WeightWatchers 2012 Annual Report Download - page 113

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum
of the quarterly EPS amounts may not agree to the total for the year.
As discussed in further detail in Note 13, in the fourth quarter of fiscal 2012, the Company recognized a
$4,099 net benefit ($7,423 pre-tax), or $0.07 per fully diluted share, from an accrual reversal associated with the
settlement in the quarter of the previously reported UK self-employment tax litigation. The $7,423 pre-tax net
benefit associated with the settlement consisted of an over-accrual reversal to cost of revenues of $14,544
partially offset by an additional interest accrual of $7,130.
18. Recently Issued Accounting Pronouncements
In July 2012, the Financial Accounting Standards Board (the “FASB”) issued updated guidance on the
periodic testing of indefinite-lived intangible assets for impairment. This guidance allows companies to first
assess qualitative factors to determine if it is more-likely-than-not that an indefinite-lived intangible asset might
be impaired and whether it is necessary to perform the quantitative impairment test required under current
accounting standards. This guidance is applicable for fiscal years beginning after September 15, 2012, with early
adoption permitted. The Company adopted the provisions of this guidance in the third quarter of fiscal 2012. The
adoption of this guidance did not have any affect on the consolidated financial position, results of operations or
cash flows of the Company.
In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment.
This guidance allows companies to assess qualitative factors to determine if it is more-likely-than-not that
goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test
required under current accounting standards. This guidance is applicable for fiscal years beginning after
December 15, 2011, with early adoption permitted. The Company adopted the provisions of this guidance in the
first quarter of fiscal 2012. The adoption of this guidance did not have any affect on the consolidated financial
position, results of operations or cash flows of the Company.
In June 2011, the FASB issued authoritative guidance requiring companies to present the total of
comprehensive income, the components of net income and the components of other comprehensive income either
in a single continuous statement of comprehensive income or in two separate but consecutive statements. The
provisions of the guidance are effective for fiscal years, and interim periods within those years, beginning after
December 15, 2011. In December 2011, the FASB issued an amendment deferring the effective date for the
presentation of reclassification adjustments out of accumulated other comprehensive income. The Company
adopted the provisions of this guidance in the first quarter of fiscal 2012, and such adoption did not affect the
consolidated financial position, results of operations or cash flows of the Company.
In May 2011, the FASB issued authoritative fair value guidance entitled “Fair Value Measurement:
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and
IFRSs”. Some of the amendments included in the guidance clarify the FASB’s intent about the application of
existing fair value measurement requirements. Other amendments change a particular principle or requirement
for measuring fair value or for disclosing information about fair value measurements. This guidance is effective
for interim and annual periods beginning after December 15, 2011. The Company adopted the provisions of this
guidance in the first quarter of fiscal 2012, and such adoption did not have a material impact on the disclosures in
its consolidated financial statements.
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