WeightWatchers 2007 Annual Report Download - page 87

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
11. Employee Benefit Plans
The Company sponsors the Amended and Restated Weight Watchers Savings Plan (the “Savings Plan”) for
salaried and hourly employees of WWI. In January 2001, the Company permitted the employees of WW.com to
participate in the Savings Plan. Beginning in January 2006, WW.com employees were eligible for employer
matching contributions. The Savings Plan is a defined contribution plan that provides for employer matching
contributions up to 100% of the first 3% of an employee’s eligible compensation. The Savings Plan also permits
employees to contribute between 1% and 13% of eligible compensation on a pre-tax basis. Expense related to
these contributions for the fiscal years ended December 29, 2007, December 30, 2006 and December 31, 2005
was $2,451, $2,239 and $1,529, respectively.
During fiscal 2002, the Company received a favorable determination letter from the IRS that qualifies
WWI’s Savings Plan under Section 401(a) of the Internal Revenue Code.
Pursuant to the Savings Plan, the Company also sponsors a profit sharing plan (the “Profit Sharing Plan”)
for all full-time salaried employees who are eligible to participate in the Savings Plan (except for certain senior
management personnel). The Profit Sharing Plan provides for a guaranteed monthly employer contribution on
behalf of each participant based on the participant’s age and a percentage of the participant’s eligible
compensation. The Profit Sharing Plan has a discretionary supplemental employer contribution component that is
determined annually by the Compensation and Benefits Committee of the Board of Directors. Expense related to
these contributions for the fiscal years ended December 29, 2007, December 30, 2006 and December 31, 2005
was $2,941, $2,393 and $1,975, respectively.
For certain senior management personnel, the Company sponsors the Amended and Restated Weight
Watchers Executive Profit Sharing Plan (“EPSP”). Under the IRS definition, the EPSP is considered a
Nonqualified Deferred Compensation Plan. There is a promise of payment by the Company made on the
employees’ behalf instead of an individual account with a cash balance. The EPSP provides for a guaranteed
employer contribution on behalf of each participant based on the participant’s age and a percentage of the
participant’s eligible compensation. The EPSP has a discretionary supplemental employer contribution
component that is determined by the Compensation and Benefits Committee of the Board of Directors. The
account is valued at the end of each fiscal month, based on an annualized interest rate of prime plus 2%, with an
annualized cap of 15%. Expense related to this commitment for the fiscal years ended December 29,
2007, December 30, 2006 and December 31, 2005 was $1,868, $2,002 and $1,050, respectively.
12. Cash Flow Information
December 29,
2007
December 30,
2006
December 31,
2005
Net cash paid during the year for:
Interest expense ............................. $93,595 $44,317 $18,030
Income taxes ............................... $89,536 $91,886 $80,381
Noncash investing and financing activities were as
follows:
Fair value of net (liabilities)/assets acquired in
connection with the acquisitions .............. $ (326) $ 3,741 $ —
Dividends declared but not yet paid at year-end ........ $14,233 $17,062 $ —
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