act and any other federal or state securities laws or regulations;

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(iv) Full payment to the Company of all amounts which, under federal, state or local law, it is required to withhold upon exercise of the Option; and

(v) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Employee, appropriate proof of the right of such person or persons to exercise the Option.

(b) Securities Laws. Without limiting the generality of the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect that any subsequent transfer of shares acquired on exercise of the Option does not violate the 1933 Act, and may issue stop-transfer orders covering such shares. Share certificates evidencing stock issued on exercise of the Option may bear an appropriate legend referring to the provisions of subsection (iii) above and the agreements herein. The written representation and agreement referred to in subsection (iii) above shall, however, not be required if the shares to be issued pursuant to such exercise have been registered under the 1933 Act, and such registration is then effective in respect of such shares.

Section 4.4 Conditions to Issuance of Stock Certificates

The shares of Common Stock deliverable upon the exercise of the Option, or any portion thereof, shall be fully paid and nonassessable. The Company shall not be required to deliver any certificate or certificates for shares of stock purchased upon the exercise of the Option, or any portion thereof, prior to fulfillment of all of the following conditions:

(a) The obtaining of approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and

(b) The lapse of such reasonable period of time following the exercise of the Option, as the Committee may from time to time establish for reasons of administrative convenience.

Section 4.5 Rights as Stockholder

(a) Optionholder Rights. The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of the Option or any portion thereof unless and until certificates representing such shares shall have been issued to such holder as provided under this Article IV. As soon as practicable following the date that the Employee becomes entitled to receive the shares of Common Stock pursuant to this Article IV, certificates for the Common Stock shall be delivered to the Employee or to the Employee’s legal guardian or representative (or if such Common Stock is evidenced by uncertificated securities registered or recorded in records maintained by or on behalf of the Company in the name of a clearing agency, the Company will cause the Common Stock to be entered in the records of such clearing agency as owned by the Employee).

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(b) Tax Advice. The Employee is hereby advised to seek his or her own tax counsel regarding the taxation of an award of an Option made hereunder.

ARTICLE V

TRANSFERS

Section 5.1 Representations, Warranties and Agreements

The Employee agrees and acknowledges that he or she will not, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of any shares of Common Stock issuable upon exercise of the Option (or any portion thereof) unless such offer, transfer, sale, assignment, pledge, hypothecation or other disposition is permitted pursuant to the Term Sheet and these Terms and Conditions and (i) the offer, transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to an effective registration statement under the 1933 Act, or (ii) counsel for the Employee (which counsel shall be acceptable to the Company) shall have furnished the Company with an opinion, satisfactory in form and substance to the Company, that no such registration is required because of the availability of an exemption from registration under the 1933 Act and (iii) if the Employee is a citizen or resident of any country other than the United States, or the Employee desires to effect any such transaction in any such country, counsel for the Employee (which counsel shall be acceptable to the Company) shall have furnished the Company with an opinion or other advice, satisfactory in form and substance to the Company, that such transaction will not violate the laws of such country.

Section 5.2 Acknowledgement by the Company

Notwithstanding the foregoing, the Company acknowledges and agrees that any of the following transfers are deemed to be in compliance with the 1933 Act and the Term Sheet and these Terms and Conditions and no opinion of counsel is required in connection therewith: (w) a transfer made pursuant to a normal exercise of the Option pursuant to the terms hereof, (x) a transfer upon the death of the Employee to his or her executors, administrators, testamentary trustees, legatees or beneficiaries, provided that such transfer is made expressly subject to the Term Sheet and these Terms and Conditions and that such transferee shall execute a Joinder (in the form attached hereto as Exhibit A), agreeing to be bound by the provisions of the Term Sheet and these Terms and Conditions and (y) a transfer made after the Grant Date in compliance with the federal securities laws to a trust or custodianship the beneficiaries of which may include only the Employee, his or her spouse or his or her lineal descendants (an “Employee’s Trust”), provided that such transfer is made expressly subject to the Term Sheet and these Terms and Conditions and that such transferee shall execute a Joinder (in the form attached hereto as Exhibit A), agreeing to be bound by the provisions of the Term Sheet and these Terms and Conditions. Immediately prior to any transfer to an Employee’s Trust, the Employee shall provide the Company with a copy of the instruments creating

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an Employee’s Trust and with the identity of the beneficiaries of such Employee’s Trust. The Employee shall notify the Company immediately prior to any change in the identity of any beneficiary of an Employee’s Trust.

Section 5.3 Transfer Restrictions

(a) Except as otherwise provided herein, neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Employee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.3 shall not prevent transfers by will or by the applicable laws of descent and distribution.

(b) (i) If the Employee is a Senior Employee (and the Committee has not otherwise provided that this Section 5.3 does not apply to him or her), or (ii) in the case of an Employee who is not a Senior Employee if requested by the Committee, the Employee agrees that if shares of capital stock of the Company or any other securities of the Company that are convertible into or exchangeable or exercisable for capital stock of the Company (collectively, “Securities”) are registered pursuant to a registration statement filed with the U.S. Securities and Exchange Commission (the “SEC”) (other than a registration statement on Form S-8), the Employee will not sell or otherwise transfer any Securities of the Company from the date of filing such registration statement (or in the case of “shelf” registration statement, from the earlier of (x) the date of the initial preliminary prospectus and (y) the date of the final prospectus), until up to 90 days after the public offering date set forth in the final prospectus. For purposes of this Section 5.3, a “Senior Employee” shall mean any chief executive officer, president, chief financial officer, general counsel, corporate secretary, chief operating officer, senior vice president, vice president or their equivalents of the Company or any of its Affiliates, or any officer or employee of the Company or any of its Affiliates so designated by the Committee as a Senior Employee.

ARTICLE VI

THE COMPANY’S REPRESENTATIONS AND WARRANTIES

Section 6.1 Authorization

The Company represents and warrants to the Employee that (i) the Term Sheet and these Terms and Conditions have been duly authorized, executed and delivered by the Company, and (ii) upon exercise of the Option (or any portion thereof), the Common Stock, when issued and delivered in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable.

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Section 6.2 Registration

(i) The Company shall use reasonable efforts to register the Common Stock and the Option on a Form S-8 Registration Statement or any successor to Form S-8 to the extent that such registration is then available with respect to such Common Stock and Option, and (ii) the Company will file the reports required to be filed by it under the 1933 Act and the Securities Exchange Act of 1934, as amended, or any successor thereto (the “Act”), and the rules and regulations adopted by the U.S. Securities and Exchange Commission (the “SEC”) thereunder, to the extent required from time to time to enable the Employee to sell his or her shares of Common Stock without registration under the 1933 Act within the limitations of the exemptions provided by (A) Rule 144 under the 1933 Act, as such rule may be amended from time to time, or (B) any similar rule or regulation hereafter adopted by the SEC. Notwithstanding anything contained in this Section 6.2, the Company may deregister under Section 12 of the Act if it is then permitted to do so pursuant to the Act and the rules and regulations thereunder. Nothing in this Section 6.2 shall be deemed to limit in any manner the restrictions on sales of Common Stock contained in the Term Sheet and these Terms and Conditions.

ARTICLE VII

MISCELLANEOUS

Section 7.1 Administration

The Committee shall have the power to interpret the Plan, the Term Sheet and these Terms and Conditions and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Employee, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Option. In its absolute discretion, the Board of Directors of the Company may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan, the Term Sheet and these Terms and Conditions.

Section 7.2 Shares to Be Reserved

The Company shall at all times during the term of the Option Award reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of the Term Sheet and these Terms and Conditions.

Section 7.3 Recapitalizations, etc.

The provisions of the Term Sheet and these Terms and Conditions shall apply, to the full extent set forth herein with respect to the Option Award, to any and all shares of capital stock of the Company or any capital stock, partnership units or any other security evidencing ownership interests in any successor or assign of the Company or its

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Affiliates (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for, or substitution of the Option Award, by reason of any stock dividend, split, reverse split, combination, recapitalization, liquidation, reclassification, merger, consolidation or otherwise.

Section 7.4 State Securities Laws

The Company hereby agrees to use its best efforts to comply with all state securities or “blue sky” laws which might be applicable to the issuance of the shares underlying the Option to the Employee.

Section 7.5 Binding Effect

The provisions of the Term Sheet and these Terms and Conditions shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. In the case of a transferee permitted under the Term Sheet and these Terms and Conditions, such transferee shall be deemed the Employee hereunder; provided, however, that no transferee shall derive any rights under the Term Sheet and these Terms and Conditions unless and until such transferee has delivered to the Company a Joinder (in the form attached hereto as Exhibit A) and becomes bound by the terms of the Term Sheet and these Terms and Conditions.

Section 7.6 Miscellaneous

In the Term Sheet and these Terms and Conditions, (i) all references to “dollars” or “$” are to United States dollars and (ii) the word “or” is not exclusive. If any provision of the Term Sheet and these Terms and Conditions shall be declared illegal, void or unenforceable by any court of competent jurisdiction, the other provisions shall not be affected, but shall remain in full force and effect.

Section 7.7 Notices

Any notice to be given under the terms of the Term Sheet and these Terms and Conditions to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to the Employee shall be addressed to him at the address given on the Term Sheet. By a notice given pursuant to this Section 7.7, either party may hereafter designate a different address for notices to be given to him. Any notice which is required to be given to the Employee shall, if the Employee is then deceased, be given to the Employee’s personal representative if such representative has previously informed the Company of his status and address by written notice under this Section 7.7. Any notice shall have been deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

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Section 7.8 Titles

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Term Sheet and these Terms and Conditions.

Section 7.9 Applicability of Plan

The Common Stock issued to the Employee upon exercise of the Option shall be subject to all of the terms and provisions of the Plan, to the extent applicable to the Option and any shares of Common Stock issuing upon the exercise of the Option (or any portion thereof). In the event of any conflict between the Term Sheet and these Terms and Conditions, these Terms and Conditions shall control. In the event of any conflict between the Term Sheet or these Terms and Conditions and the Plan, the terms of the Plan shall control.

Section 7.10 Covenant Not to Compete; Confidential Information; No Raid; Specific Performance

(a) In consideration of the Company entering into the Term Sheet and these Terms and Conditions with the Employee, the Employee hereby agrees effective as of the Grant Date, for so long as the Employee is employed by the Company or one of its Affiliates and for a period of one year thereafter (the “Noncompete Period”), the Employee shall not, without the Company’s prior written consent, directly or indirectly, engage in, be employed by, act as a consultant for or have a financial interest (other than an ownership position of less than 1% in any company whose shares are publicly traded or any non-voting, non-convertible debt securities in any company) in any business engaged in Company Business, or work for or provide services to any Competitor of the Company or its Affiliates, within the United States or within any foreign country in which the Company or its Affiliates (i) has an office, (ii) is or has engaged in Company Business or (iii) proposes to engage in Company Business, as of the date of the termination of the Employee’s association with the Company. For the purposes of these provisions, (A) the term “Company Business” shall mean any business related to weight loss or weight management programs, products, services and/or other similar activities; and (B) the term “Competitor” means any natural person, corporation, limited liability company, firm, organization, trust, partnership, association, joint venture, government agency or other entity (including, but not limited to, the websites and other electronic or digital media of such entities) that engages, or proposes to engage, in Company Business, including, but not limited to, (x) entities which are directly engaged in Company Business; and (y) entities which have a primary focus in broader topic areas, but who nevertheless engage in Company Business such as Unilever (Slimfast) (provided, however, only the part of such entities that are engaged in or oversee Company Business shall be deemed a “Competitor” for purposes of these provisions).

(b) The Employee will not disclose or use at any time, any Confidential Information (as defined below) of which the Employee is or becomes aware, whether or not such information is developed by him or her, except (i) to the extent that such disclosure or use is directly related to and required by the Employee performance of

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duties, if any, assigned to the Employee by the Company or its Affiliates or (ii) pursuant to the order of any court or administrative agency. As used herein, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company or its Affiliates in connection with its business, including but not limited to (i) products or services, (ii) fees, costs and pricing structures, (iii) business and financial results, plans, budgets, and projections, (iv) designs, content and other creative elements associated with products and services or marketing and promotional campaigns and programs, (v) computer software, including operating systems, applications and program listings, (vi) flow charts, manuals and documentation, (vii) data bases, (viii) accounting and business methods, (ix) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (x) customers and clients and customer or client lists, (xi) other copyrightable works, (xii) all technology and trade secrets, and (xiii) all similar and related information in whatever form. Confidential Information will not include any information that has been published in a form generally available to the public by a person or entity other than the Employee prior to the date the Employee proposes to disclose or use such information. The Employee acknowledges and agrees that all copyrights, works, inventions, innovations, improvements, developments, patents, trademarks and all similar or related information which relate to the actual or anticipated business of the Company and its subsidiaries (including its predecessors) and conceived, developed or made by the Employee while employed by the Company or its Affiliates belong to the Company. The Employee will perform all actions reasonably requested by the Company (whether during or after the Noncompete Period) to establish and confirm such ownership at the Company’s expense (including without limitation assignments, consents, powers of attorney and other instruments).

(c) The Employee shall disclose promptly in writing and assign immediately, and hereby assigns to the Company, all of the Employee’s right, title and interest in and to, any original works of authorship, formulas, processes, programs, benchmarking, solutions, tools, content, databases, techniques, know-how, data, developments, innovations, inventions, improvements, trademarks, patents, copyrights or discoveries, whether or not copyrightable, patentable or otherwise legally protectable, and whether or not they exist in electronic form, print form or other tangible or intangible form of medium (hereinafter referred to collectively as “Work Product”), which the Employee makes or conceives, or first reduces to practice or learns, either solely or jointly with others, during his or her employment period with the Company or its Affiliates, through the Employee’s work with the Company or its Affiliates, or with any other person or entity pursuant to an assignment by the Company or its Affiliates. The Employee acknowledges the special interest the Company and its Affiliates hold in its processes, techniques and technologies and agrees that such processes, techniques and technologies shall not be directly or indirectly used or distributed by the Employee for the interests of any person or entity besides the Company or its Affiliates.

(i) All disclosures and assignments made pursuant to these Terms and Conditions are made without royalty or any additional consideration to the Employee other than the regular compensation paid to the Employee by the Company or its Affiliates.

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(ii) The Employee shall execute, acknowledge and deliver to the Company or its Affiliates all necessary documents, and shall take such other action as may be necessary to assist the Company in obtaining by statute, copyrights, patents, trademarks or other statutory or common law protections for the Work Product covered by these Terms and Conditions, vesting title and right in such copyrights, patents, trademarks and other protections in the Company and its designees. The Employee hereby agrees that the Work Product constitutes a “work made for hire” in accordance with the definition of that term under the U.S. copyright laws. The Employee shall further assist the Company or its Affiliates in every proper and reasonable way to enforce such copyrights, patents, trademarks and other protections as the Company may desire. The Employee’s obligation to deliver documents and assist the Company or its Affiliates under these Terms and Conditions applies both during and subsequent to the term of his/her employment.

(iii) Any Work Product which the Employee may disclose to anyone within six (6) months after the termination of his/her employment, or for which the Company or its Affiliates may file an application for copyright, patent, trademark or other statutory or common law protection within twelve (12) months after the termination of said employment, shall be presumed to have been made, conceived, first reduced to practice or learned during the term of the Employee’s employment and fully subject to the terms and conditions set forth herein; provided that if the Employee in fact, conceived any such Work Product subsequent to the termination of the employment and such Work Product is not based upon or derived from Confidential Information of the Company or its Affiliates or does not relate to the scope of work performed by the Employee pursuant to his/her employment duties with the Company or its Affiliates, then such Work Product shall belong to the Employee and shall be the Employee’s sole property. The Employee assumes the responsibility of establishing by competent legal evidence that such Work Product is not based on such Confidential Information and that the Employee conceived any such Work Product after the termination of his/her employment.

(iv) The Employee represents that the Work Product does not infringe any copyright, patent or other proprietary right of any person or entity.

(v) Attached to and made as part of these Terms and Conditions as Exhibit B (if applicable) is a complete list of all Work Product, whether or not copyrighted, which has been made or conceived or first reduced to practice by the Employee alone or jointly prior to the date of his employment with the Company or its Affiliates. Such Work Product shall be excluded from the operation of these Terms and Conditions. If there is no such list on Exhibit B, the Employee represents that no such Work Product exists at the time of execution of these Terms and Conditions.

(d) Without the Company’s prior written consent, the Employee will not, during the Noncompete Period, directly or indirectly, solicit or offer employment to any person who has been employed by the Company or its Affiliates at any time during the twelve months immediately preceding such solicitation.

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(e) Notwithstanding clauses (a), (b), (c) and (d) above, if at any time a court holds that the restrictions stated in such clauses (a), (b), (c) and (d) are unreasonable or otherwise unenforceable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographic area determined to be reasonable under such circumstances by such court will be substituted for the stated period, scope or area. Because the Employee’s services are unique and because the Employee has had access to Confidential Information, the parties hereto agree that money damages will be an inadequate remedy for any breach of these Terms and Conditions. In the event of a breach or threatened breach of these Terms and Conditions, the Company or its Affiliates or their successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent any violations of, the provisions hereof (without the posting of a bond or other security).

Section 7.11 Amendment

The Term Sheet and these Terms and Conditions may be amended only by a writing executed by the parties hereto which specifically states that it is amending the Term Sheet or these Terms and Conditions, as applicable.

Section 7.12 Governing Law

The Term Sheet and these Terms and Conditions shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

Section 7.13 Jurisdiction

The parties to the Term Sheet and these Terms and Conditions agree that jurisdiction and venue in any action brought by any party hereto pursuant to the Term Sheet and these Terms and Conditions shall properly lie and shall be brought in any federal or state court located in the Borough of Manhattan, City and State of New York. By execution and delivery of Term Sheet and these Terms and Conditions, each party hereto irrevocably submits to the jurisdiction of such courts for itself, himself or herself and in respect of its, his or her property with respect to such action. The parties hereto irrevocably agree that venue would be proper in such court, and hereby irrevocably waive any objection that such court is an improper or inconvenient forum for the resolution of such action.

Section 7.14 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates.

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Section 7.15 Counterparts

The Term Sheet and these Terms and Conditions may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

Section 7.16 Code Section 409A

If any payment of money, delivery of shares of Common Stock or other benefits due to the Employee hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payment, delivery of shares of Common Stock or other benefits shall be deferred if deferral will make such payment, delivery of shares of Common Stock or other benefits compliant under Section 409A of the Code, otherwise such payment, delivery of shares of Common Stock or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company and reasonably acceptable to the Employee, that does not cause such an accelerated or additional tax.

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EXHIBIT A

JOINDER

By execution of this Joinder, the undersigned agrees to become a party to that certain Term Sheet for Employee Performance Stock Option Awards and that certain Terms and Conditions for Employee Performance Stock Option Awards, effective as of                     (collectively, the “Agreement”), among WEIGHT WATCHERS INTERNATIONAL, INC. (the “Company”) and                                         (the “Employee”). By execution of this Joinder, the undersigned shall have all the rights, and shall observe all the obligations, applicable to the Employee (except as otherwise set forth in the Agreement), and to have made on the date hereof all representations and warranties made by such Employee, modified, if necessary, to reflect the nature of the undersigned as a trust, estate or other entity.

Name:
Address for Notices:	With copies to:

Signature:

Date:

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EX-21.1

EXHIBIT 21.1

List of Subsidiaries of Weight Watchers International, Inc.

BLTC Pty Limited, incorporated in Australia

Fortuity Pty Ltd, incorporated in Australia

Gutbusters Pty Ltd., incorporated in Australia

LLTC Pty Limited, incorporated in Australia

Millhill Enterprises Pty Ltd, incorporated in Australia

Weight Watchers Asia Pacific Finance Limited Partnership, incorporated in Australia

Weight Watchers Australia Holdings Pty Ltd., incorporated in Australia

Weight Watchers International Pty. Ltd, incorporated in Australia

Weight Watchers Services Pty Ltd, incorporated in Australia

Weight Watchers Belgium N.V., incorporated in Belgium

Weight Watchers Botswana Pty Ltd, incorporated in Botswana

Vigilantes do Peso Marketing Ltda, incorporated in Brazil

Weight Watchers do Brasil Programas Alimentares Ltda, incorporated in Brazil

Weight Watchers Canada, Ltd., incorporated in Canada

Weight Watchers Asia Holdings Ltd., incorporated in Cayman Islands

Weight Watchers (China) Weight Loss Consultation Co., Ltd., incorporated in the People’s

    Republic of China

Weight Watchers de Colombia Ltda., incorporated in Columbia

Waist Watchers, Inc., incorporated in Delaware

Weight Watchers Direct, Inc., incorporated in Delaware

Weight Watchers North America, Inc., incorporated in Delaware

W. W. Camps and Spas, Inc., incorporated in Delaware

WW Foods, LLC, incorporated in Delaware

WW Funding Corp., incorporated in Delaware

W. W. Inventory Service Corp., incorporated in Delaware

W. W. I. Subsidiary, Inc., incorporated in Delaware

WeightWatchers.ca Limited, incorporated in Delaware

WeightWatchers.com, Inc., incorporated in Delaware

Weight Watchers Denmark APS, incorporated in Denmark

Weight Watchers Operations Denmark APS, incorporated in Denmark

WeightWatchers.fr S.A.R.L., incorporated in France

Weight Watchers France S.A.R.L., incorporated in France

Weight Watchers Operations France EURL, incorporated in France

Weight Watchers At Work GmbH, incorporated in Germany

Weight Watchers (Deutschland) GmbH, incorporated in Germany

Great Day Holdings Limited, incorporated in Hong Kong

Weight Watchers China Limited, incorporated in Hong Kong

Il Salvalinea, S.R.L., incorporated in Italy

Centro de Cuidado Del Peso, S. de R.L. de C.V., incorporated in Mexico

Servicios Operativos CP, S. de R.L. de C.V., incorporated in Mexico

Weight Watchers Vigilantes de Peso de Mexico, S.A. de C.V., incorporated in Mexico

Stichting Gezond Gewicht, Gezond Leven, incorporated in Netherlands

Weight Watchers Netherlands, B.V., incorporated in Netherlands

WeightWatchers.nl B.V., incorporated in Netherlands

58 WW Food Corp., incorporated in New York

Weight Watchers Camps, Inc., incorporated in New York

Weight Watchers Foundation, Inc., incorporated in New York

W.W.I. European Services, Ltd., incorporated in New York

W.W. Weight Reduction Services, Inc., incorporated in New York

W/W TwentyFirst Corporation, incorporated in New York

Weight Watchers Limited, incorporated in New Zealand

Weight Watchers New Zealand Limited, incorporated in New Zealand

Weight Watchers New Zealand Unit Trust, incorporated in New Zealand

Weight Watchers Polska Spz.o.o., incorporated in Poland

Weight Watchers Singapore Pte. Ltd., incorporated in Singapore

Weight Watchers (Lesotho) Pty, incorporated in South Africa

Weight Watchers Operations Spain S.L., incorporated in Spain

Weight Watchers Spain S.L., incorporated in Spain

Weight Watchers European Holding AB, incorporated in Sweden

Weight Watchers Sweden ViktVaktarna Akiebolag, incorporated in Sweden

Weight Watchers (Switzerland) SA, incorporated in Switzerland

Weight Watchers (Accessories & Publications) Ltd., incorporated in United Kingdom

Weight Watchers (Exercise) Ltd., incorporated in United Kingdom

Weight Watchers Supply Company Limited, incorporated in United Kingdom

Weight Watchers International Holdings Ltd., incorporated in United Kingdom

Weight Watchers UK Holdings Ltd., incorporated in United Kingdom

Weight Watchers (U.K.) Limited, incorporated in United Kingdom

WeightWatchers.co.uk Limited, incorporated in United Kingdom

WeightWatchers.de Limited, incorporated in United Kingdom

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-123642, 333-74066, 333-156185 and 333-165637) of Weight Watchers International, Inc. of our report dated February 26, 2014 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 26, 2014

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, James Chambers, certify that:

1. I have reviewed this Annual Report on Form 10-K of Weight Watchers International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2014	Signature:	/S/    JAMES CHAMBERS
		James Chambers President, Chief Executive Officer and Director (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Nicholas P. Hotchkin, certify that:

1. I have reviewed this Annual Report on Form 10-K of Weight Watchers International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2014	Signature:	/S/    NICHOLAS P. HOTCHKIN
		Nicholas P. Hotchkin Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Weight Watchers International, Inc. (the “Company”) for the fiscal year ended December 28, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, the undersigned officers of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 26, 2014	Signature:	/S/    JAMES CHAMBERS
		James Chambers President, Chief Executive Officer and Director (Principal Executive Officer)
	Signature:	/S/    NICHOLAS P. HOTCHKIN
		Nicholas P. Hotchkin Chief Financial Officer (Principal Financial and Accounting Officer)

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 28, 2013

Changes in Accumulated Other Comprehensive Income by Component

Changes in Accumulated Other Comprehensive Income by Component^(a)

	Fiscal year ended December 28, 2013
	Loss on Qualifying Hedges			Foreign Currency Translation Adjustments			Total
Beginning Balance at December 29, 2012	$	(6,602	)	$	19,461		$	12,859
Other comprehensive loss before reclassifications, net of tax		(4,124	)		(6,341	)		(10,465	)
Amounts reclassified from accumulated other comprehensive income, net of tax(b)		6,123			0			6,123
Net current period other comprehensive income (loss)		1,999			(6,341	)		(4,342	)
Ending Balance at December 28, 2013	$	(4,603	)	$	13,120		$	8,517

(a) Amounts in parentheses indicate debits

(b) See separate table below for details about these reclassifications

Reclassifications out of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income^(a)

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Other Comprehensive Income Components	Fiscal Year Ended December 28, 2013			Affected Line Item in the Statement Where Net Income is Presented
Loss on Qualifying Hedges
Interest rate contracts	$	(10,037	)	Interest expense
		(10,037	)	Income before income taxes
		3,914		Provision for income taxes
	$	(6,123	)	Net income

(a) Amounts in parentheses indicate debits to profit / loss

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Long-Term Debt Maturities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Debt Instrument
2014	$ 30,000
2015	24,000
2016	307,500
2017	21,000
2018	21,000
Thereafter	1,984,500
Total	$ 2,388,000	$ 2,406,364

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Carrying Amount of Finite-Lived Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Finite-Lived Intangible Assets
Gross Carrying Amount	$ 172,467	$ 161,275
Accumulated Amortization	127,170	108,795
Capitalized software costs
Finite-Lived Intangible Assets
Gross Carrying Amount	85,095	86,857
Accumulated Amortization	62,418	54,134
Trademarks
Finite-Lived Intangible Assets
Gross Carrying Amount	10,691	10,342
Accumulated Amortization	9,955	9,615
Website development costs
Finite-Lived Intangible Assets
Gross Carrying Amount	69,660	57,042
Accumulated Amortization	48,060	38,357
Other
Finite-Lived Intangible Assets
Gross Carrying Amount	7,021	7,034
Accumulated Amortization	$ 6,737	$ 6,689

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Commitment and Contingencies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	0 Months Ended	1 Months Ended	12 Months Ended				0 Months Ended
	Dec. 29, 2012	Feb. 29, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Jul. 02, 2011	Jan. 31, 2013 Settled Litigation
Loss Contingencies
U.K. Self-employment liability						$ 43,671
Payment of U.K. self-employment liability		30,018					6,752
Amount agreed for settlement	36,770
Rent expense charged to operations under leases			$ 46,300	$ 40,485	$ 36,572

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Treasury Stock - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	0 Months Ended	3 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended			0 Months Ended
	Oct. 09, 2003	Mar. 31, 2012	Dec. 29, 2012	Dec. 31, 2011	Apr. 09, 2012 Artal Holdings	Dec. 23, 2012 Tender Offers	Feb. 23, 2012 Tender Offers Minimum	Feb. 23, 2012 Tender Offers Maximum	Oct. 21, 2010 Additional Shares	May 25, 2006 Additional Shares	Jun. 13, 2005 Additional Shares
Equity, Class of Treasury Stock
Treasury Stock, value of common stock shares authorized for repurchase						$ 720,000
Repurchase of common stock, price per share							$ 72.00	$ 83.00
Repurchase of common stock, shares repurchased		8,780		814	9,499
Repurchase of common stock, price per share		$ 82.00			$ 82.00
Treasury Stock, value of common stock shares authorized for repurchase	250,000								250,000	250,000	250,000
Treasury Stock, amount of common stock shares repurchased			$ 1,498,902	$ 31,550

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Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013		Dec. 29, 2012		Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 12,859	[1]
Other comprehensive loss before reclassifications, net of tax	(10,465)	[1]
Amounts reclassified from accumulated other comprehensive income, net of tax	6,123	[1],[2]
Net current period other comprehensive income (loss)	(4,342)	[1]	7,258		10,118
Ending Balance	8,517	[1]	12,859	[1]
Loss on Qualifying Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(6,602)	[1]
Other comprehensive loss before reclassifications, net of tax	(4,124)	[1]
Amounts reclassified from accumulated other comprehensive income, net of tax	6,123	[1],[2]
Net current period other comprehensive income (loss)	1,999	[1]
Ending Balance	(4,603)	[1]
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	19,461	[1]
Other comprehensive loss before reclassifications, net of tax	(6,341)	[1]
Amounts reclassified from accumulated other comprehensive income, net of tax	0	[1],[2]
Net current period other comprehensive income (loss)	(6,341)	[1]
Ending Balance	$ 13,120	[1]

[1] Amounts in parentheses indicate debits

[2] See separate table below for details about these reclassifications

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Changes in Carrying Value of Franchise Rights Acquired (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013
Franchise Rights Acquired [Line Items]
Beginning balance	$ 783,695
Franchise rights acquired during the year	65,170
Impairment charge	(1,166)
Effect of exchange rate changes	(10,864)
Ending balance	836,835
WWI
Franchise Rights Acquired [Line Items]
Beginning balance	774,514
Franchise rights acquired during the year	34,501
Impairment charge	(1,166)
Effect of exchange rate changes	(9,703)
Ending balance	798,146
WW.com
Franchise Rights Acquired [Line Items]
Beginning balance	9,181
Franchise rights acquired during the year	30,669
Impairment charge	0
Effect of exchange rate changes	(1,161)
Ending balance	$ 38,689

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Stock Plans (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these option grants to be the midpoint between the vesting period and the contractual term of each award. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time Vesting Options. The dividend yield is based on our historic average dividend yield. For Time Vesting Options granted in the fourth quarter of fiscal 2013, the dividend yield is zero because there is no longer a dividend.

	December 28, 2013	December 29, 2012	December 31, 2011
Dividend yield	0.8%	1.6%	1.8%
Volatility	36.5%	35.5%	33.6%
Risk-free interest rate	1.3% - 2.2%	1.0% - 1.4%	1.5% - 2.8%
Expected term (years)	6.5	6.5	6.5

Schedule of Share-based Compensation, Stock Options, Activity

A summary of all option activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at December 29, 2012		2,239		$	42.75
Granted		1,551		$	36.35
Exercised		(620	)	$	26.09
Canceled		(957	)	$	51.62
Outstanding at December 28, 2013		2,213		$	39.09		7.2	$	2,372
Exercisable at December 28, 2013		362		$	32.03		5.5	$	2,166

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of RSU activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted-Average Grant-Date Fair Value
Outstanding at December 29, 2012		246		$	50.67
Granted		155		$	38.40
Vested		(63	)	$	27.08
Forfeited		(85	)	$	56.23
Outstanding at December 28, 2013		253		$	47.11

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Reclassifications out of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013		Dec. 29, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense									$ (103,108)		$ (90,537)	$ (59,850)
Income before income taxes									335,365		416,961	483,092
Provision for income taxes									(130,640)		(159,535)	(178,748)
Net income	30,798	60,258	64,916	48,753	57,995	67,364	77,462	54,605	204,725		257,426	304,344
Reclassification out of Accumulated Other Comprehensive Income | Loss on Qualifying Hedges | Interest Rate Contract
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense									(10,037)	[1]
Income before income taxes									(10,037)	[1]
Provision for income taxes									3,914	[1]
Net income									$ (6,123)	[1]

[1] Amounts in parentheses indicate debits to profit / loss

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Information About Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Segment Reporting Information
Total revenue	$ 366,111	$ 396,334	$ 470,888	$ 490,790	$ 411,133	$ 432,903	$ 488,610	$ 506,786	$ 1,724,123	$ 1,839,432	$ 1,832,494
Depreciation and amortization									52,576	43,710	35,820
Operating income	79,142	124,520	153,976	103,119	122,539	131,984	153,508	102,774	460,757	510,805	546,328
Interest expense									103,108	90,537	59,850
Other (income) expense, net									599	1,979	3,386
Early extinguishment of debt			21,685					1,328	21,685	1,328	0
Provision for taxes									130,640	159,535	178,748
Net income	30,798	60,258	64,916	48,753	57,995	67,364	77,462	54,605	204,725	257,426	304,344
Total assets	1,408,931				1,218,607				1,408,931	1,218,607	1,121,628
Operating Segments | WWI
Segment Reporting Information
Total revenue									1,197,375	1,331,916	1,428,690
Depreciation and amortization									41,468	34,073	25,744
Operating income									154,745	250,335	339,963
Total assets	1,733,464				1,539,434				1,733,464	1,539,434	1,413,109
Operating Segments | WW.com
Segment Reporting Information
Total revenue									526,748	507,516	403,804
Depreciation and amortization									11,108	9,637	10,076
Operating income									306,012	260,470	206,365
Total assets	776,515				567,478				776,515	567,478	392,381
Intercompany Eliminations
Segment Reporting Information
Total revenue									0	0	0
Depreciation and amortization									0	0	0
Operating income									0	0	0
Total assets	$ (1,101,048)				$ (888,305)				$ (1,101,048)	$ (888,305)	$ (683,862)

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Earnings Per Share - Additional Information (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share
Anti-dilutive common stock equivalents excluded from the calculation of diluted EPS	1,285	536	188

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Aggregate Fair Value of Derivative Financial Instruments (Detail) (Fair Value, Measurements, Recurring, Interest Rate Swap, USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap liability	$ 7,578	$ 13,871
Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap liability	0	0
Fair Value Measurements Using Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap liability	7,578	13,871
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

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Quarterly Financial Information - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended			12 Months Ended
	Jun. 29, 2013	Dec. 29, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Quarterly Financial Information [Line Items]
Impact of early extinguishment of debt on net income before of tax	$ 21,685
Impact of early extinguishment of debt on net income net of tax	13,336
Impact of early extinguishment of debt per fully diluted share	$ 0.24
Write-off of fees associated early extinguishment of debt charge	21,685		1,328	21,685	1,328	0
Benefit recognized for settlement of UK self-employment tax litigation		7,423
Net benefit recognized for an accrual reversal associated with settlement of Uk self-employment tax litigation, per dully diluted share		$ 0.07
Over-accrual reversal		14,544
Accrual of additional interest		7,130
United Kingdom | State Value Added Tax
Quarterly Financial Information [Line Items]
Benefit recognized from settlement of UK self-employment tax litigation, net of income taxes		$ 4,099

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Derivative Instruments and Hedging - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified			1 Months Ended	12 Months Ended						12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Jul. 31, 2013 Interest Rate Swap	Jan. 01, 2011 Interest Rate Swap	Dec. 28, 2013 Interest Rate Swap	Dec. 29, 2012 Interest Rate Swap	Dec. 28, 2013 Interest Rate Swap Cash Flow Hedging	Jul. 26, 2013 Interest Rate Swap Cash Flow Hedging	Dec. 29, 2012 Interest Rate Swap Cash Flow Hedging	Dec. 28, 2013 Interest Rate Swap Cash Flow Hedging March 31, 2014	Dec. 28, 2013 Interest Rate Swap Cash Flow Hedging April 3, 2017	Dec. 28, 2013 Interest Rate Swap Cash Flow Hedging April 1, 2019	Jan. 01, 2011 Interest Rate Swap Cash Flow Hedging Forward starting swaps	Jan. 01, 2011 Interest Rate Swap Cash Flow Hedging Forward starting swaps Maximum
Derivative
Notional amount							$ 466,250	$ 1,500,000	$ 583,250	$ 1,500,000	$ 1,250,000	$ 1,000,000	$ 425,000	$ 755,000
Forward starting interest rate swap, termination date			Apr. 02, 2020	Jan. 27, 2014
Forward-starting interest rate swap, effective date			Mar. 31, 2014							Mar. 31, 2014	Apr. 03, 2017	Apr. 01, 2019
Derivative interest rate swap percentage					2.38%
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), net of tax	4,603	6,602			4,603	6,602
Cumulative losses for qualifying hedges reported as a component of accumulated other comprehensive income/(loss), before tax					7,546	10,824
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, net of tax	12,017
Derivative losses included in accumulated other comprehensive income/(loss) that are expected to be reclassified into earnings within the next 12 months, before tax	$ 19,700

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Minimum Rental Commitments Under Non-Cancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Operating Leased Assets [Line Items]
2014	$ 41,095
2015	36,642
2016	30,704
2017	22,076
2018	16,898
2019 and thereafter	118,001
Total	$ 265,416

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Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 28, 2013

Quarterly Financial Information (Unaudited)

18. Quarterly Financial Information (Unaudited)

The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2013 and December 29, 2012.

	For the Fiscal Quarters Ended
	March 30, 2013		June 29, 2013		September 28, 2013		December 28, 2013
Fiscal year ended December 28, 2013
Revenues, net	$	490,790	$	470,888	$	396,334	$	366,111
Gross profit		283,637		283,715		231,980		201,780
Operating income		103,119		153,976		124,520		79,142
Net income		48,753		64,916		60,258		30,798
Basic EPS	$	0.87	$	1.16	$	1.07	$	0.55
Diluted EPS	$	0.87	$	1.15	$	1.07	$	0.54

	For the Fiscal Quarters Ended
	March 31, 2012		June 30, 2012		September 29, 2012		December 29, 2012
Fiscal year ended December 29, 2012
Revenues, net	$	506,786	$	488,610	$	432,903	$	411,133
Gross profit		291,171		297,032		257,651		247,964
Operating income		102,774		153,508		131,984		122,539
Net income		54,605		77,462		67,364		57,995
Basic EPS	$	0.74	$	1.37	$	1.21	$	1.04
Diluted EPS	$	0.74	$	1.36	$	1.20	$	1.03

Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year.

In the second quarter of fiscal 2013, net income and EPS were impacted by a $21,685 ($13,336 after tax), or $0.24 per fully diluted share, early extinguishment of debt charge resulting from the write-off of fees associated with the Company’s April 2013 debt refinancing. In the first quarter of fiscal 2012, the Company wrote-off $1,328 of fees in connection with the March 2012 refinancing of its debt that the Company recorded as an early extinguishment of debt charge.

As discussed in further detail in Note 13, in the fourth quarter of fiscal 2012, the Company recognized a $4,099 net benefit ($7,423 pre-tax), or $0.07 per fully diluted share, from an accrual reversal associated with the settlement in the quarter of the previously reported UK self-employment tax litigation. The $7,423 pre-tax net benefit associated with the settlement consisted of an over-accrual reversal to cost of revenues of $14,544 partially offset by an additional interest accrual of $7,130.

As discussed in further detail in Note 1, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing revenues and gross profit the first nine months of fiscal 2013 and all four quarters of fiscal 2012.

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Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Property, Plant and Equipment [Line Items]
Equipment	$ 123,210	$ 113,301
Leasehold improvements	77,771	70,229
Property, Plant and Equipment, Gross, Total	200,981	183,530
Less: Accumulated depreciation and amortization	(113,929)	(111,762)
Property and equipment, net	$ 87,052	$ 71,768

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Revision of Certain Brand Marketing Funds Received from Licensees (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Product sales and other, net									$ 350,271	$ 400,161	$ 442,703
Cost of meetings, products and other									652,283	681,972	718,284
Gross profit	201,780	231,980	283,715	283,637	247,964	257,651	297,032	291,171	1,001,112	1,093,818	1,058,505
Selling, general and administrative expenses									244,727	229,340	209,254
Certain Brand Marketing Funds
Product sales and other, net									12,058	12,620	13,338
Cost of meetings, products and other									1,078	1,589	1,974
Gross profit									10,979	11,031	11,364
Marketing expenses									10,279	10,158	10,572
Selling, general and administrative expenses									$ 701	$ 873	$ 792

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Fair Value Measurements - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	$ 2,169,908	$ 2,410,724

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Segment and Geographic Data (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Segment Reporting Information, by Segment

Information about the Company’s reportable operating segments is as follows:

	Year Ended December 28, 2013
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,197,375	$	526,748	$	0		$	1,724,123
Depreciation and amortization	$	41,468	$	11,108	$	0		$	52,576
Operating income	$	154,745	$	306,012	$	0		$	460,757
Interest expense									103,108
Other expense, net									599
Early extinguishment of debt									21,685
Provision for taxes									130,640
Net income								$	204,725
Total assets	$	1,733,464	$	776,515	$	(1,101,048	)	$	1,408,931

	Year Ended December 29, 2012
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,331,916	$	507,516	$	0		$	1,839,432
Depreciation and amortization	$	34,073	$	9,637	$	0		$	43,710
Operating income	$	250,335	$	260,470	$	0		$	510,805
Interest expense									90,537
Other expense, net									1,979
Early extinguishment of debt									1,328
Provision for taxes									159,535
Net income								$	257,426
Total assets	$	1,539,434	$	567,478	$	(888,305	)	$	1,218,607

	Year Ended December 31, 2011
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,428,690	$	403,804	$	0		$	1,832,494
Depreciation and amortization	$	25,744	$	10,076	$	0		$	35,820
Operating income	$	339,963	$	206,365	$	0		$	546,328
Interest expense									59,850
Other income, net									3,386
Provision for taxes									178,748
Net income								$	304,344
Total assets	$	1,413,109	$	392,381	$	(683,862	)	$	1,121,628

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

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

	Revenues for the Year Ended
	December 28, 2013		December 29, 2012		December 31, 2011
NACO meeting fees	$	595,097	$	653,396	$	686,758
International Company-owned meeting fees		256,529		281,537		303,538
Product sales		245,319		294,758		334,303
Franchise royalties		9,035		12,732		14,461
Internet revenues		522,226		504,338		399,495
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
North America	$	1,181,696	$	1,283,232	$	1,266,005
United Kingdom		172,783		204,506		227,238
Continental Europe		299,403		270,701		247,003
Australia, New Zealand and other		70,241		80,993		92,248
	$	1,724,123	$	1,839,432	$	1,832,494

	Long-Lived Assets
	December 28, 2013		December 29, 2012		December 31, 2011
North America	$	82,518	$	65,708	$	35,196
United Kingdom		1,192		1,645		1,508
Continental Europe		2,083		2,431		2,208
Australia, New Zealand and other		1,259		1,984		2,160
	$	87,052	$	71,768	$	41,072

XML

Components of Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Debt Instrument
Total Debt	$ 2,388,000	$ 2,406,364
Less Current Portion	30,000	114,695
Effective Interest Rate	3.49%	2.91%
Total Long-Term Debt	2,358,000	2,291,669
Revolving Facility due April 2, 2018
Debt Instrument
Total Debt	0	0
Effective Interest Rate	0.00%	0.00%
Tranche B-1 Term Facility due April 2, 2016
Debt Instrument
Total Debt	298,500	0
Effective Interest Rate	2.97%	0.00%
Tranche B-2 Term Facility due April 2, 2020
Debt Instrument
Total Debt	2,089,500	0
Effective Interest Rate	3.75%	0.00%
Revolver A-1 Loan due June 30, 2014
Debt Instrument
Total Debt	0	6,374
Effective Interest Rate	0.00%	3.12%
Revolver A-2 Loan due March 15, 2017
Debt Instrument
Total Debt	0	23,626
Effective Interest Rate	0.00%	2.56%
Term A-1 Loan due January 26, 2013
Debt Instrument
Total Debt	0	38,226
Effective Interest Rate	0.00%	1.53%
Term B Loan due January 26, 2014
Debt Instrument
Total Debt	0	129,445
Effective Interest Rate	0.00%	1.90%
Term C Loan due June 30, 2015
Debt Instrument
Total Debt	0	113,808
Effective Interest Rate	0.00%	2.72%
Term D Loan due June 30, 2016
Debt Instrument
Total Debt	0	118,217
Effective Interest Rate	0.00%	2.77%
Term E Loan due March 15, 2017
Debt Instrument
Total Debt	0	1,154,651
Effective Interest Rate	0.00%	2.53%
Term F Loan due March 15, 2019
Debt Instrument
Total Debt	$ 0	$ 822,017
Effective Interest Rate	0.00%	3.92%

XML

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Tax Contingency [Line Items]
Balance at beginning of year	$ 5,319	$ 5,040	$ 15,794
Additions based on tax positions related to the current year	1,428	1,647	1,537
Additions based on tax positions of prior years	0	0	0
Reductions for tax positions of prior years	(963)	(1,219)	(11,901)
Settlements	0	(149)	(390)
Balance at end of year	$ 5,784	$ 5,319	$ 5,040

XML

Summary of RSU Activity Under Stock Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013
Shares
Beginning Balance	246
Granted	155
Vested	(63)
Forfeited	(85)
Ending Balance	253
Weighted-Average Grant-Date Fair Value
Beginning Balance	$ 50.67
Granted	$ 38.40
Vested	$ 27.08
Forfeited	$ 56.23
Ending Balance	$ 47.11

XML

Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013
Goodwill [Line Items]
Beginning balance	$ 62,726
Goodwill acquired during the year	17,530
Effect of exchange rate changes	(962)
Ending balance	79,294
WWI
Goodwill [Line Items]
Beginning balance	32,033
Goodwill acquired during the year	9,998
Effect of exchange rate changes	(562)
Ending balance	41,469
WW.com
Goodwill [Line Items]
Beginning balance	30,693
Goodwill acquired during the year	7,532
Effect of exchange rate changes	(400)
Ending balance	$ 37,825

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2013

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Fiscal Year:

The Company’s fiscal year ends on the Saturday closest to December 31^st and consists of either 52 or 53-week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on December 31^st of each year. This difference in fiscal years does not have a material effect on the consolidated financial statements.

Use of Estimates:

The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates.

Translation of Foreign Currencies:

For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss).

Foreign currency gains and losses arising from the translation of intercompany receivables with the Company’s international subsidiaries are recorded as a component of other expense (income), net, unless the receivable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of comprehensive income (loss).

Cash Equivalents:

Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies.

Inventories:

Inventories, which consist of finished goods, are stated at the lower of cost or market on a first-in, first-out basis, net of reserves for obsolescence and shrinkage.

Property and Equipment:

Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income.

Impairment of Long Lived Assets:

The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable.

In fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $1,607 related to property, plant and equipment ($372) and amortizable intangible assets ($1,235). The Company also recorded an impairment charge of $2,653 in fiscal 2013 related to internal-use computer software that was not expected to provide substantive service potential.

Franchise Rights Acquired, Goodwill and Other Intangible Assets:

Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired, for potential impairment on at least an annual basis or more often if events so require. The Company performed fair value impairment testing as of the end of fiscal 2013 and fiscal 2012 on its goodwill and other indefinite-lived intangible assets.

In performing the impairment analysis for goodwill, the fair value for the Company’s reporting units is estimated using a discounted cash flow approach. This approach involves projecting future cash flows attributable to the reporting unit and discounting those estimated cash flows using an appropriate discount rate. The estimated fair value is then compared to the carrying value of the reporting unit. The Company has determined the appropriate reporting unit for purposes of assessing annual impairment to be the country for all reporting units aside from WW.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32,668, $5,124 and $3,677, respectively, totaling $41,469. The value of goodwill for the WW.com reporting unit at December 28, 2013 was $37,825.

In performing the impairment analysis for franchise rights acquired, the fair value for the Company’s franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697,334, $110,346, $14,401, $13,740 and $1,014, respectively, totaling $836,835.

When determining fair value, the Company utilizes various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease occurred, the Company would be required to record a corresponding charge, which would impact earnings. The Company would also be required to reduce the carrying amounts of the related assets on its balance sheet. The Company continues to evaluate these estimates and assumptions and believes that these assumptions are appropriate.

In performing the impairment analysis for the fiscal year ended December 28, 2013, the Company determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to its Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and recorded impairment charges of $935 and $231, respectively, for such rights. The Company determined that the carrying amounts of the remainder of these assets did not exceed their respective fair values, and therefore, no other impairment existed.

The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs), once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred.

Revenue Recognition:

WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. WWI charges non-refundable registration fees in exchange for an introductory information session and materials it provides to new members in its meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized.

WW.com primarily generates revenue from monthly subscriptions for its Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website.

The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid.

Advertising Costs:

Advertising costs consist primarily of television and digital media. All costs related to advertising are expensed in the period incurred, except for media production related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $274,160, $334,422 and $283,674, respectively.

Income Taxes:

Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance.

The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of income.

In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases.

Derivative Instruments and Hedging:

The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes.

The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The fair value of the Company’s interest rate swaps is reported in derivative payable and prepaid expenses and other current assets on its balance sheet. See Note 15 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s interest rate swaps is included in interest expense on the statement of income.

Investments:

The Company uses the cost method to account for investments in which it holds 20% or less of the investee’s voting stock and over which it does not have significant influence.

Deferred Financing Costs:

Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fiscal year ended December 28, 2013, the Company incurred fees of $44,817 associated with the refinancing of the WWI Credit Facility (as defined in Note 6). The Company wrote-off fees in connection with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. During the fiscal year ended December 29, 2012, the Company incurred deferred financing costs of $26,248 associated with the Tender Offer (as defined in Note 7). The Company wrote-off fees in connection with the Tender Offer which resulted in the Company recording a charge of $1,328 in early extinguishment of debt. During the fiscal year ended January 1, 2011, the Company incurred deferred financing costs of $11,483 associated with the refinancing of the Company’s then existing credit facilities. Such costs are being amortized using the straight-line method over the term of the related debt. Amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $7,672, $7,070 and $4,825, respectively.

Accumulated Other Comprehensive Income:

The Company’s accumulated other comprehensive income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2013 and December 29, 2012, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(4,603) and $(6,602), respectively. At December 28, 2013 and December 29, 2012, the cumulative balance of the effects of foreign currency translations, net of taxes, was $13,120 and $19,461, respectively.

Reclassification:

Certain prior year amounts have been reclassified to conform to the current year presentation.

XML

Summary of Consolidated Provision for US Federal State and Foreign Taxes on Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Current:
US federal	$ 60,556	$ 99,437	$ 121,860
State	9,583	12,719	18,298
Foreign	25,121	20,614	13,299
Current Income Tax Expense (Benefit), Total	95,260	132,770	153,457
Deferred:
US federal	31,801	23,002	23,410
State	3,634	2,629	2,675
Foreign	(55)	1,134	(794)
Deferred tax provision	35,380	26,765	25,291
Total tax provision	$ 130,640	$ 159,535	$ 178,748

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Jun. 29, 2013	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Asset impairment charges			$ 5,426	$ 0	$ 0
Goodwill			79,294	62,726
Franchise rights acquired, carrying value			836,835	783,695
Total advertising expenses			274,160	334,422	283,674
Deferred financing costs			44,817	26,248	0	11,483
Early extinguishment of debt	21,685	1,328	21,685	1,328	0
Deferred financing costs, amortization expense			7,672	7,070	4,825
The cumulative balance of changes in fair value of derivative instruments, net of taxes			(4,603)	(6,602)
The cumulative balance of the effects of foreign currency translations, net of taxes			13,120	19,461
China Operations
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Asset impairment charges			1,607
Property, plant and equipment, impairment charges			372
Intangible assets, impairment charges			1,235
WWI
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Goodwill			41,469	32,033
Franchise rights acquired, carrying value			798,146	774,514
WW.com
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Goodwill			37,825	30,693
Franchise rights acquired, carrying value			38,689	9,181
Internal-use Computer Software
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Intangible assets, impairment charges			2,653
Franchise Rights
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			836,835
Franchise Rights | Mexico
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Intangible assets, impairment charges			935
Franchise Rights | Hong Kong
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Intangible assets, impairment charges			231
Website development costs
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Finite-lived intangible assets, estimated useful life (in years)			3 years
UNITED STATES
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			697,334
UNITED STATES | WWI
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Goodwill			32,668
CANADA
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			110,346
CANADA | WWI
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Goodwill			5,124
United Kingdom
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			14,401
Australia/New Zealand
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			13,740
Other International
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Franchise rights acquired, carrying value			1,014
Other International | WWI
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Goodwill			$ 3,677
Minimum
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Equipment,estimated useful life (in years)			3 years
Finite-lived intangible assets, estimated useful life (in years)			3 years
Minimum | Capitalized software costs
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Finite-lived intangible assets, estimated useful life (in years)			3 years
Maximum
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Equipment,estimated useful life (in years)			10 years
Finite-lived intangible assets, estimated useful life (in years)			20 years
Percentage of investee's voting stock hold for cost method investments			20.00%
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

XML

Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2013

Changes in Carrying Value of Franchise Rights Acquired

For the year ended December 28, 2013, the change in the carrying value of franchise rights acquired is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	774,514		$	9,181		$	783,695
Franchise rights acquired during the year		34,501			30,669			65,170
Impairment charge		(1,166	)		0			(1,166	)
Effect of exchange rate changes		(9,703	)		(1,161	)		(10,864	)
Balance as of December 28, 2013	$	798,146		$	38,689		$	836,835

Changes in Carrying Amount of Goodwill

For the year ended December 28, 2013, the change in the carrying amount of goodwill is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	32,033		$	30,693		$	62,726
Goodwill acquired during the year		9,998			7,532			17,530
Effect of exchange rate changes		(562	)		(400	)		(962	)
Balance as of December 28, 2013	$	41,469		$	37,825		$	79,294

Schedule of Finite-Lived Intangible Assets by Major Class

The carrying amount of finite-lived intangible assets as of December 28, 2013 and December 29, 2012 was as follows:

	December 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Capitalized software costs	$	85,095	$	62,418	$	86,857	$	54,134
Trademarks		10,691		9,955		10,342		9,615
Website development costs		69,660		48,060		57,042		38,357
Other		7,021		6,737		7,034		6,689
	$	172,467	$	127,170	$	161,275	$	108,795

Schedule of Expected Amortization Expense

Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows:

2014	$	20,841
2015	$	14,997
2016	$	7,593
2017	$	1,765
2018 and thereafter	$	101

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Basis of Presentation (Tables)

12 Months Ended

Dec. 28, 2013

Effect of Revision on Previously Reported Amounts

The effects of this revision on the previously reported amounts are as follows:

	December 29, 2012			December 31, 2011
Cash provided by operating activities	$	(12,684	)	$	2,231
Effect of exchange rate changes on cash and cash equivalents	$	12,684		$	(2,231	)

Revision of Certain Brand Marketing Funds Received From Licensees

In addition, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Product sales and other, net	$	12,058	$	12,620	$	13,338
Cost of meetings, products and other	$	1,078	$	1,589	$	1,974
Gross profit	$	10,979	$	11,031	$	11,364
Marketing expenses	$	10,279	$	10,158	$	10,572
Selling, general and administrative expenses	$	701	$	873	$	792

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Computation of Basic and Diluted EPS (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Numerator:
Net income attributable to Weight Watchers International, Inc.									$ 204,725	$ 257,426	$ 304,867
Denominator:
Weighted average shares of common stock outstanding									56,144	60,294	73,344
Effect of dilutive common stock equivalents									250	629	787
Weighted average diluted common shares outstanding									56,394	60,923	74,131
EPS attributable to Weight Watchers International, Inc.
Basic	$ 0.55	$ 1.07	$ 1.16	$ 0.87	$ 1.04	$ 1.21	$ 1.37	$ 0.74	$ 3.65	$ 4.27	$ 4.16
Diluted	$ 0.54	$ 1.07	$ 1.15	$ 0.87	$ 1.03	$ 1.20	$ 1.36	$ 0.74	$ 3.63	$ 4.23	$ 4.11

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Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	0 Months Ended	12 Months Ended		0 Months Ended				0 Months Ended			0 Months Ended			0 Months Ended			0 Months Ended				1 Months Ended				0 Months Ended					0 Months Ended				0 Months Ended
	Apr. 27, 2011	Dec. 28, 2013	Dec. 29, 2012	Dec. 12, 2013 China Operations	Apr. 27, 2011 Weight Watchers Asia Holdings Limited	Feb. 05, 2008 Weight Watchers Asia Holdings Limited	Feb. 05, 2008 Danone Dairy Asia	Sep. 10, 2012 Slengora Limited	Sep. 10, 2012 Slengora Limited Customer Relationships	Sep. 10, 2012 Slengora Limited Franchise Rights	Nov. 02, 2012 Adirondacks Inc	Nov. 02, 2012 Adirondacks Inc Customer Relationships	Nov. 02, 2012 Adirondacks Inc Franchise Rights	Dec. 20, 2012 Mid South Inc	Dec. 20, 2012 Mid South Inc Customer Relationships	Dec. 20, 2012 Mid South Inc Franchise Rights	Mar. 04, 2013 Alberta Ltd and Saskatchewan Ltd	Mar. 04, 2013 Alberta Ltd and Saskatchewan Ltd Preliminary Allocation	Mar. 04, 2013 Alberta Ltd and Saskatchewan Ltd Preliminary Allocation Customer Relationships	Mar. 04, 2013 Alberta Ltd and Saskatchewan Ltd Franchise Rights Preliminary Allocation	Jul. 15, 2013 West Virginia, Inc.	Jul. 15, 2013 West Virginia, Inc. Preliminary Allocation	Jul. 15, 2013 West Virginia, Inc. Preliminary Allocation Customer Relationships	Jul. 15, 2013 West Virginia, Inc. Franchise Rights Preliminary Allocation	Jul. 22, 2013 Columbus, Inc.	Jul. 22, 2013 Northern Nevada, Inc.	Jul. 22, 2013 Columbus, Inc. and Northern Nevada, Inc. Preliminary Allocation	Jul. 22, 2013 Columbus, Inc. and Northern Nevada, Inc. Preliminary Allocation Customer Relationships	Jul. 22, 2013 Columbus, Inc. and Northern Nevada, Inc. Franchise Rights Preliminary Allocation	Oct. 28, 2013 Manitoba Ltd	Oct. 28, 2013 Manitoba Ltd Preliminary Allocation	Oct. 28, 2013 Manitoba Ltd Preliminary Allocation Customer Relationships	Oct. 28, 2013 Manitoba Ltd Franchise Rights Preliminary Allocation	Oct. 28, 2013 Franklin and St Lawrence Counties Inc	Oct. 28, 2013 Franklin and St Lawrence Counties Inc Preliminary Allocation	Oct. 28, 2013 Franklin and St Lawrence Counties Inc Preliminary Allocation Customer Relationships	Oct. 28, 2013 Franklin and St Lawrence Counties Inc Franchise Rights Preliminary Allocation
Business Acquisition
Business acquisition, net purchase price	$ 1							$ 16,755			$ 3,400			$ 10,000			$ 35,000				$ 16,028				$ 23,357	$ 3,969				$ 5,197				$ 274
Business acquisition, assumed liabilities								245													28				143	31				28				1
Business acquisition, purchase price allocation, intangible assets, indefinite lived										9,871			2,216			8,396				30,633				10,131					19,643				4,525				238
Business acquisition, purchase price allocation, goodwill		79,294	62,726					6,779			1,156			1,461				4,626				5,212					7,220				449				23
Business acquisition, purchase price allocation, intangible assets, finite lived									180			37			209				473				448					494				249				13
Business acquisition, purchase price allocation, inventory								66			29			35				218									27				1
Business acquisition, purchase price allocation, fixed assets								81						4				182				209					116
Business acquisition, purchase price allocation, prepaid expenses								23			10							3													1				1
Business acquisition, purchase price allocation, deferred revenue											48			114				1,135
Business acquisition, purchase price allocation, receivables														9
Business acquisition, amortization period for customer relationships		105 days
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount		16,953
Business acquisition, purchase price allocation, goodwill		17,530
Percent of controlling interest ownership in Weight Watchers Danone China Limited (China Joint Venture)	100.00%					51.00%
Percent ownership in Weight Watchers Danone China Limited (China Joint Venture)							49.00%
Acquisition of minority equity interest in China Joint Venture through share purchase agreement					49.00%
Charge incurred in relation to shut down of China operations				$ 2,500

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Property and Equipment (Tables)

12 Months Ended

Dec. 28, 2013

Property, Plant and Equipment

The components of property and equipment were:

	December 28, 2013			December 29, 2012
Equipment	$	123,210		$	113,301
Leasehold improvements		77,771			70,229
		200,981			183,530
Less: Accumulated depreciation and amortization		(113,929	)		(111,762	)
	$	87,052		$	71,768

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Long-Term Debt (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Long-term Debt Instruments

The components of the Company’s long-term debt were as follows:

	December 28, 2013					December 29, 2012
	Balance		Effective Rate			Balance		Effective Rate
Revolving Facility due April 2, 2018	$	0		0.00	%	$	0		0.00	%
Tranche B-1 Term Facility due April 2, 2016		298,500		2.97	%		0		0.00	%
Tranche B-2 Term Facility due April 2, 2020		2,089,500		3.75	%		0		0.00	%
Revolver A-1 due June 30, 2014		0		0.00	%		6,374		3.12	%
Revolver A-2 due March 15, 2017		0		0.00	%		23,626		2.56	%
Term A-1 Loan due January 26, 2013		0		0.00	%		38,226		1.53	%
Term B Loan due January 26, 2014		0		0.00	%		129,445		1.90	%
Term C Loan due June 30, 2015		0		0.00	%		113,808		2.72	%
Term D Loan due June 30, 2016		0		0.00	%		118,217		2.77	%
Term E Loan due March 15, 2017		0		0.00	%		1,154,651		2.53	%
Term F Loan due March 15, 2019		0		0.00	%		822,017		3.92	%
Total Debt		2,388,000		3.49	%		2,406,364		2.91	%
Less Current Portion		30,000					114,695
Total Long-Term Debt	$	2,358,000				$	2,291,669

Schedule of Maturities of Long-term Debt

At December 28, 2013, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter are as follows:

2014	$	30,000
2015		24,000
2016		307,500
2017		21,000
2018		21,000
Thereafter		1,984,500
	$	2,388,000

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Basis of Presentation

12 Months Ended

Dec. 28, 2013

Basis of Presentation

1. Basis of Presentation

The accompanying consolidated financial statements include the accounts of Weight Watchers International, Inc. and all of its subsidiaries. The term “Company” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of its businesses consolidated for purposes of its financial statements. The term “WWI” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of the Company’s businesses other than WW.com. The term “WW.com” as used throughout these notes is used to indicate WeightWatchers.com, Inc. and all of the Company’s Internet-based businesses.

As further discussed in Note 3, effective with its formation in February 2008, the Company consolidated the financial statements of Weight Watchers China Limited.

Revisions:

The Company identified a correction in the statements of cash flows for the year ended 2012 and 2011 as it relates to foreign currency activity, resulting in a reclassification between accrued liabilities and effect of exchange rate changes on cash and cash equivalents and other. The effects of this revision on the previously reported amounts are as follows:

	December 29, 2012			December 31, 2011
Cash provided by operating activities	$	(12,684	)	$	2,231
Effect of exchange rate changes on cash and cash equivalents	$	12,684		$	(2,231	)

In addition, the classification of certain brand marketing funds received from licensees has been revised to reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Product sales and other, net	$	12,058	$	12,620	$	13,338
Cost of meetings, products and other	$	1,078	$	1,589	$	1,974
Gross profit	$	10,979	$	11,031	$	11,364
Marketing expenses	$	10,279	$	10,158	$	10,572
Selling, general and administrative expenses	$	701	$	873	$	792

These adjustments were not considered to be material, individually or in the aggregate, to previously issued financial statements. However, because of the significance of these adjustments, the Company revised its fiscal 2012 and fiscal 2011 consolidated statements of cash flows and its first nine months of fiscal 2013, fiscal 2012 and fiscal 2011 consolidated statements of income. These revisions had no impact on the consolidated balance sheets, consolidated statements of comprehensive income or consolidated statements of changes in stockholders’ equity included in these financial statements.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 28, 2013

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, 2013		December 29, 2012		December 31, 2011
Numerator:
Net income attributable to Weight Watchers International, Inc.	$	204,725	$	257,426	$	304,867
Denominator:
Weighted average shares of common stock outstanding		56,144		60,294		73,344
Effect of dilutive common stock equivalents		250		629		787
Weighted average diluted common shares outstanding		56,394		60,923		74,131
EPS attributable to Weight Watchers International, Inc.
Basic	$	3.65	$	4.27	$	4.16
Diluted	$	3.63	$	4.23	$	4.11

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Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Quarterly Financial Information

The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years ended December 28, 2013 and December 29, 2012.

	For the Fiscal Quarters Ended
	March 30, 2013		June 29, 2013		September 28, 2013		December 28, 2013
Fiscal year ended December 28, 2013
Revenues, net	$	490,790	$	470,888	$	396,334	$	366,111
Gross profit		283,637		283,715		231,980		201,780
Operating income		103,119		153,976		124,520		79,142
Net income		48,753		64,916		60,258		30,798
Basic EPS	$	0.87	$	1.16	$	1.07	$	0.55
Diluted EPS	$	0.87	$	1.15	$	1.07	$	0.54

	For the Fiscal Quarters Ended
	March 31, 2012		June 30, 2012		September 29, 2012		December 29, 2012
Fiscal year ended December 29, 2012
Revenues, net	$	506,786	$	488,610	$	432,903	$	411,133
Gross profit		291,171		297,032		257,651		247,964
Operating income		102,774		153,508		131,984		122,539
Net income		54,605		77,462		67,364		57,995
Basic EPS	$	0.74	$	1.37	$	1.21	$	1.04
Diluted EPS	$	0.74	$	1.36	$	1.20	$	1.03

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Long-Term Debt - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended		12 Months Ended					12 Months Ended			12 Months Ended					12 Months Ended				12 Months Ended		1 Months Ended			1 Months Ended			1 Months Ended			1 Months Ended			1 Months Ended			1 Months Ended			1 Months Ended
	Apr. 30, 2013	Jun. 29, 2013	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Sep. 28, 2013	Mar. 30, 2013	Dec. 28, 2013 Revolving Facility due April 2, 2018	Apr. 02, 2013 Revolving Facility due April 2, 2018	Dec. 29, 2012 Revolving Facility due April 2, 2018	Dec. 28, 2013 Revolving Facility due April 2, 2018 London Interbank Offered Rate (LIBOR)	Dec. 28, 2013 Revolving Facility due April 2, 2018 Base Rate Plus	Dec. 28, 2013 Tranche B-1 Term Facility due April 2, 2016	Apr. 02, 2013 Tranche B-1 Term Facility due April 2, 2016	Dec. 29, 2012 Tranche B-1 Term Facility due April 2, 2016	Dec. 28, 2013 Tranche B-1 Term Facility due April 2, 2016 London Interbank Offered Rate (LIBOR)	Dec. 28, 2013 Tranche B-2 Term Facility due April 2, 2020	Apr. 02, 2013 Tranche B-2 Term Facility due April 2, 2020	Dec. 29, 2012 Tranche B-2 Term Facility due April 2, 2020	Dec. 28, 2013 Tranche B-2 Term Facility due April 2, 2020 London Interbank Offered Rate (LIBOR)	Dec. 28, 2013 Tranche B-2 Term Facility due April 2, 2020 Base Rate Plus	Apr. 30, 2013 Term B Loan due January 26, 2014	Dec. 28, 2013 Term B Loan due January 26, 2014	Dec. 29, 2012 Term B Loan due January 26, 2014	Apr. 30, 2013 Term C Loan due June 30, 2015	Dec. 28, 2013 Term C Loan due June 30, 2015	Dec. 29, 2012 Term C Loan due June 30, 2015	Apr. 30, 2013 Term D Loan due June 30, 2016	Dec. 28, 2013 Term D Loan due June 30, 2016	Dec. 29, 2012 Term D Loan due June 30, 2016	Apr. 30, 2013 Term E Loan due March 15, 2017	Dec. 28, 2013 Term E Loan due March 15, 2017	Dec. 29, 2012 Term E Loan due March 15, 2017	Apr. 30, 2013 Term F Loan due March 15, 2019	Dec. 28, 2013 Term F Loan due March 15, 2019	Dec. 29, 2012 Term F Loan due March 15, 2019	Apr. 30, 2013 Revolver A-1 Loan due June 30, 2014	Dec. 28, 2013 Revolver A-1 Loan due June 30, 2014	Dec. 29, 2012 Revolver A-1 Loan due June 30, 2014	Apr. 30, 2013 Revolver A-2 Loan due March 15, 2017	Dec. 28, 2013 Revolver A-2 Loan due March 15, 2017	Dec. 29, 2012 Revolver A-2 Loan due March 15, 2017	Apr. 02, 2013 Term Loan Facility	Dec. 28, 2013 WWI Credit Facility
Debt Instrument
WWI Credit Facility, maximum borrowing capacity										$ 250,000					$ 300,000				$ 2,100,000
Fees incurred in connection with debt refinancing		44,817
Payments of term loan	2,399,904			2,488,364	124,833	139,285																	128,759			110,602			117,612			1,125,044			817,887			21,247			78,753
Early extinguishment of debt charge		21,685	1,328	21,685	1,328	0
Credit facility available amount									248,446	248,848
Debt outstanding amount																																												2,400,000
Credit Facility, aggregate principal amount outstanding				2,388,000	2,406,364				0		0			298,500		0		2,089,500		0				0	129,445		0	113,808		0	118,217		0	1,154,651		0	822,017		0	6,374		0	23,626		2,388,000
Letters of credit issued				1,554					1,554
WWI Credit Facility, minimum interest rate																					0.75%	1.75%
WWI Credit Facility, additional interest rate												2.25%	1.25%				2.75%				3.00%
Additional applicable margin in the event the Company receives a corporate rating of BB- from S&P (or lower) and a corporate rating of Ba3 from Moody's (or lower)				0.25%
Revolving credit facility, commitment fee on unused commitments									0.40%
Credit agreement customary covenants, percentage by which borrowings under Revolving Facility to exceed revolving commitments to require maintenance of specified financial ratio		20.00%		20.00%			20.00%	20.00%
Minimum borrowings required to maintain specified financial ratio				50,000
Borrowings under revolver				$ 0
Average interest rate on debt				3.65%	2.99%
Average interest rate on debt				4.08%	3.50%

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Segment and Geographic Data - Additional Information (Detail)	12 Months Ended
	Dec. 28, 2013 Segment
Segment Reporting Information
Number of reportable segments	2
WWI
Segment Reporting Information
Number of reportable segments	1

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013		Dec. 29, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 174,557		$ 70,215
Receivables (net of allowances: December 28, 2013-$3,477 and December 29, 2012-$3,447)	36,248		37,363
Inventories	40,939		46,846
Deferred income taxes	24,457		21,757
Prepaid expenses and other current assets	39,524		41,786
TOTAL CURRENT ASSETS	315,725		217,967
Property and equipment, net	87,052		71,768
Franchise rights acquired	836,835		783,695
Goodwill	79,294		62,726
Trademarks and other intangible assets, net	45,297		52,480
Deferred financing costs, net	42,046		26,571
Other noncurrent assets	2,682		3,400
TOTAL ASSETS	1,408,931		1,218,607
CURRENT LIABILITIES
Portion of long-term debt due within one year	30,000		114,695
Accounts payable	45,496		49,349
Salaries and wages payable	65,810		56,490
Accrued marketing and advertising	15,509		27,437
Accrued interest	22,776		13,552
Other accrued liabilities	89,899		100,171
Deferred revenue	76,330		86,161
TOTAL CURRENT LIABILITIES	345,820		447,855
Long-term debt	2,358,000		2,291,669
Deferred income taxes	164,064		129,431
Other	15,669		15,111
TOTAL LIABILITIES	2,883,553		2,884,066
Commitments and contingencies (Note 13)
TOTAL DEFICIT
Common stock, $0 par value; 1,000,000 shares authorized; 111,988 shares issued	0		0
Treasury stock, at cost, 55,562 shares at December 28, 2013 and 56,234 shares at December 29, 2012	(3,256,406)		(3,281,831)
Retained earnings	1,773,267		1,603,513
Accumulated other comprehensive income	8,517	[1]	12,859	[1]
TOTAL DEFICIT	(1,474,622)		(1,665,459)
TOTAL LIABILITIES AND TOTAL DEFICIT	$ 1,408,931		$ 1,218,607

[1] Amounts in parentheses indicate debits

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Franchise Rights Acquired, Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure
Indefinite-lived intangible assets, impairment charges	$ 1,166
Finite-lived intangible assets, aggregate amortization expense	24,562	17,796	16,545
Internal-use Computer Software
Goodwill and Intangible Assets Disclosure
Intangible assets, impairment charges	2,653
Mexico and Hong Kong Operations | Franchise Rights
Goodwill and Intangible Assets Disclosure
Indefinite-lived intangible assets, impairment charges	1,166
China Operations
Goodwill and Intangible Assets Disclosure
Intangible assets, impairment charges	$ 1,235

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CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL DEFICIT (USD $) In Thousands	Total	Common Stock	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interest
Beginning balance at Jan. 01, 2011	$ (690,724)	$ 0	$ (1,794,066)	$ (4,517)	$ 1,103,817	$ 4,042
Beginning balance (in shares) at Jan. 01, 2011		111,988	38,618
Purchase of noncontrolling interest	(4,472)				(953)	(3,519)
Comprehensive Income	314,462			10,118	304,867	(523)
Issuance of treasury stock under stock plans (in shares)			(1,042)
Issuance of treasury stock under stock plans	39,970		31,633		8,337
Tax benefit of restricted stock units vested and stock options exercised	5,093				5,093
Cash dividends declared	(51,612)				(51,612)
Purchase of treasury stock (in shares)	814		814
Purchase of treasury stock	(31,550)		(31,550)
Compensation expense on share-based awards	9,067				9,067
Ending balance at Dec. 31, 2011	(409,766)	0	(1,793,983)	5,601	1,378,616	0
Ending balance (in shares) at Dec. 31, 2011		111,988	38,390
Comprehensive Income	264,684			7,258	257,426	0
Issuance of treasury stock under stock plans (in shares)			(435)
Issuance of treasury stock under stock plans	10,663		16,341		(5,678)
Tax benefit of restricted stock units vested and stock options exercised	3,408				3,408
Cash dividends declared	(39,104)				(39,104)
Purchase of treasury stock (in shares)			18,279
Purchase of treasury stock	(1,498,902)		(1,498,902)
Tender Offer fees	(5,287)		(5,287)
Compensation expense on share-based awards	8,845				8,845
Ending balance at Dec. 29, 2012	(1,665,459)	0	(3,281,831)	12,859	1,603,513	0
Ending balance (in shares) at Dec. 29, 2012		111,988	56,234
Comprehensive Income	200,383			(4,342)	204,725	0
Issuance of treasury stock under stock plans (in shares)			(672)
Issuance of treasury stock under stock plans	15,121		25,425		(10,304)
Tax benefit of restricted stock units vested and stock options exercised	537				537
Cash dividends declared	(29,459)				(29,459)
Compensation expense on share-based awards	4,255				4,255
Ending balance at Dec. 28, 2013	$ (1,474,622)	$ 0	$ (3,256,406)	$ 8,517	$ 1,773,267	$ 0
Ending balance (in shares) at Dec. 28, 2013		111,988	55,562

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Weighted Average Assumptions Used to Estimate Fair Value of Option Award on Grand Date (Detail)	3 Months Ended	12 Months Ended
	Dec. 28, 2013	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.80%	1.60%	1.80%
Volatility		36.50%	35.50%	33.60%
Risk-free interest rate, minimum		1.30%	1.00%	1.50%
Risk-free interest rate, maximum		2.20%	1.40%	2.80%
Expected term (years)		6 years 6 months	6 years 6 months	6 years 6 months

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Cash Flow Information (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Cash Flow, Supplemental Disclosures

	December 28, 2013		December 29, 2012		December 31, 2011
Net cash paid during the year for:
Interest expense	$	88,860	$	68,808	$	52,591
Income taxes	$	87,071	$	133,131	$	144,925
Noncash investing and financing activities were as follows:
Fair value of net assets/(liabilities) acquired in connection with acquisitions	$	175	$	0	$	0
Dividends declared but not yet paid at year-end	$	177	$	289	$	13,145

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Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Provision for estimated expenses	$ 8,593	$ 8,561
Operating loss carryforwards	40,587	34,714
Salaries and wages	6,238	4,522
Share-based compensation	4,705	6,958
Other	6,562	6,336
Less: valuation allowance	(36,372)	(31,015)
Total deferred tax assets	30,313	30,076
Depreciation	(6,381)	(2,844)
Other comprehensive income	(5,446)	(8,180)
Other	(1,046)	0
Amortization	(157,047)	(126,726)
Total deferred tax liabilities	(169,920)	(137,750)
Net deferred tax liabilities	$ (139,607)	$ (107,674)

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Fair Value Measurements

12 Months Ended

Dec. 28, 2013

Fair Value Measurements

15. Fair Value Measurements

Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

When measuring fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs.

Fair Value of Financial Instruments

The Company’s significant financial instruments include long-term debt and interest rate swap agreements.

The fair value of the Company’s long-term debt is determined by utilizing average bid prices on or near the end of each fiscal quarter (Level 2 input). As of December 28, 2013, and December 29, 2012, the fair value of the Company’s long-term debt was approximately $2,169,908 and $2,410,724, respectively.

Derivative Financial Instruments

The fair values for the Company’s derivative financial instruments are determined using observable current market information such as the prevailing LIBOR interest rate and LIBOR yield curve rates and include consideration of counterparty credit risk. See Note 16 for disclosures related to derivative financial instruments.

The following table presents the aggregate fair value of the Company’s derivative financial instruments:

			Fair Value Measurements Using:
	Total 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, 2013	$	7,578	$	0	$	7,578	$	0
Interest rate swap liability at December 29, 2012	$	13,871	$	0	$	13,871	$	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, 2013 and December 29, 2012.

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 28, 2013

Minimum Rental Commitments Under Non-Cancelable Operating Leases

Minimum rental commitments under non-cancelable operating leases, primarily for office and rental facilities, at December 28, 2013, consist of the following:

2014	$	41,095
2015		36,642
2016		30,704
2017		22,076
2018		16,898
2019 and thereafter		118,001
Total	$	265,416

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 28, 2013

Accumulated Other Comprehensive Income

17. Accumulated Other Comprehensive Income

Amounts reclassified out of accumulated other comprehensive income are as follows:

Changes in Accumulated Other Comprehensive Income by Component^(a)

	Fiscal year ended December 28, 2013
	Loss on Qualifying Hedges			Foreign Currency Translation Adjustments			Total
Beginning Balance at December 29, 2012	$	(6,602	)	$	19,461		$	12,859
Other comprehensive loss before reclassifications, net of tax		(4,124	)		(6,341	)		(10,465	)
Amounts reclassified from accumulated other comprehensive income, net of tax(b)		6,123			0			6,123
Net current period other comprehensive income (loss)		1,999			(6,341	)		(4,342	)
Ending Balance at December 28, 2013	$	(4,603	)	$	13,120		$	8,517

(a) Amounts in parentheses indicate debits

(b) See separate table below for details about these reclassifications

Reclassifications out of Accumulated Other Comprehensive Income^(a)

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Other Comprehensive Income Components	Fiscal Year Ended December 28, 2013			Affected Line Item in the Statement Where Net Income is Presented
Loss on Qualifying Hedges
Interest rate contracts	$	(10,037	)	Interest expense
		(10,037	)	Income before income taxes
		3,914		Provision for income taxes
	$	(6,123	)	Net income

(a) Amounts in parentheses indicate debits to profit / loss

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Employee Benefit Plans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Profit Sharing Plan
Defined Contribution Plan Disclosure [Line Items]
Employee benefit plans, contribution cost	$ 1,658	$ 2,779	$ 3,704
Profit Sharing Plan | Management
Defined Contribution Plan Disclosure [Line Items]
Employee benefit plans, contribution cost	2,651	2,954	2,369
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, contribution cost	$ 2,888	$ 2,730	$ 2,466
Savings Plan | Maximum
Defined Contribution Plan Disclosure [Line Items]
Employee benefit plans, employer matching contribution percentage	100.00%
Employee benefit plans, employer contribution percentage	3.00%

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Operating activities:
Net income	$ 204,725	$ 257,426	$ 304,344
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	44,904	36,640	30,995
Amortization of deferred financing costs	7,672	7,070	4,825
Impairment of intangible and long-lived assets	5,426	0	0
Share-based compensation expense	4,255	8,845	9,067
Deferred tax provision	35,380	26,765	25,291
Allowance for doubtful accounts	596	(1,067)	1,441
Reserve for inventory obsolescence	9,580	10,491	13,203
Foreign currency exchange rate loss/(gain)	659	(722)	(80)
Loss on disposal of assets	1,417	590	500
Loss on investment	0	2,697	3,585
Early extinguishment of debt	21,685	1,328	0
Other items, net	0	0	105
Changes in cash due to:
Receivables	345	5,870	(563)
Inventories	(2,226)	(1,341)	(24,456)
Prepaid expenses	1,037	(639)	2,531
Accounts payable	(3,607)	(11,794)	17,495
UK self-employment liability	(7,272)	(37,441)	2,931
Accrued liabilities	4,988	28,042	2,348
Deferred revenue	(10,521)	1,539	10,555
Income taxes	4,473	2,408	2,922
Cash provided by operating activities	323,516	336,707	407,039
Investing activities:
Capital expenditures	(40,657)	(48,807)	(21,750)
Capitalized software expenditures	(21,277)	(29,926)	(23,086)
Cash paid for acquisitions	(83,825)	(30,400)	0
Other items, net	411	(323)	(374)
Cash used for investing activities	(145,348)	(109,456)	(45,210)
Financing activities:
Proceeds from new term loans	2,400,000	1,449,397	0
Net borrowings/(payments) on revolver	70,000	30,000	(174,000)
Payments on long-term debt	(2,488,364)	(124,833)	(139,285)
Payment of dividends	(29,571)	(51,961)	(51,624)
Payments to acquire treasury stock	0	(1,504,189)	(34,924)
Deferred financing costs	(44,817)	(26,248)	0
Proceeds from stock options exercised	16,187	12,688	42,040
Tax benefit of restricted stock units vested and stock options exercised	2,132	4,026	5,831
Cash used for financing activities	(74,433)	(211,120)	(351,962)
Effect of exchange rate changes on cash and cash equivalents and other	607	885	(13)
Net increase in cash and cash equivalents	104,342	17,016	9,854
Cash and cash equivalents, beginning of fiscal year	70,215	53,199	43,345
Cash and cash equivalents, end of fiscal year	$ 174,557	$ 70,215	$ 53,199

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Receivables, allowances	$ 3,477	$ 3,447
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	111,988	111,988
Treasury stock, shares	55,562	56,234

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Income Taxes

12 Months Ended

Dec. 28, 2013

Income Taxes

10. Income Taxes

The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income:

	December 28, 2013			December 29, 2012		December 31, 2011
Current:
US federal	$	60,556		$	99,437	$	121,860
State		9,583			12,719		18,298
Foreign		25,121			20,614		13,299
	$	95,260		$	132,770	$	153,457
Deferred:
US federal	$	31,801		$	23,002	$	23,410
State		3,634			2,629		2,675
Foreign		(55	)		1,134		(794	)
	$	35,380		$	26,765	$	25,291
Total tax provision	$	130,640		$	159,535	$	178,748

The components of the Company’s consolidated income before income taxes consist of the following:

	December 28, 2013		December 29, 2012		December 31, 2011
Domestic	$	255,183	$	337,321	$	400,310
Foreign		80,182		79,640		82,782
	$	335,365	$	416,961	$	483,092

The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
US federal statutory rate		35.0	%		35.0	%		35.0	%
Federal and state tax reserve provision		(0.1	)		0.2			(0.6	)
States income taxes (net of federal benefit)		2.7			2.6			3.0
Foreign taxes		0.3			(0.3	)		(0.4	)
Increase in valuation allowance		0.9			0.7			0.5
Loss on closure of Finland		0.0			0.0			(0.8	)
Other		0.2			0.1			0.3
Effective tax rate		39.0	%		38.3	%		37.0	%

The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows:

	December 28, 2013			December 29, 2012
Provision for estimated expenses	$	8,593		$	8,561
Operating loss carryforwards		40,587			34,714
Salaries and wages		6,238			4,522
Share-based compensation		4,705			6,958
Other		6,562			6,336
Less: valuation allowance		(36,372	)		(31,015	)
Total deferred tax assets	$	30,313		$	30,076
Depreciation	$	(6,381	)	$	(2,844	)
Other comprehensive income		(5,446	)		(8,180	)
Other		(1,046	)		0
Amortization		(157,047	)		(126,726	)
Total deferred tax liabilities	$	(169,920	)	$	(137,750	)
Net deferred tax liabilities	$	(139,607	)	$	(107,674	)

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, 2013 and December 29, 2012, various foreign subsidiaries had net operating loss carryforwards of approximately $148,107 and $126,219, respectively, most of which can be carried forward indefinitely.

The Company’s undistributed earnings of foreign subsidiaries are not considered to be reinvested permanently. Accordingly, the Company has recorded all taxes, after taking into account foreign tax credits, on the undistributed earnings of foreign subsidiaries.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
Balance at beginning of year	$	5,319		$	5,040		$	15,794
Additions based on tax positions related to the current year		1,428			1,647			1,537
Additions based on tax positions of prior years		0			0			0
Reductions for tax positions of prior years		(963	)		(1,219	)		(11,901	)
Settlements		0			(149	)		(390	)
Balance at end of year	$	5,784		$	5,319		$	5,040

At December 28, 2013, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $4,824. As of December 28, 2013, given the nature of the Company’s uncertain tax positions, it is reasonably possible that there will not be a significant change in the Company’s uncertain tax benefits within the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $2,217 and $3,405 of accrued interest and penalties at December 28, 2013 and December 29, 2012, respectively. The Company recognized $(1,188), $823 and $(256) in interest and penalties during the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. At December 28, 2013, with few exceptions, the Company was no longer subject to US federal, state or local income tax examinations by tax authorities for years prior to 2010, or non-US income tax examinations by tax authorities for years prior to 2004.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 28, 2013	Jan. 31, 2014	Jun. 28, 2013
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	WTW
Entity Registrant Name	WEIGHT WATCHERS 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 Common Stock, Shares Outstanding		56,426,741
Entity Public Float			$ 1,254,625,620

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Employee Benefit Plans

12 Months Ended

Dec. 28, 2013

Employee Benefit Plans

11. Employee Benefit Plans

The Company sponsors the Second Amended and Restated Weight Watchers Savings Plan (the “Savings Plan”) for salaried and certain hourly US employees of the Company. The Savings Plan is a defined contribution plan that provides for employer matching contributions of 100% of the employee’s tax deferred contributions up to 3% of an employee’s eligible compensation. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,888, $2,730 and $2,466, respectively.

During fiscal 2011, the Company received a favorable determination letter from the IRS that qualifies the Savings Plan under Section 401(a) of the Internal Revenue Code.

Pursuant to the Savings Plan, the Company also makes profit sharing contributions for all full-time salaried US employees who are eligible to participate in the Savings Plan (except for certain management personnel). The profit sharing contribution is a guaranteed monthly employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The Savings Plan also has a discretionary supplemental profit sharing employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. Expense related to these contributions for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,658, $2,779 and $3,704, respectively.

For certain US management personnel, the Company sponsors the Second Amended and Restated Weight Watchers Executive Profit Sharing Plan (“EPSP”). Under the IRS definition, the EPSP is considered a Nonqualified Deferred Compensation Plan. There is a promise of payment by the Company made on the employees’ behalf instead of an individual account with a cash balance. The EPSP provides for a guaranteed employer contribution on behalf of each participant based on the participant’s age and a percentage of the participant’s eligible compensation. The EPSP has a discretionary supplemental employer contribution component that is determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors. The account is valued at the end of each fiscal month, based on an annualized interest rate of prime plus 2%, with an annualized cap of 15%. Expense related to this commitment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $2,651, $2,954 and $2,369, respectively.

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Quarterly Financial Information (Unaudited) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Quarterly Financial Information [Line Items]
Revenues, net	$ 366,111	$ 396,334	$ 470,888	$ 490,790	$ 411,133	$ 432,903	$ 488,610	$ 506,786	$ 1,724,123	$ 1,839,432	$ 1,832,494
Gross profit	201,780	231,980	283,715	283,637	247,964	257,651	297,032	291,171	1,001,112	1,093,818	1,058,505
Operating income	79,142	124,520	153,976	103,119	122,539	131,984	153,508	102,774	460,757	510,805	546,328
Net income	$ 30,798	$ 60,258	$ 64,916	$ 48,753	$ 57,995	$ 67,364	$ 77,462	$ 54,605	$ 204,725	$ 257,426	$ 304,344
Basic EPS	$ 0.55	$ 1.07	$ 1.16	$ 0.87	$ 1.04	$ 1.21	$ 1.37	$ 0.74	$ 3.65	$ 4.27	$ 4.16
Diluted EPS	$ 0.54	$ 1.07	$ 1.15	$ 0.87	$ 1.03	$ 1.20	$ 1.36	$ 0.74	$ 3.63	$ 4.23	$ 4.11

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Meeting fees, net	$ 851,626	$ 934,933	$ 990,296
Product sales and other, net	350,271	400,161	442,703
Internet revenues	522,226	504,338	399,495
Revenues, net	1,724,123	1,839,432	1,832,494
Cost of meetings, products and other	652,283	681,972	718,284
Cost of Internet revenues	70,728	63,642	55,705
Cost of revenues	723,011	745,614	773,989
Gross profit	1,001,112	1,093,818	1,058,505
Marketing expenses	295,628	353,673	302,923
Selling, general and administrative expenses	244,727	229,340	209,254
Operating income	460,757	510,805	546,328
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
Income before income taxes	335,365	416,961	483,092
Provision for income taxes	130,640	159,535	178,748
Net income	204,725	257,426	304,344
Net loss attributable to the noncontrolling interest	0	0	523
Net income attributable to Weight Watchers International, Inc.	$ 204,725	$ 257,426	$ 304,867
Earnings Per Share attributable to Weight Watchers International, Inc.
Basic	$ 3.65	$ 4.27	$ 4.16
Diluted	$ 3.63	$ 4.23	$ 4.11
Weighted average common shares outstanding
Basic	56,144	60,294	73,344
Diluted	56,394	60,923	74,131
Dividends declared per common share	$ 0.53	$ 0.70	$ 0.70

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Property and Equipment

12 Months Ended

Dec. 28, 2013

Property and Equipment

5. Property and Equipment

The components of property and equipment were:

	December 28, 2013			December 29, 2012
Equipment	$	123,210		$	113,301
Leasehold improvements		77,771			70,229
		200,981			183,530
Less: Accumulated depreciation and amortization		(113,929	)		(111,762	)
	$	87,052		$	71,768

As described in Note 2, in fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $372 related to property, plant and equipment.

Depreciation and amortization expense of property and equipment for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $20,342, $18,844 and $14,450, respectively.

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Franchise Rights Acquired, Goodwill and Other Intangible Assets

12 Months Ended

Dec. 28, 2013

Franchise Rights Acquired, Goodwill and Other Intangible Assets

4. Franchise Rights Acquired, Goodwill and Other Intangible Assets

The Company performed its annual impairment review of goodwill and other indefinite-lived intangible assets as of December 28, 2013 and December 29, 2012. As a result of this review, the Company recorded a $1,166 franchise rights acquired impairment charge related to its Mexico and Hong Kong operations in fiscal 2013 and determined that no impairment existed in fiscal 2012. Franchise rights acquired are due to acquisitions of the Company’s franchised territories. The franchise rights acquired allocated to the WW.com reporting segment relate to the acquisition of franchise promotion agreements and other factors associated with the acquired franchise territories. For the year ended December 28, 2013, the change in the carrying value of franchise rights acquired is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, the impairment charge noted above and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	774,514		$	9,181		$	783,695
Franchise rights acquired during the year		34,501			30,669			65,170
Impairment charge		(1,166	)		0			(1,166	)
Effect of exchange rate changes		(9,703	)		(1,161	)		(10,864	)
Balance as of December 28, 2013	$	798,146		$	38,689		$	836,835

Goodwill is due to the acquisition of the Company by H.J. Heinz Company (“Heinz”) in 1978, the acquisition of WW.com in 2005 and the acquisitions of the Company’s franchised territories. For the year ended December 28, 2013, the change in the carrying amount of goodwill is due to the Company’s acquisitions of certain of its franchisees during fiscal 2013, as described in Note 3, and the effect of exchange rate changes as follows:

	WWI Segment			WW.com Segment			Total
Balance as of December 29, 2012	$	32,033		$	30,693		$	62,726
Goodwill acquired during the year		9,998			7,532			17,530
Effect of exchange rate changes		(562	)		(400	)		(962	)
Balance as of December 28, 2013	$	41,469		$	37,825		$	79,294

Aggregate amortization expense for finite-lived intangible assets was recorded in the amounts of $24,562, $17,796, and $16,545 for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

The carrying amount of finite-lived intangible assets as of December 28, 2013 and December 29, 2012 was as follows:

	December 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Capitalized software costs	$	85,095	$	62,418	$	86,857	$	54,134
Trademarks		10,691		9,955		10,342		9,615
Website development costs		69,660		48,060		57,042		38,357
Other		7,021		6,737		7,034		6,689
	$	172,467	$	127,170	$	161,275	$	108,795

As described in Note 2, in fiscal 2013, the Company recorded an impairment charge of $1,235 for amortizable intangible assets related to the shutdown of its China operations and an impairment charge of $2,653 related to internal-use computer software that was not expected to provide substantive service potential.

Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years is as follows:

2014	$	20,841
2015	$	14,997
2016	$	7,593
2017	$	1,765
2018 and thereafter	$	101

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Derivative Instruments and Hedging

12 Months Ended

Dec. 28, 2013

Derivative Instruments and Hedging

16. Derivative Instruments and Hedging

As of December 28, 2013 and December 29, 2012, the Company had in effect an interest rate swap with a notional amount totaling $466,250 and $583,250, respectively. In January 2009, the Company entered into this forward-starting interest rate swap with an effective date of January 4, 2010 and a termination date of January 27, 2014. During the term of this forward-starting interest rate swap, the notional amount fluctuated, but was no higher than the amount outstanding as of the end of fiscal 2013. The initial notional amount was $425,000 and the highest notional amount was $755,000. Effective April 2, 2013, due to the Company’s debt refinancing, the Company ceased the application of hedge accounting for this swap. Accordingly, changes in the fair value of this swap have been recorded in earnings subsequent to April 2, 2013 and were immaterial for the fiscal year ended December 28, 2013.

On July 26, 2013, in order to hedge an additional portion of its variable rate debt, the Company entered into a forward-starting interest rate swap with an effective date of March 31, 2014 and a termination date of April 2, 2020. The initial notional amount of this swap is $1,500,000. During the term of this swap, the notional amount will decrease from $1,500,000 effective March 31, 2014 to $1,250,000 on April 3, 2017 with a further reduction to $1,000,000 on April 1, 2019. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 2.38%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive income (loss).

As of December 28, 2013 and December 29, 2012, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive income (loss) in the amounts of $4,603 ($7,546 before taxes) and $6,602 ($10,824 before taxes), respectively.

The Company is hedging forecasted transactions for periods not exceeding the next seven years. The Company expects approximately $12,017 ($19,700 before taxes) of derivative losses included in accumulated other comprehensive income (loss) at December 28, 2013, based on current market rates, will be reclassified into earnings within the next 12 months.

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Cash Flow Information

12 Months Ended

Dec. 28, 2013

Cash Flow Information

12. Cash Flow Information

	December 28, 2013		December 29, 2012		December 31, 2011
Net cash paid during the year for:
Interest expense	$	88,860	$	68,808	$	52,591
Income taxes	$	87,071	$	133,131	$	144,925
Noncash investing and financing activities were as follows:
Fair value of net assets/(liabilities) acquired in connection with acquisitions	$	175	$	0	$	0
Dividends declared but not yet paid at year-end	$	177	$	289	$	13,145

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Earnings Per Share

12 Months Ended

Dec. 28, 2013

Earnings Per Share

8. Earnings Per Share

Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of common shares outstanding during the periods presented adjusted for the effect of dilutive common stock equivalents.

The following table sets forth the computation of basic and diluted EPS for the fiscal years ended:

	December 28, 2013		December 29, 2012		December 31, 2011
Numerator:
Net income attributable to Weight Watchers International, Inc.	$	204,725	$	257,426	$	304,867
Denominator:
Weighted average shares of common stock outstanding		56,144		60,294		73,344
Effect of dilutive common stock equivalents		250		629		787
Weighted average diluted common shares outstanding		56,394		60,923		74,131
EPS attributable to Weight Watchers International, Inc.
Basic	$	3.65	$	4.27	$	4.16
Diluted	$	3.63	$	4.23	$	4.11

The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted average number of common shares for diluted EPS was 1,285, 536 and 188 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

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Summary of Option Activity Under Stock Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013
Shares
Beginning Balance	2,239
Granted	1,551
Exercised	(620)
Canceled	(957)
Ending Balance	2,213
Exercisable at December 28, 2013	362
Weighted-Average Exercise Price
Beginning Balance	$ 42.75
Granted	$ 36.35
Exercised	$ 26.09
Canceled	$ 51.62
Ending Balance	$ 39.09
Exercisable at December 28, 2013	$ 32.03
Weighted-Average Remaining Contractual Life (Yrs.)
Outstanding at December 28, 2013	7 years 2 months 12 days
Exercisable at December 28, 2013	5 years 6 months
Aggregate Intrinsic Value
Granted
Exercised
Canceled
Outstanding at December 28, 2013	2,372
Exercisable at December 28, 2013	$ 2,166

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Long-Term Debt

12 Months Ended

Dec. 28, 2013

Long-Term Debt

6. Long-Term Debt

The components of the Company’s long-term debt were as follows:

	December 28, 2013					December 29, 2012
	Balance		Effective Rate			Balance		Effective Rate
Revolving Facility due April 2, 2018	$	0		0.00	%	$	0		0.00	%
Tranche B-1 Term Facility due April 2, 2016		298,500		2.97	%		0		0.00	%
Tranche B-2 Term Facility due April 2, 2020		2,089,500		3.75	%		0		0.00	%
Revolver A-1 due June 30, 2014		0		0.00	%		6,374		3.12	%
Revolver A-2 due March 15, 2017		0		0.00	%		23,626		2.56	%
Term A-1 Loan due January 26, 2013		0		0.00	%		38,226		1.53	%
Term B Loan due January 26, 2014		0		0.00	%		129,445		1.90	%
Term C Loan due June 30, 2015		0		0.00	%		113,808		2.72	%
Term D Loan due June 30, 2016		0		0.00	%		118,217		2.77	%
Term E Loan due March 15, 2017		0		0.00	%		1,154,651		2.53	%
Term F Loan due March 15, 2019		0		0.00	%		822,017		3.92	%
Total Debt		2,388,000		3.49	%		2,406,364		2.91	%
Less Current Portion		30,000					114,695
Total Long-Term Debt	$	2,358,000				$	2,291,669

The Company’s credit facilities at the end of the first quarter of fiscal 2013 consisted of the following term loan facilities and revolving credit facilities: a tranche A-1 loan (“Term A-1 Loan”), a tranche B loan (“Term B Loan”), a tranche C loan (“Term C Loan”), a tranche D loan (“Term D Loan”), a tranche E loan (“Term E Loan”), a tranche F loan (“Term F Loan”), revolving credit facility A-1 (“Revolver A-1” ) and revolving credit facility A-2 (“Revolver A-2”).

On April 2, 2013, the Company refinanced its credit facilities pursuant to a Credit Agreement (the “New Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and an issuing bank, The Bank of Nova Scotia, as revolving agent, swingline lender and an issuing bank, and the other parties thereto. The New Credit Agreement provides for (a) a revolving credit facility (including swing line loans and letters of credit) in an initial aggregate principal amount of $250,000 that will mature on April 2, 2018 (the “Revolving Facility”), (b) an initial term B-1 loan credit facility in an aggregate principal amount of $300,000 that will mature on April 2, 2016 (the “Tranche B-1 Term Facility”) and (c) an initial term B-2 loan credit facility in an aggregate principal amount of $2,100,000 that will mature on April 2, 2020 (the “Tranche B-2 Term Facility”, and together with the Tranche B-1 Term Facility, the “Term Facilities”; the Term Facilities and Revolving Facility collectively, the “WWI Credit Facility”). In connection with this refinancing, the Company used the proceeds from borrowings under the Term Facilities to pay off a total of $2,399,904 of outstanding loans, consisting of $128,759 of Term B Loans, $110,602 of Term C Loans, $117,612 of Term D Loans, $1,125,044 of Term E Loans, $817,887 of Term F Loans, $21,247 of loans under the Revolver A-1 and $78,753 of loans under the Revolver A-2. Following the refinancing of a total of $2,399,904 of loans, at April 2, 2013, the Company had $2,400,000 debt outstanding under the Term Facilities and $248,848 of availability under the Revolving Facility. The Company incurred fees of $44,817 during the second quarter of fiscal 2013 in connection with this refinancing. In the second quarter of fiscal 2013, the Company wrote-off fees associated with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt.

At December 28, 2013, the Company had $2,388,000 outstanding under the WWI Credit Facility, consisting entirely of term loans and there were no loans outstanding under the Revolving Facility. In addition, at December 28, 2013, the Revolving Facility had $1,554 in issued but undrawn letters of credit outstanding thereunder and $248,446 in available unused commitments thereunder. The proceeds from borrowings under the Revolving Facility (including swing line loans and letters of credit) will be used for working capital and general corporate purposes.

Borrowings under the New Credit Agreement bear interest at a rate equal to, at the Company’s option, LIBOR plus an applicable margin or a base rate plus an applicable margin. LIBOR under the Tranche B-2 Term Facility is subject to a minimum interest rate of 0.75% and the base rate under the Tranche B-2 Term Facility is subject to a minimum interest rate of 1.75%. The applicable margin relating to both of the Term Facilities will increase by 25 basis points in the event that the Company receives a corporate rating of BB- (or lower) from S&P and a corporate rating of Ba3 (or lower) from Moody’s. The applicable margin relating to the Revolving Facility will fluctuate depending upon the Company’s Consolidated Leverage Ratio (as defined in the New Credit Agreement). At December 28, 2013, borrowings under the Tranche B-1 Term Facility bore interest at LIBOR plus an applicable margin of 2.75% and borrowings under the Tranche B-2 Term Facility bore interest at LIBOR plus an applicable margin of 3.00%. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, had there been any borrowings under the Revolving Facility, it would have borne interest at LIBOR plus an applicable margin of 2.25% or base rate plus an applicable margin of 1.25%. On a quarterly basis, the Company will pay a commitment fee to the lenders under the Revolving Facility in respect of unutilized commitments thereunder, which commitment fee will fluctuate depending upon the Company’s Consolidated Leverage Ratio. At the Company’s Consolidated Leverage Ratio as of December 28, 2013, the commitment fee was 0.40% per annum. The Company also will pay customary letter of credit fees and fronting fees under the Revolving Facility.

The New Credit Agreement contains customary covenants including covenants that, in certain circumstances, restrict the Company’s ability to incur additional indebtedness, pay dividends on and redeem capital stock, make other payments, including investments, sell its assets and enter into consolidations, mergers and transfers of all or substantially all of its assets. The Revolving Facility requires the Company to not exceed a specified Consolidated Leverage Ratio, but only if borrowings under the Revolving Facility exceed 20.0% of revolving commitments as of the end of such fiscal quarter. As of December 28, 2013, borrowings in excess of $50,000 would require us to not exceed such ratio. As of December 28, 2013, there were no borrowings under our Revolving Facility and total letters of credit issued were $1,554. The Term Facilities do not require the Company to maintain any financial ratios. The WWI Credit Facility is guaranteed by certain of the Company’s existing and future subsidiaries. Substantially all of the Company’s assets secure the WWI Credit Facility.

At December 28, 2013 and December 29, 2012, the Company’s debt consisted entirely of variable-rate instruments. Interest rate swaps were entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The average interest rate on the Company’s debt, exclusive of the impact of swaps, was approximately 3.65% and 2.99% per annum at December 28, 2013 and December 29, 2012, respectively. The average interest rate on our debt, including the impact of swaps, was approximately 4.08% and 3.50% per annum at December 28, 2013 and December 29, 2012, respectively.

Maturities

At December 28, 2013, the aggregate amounts of the Company’s existing long-term debt maturing in each of the next five fiscal years and thereafter are as follows:

2014	$	30,000
2015		24,000
2016		307,500
2017		21,000
2018		21,000
Thereafter		1,984,500
	$	2,388,000

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Treasury Stock

12 Months Ended

Dec. 28, 2013

Treasury Stock

7. Treasury Stock

On February 23, 2012, the Company commenced a “modified Dutch auction” tender offer for up to $720,000 in value of its common stock at a purchase price not less than $72.00 and not greater than $83.00 per share (the “Tender Offer”). Prior to the Tender Offer, on February 14, 2012, the Company entered into an agreement (the “Purchase Agreement”) with Artal Holdings Sp. z o.o., Succursale de Luxembourg (“Artal Holdings”) (the then-current record holder of all of the Company’s shares owned by Artal Group, S.A. and its affiliates) whereby Artal Holdings agreed to sell to the Company, at the same price as was determined in the Tender Offer, such number of its shares of the Company’s common stock that, upon the closing of this purchase after the completion of the Tender Offer, Artal Holdings’ percentage ownership in the outstanding shares of the Company’s common stock would be substantially equal to its level prior to the Tender Offer. Artal Holdings also agreed not to participate in the Tender Offer so that it would not affect the determination of the purchase price of the shares in the Tender Offer.

The Tender Offer expired at midnight, New York time, on March 22, 2012, and on March 28, 2012 the Company repurchased 8,780 shares at a purchase price of $82.00 per share. On April 9, 2012, the Company repurchased 9,499 of Artal Holdings’ shares at a purchase price of $82.00 per share pursuant to the Purchase Agreement. In March 2012, the Company amended and extended the WWI Credit Facility to finance these repurchases. See Note 6.

On October 9, 2003, the Company’s Board of Directors authorized and the Company announced a program to repurchase up to $250,000 of the Company’s outstanding common stock. On each of June 13, 2005, May 25, 2006 and October 21, 2010, the Company’s Board of Directors authorized and the Company announced adding $250,000 to the program. The repurchase program allows for shares to be purchased from time to time in the open market or through privately negotiated transactions. No shares will be purchased from Artal Holdings and its parents and subsidiaries under the program. The repurchase program currently has no expiration date.

During the fiscal years ended December 28, 2013 and December 29, 2012, the Company purchased no shares of its common stock in the open market under the repurchase program. During the fiscal year ended December 31, 2011, the Company purchased 814 shares of its common stock in the open market under the repurchase program for a total cost of $31,550. The repurchase of shares of common stock under the Tender Offer and from Artal Holdings pursuant to the Purchase Agreement was not made pursuant to the Company’s existing repurchase program.

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Stock Plans

12 Months Ended

Dec. 28, 2013

Stock Plans

9. Stock Plans

Incentive Compensation Plans

On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan” and together with the 2008 Plan, the “Stock Plans”). These plans are designed to promote the long-term financial interests and growth of the Company by attracting, motivating and retaining employees with the ability to contribute to the success of the business and to align compensation for the Company’s employees over a multi-year period directly with the interests of the shareholders of the Company. The Company’s Board of Directors or a committee thereof administers the Stock Plans.

Under the 2008 Plan, grants may take the following forms at the Compensation and Benefit Committee’s discretion: non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2008 Plan was 3,000, subject to increase and adjustment as set forth in the 2008 Plan. Pursuant to the terms of the 2008 Plan, the number of shares of our common stock available for issuance under the 2008 Plan was increased by 550, the remaining number of shares of our common stock with respect to which awards could be granted under the Company’s 1999 Stock Purchase and Option Plan upon its termination.

Under the 2004 Plan, grants may take the following forms at the Company’s Board of Directors or its committee’s sole discretion: non-qualified stock options, incentive stock options, stock appreciation rights, RSUs, restricted stock and other share-based awards. As of its effective date, the maximum number of shares of common stock available for grant under the 2004 Plan was 2,500.

Under the Stock Plans, the Company also grants fully-vested shares of its common stock to certain members of its Board of Directors. While these shares are fully vested, beginning with stock grants made in the fourth quarter of 2006, the directors are restricted from selling these shares while they are still serving on the Company’s Board of Directors. During the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company granted 14, 13, and 13 fully-vested shares, respectively, and recognized compensation expense of $524, $707 and $772, respectively.

The Company issues common stock for share-based compensation awards from treasury stock. The total compensation cost that has been charged against income for these plans was $4,255, $8,845 and $9,067 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. Such amounts have been included as a component of selling, general and administrative expenses. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $1,174, $2,742 and $2,895 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The tax benefits realized from options exercised and RSUs vested totaled $4,217, $5,847 and $11,309 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. No compensation costs were capitalized. As of December 28, 2013, there was $24,881 of total unrecognized compensation cost related to stock options and RSUs granted under the Stock Plans. That cost is expected to be recognized over a weighted-average period of approximately 2.5 years.

While the Stock Plans permit various types of awards, other than the aforementioned shares issued to directors, grants under the plans have historically been either non-qualified stock options or RSUs. In fiscal 2013, the Company also granted special performance-based stock option awards. The following describes some further details of these awards.

Stock Option Awards

Option Awards with Time Vesting Criteria

Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with time vesting criteria (“Time Vesting Options”). The options are exercisable based on the terms outlined in the agreements. Time Vesting Options outstanding at December 28, 2013 vest over a period of three to five years and the expiration term is ten years. Time Vesting Options outstanding at December 28, 2013 have an exercise price between $19.74 and $79.55 per share.

The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these option grants to be the midpoint between the vesting period and the contractual term of each award. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time Vesting Options. The dividend yield is based on our historic average dividend yield. For Time Vesting Options granted in the fourth quarter of fiscal 2013, the dividend yield is zero because there is no longer a dividend.

	December 28, 2013	December 29, 2012	December 31, 2011
Dividend yield	0.8%	1.6%	1.8%
Volatility	36.5%	35.5%	33.6%
Risk-free interest rate	1.3% - 2.2%	1.0% - 1.4%	1.5% - 2.8%
Expected term (years)	6.5	6.5	6.5

Option Awards with Time and Performance Vesting Criteria

Pursuant to the option components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received stock options with both time and performance vesting criteria (“T&P Vesting Options”). The options are exercisable based on the terms outlined in the agreements. During the fourth quarter of fiscal 2013, the Company granted 686,549 T&P Vesting Options to certain employees that will vest based on the achievement of both time and performance vesting criteria. The time-vesting criteria will be 100% satisfied on the third anniversary of the date of the grant and the performance criteria is contingent upon meeting or exceeding certain stock price hurdles. With respect to the performance-vesting criteria, the stock options will fully vest in 20% increments upon the first date that the average closing stock price for the 20 consecutive preceding trading days is equal to or greater than specified stock price hurdles. The fair value of the T&P Vesting Options was estimated on the date of grant and was based on the likelihood of the Company achieving the performance conditions. The Company estimated the fair value of the T&P Vesting Options to be $8.46. The Company estimated this fair value using a Monte Carlo simulation that used various assumptions that included expected volatility of 36.48%, a risk free rate of 1.55% and an expected term of 3.0 years. Expected volatility was based on the historical volatility of the Company’s stock. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the performance measurement period. The expected term represents the period from the grant date to the end of the five year performance period. Compensation expense on T&P Vesting Options is recognized ratably over the three year required service period as this period is longer than the derived service period calculated by the Monte Carlo simulation.

A summary of all option activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at December 29, 2012		2,239		$	42.75
Granted		1,551		$	36.35
Exercised		(620	)	$	26.09
Canceled		(957	)	$	51.62
Outstanding at December 28, 2013		2,213		$	39.09		7.2	$	2,372
Exercisable at December 28, 2013		362		$	32.03		5.5	$	2,166

The weighted-average grant-date fair value of all options granted was $11.37, $16.60 and $20.44 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total intrinsic value of Time Vesting Options exercised was $9,858, $12,734 and $27,808 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively.

Cash received from Time Vesting Options exercised during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $16,187, $12,688 and $42,040, respectively.

Restricted Stock Units

Pursuant to the restricted stock components of the Stock Plans, the Company’s Board of Directors authorized the Company to enter into agreements under which certain employees received RSUs. The RSUs are exercisable based on the terms outlined in the agreements. The RSUs vest over a period of three to five years. The fair value of RSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of RSU activity under the Stock Plans for the year ended December 28, 2013 is presented below:

	Shares			Weighted-Average Grant-Date Fair Value
Outstanding at December 29, 2012		246		$	50.67
Granted		155		$	38.40
Vested		(63	)	$	27.08
Forfeited		(85	)	$	56.23
Outstanding at December 28, 2013		253		$	47.11

The weighted-average grant-date fair value of RSUs granted was $38.40, $55.54 and $64.32 for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The total fair value of RSUs vested during the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1,705, $5,536 and $3,657, respectively.

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Difference Between US Federal Statutory Tax Rate and consolidated Effective Tax Rate (Detail)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Reconciliation of Statutory Federal Tax Rate [Line Items]
US federal statutory rate	35.00%	35.00%	35.00%
Federal and state tax reserve provision	(0.10%)	0.20%	(0.60%)
States income taxes (net of federal benefit)	2.70%	2.60%	3.00%
Foreign taxes	0.30%	(0.30%)	(0.40%)
Increase in valuation allowance	0.90%	0.70%	0.50%
Loss on closure of Finland	0.00%	0.00%	(0.80%)
Other	0.20%	0.10%	0.30%
Effective tax rate	39.00%	38.30%	37.00%

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Tax Contingency [Line Items]
Net operating loss carry forwards	$ 148,107	$ 126,219
Total amount of unrecognized tax benefits, if recognized, would affect effective tax rate	4,824
Unrecognized tax benefits, accrued interest and penalties	2,217	3,405
Unrecognized tax benefits, interest and penalties recognized	$ (1,188)	$ 823	$ (256)

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Components of Consolidated Income Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Taxes
Domestic	$ 255,183	$ 337,321	$ 400,310
Foreign	80,182	79,640	82,782
Income before income taxes	$ 335,365	$ 416,961	$ 483,092

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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Components of Income Tax Expense (Benefit)

The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income:

	December 28, 2013			December 29, 2012		December 31, 2011
Current:
US federal	$	60,556		$	99,437	$	121,860
State		9,583			12,719		18,298
Foreign		25,121			20,614		13,299
	$	95,260		$	132,770	$	153,457
Deferred:
US federal	$	31,801		$	23,002	$	23,410
State		3,634			2,629		2,675
Foreign		(55	)		1,134		(794	)
	$	35,380		$	26,765	$	25,291
Total tax provision	$	130,640		$	159,535	$	178,748

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, 2013		December 29, 2012		December 31, 2011
Domestic	$	255,183	$	337,321	$	400,310
Foreign		80,182		79,640		82,782
	$	335,365	$	416,961	$	483,092

Schedule of Effective Income Tax Rate Reconciliation

The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
US federal statutory rate		35.0	%		35.0	%		35.0	%
Federal and state tax reserve provision		(0.1	)		0.2			(0.6	)
States income taxes (net of federal benefit)		2.7			2.6			3.0
Foreign taxes		0.3			(0.3	)		(0.4	)
Increase in valuation allowance		0.9			0.7			0.5
Loss on closure of Finland		0.0			0.0			(0.8	)
Other		0.2			0.1			0.3
Effective tax rate		39.0	%		38.3	%		37.0	%

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, 2013			December 29, 2012
Provision for estimated expenses	$	8,593		$	8,561
Operating loss carryforwards		40,587			34,714
Salaries and wages		6,238			4,522
Share-based compensation		4,705			6,958
Other		6,562			6,336
Less: valuation allowance		(36,372	)		(31,015	)
Total deferred tax assets	$	30,313		$	30,076
Depreciation	$	(6,381	)	$	(2,844	)
Other comprehensive income		(5,446	)		(8,180	)
Other		(1,046	)		0
Amortization		(157,047	)		(126,726	)
Total deferred tax liabilities	$	(169,920	)	$	(137,750	)
Net deferred tax liabilities	$	(139,607	)	$	(107,674	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 28, 2013			December 29, 2012			December 31, 2011
Balance at beginning of year	$	5,319		$	5,040		$	15,794
Additions based on tax positions related to the current year		1,428			1,647			1,537
Additions based on tax positions of prior years		0			0			0
Reductions for tax positions of prior years		(963	)		(1,219	)		(11,901	)
Settlements		0			(149	)		(390	)
Balance at end of year	$	5,784		$	5,319		$	5,040

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Property and Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense, property and equipment	$ 20,342	$ 18,844	$ 14,450
China Operations
Property, Plant and Equipment [Line Items]
Property, plant and equipment, impairment charges	$ 372

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Segment and Geographic Data

12 Months Ended

Dec. 28, 2013

Segment and Geographic Data

14. Segment and Geographic Data

The Company has two reportable segments: WWI and WW.com. WWI has multiple operating segments which have been aggregated into one reportable segment. WWI and WW.com are two separate and distinct businesses for which discrete financial information is available. This discrete financial information is maintained and managed separately and is reviewed regularly by the chief operating decision maker. All intercompany activity is eliminated in consolidation.

Information about the Company’s reportable operating segments is as follows:

	Year Ended December 28, 2013
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,197,375	$	526,748	$	0		$	1,724,123
Depreciation and amortization	$	41,468	$	11,108	$	0		$	52,576
Operating income	$	154,745	$	306,012	$	0		$	460,757
Interest expense									103,108
Other expense, net									599
Early extinguishment of debt									21,685
Provision for taxes									130,640
Net income								$	204,725
Total assets	$	1,733,464	$	776,515	$	(1,101,048	)	$	1,408,931

	Year Ended December 29, 2012
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,331,916	$	507,516	$	0		$	1,839,432
Depreciation and amortization	$	34,073	$	9,637	$	0		$	43,710
Operating income	$	250,335	$	260,470	$	0		$	510,805
Interest expense									90,537
Other expense, net									1,979
Early extinguishment of debt									1,328
Provision for taxes									159,535
Net income								$	257,426
Total assets	$	1,539,434	$	567,478	$	(888,305	)	$	1,218,607

	Year Ended December 31, 2011
	WWI		WW.com		Intercompany Eliminations			Consolidated
Total revenue	$	1,428,690	$	403,804	$	0		$	1,832,494
Depreciation and amortization	$	25,744	$	10,076	$	0		$	35,820
Operating income	$	339,963	$	206,365	$	0		$	546,328
Interest expense									59,850
Other income, net									3,386
Provision for taxes									178,748
Net income								$	304,344
Total assets	$	1,413,109	$	392,381	$	(683,862	)	$	1,121,628

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

	Revenues for the Year Ended
	December 28, 2013		December 29, 2012		December 31, 2011
NACO meeting fees	$	595,097	$	653,396	$	686,758
International Company-owned meeting fees		256,529		281,537		303,538
Product sales		245,319		294,758		334,303
Franchise royalties		9,035		12,732		14,461
Internet revenues		522,226		504,338		399,495
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
North America	$	1,181,696	$	1,283,232	$	1,266,005
United Kingdom		172,783		204,506		227,238
Continental Europe		299,403		270,701		247,003
Australia, New Zealand and other		70,241		80,993		92,248
	$	1,724,123	$	1,839,432	$	1,832,494

	Long-Lived Assets
	December 28, 2013		December 29, 2012		December 31, 2011
North America	$	82,518	$	65,708	$	35,196
United Kingdom		1,192		1,645		1,508
Continental Europe		2,083		2,431		2,208
Australia, New Zealand and other		1,259		1,984		2,160
	$	87,052	$	71,768	$	41,072

Effective the first day of fiscal 2014 (i.e. December 29, 2013), the Company realigned its organizational structure to better leverage its significant assets and align its innovation efforts, which resulted in new reporting segments (North America, United Kingdom, Continental Europe, and Rest of World) for the purpose of making operational and resource decisions and assessing financial performance. The segment information presented in these financial statements does not reflect this change as the change was not effected internally until the Company’s first quarter of fiscal 2014. The Company will begin reporting segment information based on these new segments in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2014.

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VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 28, 2013

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(IN THOUSANDS)

			Additions
	Balance at Beginning of Period		Charged to Costs and Expenses			Charged to Other Accounts		Deductions(1)			Balance at End of Period
FISCAL YEAR ENDED DECEMBER 28, 2013
Allowance for doubtful accounts	$	3,447	$	596		$	0	$	(566	)	$	3,477
Inventory and other reserves	$	6,942	$	9,580		$	0	$	(10,663	)	$	5,859
Tax valuation allowance	$	31,015	$	3,821		$	2,429	$	(893	)	$	36,372
FISCAL YEAR ENDED DECEMBER 29, 2012
Allowance for doubtful accounts	$	5,315	$	(1,067	)	$	26	$	(827	)	$	3,447
Inventory and other reserves	$	7,397	$	10,491		$	0	$	(10,946	)	$	6,942
Tax valuation allowance	$	25,781	$	3,387		$	2,322	$	(475	)	$	31,015
FISCAL YEAR ENDED DECEMBER 31, 2011
Allowance for doubtful accounts	$	5,191	$	1,441		$	0	$	(1,317	)	$	5,315
Inventory and other reserves	$	3,948	$	13,203		$	0	$	(9,754	)	$	7,397
Tax valuation allowance	$	24,989	$	2,512		$	970	$	(2,690	)	$	25,781

(1) Primarily represents the utilization of established reserves, net of recoveries, where applicable.

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Estimated Amortization Expense of Existing Finite-Lived Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Expected Amortization Expense
2014	$ 20,841
2015	14,997
2016	7,593
2017	1,765
2018 and thereafter	$ 101

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Effect of Revision on Previously Reported Amounts (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Cash provided by operating activities
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Statement Adjustment	$ (12,684)	$ 2,231
Effect of exchange rate changes on cash and cash equivalents
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Statement Adjustment	$ 12,684	$ (2,231)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013		Dec. 29, 2012	Dec. 31, 2011
Net income	$ 204,725		$ 257,426	$ 304,344
Other comprehensive income:
Foreign currency translation adjustments	(10,363)		763	(1,111)
Income tax effect on foreign currency translation adjustments	4,022		(225)	433
Foreign currency translation adjustments, net of taxes	(6,341)		538	(678)
Changes in fair value of derivatives	3,277		11,016	17,698
Income tax effect on changes in fair value of derivatives	(1,278)		(4,296)	(6,902)
Changes in fair value of derivatives, net of taxes	1,999		6,720	10,796
Net current period other comprehensive income (loss)	(4,342)	[1]	7,258	10,118
Comprehensive income	200,383		264,684	314,462
Comprehensive loss attributable to the noncontrolling interest	0		0	523
Comprehensive income attributable to Weight Watchers International, Inc.	$ 200,383		$ 264,684	$ 314,985

[1] Amounts in parentheses indicate debits

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Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture

12 Months Ended

Dec. 28, 2013

Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture

3. Acquisitions of Franchisees and Minority Equity Interest in China Joint Venture

Acquisitions of Franchisees

The acquisitions of franchisees have been accounted for under the purchase method of accounting and, accordingly, earnings of acquired franchisees have been included in the consolidated operating results of the Company since the applicable date of acquisition. During fiscal 2013 and fiscal 2012, the Company acquired certain assets of its franchisees as outlined below. There were no key franchise acquisitions in fiscal 2011.

On September 10, 2012, the Company acquired substantially all of the assets of its Southeastern Ontario and Ottawa, Canada franchisee, Slengora Limited, for a net purchase price of $16,755 plus assumed liabilities of $245. The total purchase price has been allocated to franchise rights acquired ($9,871), goodwill ($6,779), customer relationship value ($180), fixed assets ($81), inventory ($66) and prepaid expenses ($23).

On November 2, 2012, the Company acquired substantially all of the assets of its Adirondacks franchisee, Weight Watchers of the Adirondacks, Inc., for a purchase price of $3,400. The total purchase price has been allocated to franchise rights acquired ($2,216), goodwill ($1,156), customer relationship value ($37), inventory ($29) and prepaid expenses ($10) offset by deferred revenue of $48.

On December 20, 2012, the Company acquired substantially all of the assets of its Memphis, Tennessee franchisee, Weight Watchers of the Mid-South, Inc., for a purchase price of $10,000. The total purchase price has been allocated to franchise rights acquired ($8,396), goodwill ($1,461), customer relationship value ($209), inventory ($35), receivables ($9) and fixed assets ($4) offset by deferred revenue of $114.

On March 4, 2013, the Company acquired substantially all of the assets of its Alberta and Saskatchewan, Canada franchisees, Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd., for an aggregate purchase price of $35,000. The total purchase price has been allocated to franchise rights acquired ($30,633), goodwill ($4,626), customer relationship value ($473), inventory ($218), fixed assets ($182) and prepaid expenses ($3) offset by deferred revenue of $1,135.

On July 15, 2013, the Company acquired substantially all of the assets of its West Virginia franchisee, Weight Watchers of West Virginia, Inc., for a net purchase price of $16,028 less assumed assets, plus assumed liabilities, net of $28. The total purchase price has been allocated to franchise rights acquired ($10,131), goodwill ($5,212), customer relationship value ($448) and fixed assets ($209).

On July 22, 2013, the Company acquired substantially all of the assets of its Columbus, Ohio franchisee, Weight Watchers of Columbus, Inc., for a net purchase price of $23,357 plus assumed liabilities of $143 and its Reno, Nevada franchisee, Weight Watchers of Northern Nevada, Inc., for a net purchase price of $3,969 plus assumed liabilities of $31. The aggregate total purchase price has been allocated to franchise rights acquired ($19,643), goodwill ($7,220), customer relationship value ($494), fixed assets ($116) and inventory ($27).

On October 28, 2013, the Company acquired substantially all of the assets of its Manitoba, Canada franchisee, Weight Watchers of Manitoba Ltd., for a net purchase price of $5,197 plus assumed liabilities of $28 and its Franklin and St. Lawrence Counties, New York franchisee, Weight Watchers of Franklin and St. Lawrence Counties Inc., for a net purchase price of $274 plus assumed liabilities of $1. The total purchase price of the Manitoba, Canada franchisee has been preliminarily allocated to franchise rights acquired ($4,525), goodwill ($449), customer relationship value ($249), inventory ($1) and prepaid expenses ($1). The total purchase price of the Franklin and St. Lawrence Counties, New York franchisee has been preliminarily allocated to franchise rights acquired ($238), goodwill ($23), customer relationship value ($13) and prepaid expenses ($1).

The weighted-average amortization period of the customer relationships acquired in the above acquisitions was approximately 15 weeks. Due to the short-term nature of this asset, its estimated fair value has been recorded as a component of prepaid expenses and other current assets. The acquisitions resulted in goodwill related to, among other things, expected synergies in operations. The goodwill recorded in connection with these acquisitions represents the intangible assets that did not qualify for separate recognition in the financial statements. The Company expects that $16,953 of the total $17,530 of goodwill recorded in connection with the above acquisitions will be deductible for tax purposes. The effect of these franchise acquisitions was not material to the Company’s consolidated financial position, results of operations, or operating cash flows in the periods presented.

Acquisition of Minority Equity Interest in China Joint Venture

On February 5, 2008, Weight Watchers Asia Holdings Ltd. (“Weight Watchers Asia”), a direct, wholly-owned subsidiary of the Company, and Danone Dairy Asia (“Danone Asia”), an indirect, wholly-owned subsidiary of Groupe DANONE S.A., entered into a joint venture agreement to establish a weight management business in the People’s Republic of China. Pursuant to the terms of the joint venture agreement, Weight Watchers Asia and Danone Asia owned 51% and 49%, respectively, of the joint venture entity, Weight Watchers China Limited (together with all of its businesses, the “China Joint Venture”). Because the Company had a direct controlling financial interest in the China Joint Venture, it consolidated the entity from the first quarter of fiscal 2008.

On April 27, 2011, Weight Watchers Asia entered into a share purchase agreement with Danone Asia, pursuant to which Weight Watchers Asia acquired Danone Asia’s 49% minority equity interest in the China Joint Venture as of that date for consideration of $1. Effective April 27, 2011, the date of the acquisition of Danone Asia’s minority equity interest by Weight Watchers Asia, the Company owns 100% of the China Joint Venture and no longer accounts for a non-controlling interest in the China Joint Venture. The noncontrolling interest that had been reflected on the Company’s balance sheet was reclassified to retained earnings.

On December 12, 2013, the Company made a strategic decision to shut down its China operations. As a result of this decision, the Company incurred a charge of $2,500 related to severance and the impairment of property, plant and equipment and amortizable intangible assets.

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Stock Plans - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended												1 Months Ended			12 Months Ended
	Dec. 28, 2013	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Dec. 28, 2013 Stock Option Minimum	Dec. 28, 2013 Stock Option Maximum	Dec. 28, 2013 Restricted Stock Units	Dec. 29, 2012 Restricted Stock Units	Dec. 31, 2011 Restricted Stock Units	Dec. 28, 2013 Restricted Stock Units Minimum	Dec. 28, 2013 Restricted Stock Units Maximum	Dec. 28, 2013 Special Performance Based Options Awards D	Dec. 28, 2013 Time and Performance Based Stock Options	May 31, 2008 Stock Incentive Plan 2008	May 06, 2008 Stock Incentive Plan 2008	May 12, 2004 Stock Incentive Plan 2004	Dec. 28, 2013 Stock Compensation Plan	Dec. 29, 2012 Stock Compensation Plan	Dec. 31, 2011 Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock available for grant															3,000,000	2,500,000
Number of shares of our common stock available for issuance, increase														550,000
Share based compensation, fully-vested shares granted																	14,000	13,000	13,000
Share based compensation, value of fully-vested shares granted																	$ 524	$ 707	$ 772
Total share-based compensation expense		4,255	8,845	9,067
Total income tax benefit recognized for all share-based compensation arrangements		1,174	2,742	2,895
Tax benefits realized from options exercised and RSUs vested		4,217	5,847	11,309
Total unrecognized compensation cost related to stock options and RSUs granted	24,881	24,881
Compensation expense recognition period		2 years 6 months										3 years
Restricted stock units, vesting period					3 years	5 years				3 years	5 years
Stock option awards, expiration period		10 years
Options outstanding, exercise price, lower range		$ 19.74
Options outstanding, exercise price, upper range		$ 79.55
Dividend yield	0.00%	0.80%	1.60%	1.80%
Share-based option awards granted during period												686,549
Percentage of time-vesting criteria satisfied on third anniversary of date of grant												100.00%
Vesting of stock options increments												20.00%
Minimum number of consecutive preceding trading days specified for stock price hurdles												20
Fair value of T&P vesting options													$ 8.46
Expected volatility		36.50%	35.50%	33.60%								36.48%
Risk-free interest rate												1.55%
Expected term (years)		6 years 6 months	6 years 6 months	6 years 6 months								5 years
Weighted-average grant-date fair value of options granted		$ 11.37	$ 16.60	$ 20.44
Total intrinsic value of options exercised		9,858	12,734	27,808
Cash received from options exercised		16,187	12,688	42,040
Weighted-average grant-date fair value of RSUs granted		$ 38.40					$ 38.40	$ 55.54	$ 64.32
Total fair value of RSUs vested							$ 1,705	$ 5,536	$ 3,657

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Valuation And Qualifying Accounts And Reserves (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013		Dec. 29, 2012		Dec. 31, 2011
Allowance for doubtful accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 3,447		$ 5,315		$ 5,191
Additions charged to Costs and Expenses	596		(1,067)		1,441
Additions charged to Other Accounts	0		26		0
Deductions	(566)	[1]	(827)	[1]	(1,317)	[1]
Balance at End of Period	3,477		3,447		5,315
Inventory and other reserves
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	6,942		7,397		3,948
Additions charged to Costs and Expenses	9,580		10,491		13,203
Additions charged to Other Accounts	0		0		0
Deductions	(10,663)	[1]	(10,946)	[1]	(9,754)	[1]
Balance at End of Period	5,859		6,942		7,397
Tax valuation allowance
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	31,015		25,781		24,989
Additions charged to Costs and Expenses	3,821		3,387		2,512
Additions charged to Other Accounts	2,429		2,322		970
Deductions	(893)	[1]	(475)	[1]	(2,690)	[1]
Balance at End of Period	$ 36,372		$ 31,015		$ 25,781

[1] Primarily represents the utilization of established reserves, net of recoveries, where applicable.

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Cash Flow Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Net cash paid during the year for:
Interest expense	$ 88,860	$ 68,808	$ 52,591
Income taxes	87,071	133,131	144,925
Noncash investing and financing activities were as follows:
Fair value of net assets/(liabilities) acquired in connection with acquisitions	175	0	0
Dividends declared but not yet paid at year-end	$ 177	$ 289	$ 13,145

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2013

Fiscal Year

Fiscal Year:

The Company’s fiscal year ends on the Saturday closest to December 31^st and consists of either 52 or 53-week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on December 31^st of each year. This difference in fiscal years does not have a material effect on the consolidated financial statements.

Use of Estimates

Use of Estimates:

The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to inventories, the impairment analysis for goodwill and other indefinite-lived intangible assets, share-based compensation, income taxes, tax contingencies and litigation. The Company bases its estimates on historical experience and on various other factors and assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts could differ from these estimates.

Translation of Foreign Currencies

Translation of Foreign Currencies:

For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into US dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average rate of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss).

Foreign currency gains and losses arising from the translation of intercompany receivables with the Company’s international subsidiaries are recorded as a component of other expense (income), net, unless the receivable is considered long-term in nature, in which case the foreign currency gains and losses are recorded as a component of comprehensive income (loss).

Cash Equivalents

Cash Equivalents:

Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash balances may, at times, exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. Cash includes balances due from third-party credit card companies.

Inventories

Inventories:

Inventories, which consist of finished goods, are stated at the lower of cost or market on a first-in, first-out basis, net of reserves for obsolescence and shrinkage.

Property and Equipment

Property and Equipment:

Property and equipment are recorded at cost. For financial reporting purposes, equipment is depreciated on the straight-line method over the estimated useful lives of the assets (3 to 10 years). Leasehold improvements are amortized on the straight-line method over the shorter of the term of the lease or the useful life of the related assets. Expenditures for new facilities and improvements that substantially extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related depreciation are removed from the accounts and any related gains or losses are included in income.

Impairment of Long Lived Assets

Impairment of Long Lived Assets:

The Company reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable.

In fiscal 2013, the Company commenced the shutdown of its China operations and, as a result, recorded an impairment charge of $1,607 related to property, plant and equipment ($372) and amortizable intangible assets ($1,235). The Company also recorded an impairment charge of $2,653 in fiscal 2013 related to internal-use computer software that was not expected to provide substantive service potential.

Franchise Rights Acquired, Goodwill and Other Intangible Assets

Franchise Rights Acquired, Goodwill and Other Intangible Assets:

Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives of 3 to 20 years. The Company reviews goodwill and other indefinite-lived intangible assets, including franchise rights acquired, for potential impairment on at least an annual basis or more often if events so require. The Company performed fair value impairment testing as of the end of fiscal 2013 and fiscal 2012 on its goodwill and other indefinite-lived intangible assets.

In performing the impairment analysis for goodwill, the fair value for the Company’s reporting units is estimated using a discounted cash flow approach. This approach involves projecting future cash flows attributable to the reporting unit and discounting those estimated cash flows using an appropriate discount rate. The estimated fair value is then compared to the carrying value of the reporting unit. The Company has determined the appropriate reporting unit for purposes of assessing annual impairment to be the country for all reporting units aside from WW.com, for which the reporting unit has been aggregated into one unit. The values of goodwill for the WWI reporting units in the United States, Canada and other countries at December 28, 2013 were $32,668, $5,124 and $3,677, respectively, totaling $41,469. The value of goodwill for the WW.com reporting unit at December 28, 2013 was $37,825.

In performing the impairment analysis for franchise rights acquired, the fair value for the Company’s franchise rights acquired is estimated using a discounted cash flow approach referred to as the hypothetical start-up approach. The estimated fair value is then compared to the carrying value of the unit of accounting for those franchise rights. The Company has determined the appropriate unit of account for purposes of assessing annual impairment to be the country in which the acquisitions have occurred. The values of these franchise rights in the United States, Canada, United Kingdom, Australia/New Zealand and other countries at December 28, 2013 were $697,334, $110,346, $14,401, $13,740 and $1,014, respectively, totaling $836,835.

When determining fair value, the Company utilizes various assumptions, including projections of future cash flows, growth rates and discount rates. A change in these underlying assumptions will cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts. In the event such a decrease occurred, the Company would be required to record a corresponding charge, which would impact earnings. The Company would also be required to reduce the carrying amounts of the related assets on its balance sheet. The Company continues to evaluate these estimates and assumptions and believes that these assumptions are appropriate.

In performing the impairment analysis for the fiscal year ended December 28, 2013, the Company determined that, based on the fair values calculated, the carrying amounts of the franchise rights acquired related to its Mexico and Hong Kong operations exceeded their respective fair values as of the end of fiscal 2013 and recorded impairment charges of $935 and $231, respectively, for such rights. The Company determined that the carrying amounts of the remainder of these assets did not exceed their respective fair values, and therefore, no other impairment existed.

The Company expenses all software costs (including website development costs) incurred during the preliminary project stage and capitalizes all internal and external direct costs of materials and services consumed in developing software (including website development costs), once the development has reached the application development stage. Application development stage costs generally include software configuration, coding, installation to hardware and testing. These costs are amortized over their estimated useful life of 3 years for website development costs and from 3 to 5 years for all other software costs. All costs incurred for upgrades, maintenance and enhancements, including the cost of website content, which do not result in additional functionality, are expensed as incurred.

Revenue Recognition

Revenue Recognition:

WWI earns revenue by conducting meetings, selling products in its meetings and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements and selling advertising space in and copies of its magazines. Monthly Pass, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue over the period earned. Revenue from “pay-as-you-go” meeting fees, product sales, commissions and royalties is recognized when services are rendered, products are shipped to customers and title and risk of loss pass to the customers, and commissions and royalties are earned, respectively. Advertising revenue is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. WWI charges non-refundable registration fees in exchange for an introductory information session and materials it provides to new members in its meetings business. Revenue from these registration fees is recognized when the service and products are provided, which is generally at the same time payment is received from the customer. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized.

WW.com primarily generates revenue from monthly subscriptions for its Internet subscription products as well as Online advertising. Subscription fee revenues are recognized over the period that products are provided. One-time sign-up fees are deferred and recognized over the expected customer relationship period. Subscription fee revenues that are paid in advance are deferred and recognized on a straight-line basis over the subscription period. Online advertising revenue is recognized when the advertisement is viewed by the user of the website.

The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue when paid.

Advertising Costs

Advertising Costs:

Advertising costs consist primarily of television and digital media. All costs related to advertising are expensed in the period incurred, except for media production related costs, which are expensed the first time the advertising takes place. Total advertising expenses for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $274,160, $334,422 and $283,674, respectively.

Income Taxes

Income Taxes:

Deferred income tax assets and liabilities result primarily from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company considers historic levels of income, estimates of future taxable income and feasible tax planning strategies in assessing the need for a tax valuation allowance.

The Company recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on its consolidated statements of income.

In addition, assets and liabilities acquired in purchase business combinations are assigned their fair values and deferred taxes are provided for lower or higher tax bases.

Derivative Instruments and Hedging

Derivative Instruments and Hedging:

The Company is exposed to certain risks related to its ongoing business operations, primarily interest rate risk and foreign currency risk. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with the Company’s variable-rate borrowings. The Company does not use any derivative instruments for trading or speculative purposes.

The Company recognizes the fair value of all derivative instruments as either assets or liabilities on the balance sheet. The Company has designated and accounted for interest rate swaps as cash flow hedges of its variable-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The fair value of the Company’s interest rate swaps is reported in derivative payable and prepaid expenses and other current assets on its balance sheet. See Note 15 for a further discussion regarding the fair value of the Company’s interest rate swaps. The net effect of the interest payable and receivable under the Company’s interest rate swaps is included in interest expense on the statement of income.

Investments

Investments:

The Company uses the cost method to account for investments in which it holds 20% or less of the investee’s voting stock and over which it does not have significant influence.

Deferred Financing Costs

Deferred Financing Costs:

Deferred financing costs consist of fees paid by the Company as part of the establishment, exchange and/or modification of the Company’s long-term debt. During the fiscal year ended December 28, 2013, the Company incurred fees of $44,817 associated with the refinancing of the WWI Credit Facility (as defined in Note 6). The Company wrote-off fees in connection with this refinancing which resulted in the Company recording a charge of $21,685 in early extinguishment of debt. During the fiscal year ended December 29, 2012, the Company incurred deferred financing costs of $26,248 associated with the Tender Offer (as defined in Note 7). The Company wrote-off fees in connection with the Tender Offer which resulted in the Company recording a charge of $1,328 in early extinguishment of debt. During the fiscal year ended January 1, 2011, the Company incurred deferred financing costs of $11,483 associated with the refinancing of the Company’s then existing credit facilities. Such costs are being amortized using the straight-line method over the term of the related debt. Amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $7,672, $7,070 and $4,825, respectively.

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income:

The Company’s accumulated other comprehensive income includes net income, changes in the fair value of derivative instruments and the effects of foreign currency translations. At December 28, 2013 and December 29, 2012, the cumulative balance of changes in fair value of derivative instruments, net of taxes, was $(4,603) and $(6,602), respectively. At December 28, 2013 and December 29, 2012, the cumulative balance of the effects of foreign currency translations, net of taxes, was $13,120 and $19,461, respectively.

Reclassification

Reclassification:

Certain prior year amounts have been reclassified to conform to the current year presentation.

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Sources of Revenue and Other Information by Geographic Area (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Meeting fees									$ 851,626	$ 934,933	$ 990,296
Product sales									245,319	294,758	334,303
Franchise royalties									9,035	12,732	14,461
Internet revenues									522,226	504,338	399,495
Other									95,917	92,671	93,939
Net revenue	366,111	396,334	470,888	490,790	411,133	432,903	488,610	506,786	1,724,123	1,839,432	1,832,494
Long-lived assets	87,052				71,768				87,052	71,768	41,072
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									1,181,696	1,283,232	1,266,005
Long-lived assets	82,518				65,708				82,518	65,708	35,196
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									172,783	204,506	227,238
Long-lived assets	1,192				1,645				1,192	1,645	1,508
Continental Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									299,403	270,701	247,003
Long-lived assets	2,083				2,431				2,083	2,431	2,208
Australia New Zealand and Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue									70,241	80,993	92,248
Long-lived assets	1,259				1,984				1,259	1,984	2,160
NACO meeting fees
Revenues from External Customers and Long-Lived Assets [Line Items]
Meeting fees									595,097	653,396	686,758
International Company-owned meeting fees
Revenues from External Customers and Long-Lived Assets [Line Items]
Meeting fees									$ 256,529	$ 281,537	$ 303,538

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 28, 2013

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, 2013	$	7,578	$	0	$	7,578	$	0
Interest rate swap liability at December 29, 2012	$	13,871	$	0	$	13,871	$	0

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Commitments and Contingencies

12 Months Ended

Dec. 28, 2013

Commitments and Contingencies

13. Commitments and Contingencies

UK Self-Employment Matter

In July 2007, Her Majesty’s Revenue and Customs (“HMRC”) issued to the Company notices of determination and decisions that, for the period April 2001 to April 2007, its leaders and certain other service providers in the United Kingdom should have been classified as employees for tax purposes and, as such, it should have withheld tax from the leaders and certain other service providers pursuant to the “Pay As You Earn” (“PAYE”) and national insurance contributions (“NIC”) collection rules and remitted such amounts to HMRC. HMRC also issued a claim to the Company in October 2008 in respect of NIC which corresponds to the prior notices of assessment with respect to PAYE previously raised by HMRC.

In September 2007, the Company appealed to the UK First Tier Tribunal (Tax Chamber) (formerly known as the UK VAT and Duties Tribunal and hereinafter referred to as the “First Tier Tribunal”) against HMRC’s notices as to these classifications and against any amount of PAYE and NIC liability claimed to be owed by the Company. In February 2010, the First Tier Tribunal issued a ruling that the Company’s UK leaders should have been classified as employees for UK tax purposes and, as such, the Company should have withheld tax from its leaders pursuant to the PAYE and NIC collection rules for the period from April 2001 to April 2007 with respect to services performed by the leaders for the Company. The Company appealed the First Tier Tribunal’s adverse ruling to the UK Upper Tribunal (Tax and Chancery Chamber) (the “Upper Tribunal”), and in October 2011, the Upper Tribunal issued a ruling dismissing the Company’s appeal. In January 2012, the Company sought permission from the UK Court of Appeal to appeal the Upper Tribunal’s ruling, which the UK Court of Appeal refused in March 2012. In March 2012, the Company applied to the UK Court of Appeal for an oral hearing to seek permission to appeal to the UK Court of Appeal against the Upper Tribunal’s ruling. At the hearing in June 2012, the UK Court of Appeal granted the Company permission to appeal. A hearing date for the appeal was set for January 2013.

In December 2011, HMRC’s claim in respect of NIC was amended to increase the claimed amount for the period April 2002 to April 2007 and include the interest accrued thereon through December 2011. In addition, in February 2012, HMRC asserted a claim in respect of PAYE for the period April 2007 to April 2011 similar to what it had claimed for the period April 2001 to April 2007. The Company was granted permission to appeal this PAYE claim with the First Tier Tribunal and the First Tier Tribunal directed that the appeal be stayed until following the decision of the UK Court of Appeal with respect to the Company’s appeal of the Upper Tribunal’s ruling.

In light of the First Tier Tribunal’s adverse ruling and in accordance with accounting guidance for contingencies, the Company recorded in the fourth quarter of fiscal 2009 a reserve for the period from April 2001 through the end of fiscal 2009, inclusive of estimated accrued interest. On a quarterly basis, beginning in the first quarter of fiscal 2010 and through the second quarter of fiscal 2011, the Company recorded a reserve for UK withholding taxes with respect to its UK leaders consistent with this ruling. The reserve at the end of the second quarter of fiscal 2011 equaled approximately $43,671 in the aggregate based on the exchange rates at the end of fiscal 2011. As of the beginning of the third quarter of fiscal 2011, the Company began employing its UK leaders and therefore has ceased recording any further reserves for this matter. In February 2012, the Company paid HMRC, on a without prejudice basis, a portion of the amount previously reserved equal to approximately $30,018 based on the exchange rates at the payment date for estimated amounts claimed to be owed by the Company with respect to PAYE and interest thereon for the period April 2001 to July 2011. In December 2012, the Company reached an agreement with HMRC to settle the matter in its entirety for approximately $36,770. In January 2013, $6,752 was paid to HMRC, representing the balance due over the amount previously paid to HMRC in February 2012. In January 2013, the UK Court of Appeal dismissed the case and the First Tier Tribunal confirmed withdrawal of the Company’s appeal against HMRC.

Other Litigation Matters

Due to the nature of the Company’s activities, it is also, at times, subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows.

Lease Commitments

Minimum rental commitments under non-cancelable operating leases, primarily for office and rental facilities, at December 28, 2013, consist of the following:

2014	$	41,095
2015		36,642
2016		30,704
2017		22,076
2018		16,898
2019 and thereafter		118,001
Total	$	265,416

Total rent expense charged to operations under these leases for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $46,300, $40,485 and $36,572, respectively.