WeightWatchers 2006 Annual Report Download - page 23

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by Artal for a total price of approximately $304.8 million as provided in the redemption agreement.
WeightWatchers.com used cash on hand and the proceeds of two credit facilities in the aggregate amount of
$215.0 million to finance this redemption as well as pay related fees and expenses. As a result of this redemption,
we now own 100% of WeightWatchers.com.
The merger and the redemption transactions were evaluated, negotiated and recommended by a Special
Committee of Weight Watchers International’s Board of Directors consisting of its independent directors.
Regulation
A number of laws and regulations govern our advertising, franchise operations and relations with
consumers, employees and other service providers in the countries in which we operate. The Federal Trade
Commission, or FTC, and certain states and foreign jurisdictions regulate advertising, disclosures to consumers,
privacy, consumer pricing or billing arrangements, and other consumer matters.
During the mid-1990s, the FTC filed complaints against a number of commercial weight management
providers alleging violations of federal law in connection with the use of advertisements that featured
testimonials, claims for program success and program costs. In 1997, we entered into a consent order with the
FTC settling all contested issues raised in the complaint filed against us. The consent order requires us to comply
with certain procedures and disclosures in connection with our advertisements of services and products.
Since we operate our meetings business both in the United States and internationally, we are subject to
many distinct employment, labor and benefits laws in each country in which we operate, including regulations
affecting our employment practices and our relations with our employees and service providers.
Laws and regulations directly applicable to communications or commerce over the Internet such as those
governing intellectual property, privacy, libel and taxation, are becoming more prevalent and remain unsettled.
Employees and Service Providers
As of December 30, 2006, we had approximately 47,000 employees and service providers. We consider our
relations with our employees and service providers to be satisfactory.
Financial Information About Segments and Financial Information About Geographic Areas
Information concerning our operating segments and our geographic areas is set forth in Note 15 of our
Consolidated Financial Statements, contained in Part IV, Item 15 of this Annual Report on Form 10-K.
Available Information
Corporate information, press releases and our periodic reports (e.g. 10-K’s, 10-Q’s, 8-K’s) and amendments
thereto are available free of charge at www.weightwatchersinternational.com as soon as reasonably practical
after such material is electronically filed with or furnished to the SEC (i.e., generally the same day as the filing).
Moreover, we also make available free of charge at that site the Section 16 reports filed electronically by our
officers, directors and 10 percent shareholders. Usually these are publicly accessible no later than the business
day following the filing.
Shareholders may request a free copy of our Code of Business Conduct and Ethics and our Corporate
Governance Guidelines at: Weight Watchers International, Inc., Attn: Corporate Secretary, 11 Madison Avenue,
17th Floor, New York, NY 10010, (212) 589-2700.
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