WeightWatchers 2004 Annual Report Download - page 78

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
5. Property and Equipment
The components of property and equipment were:
January 1, January 3,
2005 2004
Leasehold improvements ............................ $10,984 $ 9,330
Equipment ...................................... 39,870 30,202
50,854 39,532
Less: Accumulated depreciation and amortization .......... 33,374 23,819
17,480 15,713
Construction in progress ............................ — 34
$17,480 $15,747
Depreciation and amortization expense of property and equipment for the fiscal years ended
January 1, 2005, January 3, 2004 and December 28, 2002 was $6,661 (including $1,088 for depreciation
of assets of WeightWatchers.com) $4,832 and $3,788, respectively.
6. Long-Term Debt
The Company’s long-term debt is entirely attributable to WWI. WeightWatchers.com does not have
any credit facilities. The components of long-term debt are as follows:
January 1, January 3,
2005 2004
Effective Effective
Balance rate Balance rate
A100.0 million 13% Senior Subordinated
Notes due 2009 ................... $ — $ 10,564 13.00%
$150.0 million 13% Senior Subordinated
Notes due 2009 ................... — 5,130 13.00%
Term Loan A due 2005 ............... — 24,340 3.04%
Transferable Loan Certificate due 2009 .... — 48,903 3.85%
Revolver due 2009 ................... 171,000 3.24% —
Term Loan B due 2010 ............... 148,500 3.24% 380,937 3.56%
Additional Term Loan B due 2010 ....... 149,625 3.60% —
469,125 469,874
Less Current Portion ................. 3,000 15,554
$466,125 $454,320
Credit Facility
WWI’s Credit Agreement dated as of January 16, 2001 and as amended and restated as of
December 21, 2001, April 1, 2003, August 21, 2003, January 21, 2004 and October 19, 2004 (the
‘‘Credit Facility’’) consists of Term Loans and a revolving line of credit (‘‘the Revolver.’’)
F-16