WeightWatchers 2009 Annual Report Download - page 84

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
modified prospective transition method to all past awards outstanding and unvested as of the date of adoption and
began recognizing the associated expense over the remaining vesting period based on the fair values previously
determined and disclosed as part of its pro forma disclosures. The Company has not restated the results of prior
periods. The Company elected to use the “short-cut” method to calculate its historical pool of windfall tax
benefits.
FASB Codification:
In June 2009, the Financial Accounting Standards Board (the “FASB”) issued the FASB Accounting
Standards Codification (the “Codification”). The Codification has become the single source of authoritative U.S.
GAAP recognized by the FASB to be applied to financial statements issued for periods ending after
September 15, 2009. The Codification does not change U.S. GAAP and does not affect the Company’s financial
position, results of operations or liquidity.
Reclassification:
Certain prior year amounts have been reclassified to conform to the current year presentation.
3. Acquisitions
The Company acquired certain franchisees and, accordingly, earnings have been included in the
consolidated operating results of the Company since their dates of acquisition. Details of key franchise
acquisitions are outlined below.
On June 3, 2007, the Company acquired substantially all of the assets of its British Columbia franchisee,
Weight Watchers of British Columbia Inc., for a net purchase price of $15,282, plus assumed liabilities and
transaction costs of $532. The total purchase price has been allocated to franchise rights acquired ($15,718),
inventory ($88), fixed assets ($7) and other current assets ($1).
On January 31, 2008, the Company acquired substantially all of the assets of its Palm Beach, Florida
franchisee, Weight Watchers of Palm Beach County, Inc., for a net purchase price of $12,936, plus assumed
liabilities and transaction costs of $319. The total purchase price has been allocated to franchise rights acquired
($12,693), inventory ($113), fixed assets ($299) and other current assets ($150).
On June 13, 2008, the Company acquired substantially all of the assets of its Wichita, Kansas franchisee,
Weight Watchers of Greater Wichita, Inc., for a net purchase price of $5,734. The total purchase price has been
allocated to franchise rights acquired ($5,676) and prepaid expenses ($58).
On June 19, 2008, the Company acquired substantially all of the assets of two of its franchisees, Weight
Watchers of Syracuse, Inc. and Dieters of the Southern Tier, Inc., for a combined net purchase price of $20,935,
plus assumed liabilities and transaction costs of $164. The total purchase price has been allocated to franchise
rights acquired ($20,948), fixed assets ($36), inventory ($56) and prepaid expenses ($59).
The effects of these franchise acquisitions, individually or in the aggregate, were not material to the
Company’s consolidated financial position, results of operations, or operating cash flows in any of the periods
presented.
F-12