WeightWatchers 2005 Annual Report Download - page 107

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
13. Cash Flow Information
December 31, January 1, January 3,
2005 2005 2004
Net cash paid during the year for:
Interest expense ............................. $18,030 $13,564 $38,533
Income taxes ................................ $80,381 $53,102 $59,739
Noncash investing and financing activities were as follows:
Fair value of net assets acquired in connection with the
acquisitions ............................... $ — $ 811 $ 4,797
14. Commitments and Contingencies
Legal:
On February 18, 2005, WWI settled two lawsuits with CoolBrands International, Inc.
(‘‘CoolBrands’’) one filed by WWI to enforce the termination provisions of the CoolBrands ice cream
and frozen novelty license and the other filed by CoolBrands against WWI and Wells Dairy, Inc.
alleging breach of the CoolBrands license. CoolBrands will no longer manufacture, sell, market or
distribute ice cream and frozen novelty products using WWI’s trademarks.
The Company has agreed to settle a litigation filed on behalf of a purported class of employees
under the California Labor Code and the Federal Fair Labor Standards Act for $2.3 million plus other
costs and expenses. The settlement is subject to approval and certification of the class status by the
court.
Due to the nature of its activities, the Company is, at times, also subject to pending and
threatened legal actions that arise out of the normal course of business. We have had and continue to
have disputes with certain of our franchisees. In the opinion of management, based in part upon advice
of legal counsel, the disposition of all such matters is not expected to have a material effect on the
Company’s results of operations, financial condition or cash flows.
Lease Commitments:
Minimum rental commitments under non-cancelable operating leases, primarily for office and
rental facilities, at December 31, 2005, consist of the following:
2006 .......................................... $24,297
2007 .......................................... 17,795
2008 .......................................... 10,444
2009 .......................................... 7,212
2010 .......................................... 6,251
2011 and thereafter ............................... 25,211
Total ........................................ $91,210
F-31