WeightWatchers 2011 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2011 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
5. Property and Equipment
The components of property and equipment were:
December 31,
2011
January 1,
2011
Leasehold improvements ........................................ $ 44,322 $ 35,706
Equipment ................................................... 95,928 82,398
140,250 118,104
Less: Accumulated depreciation and amortization .................... (99,178) (87,174)
$ 41,072 $ 30,930
Depreciation and amortization expense of property and equipment for the fiscal years ended December 31,
2011, January 1, 2011 and January 2, 2010 was $14,450, $14,118 and $14,211, respectively.
6. Long-Term Debt
The components of the Company’s long-term debt were as follows:
December 31, 2011 January 1, 2011
Balance
Effective
Rate Balance
Effective
Rate
Revolver I due 2011 .................................... $ 0 3.25% $ 1,674 3.25%
Revolver I due 2011 .................................... 0 1.29% 56,565 1.29%
Revolver II due 2014 .................................... 0 4.75% 3,326 4.75%
Revolver II due 2014 .................................... 0 2.76% 112,435 2.83%
Term A Loan due 2011 .................................. 0 1.31% 58,250 1.35%
Additional Term A Loan due 2013 ......................... 148,749 1.30% 209,053 1.36%
Term B Loan due 2014 .................................. 238,125 1.65% 240,000 1.86%
Term C Loan due 2015 .................................. 426,075 2.55% 443,117 2.65%
Term D Loan due 2016 .................................. 238,852 2.56% 240,665 2.65%
Total Debt ........................................ 1,051,801 2.15% 1,365,085 2.01%
Less Current Portion .................................... 124,933 197,524
Total Long-Term Debt .............................. $ 926,868 $1,167,561
The Company’s credit facilities consist of a term loan facility and a revolving credit facility (collectively,
the “WWI Credit Facility”). During the second quarter of fiscal 2011, the composition of the WWI Credit
Facility changed as a result of the Company paying off amounts outstanding under certain tranches of the WWI
Credit Facility that matured on June 30, 2011. Immediately prior to the change, the term loan facility consisted of
two tranche A loans (“Term A Loan” and “Additional Term A Loan”), a tranche B loan (“Term B Loan”), a
tranche C loan (“Term C Loan”), and a tranche D loan (“Term D Loan), and the revolving credit facility (the
“Revolver”) consisted of two tranches (“Revolver I” and “Revolver II”). Immediately prior to the change, the
total of the outstanding and available credit under the Revolver was up to $500,000, of which the Revolver I was
$167,353 and the Revolver II was $332,647.
On June 30, 2011, each of the Term A Loan and Revolver I matured and was paid in full satisfaction of
obligations thereunder ($29,125 and $12,050, respectively). Following the maturity and payment in full of
F-13