WeightWatchers 2009 Annual Report Download - page 78

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
January 2,
2010
January 3,
2009
December 29,
2007
(52 Weeks) (53 Weeks) (52 Weeks)
Operating activities:
Net income .................................................. $174,571 $ 202,347 $ 201,180
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization ................................... 27,875 24,519 19,033
Amortization of deferred financing costs .......................... 2,097 1,440 1,713
Share-based compensation expense ............................... 8,796 11,302 11,763
Deferred tax provision ......................................... 38,392 11,352 18,274
Allowance for doubtful accounts ................................. 1,220 1,447 1,242
Reserve for inventory obsolescence, other ......................... 7,928 9,996 9,317
Foreign currency exchange rate gain .............................. (208) (1,923) (2,751)
Early extinguishment of debt .................................... — — 3,021
Other items, net .............................................. (480) (421) (1,122)
Changes in cash due to:
Receivables ............................................. (1,322) (343) (2,099)
Inventories .............................................. 1,624 (7,469) (12,220)
Prepaid expenses ......................................... 7,651 (18,489) 466
Accounts payable ......................................... (5,878) (5,423) 8,957
U.K. VAT liability ........................................ (13,474) 31,643 8,270
U.K. self-employment liability .............................. 36,660 — —
Accrued liabilities ........................................ (10,055) (16,357) 40,087
Deferred revenue ......................................... 6,118 3,012 14,847
Income taxes ............................................ (16,009) (5,467) (1,433)
Cash provided by operating activities ......................... 265,506 241,166 318,545
Investing activities:
Capital expenditures ........................................... (12,349) (16,281) (15,323)
Web site development expenditures .............................. (5,135) (6,053) (4,889)
Capitalized software expenditures ................................ (5,955) (9,269) (11,636)
Cash paid for acquisitions ...................................... — (39,661) (16,812)
Other items, net .............................................. (188) (922) (169)
Cash used for investing activities ............................ (23,627) (72,186) (48,829)
Financing activities:
Proceeds from borrowings ...................................... — 45,000 —
Net payments on revolver ...................................... (32,000) — —
Payments on long-term debt .................................... (162,500) (45,625) (401,034)
Proceeds from new term loan ................................... — — 1,200,000
Payment of dividends .......................................... (54,078) (55,045) (58,524)
Tax benefit of restricted stock units vested and stock options exercised . . 126 492 10,879
Deferred financing costs ....................................... (4,058) — (5,417)
Purchase of treasury stock ...................................... — (115,973) (1,033,644)
Proceeds from stock options exercised ............................ 50 8,075 18,563
Investment and advances from noncontrolling interest ................ 5,496 3,015 —
Cash used for financing activities ............................ (246,964) (160,061) (269,177)
Effect of exchange rate changes on cash and cash equivalents and other ...... 3,900 (1,420) 1,780
Net (decrease)/increase in cash and cash equivalents ..................... (1,185) 7,499 2,319
Cash and cash equivalents, beginning of fiscal year ...................... 47,322 39,823 37,504
Cash and cash equivalents, end of fiscal year ........................... $ 46,137 $ 47,322 $ 39,823
The accompanying notes are an integral part of the consolidated financial statements.
F-6