WeightWatchers 2005 Annual Report Download - page 95

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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:
December 31, January 1,
2005 2005
Leasehold improvements ................................. $14,887 $ 10,984
Equipment ........................................... 43,754 39,870
58,641 50,854
Less: Accumulated depreciation and amortization ............... (37,866) (33,374)
$20,775 $ 17,480
Depreciation and amortization expense of property and equipment for the fiscal years ended
December 31, 2005, January 1, 2005 and January 3, 2004 was $7,808 (including $1,052 for depreciation
of assets of WeightWatchers.com), $6,661 (including $1,088 for depreciation of assets of
WeightWatchers.com) and $4,832, respectively.
6. Long-Term Debt
The Company’s components of long-term debt are as follows:
December 31, 2005 January 1, 2005
Effective Effective
Balance rate Balance rate
Revolver due 2009 ......................... $236,000 5.22% $171,000 3.24%
Term Loan B due 2010 ...................... 147,000 5.04% 148,500 3.24%
Additional Term Loan B due 2010 .............. 148,125 4.81% 149,625 3.60%
Senior Secured First Lien Term Loan ........... 170,000 6.62% —
Senior Secured Second Lien Term Loan .......... 45,000 9.12% —
746,125 469,125
Less Current Portion ....................... 4,700 3,000
$741,425 $466,125
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.’’)
On January 21, 2004, WWI refinanced its Credit Facility as follows: the Term Loan A, Term Loan
B, and the transferable loan certificate (the ‘‘TLC’’) in the aggregate amount of $454,180 were repaid
and replaced with a new Term Loan B in the amount of $150,000 and borrowings under the Revolver
of $310,000. In connection with this refinancing, available borrowings under the Revolver increased
F-19