WeightWatchers 2013 Annual Report Download - page 93

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
December 28,
2013
December 29,
2012
December 31,
2011
(52 Weeks) (52 Weeks) (52 Weeks)
Operating activities:
Net income .................................................. $ 204,725 $ 257,426 $ 304,344
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization ............................... 44,904 36,640 30,995
Amortization of deferred financing costs ....................... 7,672 7,070 4,825
Impairment of intangible and long-lived assets .................. 5,426 0 0
Share-based compensation expense ........................... 4,255 8,845 9,067
Deferred tax provision ..................................... 35,380 26,765 25,291
Allowance for doubtful accounts ............................. 596 (1,067) 1,441
Reserve for inventory obsolescence ........................... 9,580 10,491 13,203
Foreign currency exchange rate loss/(gain) ..................... 659 (722) (80)
Loss on disposal of assets .................................. 1,417 590 500
Loss on investment ........................................ 0 2,697 3,585
Early extinguishment of debt ................................ 21,685 1,328 0
Other items, net .......................................... 0 0 105
Changes in cash due to:
Receivables ............................................. 345 5,870 (563)
Inventories .............................................. (2,226) (1,341) (24,456)
Prepaid expenses ......................................... 1,037 (639) 2,531
Accounts payable ......................................... (3,607) (11,794) 17,495
UK self-employment liability ............................... (7,272) (37,441) 2,931
Accrued liabilities ........................................ 4,988 28,042 2,348
Deferred revenue ......................................... (10,521) 1,539 10,555
Income taxes ............................................ 4,473 2,408 2,922
Cash provided by operating activities ......................... 323,516 336,707 407,039
Investing activities:
Capital expenditures ........................................... (40,657) (48,807) (21,750)
Capitalized software expenditures ................................ (21,277) (29,926) (23,086)
Cash paid for acquisitions ...................................... (83,825) (30,400) 0
Other items, net .............................................. 411 (323) (374)
Cash used for investing activities ............................. (145,348) (109,456) (45,210)
Financing activities:
Proceeds from new term loans ................................... 2,400,000 1,449,397 0
Net borrowings/(payments) on revolver ........................... 70,000 30,000 (174,000)
Payments on long-term debt .................................... (2,488,364) (124,833) (139,285)
Payment of dividends .......................................... (29,571) (51,961) (51,624)
Payments to acquire treasury stock ............................... 0 (1,504,189) (34,924)
Deferred financing costs ....................................... (44,817) (26,248) 0
Proceeds from stock options exercised ............................ 16,187 12,688 42,040
Tax benefit of restricted stock units vested and stock options exercised . . . 2,132 4,026 5,831
Cash used for financing activities ............................ (74,433) (211,120) (351,962)
Effect of exchange rate changes on cash and cash equivalents and other ...... 607 885 (13)
Net increase in cash and cash equivalents .............................. 104,342 17,016 9,854
Cash and cash equivalents, beginning of fiscal year ...................... 70,215 53,199 43,345
Cash and cash equivalents, end of fiscal year ........................... $ 174,557 $ 70,215 $ 53,199
The accompanying notes are an integral part of the consolidated financial statements.
F-7