WeightWatchers 2004 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 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

In addition, there was no change in our internal control over financial reporting that occurred
during the quarter ended January 1, 2005 that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
The management of our Company is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial reporting is a process designed
under the supervision and with the participation of our management, including our principal executive
officer and principal financial officer, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in the United States of America.
The Company’s management assessed the effectiveness of the Company’s internal control over
financial reporting as of January 1, 2005, the end of the Company’s 2004 fiscal year. In making this
assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based
on this assessment, management, under the supervision and with the participation of our principal
executive officer and principal financial officer, concluded that, as of January 1, 2005, the Company’s
internal control over financial reporting was effective based on those criteria.
Management has excluded WeightWatchers.com from its assessment of the effectiveness of internal
control over financial reporting as of January 1, 2005. WeightWatchers.com is a variable interest entity
required to be consolidated with Weight Watchers International, Inc. under the provisions of FASB
Interpretation No. 46R during 2004. Since it does not have the contractual right, authority or ability, in
practice, to assess the internal controls over financial reporting of WeightWatchers.com, nor does it
have the ability to dictate or modify those controls, management has concluded it is unable to assess
the effectiveness of the internal control over financial reporting of WeightWatchers.com. As of and for
the year ended January 1, 2005, Weight Watchers International, Inc.’s consolidated financial statements
include total assets and total revenues of 3.8% and 6.8%, respectively, related to WeightWatchers.com.
The Company’s independent registered public accounting firm, PricewaterhouseCoopers LLP, has
audited and issued their report on management’s assessment of the effectiveness of the Company’s
internal control over financial reporting, which appears on page F-35.
34