WeightWatchers 2012 Annual Report Download - page 89

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
December 29,
2012
December 31,
2011
January 1,
2011
(52 Weeks) (52 Weeks) (52 Weeks)
Operating activities:
Net income .................................................... $ 257,426 $ 304,344 $ 192,522
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization ................................. 36,640 30,995 29,012
Amortization of deferred financing costs ........................ 7,070 4,825 4,659
Share-based compensation expense ............................. 8,845 9,067 8,612
Deferred tax provision ....................................... 26,765 25,291 22,280
Allowance for doubtful accounts ............................... (1,067) 1,441 2,840
Reserve for inventory obsolescence, other ....................... 10,491 13,203 7,917
Foreign currency exchange rate (gain)/loss ....................... (722) (80) 439
Loss on disposal of assets .................................... 590 500 0
Loss on investment ......................................... 2,697 3,585 0
Early extinguishment of debt .................................. 1,328 0 0
Other items, net ............................................ 0 105 (595)
Changes in cash due to:
Receivables ............................................... 5,870 (563) (6,764)
Inventories ................................................ (1,341) (24,456) (15,490)
Prepaid expenses ........................................... (639) 2,531 14,027
Accounts payable ........................................... (11,794) 17,495 11,855
UK VAT liability ........................................... 0 0 (32,486)
UK self-employment liability ................................. (37,441) 2,931 4,081
Accrued liabilities .......................................... 45,248 6,587 29,822
Deferred revenue ........................................... 1,539 10,555 5,356
Income taxes .............................................. (2,114) (3,548) 3,597
Cash provided by operating activities ........................... 349,391 404,808 281,684
Investing activities:
Capital expenditures ............................................. (48,807) (21,750) (9,137)
Capitalized software expenditures .................................. (29,926) (23,086) (13,057)
Cash paid for acquisitions ........................................ (30,400) 0 0
Other items, net ................................................ (323) (374) (6,452)
Cash used for investing activities .............................. (109,456) (45,210) (28,646)
Financing activities:
Proceeds from new term loans ..................................... 1,449,397 0 0
Net borrowings/(payments) on revolver ............................. 30,000 (174,000) 46,000
Payments on long-term debt ...................................... (124,833) (139,285) (133,915)
Payment of dividends ............................................ (51,961) (51,624) (53,409)
Payments to acquire treasury stock ................................. (1,504,189) (34,924) (106,617)
Deferred financing costs ......................................... (26,248) 0 (11,483)
Proceeds from stock options exercised .............................. 12,688 42,040 39
Tax benefit of restricted stock units vested and stock options exercised .... 4,026 5,831 60
Investment and advances from noncontrolling interest .................. 0 0 2,513
Cash used for financing activities .............................. (211,120) (351,962) (256,812)
Effect of exchange rate changes on cash and cash equivalents and other ........ (11,799) 2,218 (1,629)
Net increase/(decrease) in cash and cash equivalents ....................... 17,016 9,854 (5,403)
Cash and cash equivalents, beginning of fiscal year ........................ 53,199 43,345 48,748
Cash and cash equivalents, end of fiscal year ............................. $ 70,215 $ 53,199 $ 43,345
The accompanying notes are an integral part of the consolidated financial statements.
F-7