WeightWatchers 2011 Annual Report Download - page 46

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Dividends
We have issued a quarterly cash dividend of $0.175 per share of our common stock every quarter for the
past several fiscal years. Any decision to declare and pay dividends in the future will be made at the discretion of
our Board of Directors, after taking into account our financial results, capital requirements and other factors it
may deem relevant. Our Board of Directors may decide at any time to increase or decrease the amount of
dividends or discontinue the payment of dividends based on these factors. The WWI Credit Facility (as defined
below) also contains restrictions on our ability to pay dividends on our common stock. See “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital
Resources—Long-Term Debt” in Part II, and “Item 15. Exhibits and Financial Statement Schedules—Financial
Statements—Note 6. Long-Term Debt”, of this Annual Report on Form 10-K for a description of the WWI
Credit Facility.
Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for the last five fiscal years.
SELECTED FINANCIAL DATA
(in millions, except per share amounts)
Fiscal 2011
(52 weeks)
Fiscal 2010
(52 weeks)
Fiscal 2009
(52 weeks)
Fiscal 2008
(53 weeks)
Fiscal 2007
(52 weeks)
Revenues, net ................................ $1,819.2 $1,452.0 $1,398.9 $1,535.8 $1,467.2
Net income attributable to the Company ........... $ 304.9 $ 194.2 $ 177.3 $ 204.3 $ 201.2
Working capital (deficit) ....................... $ (279.7) $ (348.7) $ (336.1) $ (270.1) $ (172.1)
Total assets ................................. $1,121.6 $1,092.0 $1,087.5 $1,106.8 $1,046.2
Long-term debt .............................. $ 926.9 $1,167.6 $1,238.0 $1,485.0 $1,602.5
Earnings per share:
Basic .................................. $ 4.16 $ 2.57 $ 2.30 $ 2.61 $ 2.50
Diluted ................................. $ 4.11 $ 2.56 $ 2.30 $ 2.60 $ 2.48
Dividends declared per common share ............ $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.70
Items Affecting Comparability
Several events occurred during each of the last five fiscal years that affect the comparability of our financial
statements. The nature of these events and their impact on underlying business trends are as follows:
UK VAT Matter
In the second quarter of fiscal 2008, we received an adverse ruling in the United Kingdom with respect to
the imposition of UK value added tax, or VAT, on meeting fees earned in the United Kingdom. In connection
with this ruling, we recorded a net charge of approximately $18.7 million pertaining to periods prior to fiscal
2008 as an offset to revenue in fiscal 2008. In fiscal 2010, we determined that there was an over-accrual of $2.0
million with respect to this matter which was reversed to revenue.
UK Self-Employment Matter
We received an adverse tax ruling in the United Kingdom that our UK leaders should have been classified
as employees for UK tax purposes and, as such, we should have withheld tax from our leaders pursuant to the
PAYE and NIC collection rules and remitted such amounts to HMRC. In connection with this ruling, we
recorded a charge of approximately $36.7 million, of which approximately $4.2 million was with respect to fiscal
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