WeightWatchers 2009 Annual Report Download - page 42

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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 2009
(52 weeks)
Fiscal 2008
(53 weeks)
Fiscal 2007
(52 weeks)
Fiscal 2006
(52 weeks)
Fiscal 2005
(52 weeks)
Revenues, net ................................ $1,398.9 $1,535.8 $1,467.2 $1,233.3 $1,151.3
Net income attributable to the Company ........... $ 177.3 $ 204.3 $ 201.2 $ 209.8 $ 174.4
Working capital (deficit) ....................... $ (336.1) $ (270.1) $ (172.1) $ (64.3) $ (38.2)
Total assets ................................. $1,087.5 $1,106.8 $1,046.2 $1,000.7 $ 835.5
Long-term obligations ......................... $1,238.0 $1,485.0 $1,602.5 $ 830.2 $ 741.4
Earnings per share:
Basic .................................. $ 2.30 $ 2.61 $ 2.50 $ 2.13 $ 1.70
Diluted ................................. $ 2.30 $ 2.60 $ 2.48 $ 2.11 $ 1.67
Dividends declared per common share ............ $ 0.70 $ 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:
U.K. Self-Employment Matter
We received an adverse tax ruling in the United Kingdom that our U.K. leaders should have been classified
as employees for U.K. tax purposes and, as such, we should have withheld tax from our leaders pursuant to the
PAYE and NIC collection rules and remitted such amounts to HMRC. In connection with this ruling, we
recorded a charge of approximately $36.7 million to cost of revenues in the fourth quarter of fiscal 2009. See
“Item 3. Legal Proceedings—U.K. Self-Employment Matter” in Part I of this Annual Report on Form 10-K for
further details on this matter.
Restructuring Charges
In fiscal 2009, we recorded $5.5 million of restructuring charges associated with our cost savings initiatives
previously announced in the first quarter of fiscal 2009.
U.K. VAT Matter
In the second quarter of fiscal 2008, we received an adverse ruling in the United Kingdom with respect to
the imposition of U.K. VAT on meeting fees earned in the United Kingdom. In connection with this ruling, we
recorded a net charge of approximately $18.7 million pertaining to periods prior to fiscal 2008 as an offset to
revenue in fiscal 2008. See “Item 3. Legal Proceedings—U.K. VAT Matter” in Part I of this Annual Report on
Form 10-K for further details on this matter.
Consolidation/China Joint Venture
In February 2008, Weight Watchers Asia Holdings Ltd., or 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
26