WeightWatchers 2005 Annual Report Download - page 108

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Total rent expense charged to operations under these leases for the fiscal years ended
December 31, 2005, January 1, 2005 and January 3, 2004 was $27,671 (including $1,561 related to rent
expense of WeightWatchers.com), $27,198 (including $1,167 related to rent expense of
WeightWatchers.com), and $23,855, respectively.
15. Segment and Geographic Data
Effective with the adoption of FIN 46R in the first quarter of 2004 (see Note 1), the Company has
two operating segments, each of which is a reportable segment: WWI and WeightWatchers.com. These
are two separate and distinct businesses for which discrete financial information is available. This
discrete financial information is maintained and managed separately and is reviewed regularly by the
chief operating decision maker. 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.
F-32