WeightWatchers 2006 Annual Report Download - page 92

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Lease Commitments:
Minimum rental commitments under non-cancelable operating leases, primarily for office and rental
facilities, at December 30, 2006, consist of the following:
2007 ........................................ $24,411
2008 ........................................ 17,755
2009 ........................................ 12,245
2010 ........................................ 8,669
2011 ........................................ 7,302
2012 and thereafter ............................ 22,544
Total .................................... $92,926
Total rent expense charged to operations under these leases for the fiscal years ended December 30, 2006,
December 31, 2005 and January 1, 2005 was $29,119, $27,671 and $27,198, 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.
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