WeightWatchers 2010 Annual Report Download - page 70

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F
i
s
cal 2008
A
t the end of fiscal 2008, cash and cash e
q
uivalents were
$
47.3 million, an increase of
$
7.5 million from th
e
end of fiscal 2007. Cash flows provided by operating activities were
$
241.2 million. The cash provided b
y
o
perations was driven by our net income of
$
204.3 million, changes in our working capital, and difference
s
between book and cash taxes. Fiscal 2008 cash from operations was negatively impacted by timing of payments
.
Certain fiscal 2007 and fiscal 2009 tax and other payments amounting to approximately
$
30.0 million were made
in fiscal 2008. Investing activities utilized
$
72.2 million, including
$
39.7 million for our fiscal 2008 franchise
acquisitions and
$
31.6 million for capital spending. Net cash used for financing activities totaled
$
160.1 million.
T
his included the re
p
urchase of 2.8 million shares of our common stock for
$
116.0 million and dividend
p
ayments of
$
55.0 million. See “Item 5. Market for Registrant’s Common Equity, Related Shareholder Matter
s
and Issuer Purchases of Equity Securities” of this Annual Report on Form 10-K for more information regarding
o
ur stock repurchase program.
Long-Term Debt
Our credit facilities consist of a term loan facility and a revolving credit facility, or collectively, the WW
I
Credit Facility. The term loan facility consists of two tranche A loans, or Term A Loan and Additional Term
A
Loan, a tranche B loan, or Term B Loan, a tranche C loan, or Term C Loan, and a tranche D loan, or Term
D
Loan, in an aggregate original principal amount of
$
1,550.0 million. The revolving credit facility, or th
e
R
evolver, consists of two tranches, or Revolver I and Revolver II, of up to
$
500.0 million in the aggregate. At the
end of fiscal 2010, we had
$
1,365.1 million outstanding under the WWI Credit Facility. In addition, at the end of
f
iscal 2010, there was
$
325.0 million available under the Revolver
.
A
t the end of fiscal 2010, fiscal 2009 and fiscal 2008, our debt consisted entirely of variable-rate
instruments. Interest rate swaps are entered into to hedge a portion of the cash flow exposure associated with our
variable-rate borrowings. The average interest rate on our debt, exclusive of the impact of swaps, wa
s
approximately 2.2%, 1.
5
% and 4.7% per annum at the end of fiscal 2010, fiscal 2009 and fiscal 2008,
r
espectively.
The following schedule sets forth our long-term debt obligations (and interest rates, exclusive of the impac
t
o
f swaps) at January 1, 2011
:
L
ong-
T
erm
D
e
bt
A
t Januar
y
1, 2011
(
Balances in millions
)
B
a
l
a
n
ce
A
lternative
B
ase
R
at
e
o
r LIBOR
A
ppl
i
cabl
e
M
ar
g
i
n
I
nteres
t
R
a
t
e
R
evo
l
ver I
d
ue 2011 .......................................
$
1.
7
3
.25% 0.00% 3.25%
R
evo
l
ver I
d
ue 2011
.......................................
5
6.6 0.31% 1.00% 1.31%
R
evo
l
ver II
d
ue 2014
.
.....................................
3
.
3
3
.2
5
%1.
5
0% 4.7
5
%
R
evo
l
ver II
d
ue 2014
......................................
112.4 0.31% 2.
5
0% 2.81%
T
erm A Loan
d
ue 2011 ....................................
.
5
8.2 0.31% 1.00% 1.31%
A
ddi
t
i
ona
l
Term A Loan
d
ue 2013 ..........................
.
209
.
10
.
31% 1
.
00% 1
.
31%
T
erm B Loan
d
ue 201
4
....................................
.
240.0 0.31% 1.
5
0% 1.81%
T
erm C Loan due 201
5
....................................
.
443.1 0.31% 2.2
5
%2.
5
6%
T
erm D Loan due 2
0
1
6
.....................................
24
0
.7
0
.
3
1% 2.2
5
%2.
56
%
T
otal Deb
t
.......................................
1,365.
1
L
ess
C
urrent Portion
...................................
197.5
T
otal Long-Term Deb
t
.............................
$
1,167.6
54