WeightWatchers 2005 Annual Report Download - page 29

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other rights of holders of our common stock. These rights may have the effect of delaying or deterring
a change of control of our company. In addition, a change of control of our company may be delayed
or deterred as a result of our having three classes of directors or as a result of the shareholders’ rights
plan adopted by our Board of Directors. These provisions could limit the price that certain investors
might be willing to pay in the future for shares of our common stock.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
We are currently headquartered in New York, New York in leased office space. Each of our four
regions of NACO has a small regional office under a short-term lease. Each of our foreign country
operations generally has leased office space.
We typically hold our classes in third-party locations (typically meeting rooms in well-located civic
or other community organizations) or space leased in retail centers (typically leased spaces in strip
malls for short terms, generally less than five years). As of December 31, 2005, there were
approximately 4,300 North America meeting locations, including approximately 3,500 third-party
locations and 800 retail centers. In the United Kingdom, there were approximately 4,700 meeting
locations, with approximately 100% in third-party locations. In Continental Europe, there were
approximately 5,600 meeting locations, with approximately 99% in third-party locations. In Australia
and New Zealand, there were approximately 1,100 meeting locations, with approximately 96% in third-
party locations.
Item 3. Legal Proceedings
We are not a party to any material pending litigation. Due to the nature of our activities, we are at
times subject to pending or 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 our results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of our shareholders during the last quarter of the fiscal year
ended December 31, 2005.
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