WeightWatchers 2013 Annual Report Download - page 94

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1. Basis of Presentation
The accompanying consolidated financial statements include the accounts of Weight Watchers International,
Inc. and all of its subsidiaries. The term “Company” as used throughout these notes is used to indicate Weight
Watchers International, Inc. and all of its businesses consolidated for purposes of its financial statements. The
term “WWI” as used throughout these notes is used to indicate Weight Watchers International, Inc. and all of the
Company’s businesses other than WW.com. The term “WW.com” as used throughout these notes is used to
indicate WeightWatchers.com, Inc. and all of the Company’s Internet-based businesses.
As further discussed in Note 3, effective with its formation in February 2008, the Company consolidated the
financial statements of Weight Watchers China Limited.
Revisions:
The Company identified a correction in the statements of cash flows for the year ended 2012 and 2011 as it
relates to foreign currency activity, resulting in a reclassification between accrued liabilities and effect of
exchange rate changes on cash and cash equivalents and other. The effects of this revision on the previously
reported amounts are as follows:
December 29,
2012
December 31,
2011
Cash provided by operating activities ....................... $(12,684) $ 2,231
Effect of exchange rate changes on cash and cash equivalents .... $12,684 $(2,231)
In addition, the classification of certain brand marketing funds received from licensees has been revised to
reflect them as revenue as opposed to being recorded as an offset to expense, increasing the first nine months of
fiscal 2013, full year fiscal 2012 and full year fiscal 2011 Product sales and other, net, Cost of meetings, products
and other, Gross profit, Marketing expenses and Selling, general and administrative expenses as follows:
December 28,
2013
December 29,
2012
December 31,
2011
Product sales and other, net ........................ $12,058 $12,620 $13,338
Cost of meetings, products and other ................ $ 1,078 $ 1,589 $ 1,974
Gross profit .................................... $10,979 $11,031 $11,364
Marketing expenses .............................. $10,279 $10,158 $10,572
Selling, general and administrative expenses .......... $ 701 $ 873 $ 792
These adjustments were not considered to be material, individually or in the aggregate, to previously issued
financial statements. However, because of the significance of these adjustments, the Company revised its fiscal
2012 and fiscal 2011 consolidated statements of cash flows and its first nine months of fiscal 2013, fiscal 2012
and fiscal 2011 consolidated statements of income. These revisions had no impact on the consolidated balance
sheets, consolidated statements of comprehensive income or consolidated statements of changes in stockholders’
equity included in these financial statements.
2. Summary of Significant Accounting Policies
Fiscal Year:
The Company’s fiscal year ends on the Saturday closest to December 31st and consists of either 52 or 53-
week periods. Fiscal years 2013, 2012 and 2011 each contained 52 weeks. WW.com’s fiscal year ends on
December 31st of each year. This difference in fiscal years does not have a material effect on the consolidated
financial statements.
F-8