WeightWatchers 2015 Annual Report Download - page 4

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PART I
Item 1. Business
Overview
We are a leading, global-branded consumer company and the world’s leading commercial provider of
weight management services, operating globally through a network of Company-owned and franchise operations.
With over 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. Weight
Watchers-branded products and services include meetings conducted by us and our franchisees, digital weight
management products provided through our websites, mobile sites and apps, products sold at meetings, licensed
products sold in retail channels and magazine subscriptions and other publications. Our primary sources of
revenue are subscriptions for our monthly commitment plans for Weight Watchers meetings and Online
subscriptions. Our “meetings” business refers to providing access to meetings to our monthly commitment plan
subscribers, “pay-as-you-go” members, Total Access subscribers and other meeting members. “Online” refers to
Weight Watchers Online, Weight Watchers OnlinePlus, Personal Coaching and other digital subscription
products.
Our brand enjoys high awareness and credibility among all types of weight-conscious consumers—women
and men, consumers online and offline, the support-inclined and the self-help-inclined. We are one of only a few
commercial weight management programs whose efficacy has been clinically proven repeatedly. As the number
of overweight and obese people worldwide grows, the demand for an effective, scalable and consumer-friendly
weight management program increases. We believe our global presence and brand awareness uniquely position
us in the global weight management market. We continue to explore different channels to access this market,
including through our at-work meetings and healthcare strategic initiatives.
We believe the unique value provided by our offerings is inspiration, accountability and support. In the
more than 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, activity, behavior modification and group
support. As of the end of fiscal 2015, we had approximately 1.0 million active meeting subscribers, who could
attend over 32,000 Weight Watchers meetings around the world, which were run by more than 9,000 leaders—
each of whom lost weight on our program. We also believe we are the leading global provider of paid digital
subscription weight management products. As of the end of fiscal 2015, we had approximately 1.4 million active
Online subscribers. Our Online business, together with its products, including apps for mobile and tablet devices,
has evolved over time. Our strong brand, together with the effectiveness of our plans, loyal customer base and
unparalleled network of service providers, are unique in the marketplace.
Business Organization and Global Operations
We have four reportable segments based on an integrated geographical structure as follows: North America,
United Kingdom, Continental Europe (CE) and Other. Each reportable segment provides similar products and
services. Further information regarding our reportable segments and our geographic areas can be found in Part II,
Item 7 of this Annual Report on Form 10-K under “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and in Part IV, Item 15 of this Annual Report on Form 10-K under Note 15
“Segment and Geographic Data” in the Notes to the Consolidated Financial Statements. 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.
We operate in numerous countries around the world. Our “North America” reportable segment consists of
our United States and Canada Company-owned operations; our “United Kingdom” reportable segment consists
of our United Kingdom Company-owned operations; our “Continental Europe” reportable segment consists of
our Germany, Switzerland, France, Spain, Belgium, Netherlands and Sweden Company-owned operations; and
1