WeightWatchers 2008 Annual Report Download - page 71

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
January 3,
2009
December 29,
2007
December 30,
2006
(53 Weeks) (52 Weeks) (52 Weeks)
Operating activities:
Net income ................................................ $204,331 $ 201,180 $ 209,825
Adjustments to reconcile net income to cash provided by operating
activities:
Minority interest in joint venture ............................... (1,984) — —
Depreciation and amortization ................................. 24,519 19,033 13,351
Amortization of deferred financing costs ......................... 1,440 1,713 1,529
Share-based compensation expense ............................. 11,302 11,763 11,789
Deferred tax provision ....................................... 11,352 18,274 28,819
Allowance for doubtful accounts ............................... 1,447 1,242 (153)
Reserve for inventory obsolescence, other ....................... 9,996 9,317 6,990
Foreign currency exchange rate (gain) loss ....................... (1,923) (2,751) (1,075)
Early extinguishment of debt .................................. — 3,021 1,321
Other items, net ............................................ (421) (1,122) (356)
Changes in cash due to:
Receivables ........................................... (343) (2,099) (10,656)
Inventories ............................................ (7,469) (12,220) (9,250)
Prepaid expenses ....................................... (18,489) 466 (9,292)
Accounts payable ....................................... (5,423) 8,957 10,737
U.K. VAT liability ...................................... 31,643 8,270 6,970
Accrued liabilities ...................................... (16,357) 40,087 16,882
Deferred revenue ....................................... 3,012 14,847 2,453
Income taxes ........................................... (5,467) (1,433) (14,106)
Cash provided by operating activities ....................... 241,166 318,545 265,778
Investing activities:
Capital expenditures ......................................... (16,281) (15,323) (14,329)
Web site development expenditures ............................ (6,053) (4,889) (5,083)
Capitalized software expenditures .............................. (9,269) (11,636) (11,614)
Cash paid for acquisitions .................................... (39,661) (16,812) (140,374)
Other items, net ............................................ (922) (169) 29
Cash used for investing activities ........................... (72,186) (48,829) (171,371)
Financing activities:
Proceeds from borrowings .................................... 45,000 — 202,500
Payments on long-term debt .................................. (45,625) (401,034) (449,466)
Proceeds from new term loan .................................. — 1,200,000 350,000
Payment of dividends ........................................ (55,045) (58,524) (51,792)
Secondary offering fees ...................................... — — (455)
Tax benefit of restricted stock units vested and stock options
exercised ................................................ 492 10,879 6,234
Deferred financing costs ..................................... — (5,417) (1,980)
Purchase of treasury stock .................................... (115,973) (1,033,644) (151,678)
Proceeds from stock options exercised .......................... 8,075 18,563 5,779
Investment and advances from minority shareholder ............... 3,015 — —
Cash (used for)/provided by financing activities ............... (160,061) (269,177) (90,858)
Effect of exchange rate changes on cash and cash equivalents and other .... (1,420) 1,780 2,479
Net increase/(decrease) in cash and cash equivalents ................... 7,499 2,319 6,028
Cash and cash equivalents, beginning of fiscal year .................... 39,823 37,504 31,476
Cash and cash equivalents, end of fiscal year ......................... $ 47,322 $ 39,823 $ 37,504
The accompanying notes are an integral part of the consolidated financial statements.
F-6