WeightWatchers 2004 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2004 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Consolidated WWI Stand Alone
Results Less (excluding impact of FIN 46R in 2004)
January 1, Impact of
BALANCE SHEET 2005 FIN 46R January 1, 2005 January 3, 2004 Inc/(Dec)
Cash and cash equivalents .......... $ 35.2 $16.5 $ 18.7 $ 23.4 $ (4.7)
Receivables, net ................. 21.8 (0.5) 22.3 18.5 3.8
Inventory and prepaid expenses ...... 68.8 5.0 63.8 72.9 (9.1)
Total current assets ............. 125.8 21.0 104.8 114.8 (10.0)
Property and equipment, net ........ 17.5 2.5 15.0 15.7 (0.7)
Goodwill, franchise rights and other
intangible assets, net ............ 588.0 3.2 584.8 522.6 62.2
Deferred income taxes/other ........ 84.9 (6.7) 91.6 117.6 (26.0)
Total assets ................... $816.2 $20.0 $796.2 $770.7 $ 25.5
Accounts payable and accrued
liabilities .................... 122.6 9.5 113.1 102.3 10.8
Deferred revenue ................ 27.1 6.7 20.4 16.5 3.9
Current portion of long-term debt .... 3.0 — 3.0 15.6 (12.6)
Long term debt ................. 466.1 — 466.1 454.3 11.8
Other ........................ 1.0 0.3 0.7 0.8 (0.1)
Total liabilities ................ 619.8 16.5 603.3 589.5 13.8
Shareholders’ equity .............. 196.4 3.5 192.9 181.2 11.7
Total liabilities and shareholders’
equity ..................... $816.2 $20.0 $796.2 $770.7 $ 25.5
Consolidated WWI Stand Alone
Results Less (excluding impact of FIN 46R in 2004)
January 1, Impact of
CASH FLOW 2005 FIN 46R January 1, 2005 January 3, 2004 Inc/(Dec)
Cash provided by operating activities . . $ 252.4 $18.4 $ 234.0 $ 233.1 $ 0.9
Cash used for investing activities ..... (65.8) (7.6) (58.2) (211.6) 153.4
Cash used for financing activities ..... (180.4) — (180.4) (59.5) (120.9)
Effect of exchange rate changes on
cash ........................ (0.1) — (0.1) 3.9 (4.0)
Impact of consolidating
WeightWatchers.com ............ 5.7 5.7 — — —
Net increase (decrease) in cash and
cash equivalents .............. 11.8 16.5 (4.7) (34.1) 29.4
Cash/cash equivalents, beginning of
period ...................... 23.4 — 23.4 57.5 (34.1)
Cash/cash equivalents, end of period . . $ 35.2 $16.5 $ 18.7 $ 23.4 $ (4.7)
Impact of FIN46R on Consolidated Balance Sheet and Cash Flow
Balance Sheet
On the consolidated balance sheet, $20.0 million of the $816.2 million of total assets at January 1,
2005 resulted from the adoption of FIN 46R. The addition of WeightWatchers.com’s cash of
$16.5 million, deferred tax assets of $4.7 million and other assets of $9.6 million is partially offset by a
decline in WWI’s deferred tax assets, as $7.7 million of deferred tax assets was eliminated as a result of
the requirement to reverse all intercompany transactions in consolidation. This tax asset was recorded
27