WeightWatchers 2002 Annual Report Download - page 73

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
11. Income Taxes (Continued)
The difference between the U.S. federal statutory tax rate and the Company’s consolidated
effective tax rate are as follows:
Eight
Months
Ended
December 28, December 29, December 30, April 29,
2002 2001 2000 2000
U.S. federal statutory rate .................... 35.0% 35.0% 35.0% 35.0%
Foreign income taxes ........................ (0.2) 0.8 4.0 1.7
States’ income taxes (net of federal benefit) ....... 4.0 0.9 0.6 2.6
Goodwill amortization ....................... — 0.2 1.0 0.4
Other................................... 0.2 (1.6) 1.3 2.6
Valuation allowance ......................... —(53.6) (14.0) —
Effective tax rate........................... 39.0% (18.3%) 27.9% 42.3%
The deferred tax assets and deferred tax (liabilities) recorded on the balance sheet are as follows:
December 28, December 29,
2002 2001
Depreciation/amortization ..................................... $ 446 $ 509
Provision for estimated expenses ................................ 1,187 1,756
Operating loss carryforwards ................................... 3,708 4,186
WW.com loan .............................................. 13,455 12,765
Other.................................................... 722 411
Amortization .............................................. 116,437 127,571
Total deferred tax assets ...................................... $135,955 $147,198
Deferred income ............................................ $ (637) $ (5,799)
Other.................................................... (2,865) (3,514)
Total deferred tax liabilities .................................... $ (3,502) $ (9,313)
Net deferred tax assets ....................................... $132,453 $137,885
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