WeightWatchers 2012 Annual Report Download - page 101

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
8. Earnings Per Share
Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares
outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of
common shares outstanding during the periods presented adjusted for the effect of dilutive common stock
equivalents.
The following table sets forth the computation of basic and diluted EPS for the fiscal years ended:
December 29,
2012
December 31,
2011
January 1,
2011
Numerator:
Net income attributable to Weight Watchers International, Inc. .... $257,426 $304,867 $194,235
Denominator:
Weighted average shares of common stock outstanding .......... 60,294 73,344 75,661
Effect of dilutive common stock equivalents ................... 629 787 219
Weighted average diluted common shares outstanding ........... 60,923 74,131 75,880
EPS attributable to Weight Watchers International, Inc.
Basic .................................................. $ 4.27 $ 4.16 $ 2.57
Diluted ................................................. $ 4.23 $ 4.11 $ 2.56
The number of anti-dilutive common stock equivalents excluded from the calculation of weighted average
shares for diluted EPS was 536, 188 and 2,223 for the years ended December 29, 2012, December 31, 2011 and
January 1, 2011, respectively.
9. Stock Plans
Incentive Compensation Plans:
On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock
Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan” and together with the 2008
Plan, the “Stock Plans”). These plans are designed to promote the long-term financial interests and growth of the
Company by attracting, motivating and retaining employees with the ability to contribute to the success of the
business and to align compensation for the Company’s employees over a multi-year period directly with the
interests of the shareholders of the Company. The Company’s Board of Directors or a committee thereof
administers the Stock Plans.
Under the 2008 Plan, grants may take the following forms at the Compensation and Benefit Committee’s
discretion: non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units
(“RSUs”), restricted stock and other share-based awards. As of its effective date, the maximum number of shares
of common stock available for grant under the 2008 Plan was 3,000, subject to increase and adjustment as set
forth in the 2008 Plan. Pursuant to the terms of the 2008 Plan, the number of shares of our common stock
available for issuance under the 2008 Plan was increased by 550, the remaining number of shares of our common
stock with respect to which awards could be granted under the Company’s 1999 Stock Purchase and Option Plan
upon its termination.
F-19