XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Revenue | 3 Months Ended
--- | ---
Mar. 31, 2018
Revenue From Contract With Customer [Abstract] |
Revenue |
4. | Revenue
Adoption of Revenue from Contracts with Customers On December 31, 2017, the Company adopted the updated guidance on revenue from contracts with customers using the modified retrospective method applied to those contracts which were not completed as of December 31, 2017. Results for reporting periods beginning after December 31, 2017 are presented under the updated guidance, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical revenue accounting. The Company recorded a net increase to opening retained earnings of $2,145 as of December 31, 2017 due to the cumulative impact of adopting the updated guidance, inclusive of a $3,501 decrease to deferred revenue, a decrease of $568 to prepaid expenses and other current assets and an increase to the deferred income tax liability of $788. Revenue Recognition Revenues are recognized when control of the promised services or goods is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services or goods. WWI earns revenue by conducting meetings, for which it charges a fee, predominantly through commitment plans, prepayment plans or the “pay-as-you-go” arrangement. WWI also earns revenue from subscriptions for the Company’s Online products, selling products (including publications) in its meetings, online and to its franchisees, collecting commissions from franchisees, collecting royalties related to licensing agreements, selling magazine subscriptions, publishing, selling advertising space on its websites and in copies of its publications and By Mail product sales. Commitment plans, prepaid meeting fees and magazine subscription revenue is recorded to deferred revenue and amortized into revenue as control is transferred over the period earned since the performance obligations are satisfied over time. In the meetings business, WWI generally charges non-refundable registration and starter fees in exchange for an introductory information session and materials it provides to new members. Revenue from these registration and starter fees is considered immaterial in the context of the contract and are recorded to deferred revenue and amortized into revenue over the commitment period. Online subscription revenues, consisting of the fees associated with subscriptions for the Company’s Online subscription products, including its Personal Coaching product, are deferred and recognized on a straight-line basis as control is transferred over the subscription period. One-time Online sign-up fees are considered immaterial in the context of the contract and the related revenue is recorded to deferred revenue and amortized into revenue over the commitment period. Revenue from “pay-as-you-go” meeting fees, product sales, By Mail, commissions and royalties is recognized at the point in time control is transferred, when services are rendered, products are shipped to customers and title and risk of loss passes to the customers, and commissions and royalties are earned, respectively. Revenue from advertising in magazines is recognized when advertisements are published. Revenue from magazine sales is recognized when the magazine is sent to the customer. For revenue transactions that involve multiple performance obligations, the amount of revenue recognized is determined using the relative fair value approach, which is generally based on each performance obligation’s stand-alone selling price. Discounts to customers, including free registration offers, are recorded as a deduction from gross revenue in the period such revenue was recognized. Revenue from advertising on its websites is recognized when the advertisement is viewed by the user. The Company grants refunds in aggregate amounts that historically have not been material. Because the period of payment of the refund generally approximates the period revenue was originally recognized, refunds are recorded as a reduction of revenue over the same period. The following table presents the Company’s revenues disaggregated by revenue source:
|  | Three Months Ended |
|  | March 31, |  | April 1, |
|  | 2018 |  | 2017 |
Meeting Fees |  | $ | 190,122 |  |  |  | $ | 164,352 |
Online Subscription Revenues |  |  | 138,547 |  |  |  |  | 97,124 |
Service revenues, net |  | $ | 328,669 |  |  |  | $ | 261,476 |
Product sales and other, net |  |  | 79,554 |  |  |  |  | 67,587 |
Revenues, net |  | $ | 408,223 |  |  |  | $ | 329,063 |
The following tables present the Company’s revenues disaggregated by segment:
|  | Three Months Ended March 31, 2018 |
|  | North |  |  |  | Continental |  |  | United |  |  |  |  |  |  |  |  |
|  | America |  |  |  | Europe |  |  | Kingdom |  |  | Other |  |  | Total |
Meeting Fees |  | $ | 140,152 |  |  |  | $ | 29,080 |  |  | $ | 14,382 |  |  | $ | 6,508 |  |  | $ | 190,122 |
Online Subscription Revenues |  |  | 92,240 |  |  |  |  | 36,161 |  |  |  | 6,563 |  |  |  | 3,583 |  |  |  | 138,547 |
Service revenues, net |  | $ | 232,392 |  |  |  | $ | 65,241 |  |  | $ | 20,945 |  |  | $ | 10,091 |  |  | $ | 328,669 |
Product sales and other, net |  |  | 46,787 |  |  |  |  | 17,290 |  |  |  | 9,339 |  |  |  | 6,138 |  |  |  | 79,554 |
Revenues, net |  | $ | 279,179 |  |  |  | $ | 82,531 |  |  | $ | 30,284 |  |  | $ | 16,229 |  |  | $ | 408,223 |
|  | Three Months Ended April 1, 2017 |
|  | North |  |  |  | Continental |  |  | United |  |  |  |  |  |  |  |  |
|  | America |  |  |  | Europe |  |  | Kingdom |  |  | Other |  |  | Total |
Meeting Fees |  | $ | 124,000 |  |  |  | $ | 21,965 |  |  | $ | 12,114 |  |  | $ | 6,273 |  |  | $ | 164,352 |
Online Subscription Revenues |  |  | 68,147 |  |  |  |  | 21,542 |  |  |  | 4,455 |  |  |  | 2,980 |  |  |  | 97,124 |
Service revenues, net |  | $ | 192,147 |  |  |  | $ | 43,507 |  |  | $ | 16,569 |  |  | $ | 9,253 |  |  | $ | 261,476 |
Product sales and other, net |  |  | 40,584 |  |  |  |  | 13,909 |  |  |  | 7,429 |  |  |  | 5,665 |  |  |  | 67,587 |
Revenues, net |  | $ | 232,731 |  |  |  | $ | 57,416 |  |  | $ | 23,998 |  |  | $ | 14,918 |  |  | $ | 329,063 |
Information about Contract Balances For Service Revenues, the Company typically collects payment in advance of providing services. Any amounts collected in advance of services being provided are recorded in deferred revenue. In the case where amounts are not collected, but the service has been provided and the revenue has been recognized, the amounts are recorded in accounts receivable. The opening and ending balances of the Company’s deferred revenues are as follows:
|  | Deferred |  |  | Deferred |
|  | Revenue |  |  | Revenue-Long Term |
Balance as of December 30, 2017 |  | $ | 74,332 |  |  | $ | 2,049 |
Net increase (decrease) during the period |  |  | 20,341 |  |  |  | (276 | )
Balance as of March 31, 2018 |  | $ | 94,673 |  |  | $ | 1,773 |
Revenue recognized from amounts included in current deferred revenue as of December 30, 2017 was $65,043 for the first quarter ended March 31, 2018. The Company’s long-term deferred revenue, which is included in other liabilities on the Company’s consolidated balance sheet, had a balance of $1,773 at March 31, 2018 related to upfront payments received as an inducement for entering into certain sales-based royalty agreements with third party licensees. This revenue is amortized on a straight-line basis over the term of the agreements. Practical Expedients and Exemptions The Company elected to apply the updated guidance only to contracts that were not completed as of December 31, 2017, the date of adoption. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company expenses sales commissions when incurred (amortization period would have been one year or less) and these expenses are recorded within selling, general and administrative expenses. The Company treats shipping and handling fees as fulfillment costs and not as a separate performance obligation, and as a result, any fees received from customers are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of product sales and other for amounts paid to applicable carriers. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration