WeightWatchers 2002 Annual Report Download - page 68

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
9. Earnings Per Share (Continued)
weighted average number of common shares outstanding and the effect of common stock equivalents.
The following table sets forth the computation of basic and diluted EPS.
Eight Months
Ended
December 28, December 29, December 30, April 29,
2002 2001 2000 2000
Numerator:
Net income ............................ $143,694 $147,187 $15,019 $37,759
Preferred stock dividends .................. 254 1,500 1,000 875
Numerator for basic and diluted EPS-income
available to common shareholders ........ $143,440 $145,687 $14,019 $36,884
Numerator for basic and diluted EPS-
extraordinary item, net of taxes .......... $ —$ 2,875 $ — $ —
Numerator for basic and diluted EPS-income
before extraordinary item............... $143,440 $148,562 $14,019 $36,884
Denominator:
Denominator for basic EPS-weighted-average
shares............................. 105,959 108,676 111,988 182,206
Effect of dilutive securities: Stock options . . . . 3,704 2,947 183
Denominator for diluted EPS-weighted-average
shares............................. 109,663 111,623 112,171 182,206
EPS:
Basic EPS:
Income before extraordinary item ............ $ 1.35 $ 1.37 $ 0.13 $ 0.20
Extraordinary item, net of taxes ............. —(0.03) ——
Net income .......................... $ 1.35 $ 1.34 $ 0.13 $ 0.20
Diluted EPS:
Income before extraordinary item ............ $ 1.31 $ 1.34 $ 0.13 $ 0.20
Extraordinary item, net of taxes ............. —(0.03) ——
Net income .......................... $ 1.31 $ 1.31 $ 0.13 $ 0.20
10. Stock Plans
Weight Watchers Incentive Compensation Plans:
On December 16, 1999, the board of directors adopted the 1999 Stock Purchase and Option Plan
of Weight Watchers International, Inc. and Subsidiaries (the ‘‘Plan’’). The Plan is designed to promote
the long-term financial interests and growth of the Company and its subsidiaries by attracting and
retaining management with the ability to contribute to the success of the business. The Plan is to be
administered by the board of directors or a committee thereof.
F-19