WeightWatchers 2004 Annual Report Download - page 92

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
15. Commitments and Contingencies (Continued)
Lease Commitments:
Minimum rental commitments under non-cancelable operating leases, primarily for office and
rental facilities, at January 1, 2005, consist of the following:
Weight
WWI Watchers.com Consolidated
2005 ................................ $23,958 $1,831 $25,789
2006 ................................ 18,883 1,820 20,703
2007 ................................ 12,878 1,524 14,402
2008 ................................ 7,254 228 7,482
2009 ................................ 6,049 — 6,049
2010 and thereafter ..................... 23,505 — 23,505
Total .............................. $92,527 $5,403 $97,930
Total rent expense charged to operations under these leases for the fiscal years ended January 1,
2005, January 3, 2004 and December 28, 2002 was $27,198, (including $1,167 related to rent expense of
WeightWatchers.com) $23,855 and $16,321, respectively.
16. Segment and Geographic Data
Effective with the adoption of FIN 46R in the first quarter of 2004 (see Note 1), the Company
now has two reportable operating segments: Weight Watchers International and WeightWatchers.com,
its affiliate and licensee. Since these are two separate and distinct businesses, the financial information
for each company is maintained and managed separately. The results of operations and assets for each
of these segments are derived from each company’s financial reporting system. All intercompany
activity is eliminated in consolidation. Since FIN 46R was adopted as of the last day of the first quarter
of 2004, WeightWatchers.com’s results of operations for the three months ended April 3, 2004 have
been included in the charge for the cumulative effect of accounting change. Therefore, the measure of
profitability for WeightWatchers.com for the fiscal year ended January 1, 2005 includes only their
results of operations beginning with the second quarter of 2004. Prior to April 3, 2004, the Company
was engaged principally in one line of business, weight loss, products and services. Therefore, segment
information is not presented for fiscal 2003 or fiscal 2002.
F-30