WeightWatchers 2011 Annual Report Download - page 90

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
December 31,
2011
January 1,
2011
January 2,
2010
(52 Weeks) (52 Weeks) (52 Weeks)
Operating activities:
Net income ...................................................... $304,344 $ 192,522 $ 174,571
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization ....................................... 30,995 29,012 27,875
Amortization of deferred financing costs .............................. 4,825 4,659 2,097
Share-based compensation expense ................................... 9,067 8,612 8,796
Deferred tax provision ............................................. 25,291 22,280 38,392
Allowance for doubtful accounts ..................................... 1,441 2,840 1,220
Reserve for inventory obsolescence, other ............................. 13,203 7,917 7,928
Foreign currency exchange rate (gain)/loss ............................. (80) 439 (208)
Loss on disposal of assets .......................................... 500 0 0
Loss on investment ............................................... 3,585 0 0
Other items, net .................................................. 105 (595) (480)
Changes in cash due to:
Receivables ................................................. (3,482) (6,964) (1,322)
Inventories .................................................. (24,456) (15,490) 1,624
Prepaid expenses ............................................. 2,531 14,027 7,651
Accounts payable ............................................. 17,495 11,855 (5,878)
UK VAT liability ............................................. 0 (32,486) (13,474)
UK self-employment liability ................................... 2,931 4,081 36,660
Accrued liabilities ............................................ 6,587 29,822 (10,055)
Deferred revenue ............................................. 10,555 5,356 6,118
Income taxes ................................................ (3,548) 3,597 (16,009)
Cash provided by operating activities ............................. 401,889 281,484 265,506
Investing activities:
Capital expenditures .............................................. (21,750) (9,137) (12,349)
Capitalized software expenditures .................................... (23,086) (13,057) (11,090)
Other items, net .................................................. (374) (6,452) (188)
Cash used for investing activities ................................ (45,210) (28,646) (23,627)
Financing activities:
Net (payments)/borrowings on revolver ............................... (174,000) 46,000 (32,000)
Payments on long-term debt ........................................ (139,285) (133,915) (162,500)
Payment of dividends ............................................. (51,624) (53,409) (54,078)
Tax benefit of restricted stock units vested and stock options exercised ...... 5,831 60 126
Deferred financing costs ........................................... 0 (11,483) (4,058)
Payments to acquire treasury stock ................................... (34,924) (106,617) 0
Proceeds from stock options exercised ................................ 42,040 39 50
Investment and advances from noncontrolling interest .................... 0 2,513 5,496
Cash used for financing activities ................................ (351,962) (256,812) (246,964)
Effect of exchange rate changes on cash and cash equivalents and other .......... 2,218 (1,629) 3,900
Net increase/(decrease) in cash and cash equivalents ......................... 6,935 (5,603) (1,185)
Cash and cash equivalents, beginning of fiscal year .......................... 40,534 46,137 47,322
Cash and cash equivalents, end of fiscal year ............................... $ 47,469 $ 40,534 $ 46,137
The accompanying notes are an integral part of the consolidated financial statements.
F-6