WeightWatchers 2008 Annual Report Download - page 39

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Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for the last five fiscal years.
SELECTED FINANCIAL DATA
(in millions, except per share amounts)
Fiscal 2008
(53 weeks)
Fiscal 2007
(52 weeks)
Fiscal 2006
(52 weeks)
Fiscal 2005
(52 weeks)
Fiscal 2004
(52 weeks)
Revenues, net ................................ $1,535.8 $1,467.2 $1,233.3 $1,151.3 $1,024.9
Net income ................................. $ 204.3 $ 201.2 $ 209.8 $ 174.4 $ 183.1
Working capital (deficit) ....................... $ (270.1) $ (172.1) $ (64.3) $ (38.2) $ (26.8)
Total assets ................................. $1,106.8 $1,046.2 $1,000.7 $ 835.5 $ 816.2
Long-term obligations ......................... $1,485.0 $1,602.5 $ 830.2 $ 741.4 $ 466.1
Earnings per share:
Basic .................................. $ 2.61 $ 2.50 $ 2.13 $ 1.70 $ 1.75
Diluted ................................. $ 2.60 $ 2.48 $ 2.11 $ 1.67 $ 1.71
Dividends declared per common share ............ $ 0.70 $ 0.70 $ 0.70 — —
Items Affecting Comparability
Several events occurred during each of the last five fiscal years that affect the comparability of our financial
statements. The nature of these events and their impact on underlying business trends are as follows:
UK VAT Ruling
As discussed previously in further detail in Item 3. Legal Proceedings–U.K. VAT Matter in Part I of this
Annual Report on Form 10-K, in the second quarter of fiscal 2008, we received an adverse ruling with respect to
the imposition of VAT on revenues earned by our U.K. subsidiary. In connection with this ruling, we recorded a
net charge of approximately $26.5 million as an offset to revenue in fiscal 2008.
Consolidation/China Joint Venture
In February 2008, Weight Watchers Asia Holdings Ltd. (“Weight Watchers Asia”), a direct, wholly-owned
subsidiary of the Company, and Danone Dairy Asia, an indirect, wholly-owned subsidiary of Groupe DANONE
S.A., entered into a joint venture agreement to establish a weight management business in the People’s Republic
of China. Pursuant to the terms of the joint venture agreement, Weight Watchers Asia and Danone Dairy Asia
own 51% and 49%, respectively, of the joint venture entity. Because we have a direct, controlling financial
interest in the joint venture entity, we began to consolidate this entity in the first quarter of fiscal 2008.
Consolidation/Acquisition of WeightWatchers.com
On April 3, 2004, we adopted the provisions of Financial Accounting Standards Board (“FASB”)
Interpretation No. 46R, “Variable Interest Entities,” and began consolidating the results of WeightWatchers.com.
Upon adoption, we recorded a charge of $11.9 million, including a tax charge of $9.9 million, in the fiscal
quarter ended April 3, 2004 for the cumulative effect of this accounting change. This charge reflects the
cumulative impact to our results of operations had WeightWatchers.com been consolidated since its inception in
September 1999. Beginning on April 3, 2004, our consolidated balance sheet includes the balance sheet of
WeightWatchers.com. Effective at the beginning of the second quarter of fiscal 2004, our consolidated statement
of operations and statement of cash flows include the results of WeightWatchers.com. All intercompany balances
have been eliminated.
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