WeightWatchers 2007 Annual Report Download - page 94

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum
of the quarterly EPS amounts may not agree to the total for the year. During the fourth quarter of fiscal 2006, the
Company recorded a net tax benefit of approximately $6,300 by reversing tax reserves which due to the
resolution of certain tax matters were no longer necessary, partially offset by adjustments to its tax valuation
allowance for foreign tax net operating loss carryforwards.
17. Recently Issued Accounting Pronouncements
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 141 (Revised 2007),
“Business Combinations”. This Statement established principles and requirements for how the acquirer
(a) recognizes and measures the identifiable assets acquired, liabilities assumed and any non-controlling interest
in the acquiree; (b) recognizes and measures the goodwill acquired and (c) determines what information to
disclose. This Statement is effective for business combinations for which the acquisition date is on or after
January 4, 2009, the first day of the Company’s 2009 fiscal year. The impact on WWI of adopting this standard
will depend on the nature, terms and size of any business combinations completed after the effective date.
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 160,
“Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51.” This
Statement establishes accounting and reporting standards for noncontrolling interests, sometimes referred to as
minority interests. This statement is effective for fiscal years, and interim periods within those fiscal years,
beginning on or after December 15, 2008. The Company does not expect the adoption of this standard to have a
material impact on its financial position, results of operations or cash flows.
18. Subsequent Events
In January 2008, the Company acquired substantially all of the assets of its Palm Beach, Florida franchisee,
Weight Watchers of Palm Beach County, Inc., for a purchase price of approximately $12,900. Due to the timing
of this acquisition, the Company has not yet completed the purchase price allocation.
In February 2008, the Company entered into a joint venture with Groupe DANONE S.A. to establish a
weight management business in the People’s Republic of China. The joint venture, 51% owned by the Company
and 49% owned by Groupe DANONE, is expected to commence retail operations in China within the next year.
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