Company: WW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029511
Chunk: 288

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 288
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We continue to evaluate the realizability of our deferred tax assets and based on the weight of the available evidence, we provided a full valuation allowance against the U.S. deferred tax assets.

The tax expense for fiscal 2023 was impacted by a tax expense due to a valuation allowance and a tax expense related to income earned in foreign jurisdictions at rates higher than the U.S., partially offset by a tax benefit related to state tax and a tax benefit related to FDII.

Net Loss and Diluted Net Loss Per Share

Net loss for fiscal 2024 was $345.7 million compared to net loss for fiscal 2023 of $112.3 million. Net loss for fiscal 2024 was positively impacted by $0.3 million of foreign currency. Net loss for fiscal 2024 included a $293.2 million impact from franchise rights acquired impairments, a $16.6 million net impact from restructuring charges, and a $2.9 million impact from former CEO separation expenses. Net loss for fiscal 2023 included a $41.2 million net impact from restructuring charges, a $7.5 million impact from acquisition transaction costs, and a $3.6 million impact from franchise rights acquired and goodwill impairments. Additionally, net loss for fiscal 2023 included a $50.6 million tax expense from the increase in the partial valuation allowance established in fiscal 2022 to a full valuation allowance in fiscal 2023 to offset all U.S. deferred tax assets due to the uncertainty of realizing future tax benefits of the assets.

Diluted net loss per share for fiscal 2024 was $4.34 compared to diluted net loss per share for fiscal 2023 of $1.46. Diluted net loss per share for fiscal 2024 included a $3.68 impact from franchise rights acquired impairments, a $0.21 net impact from restructuring charges, and a $0.04 impact from former CEO separation expenses. Diluted net loss per share for fiscal 2023 included a $0.54 net impact from restructuring charges, a $0.10 impact from acquisition transaction costs, and a $0.05 impact from franchise rights acquired and goodwill impairments. Additionally, diluted net loss per share for fiscal 2023 included a $0.66 tax expense from the increase in the partial valuation allowance established in fiscal 2022 to a full valuation allowance in fiscal 2023 to offset all U.S. deferred tax assets due to the uncertainty of realizing future tax benefits of