WeightWatchers 2010 Annual Report Download - page 101

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIE
S
NO
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
(
IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
)
The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various
state and foreign jurisdictions. At January 1, 2011, with few exceptions, the Company was no longer subject to
U
S federal, state or local income tax examinations by tax authorities for years prior to 200
5
, or non-US income
tax examinations by tax authorities for years prior to 2003.
1
2. Em
p
lo
y
ee Benefit Plans
T
h
e Compan
y
sponsors t
h
e Secon
d
Amen
d
e
d
an
d
Restate
d
We
igh
t Watc
h
ers Sav
i
n
g
sP
l
an (t
h
e “Sav
i
n
g
s
P
l
an”)
f
or sa
l
ar
i
e
d
an
d
certa
i
n
h
our
ly
US emp
l
o
y
ees o
f
t
h
e Compan
y
.T
h
e Sav
i
n
g
sP
l
an
i
sa
d
e
fi
ne
d
contr
ib
ut
i
on
pl
an t
h
at prov
id
es
f
or emp
l
o
y
er matc
hi
n
g
contr
ib
ut
i
ons up to 100% o
f
t
h
e
fi
rst 3% o
f
an emp
l
o
y
ee’s e
ligible
compensat
i
on t
h
at
i
s contr
ib
ute
d
to t
h
e Sav
i
n
g
sP
l
an. Expense re
l
ate
d
to t
h
ese contr
ib
ut
i
ons
f
or t
h
e
fi
sca
ly
ears
ended Januar
y
1, 2011, Januar
y
2, 2010 and Januar
y
3, 2009 was
$
1,819,
$
2,486, and
$
1,763, respectivel
y.
Dur
i
n
gfi
sca
l
2002, t
h
e Compan
y
rece
i
ve
d
a
f
avora
bl
e
d
eterm
i
nat
i
on
l
etter
f
rom t
h
e IRS t
h
at qua
lifi
es t
he
Sav
i
n
g
sP
l
an un
d
er Sect
i
on 401(a) o
f
t
h
e Interna
l
Revenue Co
d
e.
Pursuant to the Savings Plan, the Company also sponsors a profit sharing plan (the “Profit Sharing Plan”
)
f
or all full-time salaried US employees who are eligible to participate in the Savings Plan (except for certai
n
senior management personnel). The Profit Sharing Plan provides for a guaranteed monthly employer contribution
o
n behalf of each participant based on the participant’s age and a percentage of the participant’s eligible
compensation. The Profit Sharing Plan has a discretionary supplemental employer contribution component that is
determined annually by the Compensation and Benefits Committee of the Company’s Board of Directors
.
Expense related to these contributions for the fiscal years ended January 1, 2011, January 2, 2010 and January 3
,
2009 was
$
3,157,
$
3,361 and
$
3,867 respectively
.
F
or certa
i
n US sen
i
or management personne
l
,t
h
e Company sponsors t
h
e Amen
d
e
d
an
d
Restate
d
We
i
g
ht
W
atc
h
ers Execut
i
ve Pro
fi
tS
h
ar
i
ng P
l
an (“EPSP”). Un
d
er t
h
e IRS
d
e
fi
n
i
t
i
on, t
h
e EPSP
i
s cons
id
ere
da
Nonqua
lifi
e
d
De
f
erre
d
Compensat
i
on P
l
an. T
h
ere
i
s a prom
i
se o
f
payment
b
yt
h
e Company ma
d
eont
h
e
emp
l
oyees’
b
e
h
a
lf i
nstea
d
o
f
an
i
n
di
v
id
ua
l
account w
i
t
h
a cas
hb
a
l
ance. T
h
e EPSP prov
id
es
f
or a guarantee
d
emp
l
oyer contr
ib
ut
i
on on
b
e
h
a
lf
o
f
eac
h
part
i
c
i
pant
b
ase
d
on t
h
e part
i
c
i
pant’s age an
d
a percentage o
f
t
he
p
art
i
c
i
pant’s e
li
g
ibl
e compensat
i
on. T
h
e EPSP
h
as a
di
scret
i
onary supp
l
ementa
l
emp
l
oyer contr
ib
ut
i
on
component t
h
at
i
s
d
eterm
i
ne
d
annua
ll
y
b
yt
h
e Compensat
i
on an
d
Bene
fi
ts Comm
i
ttee o
f
t
h
e Company’s Boar
d
o
f
D
i
rectors. T
h
e account
i
sva
l
ue
d
at t
h
een
d
o
f
eac
hfi
sca
l
mont
h
,
b
ase
d
on an annua
li
ze
di
nterest rate o
f
pr
i
me
p
lus 2%, with an annualized cap of 1
5
%. Expense related to this commitment for the fiscal years ended
January 1, 2011, January 2, 2010 and January 3, 2009 was
$
1,719,
$
1,620 and
$
1,026, respectively.
1
3.
C
ash Flow In
f
ormat
i
o
n
January
1,
2
01
1
J
anuary
2
,
201
0
J
anuary
3
,
2
009
Net cas
h
pa
id d
ur
i
ng t
h
e year
f
or:
I
nterest expens
e
..............................................
$
71
,
602 $81
,
968 $ 96
,
55
6
I
ncome taxes
................................................
$
75
,
389 $86
,
081 $132
,
648
Noncas
hi
nvest
i
ng an
d
fi
nanc
i
n
g
act
i
v
i
t
i
es were as
f
o
ll
ows:
F
a
i
rva
l
ue o
f
net assets/(
li
a
bili
t
i
es) acqu
i
re
di
n
connect
i
on w
i
t
h
acqu
i
s
i
t
i
on
s
..................................
$
—
$
—
$
34
5
D
i
v
id
en
d
s
d
ec
l
are
db
ut not
y
et pa
id
at
y
ear-en
d
.........................
$
13
,
158 $13
,
786 $ 13
,
87
6
F-
21