Nutrisystem 2008 Annual Report Download - page 29

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December 31,
2008 2007 2006 2005 2004
Balance Sheet Data:
Cash, cash equivalents and marketable securities ..... $ 38,309 $ 42,448 $ 80,278 $ 44,768 $ 4,125
Working capital ............................... 78,448 103,349 134,049 65,470 5,100
Total assets ................................... 159,471 198,560 197,867 107,246 17,825
Non-current liabilities .......................... 1,298 1,006 831 254 272
Stockholders’ equity ............................ 115,825 141,502 145,302 78,966 12,175
(a) In the fourth quarter of 2007, we committed to a plan to sell our subsidiary Slim and Tone LLC (“Slim and
Tone”). This subsidiary has been treated as a discontinued operation. Accordingly, the operating results of
this discontinued operation have been presented separately from continuing operations and are included in
loss on discontinued operation, net of income tax in the accompanying consolidated statements of
operations for all periods presented. In 2007, we recorded a pre-tax loss on disposal of $1,256, consisting of
an impairment of goodwill and intangibles of $1,156 and a pre-tax loss of $100. See the discussion
contained in Note 12 of the Notes to the Consolidated Financial Statements.
(b) We recorded an equity loss of $2,975 in 2008 for our share of Zero Technologies, LLC (“Zero Water”) loss
and the amortization expense for the difference between the cost and the underlying equity in net assets of
Zero Water at the investment date. Additionally, we recorded an impairment charge of $6,483 to reduce the
carrying value of the equity investment to its estimated fair value of $4,000. The impairment charge
primarily resulted from lower-than-expected operating results and projections of future performance
coupled with the current non-strategic business direction of Zero Water and the overall general economic
decline which indicated that the full carrying value of the equity investment was not recoverable.
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