WeightWatchers 2015 Annual Report Download - page 98

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
9. Earnings Per Share
Basic earnings per share (“EPS”) are calculated utilizing the weighted average number of common shares
outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of common
shares outstanding during the periods presented adjusted for the effect of dilutive common stock equivalents.
The following table sets forth the computation of basic and diluted EPS for the fiscal years ended:
January 2,
2016
January 3,
2015
December 28,
2013
Numerator:
Net income attributable to Weight Watchers International, Inc. ...... $32,945 $117,787 $202,742
Denominator:
Weighted average shares of common stock outstanding ............ 58,369 56,607 56,144
Effect of dilutive common stock equivalents ..................... 597 98 250
Weighted average diluted common shares outstanding ............. 58,966 56,705 56,394
Earnings Per Share attributable to Weight Watchers International, Inc.
Basic .................................................... $ 0.56 $ 2.08 $ 3.61
Diluted ................................................... $ 0.56 $ 2.08 $ 3.60
The number of anti-dilutive common stock equivalents excluded from the calculation of the weighted
average number of common shares for diluted EPS was 1,699, 3,073, and 1,285 for the years ended January 2,
2016, January 3, 2015 and December 28, 2013, respectively.
10. Stock Plans
Incentive Compensation Plans and Winfrey Option
On May 6, 2008 and May 12, 2004, respectively, the Company’s shareholders approved the 2008 Stock
Incentive Plan (the “2008 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan”). On May 6, 2014, the
Company’s shareholders approved the 2014 Stock Incentive Plan (as amended, the “2014 Plan” and together
with the 2004 Plan and the 2008 Plan, the “Stock Plans”), which replaced the 2008 Plan and 2004 Plan for all
equity-based awards granted on or after May 6, 2014. The 2014 Plan is designed to promote the long-term
financial interests and growth of the Company by attracting, motivating and retaining employees with the ability
to contribute to the success of the business and to align compensation for the Company’s employees over a multi-
year period directly with the interests of the shareholders of the Company. The Company’s Board of Directors or
a committee thereof administers the 2014 Plan.
Under the 2014 Plan, grants may take the following forms at the Compensation and Benefit Committee’s
discretion: non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units
(“RSUs”), restricted stock and other share-based awards. As of its effective date, the maximum number of shares
of common stock available for grant under the 2014 Plan was 3,500, subject to increase and adjustment as set
forth in the 2014 Plan.
Under the 2014 Plan, the Company also grants fully-vested shares of its common stock to certain members
of its Board of Directors. While these shares are fully vested the directors are restricted from selling these shares
while they are still serving on the Company’s Board of Directors. During the fiscal years ended January 2,
2016, January 3, 2015 and December 28, 2013, the Company granted 50, 20, and 14, fully-vested shares,
respectively, and recognized compensation expense of $507, $497, and $524, respectively.
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