WeightWatchers 2003 Annual Report Download - page 23

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Attendance in Company-Owned Operations
Twelve Eight
Months Months
Fiscal Years Ended Ended Ended Fiscal Years Ended
January 3, December 28, December 29, December 30, December 30, April 29, April 24,
2004 2002 2001 2000 2000 2000 1999
(53 weeks) (52 weeks) (52 weeks) (54 weeks) (35 weeks) (35 weeks) (52 weeks)
(in millions)
North America ........ 34.6 30.8 23.5 14.3 8.9 13.3 10.9
United Kingdom ....... 12.8 11.9 11.6 11.2 7.0 10.6 9.8
Continental Europe .... 10.1 9.2 8.7 7.0 4.6 6.1 5.7
Other International ..... 3.3 3.4 3.2 3.2 1.9 3.3 3.4
Total ............... 60.8 55.3 47.0 35.7 22.4 33.3 29.8
Since the fiscal year ended December 28, 2002, we have acquired the franchised territories and
certain business assets of five franchisees as outlined below:
Acquisitions
Attendance*
Fiscal Years Ended
Purchase Closing January 3, December 28,
Price Date 2004 2002
(in millions)
North Jersey .................. $46.5 January 18, 2002 1.4 1.4
San Diego ................... $ 11.0 July 2, 2002 0.6 0.2
Eastern North Carolina .......... $10.6 September 1, 2002 0.3 0.1
WW Group .................. $180.7 March 30, 2003 3.6 —
Dallas/New Mexico ............. $27.2 November 30, 2003 ** —
5.9 1.7
* From date of acquisition to the end of the fiscal year.
** Less than 0.1 million
These acquisitions have been accounted for under the purchase method of accounting.
Accordingly, their results of operations have been included in our consolidated operating results since
the dates of the completion of their respective acquisitions.
Critical Accounting Policies
‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ is
based upon our consolidated financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). The
preparation of these financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities. On an on going basis, we evaluate our estimates and judgments, including those
related to inventories, investments, the impairment analysis for goodwill and other indefinite-lived
intangible assets, income taxes, and contingencies and litigation. We base our estimates on historical
experience and on various other factors and assumptions that we believe to be reasonable under the
circumstances, the results of which form the bases for making judgments about the carrying values of
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