WeightWatchers 2015 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)
Fiscal Year Ended December 28, 2013
Loss on
Qualifying
Hedges
Foreign
Currency
Translation
Adjustments Total
Beginning Balance at December 29, 2012 ............................ $(6,602) $19,461 $ 12,859
Other comprehensive loss before reclassifications, net of tax ......... (4,124) (6,341) (10,465)
Amounts reclassified from accumulated other comprehensive income,
net of tax(b) .............................................. 6,123 0 6,123
Net current period other comprehensive loss including noncontrolling
interest ...................................................... 1,999 (6,341) (4,342)
Ending Balance at December 28, 2013 ............................... $(4,603) $13,120 $ 8,517
(a) Amounts in parentheses indicate debits
(b) See separate table below for details about these reclassifications
Reclassifications out of Accumulated Other Comprehensive Income (Loss)(a)
Fiscal Year Ended
January 2,
2016
January 3,
2015
December 28,
2013
Details about Other
Comprehensive Income
Components
Amounts Reclassified from
Accumulated Other
Comprehensive Loss
Affected Line Item in the
Statement Where Net Income is Presented
Loss on Qualifying Hedges
Interest rate contracts ......... $(24,741) $(19,815) $(10,037) Interest expense
(24,741) (19,815) (10,037) Income before income taxes
9,649 7,728 3,914 Provision for income taxes
$(15,092) $(12,087) $ (6,123) Net income
(a) Amounts in parentheses indicate debits to profit / loss
19. Restructuring Charges
As previously disclosed, the Company established a new cost-savings initiative and, as part of this cost-
savings initiative, in fiscal 2015, the Company undertook a plan of reduction in force which resulted in the
elimination of certain positions and termination of employment for certain employees worldwide. In fiscal 2014,
the Company reviewed its organization and undertook a restructuring which resulted in the elimination of certain
positions and the termination of employment for certain employees worldwide.
In connection with these plans, the Company recorded restructuring charges in connection with employee
termination benefit costs of $8,412 ($5,131 after tax) and $11,840 ($7,222 after tax) during the fiscal years ended
January 2, 2016 and January 3, 2015, respectively. For the fiscal years ended January 2, 2016 and January 3,
2015, these charges impacted cost of revenues by $1,505 and $4,642, respectively, and selling, general and
administrative expenses by $6,907 and $7,198, respectively. For the fiscal years ended January 2, 2016 and
January 3, 2015, all restructuring charges were recorded to general corporate expense and therefore there was no
impact to the segments.
F-37