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140 - Disclosure - Income Taxes (Tables)
(http://www.weightwatchersinternational.com/taxonomy/role/NotesToFinancialStatementsIncomeTaxDisclosureTextBlockTables)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Statement [Line Items]Period [Axis]
2016-01-03 - 2016-12-31
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 31,
2016
    January 2,
2016
    January 3,
2015
 

Current:

      

US federal

   $ (15,254   $ (6,862   $ 12,904  

State

     604       1,859       (131

Foreign

     20,191       15,740       24,059  
  

 

 

   

 

 

   

 

 

 
   $ 5,541     $ 10,737     $ 36,832  
  

 

 

   

 

 

   

 

 

 

Deferred:

      

US federal

   $ 10,980     $ 10,756     $ 25,162  

State

     1,877       1,890       2,876  

Foreign

     (1,764     (548     1,061  
  

 

 

   

 

 

   

 

 

 
   $ 11,093     $ 12,098     $ 29,099  
  

 

 

   

 

 

   

 

 

 

Total tax provision

   $ 16,634     $ 22,835     $ 65,931  
  

 

 

   

 

 

   

 

 

 
 
 
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 31,
2016
     January 2,
2016
     January 3,
2015
 

Domestic

   $ 26,367      $ 6,299      $ 88,024  

Foreign

     57,760        49,315        95,640  
  

 

 

    

 

 

    

 

 

 
   $ 84,127      $ 55,614      $ 183,664  
  

 

 

    

 

 

    

 

 

 
 
 
Schedule of Effective Income Tax Rate Reconciliation

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

 

     December 31,
2016
    January 2,
2016
    January 3,
2015
 

US federal statutory rate

     35.0     35.0     35.0

Research and development credit

     (19.5     0.0       0.0  

Reserves for uncertain tax positions

     2.9       3.5       0.4  

Out-of-period adjustments

     2.6       4.5       0.0  

States income taxes (net of federal benefit)

     2.0       3.8       1.3  

Foreign taxes

     (0.1     (0.4     (0.6

(Decrease) increase in valuation allowance

     (2.3     (2.2     1.7  

Loss on closure of China

     0.0       0.0       (2.1

Other

     (0.8     (3.1     0.2  
  

 

 

   

 

 

   

 

 

 

Effective tax rate

     19.8     41.1     35.9
  

 

 

   

 

 

   

 

 

 
 
 
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 31,
2016
     January 2,
2016
 

Provision for estimated expenses

   $ 4,269      $ 4,638  

Depreciation

     2,230        4,164  

Operating loss carryforwards

     24,560        34,285  

Salaries and wages

     2,832        641  

Share-based compensation

     13,374        14,330  

Foreign tax credit carryforwards

     4,075        0  

Other

     12,154        8,024  

Other comprehensive income

     18,001        24,778  

Less: valuation allowance

     (18,270      (28,279
  

 

 

    

 

 

 

Total deferred tax assets

   $ 63,225      $ 62,581  
  

 

 

    

 

 

 

Other

   $ (1,209    $ (1,823

Amortization

     (229,559      (210,901
  

 

 

    

 

 

 

Total deferred tax liabilities

   $ (230,768    $ (212,724
  

 

 

    

 

 

 

Net deferred tax liabilities

   $ (167,543    $ (150,143
  

 

 

    

 

 

 
 
 
Reconciliation of Unrecognized Tax Benefits

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

 

     December 31,
2016
     January 2,
2016
     January 3,
2015
 

Balance at beginning of year

   $ 7,698      $ 6,268      $ 5,784  

Additions based on tax positions related to the current year

     4,580        2,106        1,304  

Reductions for tax positions of prior years

     (3,299      (676      (820
  

 

 

    

 

 

    

 

 

 

Balance at end of year

   $ 8,979      $ 7,698      $ 6,268