WeightWatchers 2012 Annual Report Download - page 112

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
forward-starting interest rate swap with an effective date of January 4, 2010 and a termination date of January 27,
2014. During the term of this forward-starting interest rate swap, the notional amount will fluctuate, but will be
no higher than the amount outstanding as of the end of fiscal 2012. The initial notional amount was $425,000 and
the highest notional amount was $755,000.
The Company is hedging forecasted transactions for periods not exceeding the next thirteen months. At
December 29, 2012, 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 29, 2012 and December 31, 2011, cumulative unrealized losses for qualifying hedges were
reported as a component of accumulated other comprehensive income (loss) in the amounts of $6,602 ($10,824
before taxes) and $13,322 ($21,840 before taxes), respectively. For the fiscal years ended December 29,
2012, December 31, 2011 and January 1, 2011, there were no fair value adjustments recorded in the statements of
income since all hedges were considered qualifying and effective.
The Company expects approximately $6,527 ($10,700 before taxes) of derivative losses included in
accumulated other comprehensive income (loss) at December 29, 2012, 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 29, 2012 and December 31, 2011.
For the Fiscal Quarters Ended
March 31,
2012
June 30,
2012
September 29,
2012
December 29,
2012
Fiscal year ended December 29, 2012
Revenues, net ..................................... $503,535 $484,752 $430,610 $407,915
Gross profit ....................................... 288,365 293,524 255,833 245,064
Operating income .................................. 102,774 153,508 131,984 122,539
Net income attributable to the Company ................ 54,605 77,462 67,364 57,995
Basic EPS attributable to the Company ................. $ 0.74 $ 1.37 $ 1.21 $ 1.04
Diluted EPS attributable to the Company ................ $ 0.74 $ 1.36 $ 1.20 $ 1.03
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 attributable 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
F-30