WeightWatchers 2011 Annual Report Download - page 111

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
The Company is hedging forecasted transactions for periods not exceeding the next five years. At
December 31, 2011, given the current configuration of its debt, the Company estimates that no derivative gains
or losses reported in accumulated other comprehensive income (loss) will be reclassified to the statement of
income within the next 12 months due to hedge ineffectiveness.
As of December 31, 2011 and January 1, 2011, cumulative unrealized losses for qualifying hedges were
reported as a component of accumulated other comprehensive income (loss) in the amounts of $13,322 ($21,840
before taxes) and $24,118 ($39,539 before taxes), respectively. For the fiscal years ended December 31,
2011, January 1, 2011 and January 2, 2010 there were no fair value adjustments recorded in the statements of
income since all hedges were considered qualifying and effective.
The Company expects approximately $8,332 ($13,659 before taxes) of derivative losses included in
accumulated other comprehensive income (loss) at December 31, 2011, based on current market rates, will be
reclassified into earnings within the next 12 months.
17. Quarterly Financial Information (Unaudited)
The following is a summary of the unaudited quarterly consolidated results of operations for the fiscal years
ended December 31, 2011 and January 1, 2011.
For the Fiscal Quarters Ended
April 2,
2011
July 2,
2011
October 1,
2011
December 31,
2011
Fiscal year ended December 31, 2011
Revenues, net ........................................ $503,432 $486,013 $428,434 $401,277
Gross profit ......................................... 283,142 287,150 251,183 225,665
Operating income .................................... 135,731 155,330 138,299 116,968
Net income .......................................... 73,177 86,856 80,650 63,661
Net income attributable to the Company ................... 73,593 86,963 80,650 63,661
Basic EPS atributable to the Company .................... $ 1.01 $ 1.19 $ 1.10 $ 0.87
Diluted EPS attributable to the Company .................. $ 1.00 $ 1.17 $ 1.09 $ 0.86
For the Fiscal Quarters Ended
April 3,
2010
July 3,
2010
October 2,
2010
January 1,
2011
Fiscal year ended January 1, 2011
Revenues, net ........................................ $387,997 $376,742 $330,606 $356,692
Gross profit ......................................... 211,683 211,671 178,509 188,767
Operating income .................................... 91,427 112,158 90,447 96,313
Net income .......................................... 44,086 55,943 44,010 48,483
Net income attributable to the Company ................... 44,577 56,306 44,437 48,915
Basic EPS atributable to the Company .................... $ 0.58 $ 0.73 $ 0.59 $ 0.66
Diluted EPS attributable to the Company .................. $ 0.58 $ 0.73 $ 0.59 $ 0.66
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum
of the quarterly EPS amounts may not agree to the total for the year.
In the fourth quarter of fiscal 2010, the Company paid the UK VAT assessment that had been previously
accrued and reversed the remaining reserve related to this matter in the amount of approximately $2,028. The
amount was recorded as a benefit to revenue.
F-27