Nutrisystem 2003 Annual Report Download - page 24

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22
The FASB recently issued SFAS No. 149, Amendment of Statement 133 on Derivative Instruments and
Hedging Activities and SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both
Liabilities and Equity. In addition, the Emerging Issues Task Force recently issued EITF Issue 00-21, Revenue
Arrangements with Multiple Deliverables. The adoption of these accounting pronouncements did not have an impact
on the Companys consolidated financial position or results of operations.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
The Company does not hold any investments in market risk sensitive instruments. Accordingly, management
believes that it is not subject to any material risks arising from changes in interest rates, foreign currency exchange rates,
commodity prices, equity prices or other market changes that affect market risk instruments.
The Company does not
have any funded debt outstanding at December 31, 2003, and its cash and cash equivalents of $2,684 are maintained in
bank accounts. As such, a change in interest rates of 1 percentage point would not have a material impact on the
Companys operating results and cash flows.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this Item is set forth on pages 25 through 43 hereto and is incorporated by
reference herein.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
The Companys Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design
and operation of the Companys disclosure controls and procedures as of the end of the period covered by this Report.
Based upon this evaluation, they concluded that, as of the date of the evaluation the Companys disclosure controls and
procedures as of the end of the period covered by this Report have been designed and are functioning effectively to
provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in
the SECs rules and forms. Management believes that a control system, no matter how well designed and operated,
cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can
provide absolute assurance that all control issues and instance of fraud, if any, within a company have been detected.
Since the date of this evaluation, there have been no significant changes in the Companys internal controls or in other
factors that could significantly affect those controls.