WeightWatchers 2005 Annual Report Download - page 54

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The impact that our contractual obligations as of December 31, 2005 are expected to have on our
consolidated liquidity and cash flow in future periods is as follows:
Payment Due by Period
Less than More than
Total 1 Year 1-3 Years 3-5 Years 5 Years
(in millions)
Long-Term Debt(1)
Principal ............................. $ 746.1 $ 4.7 $ 9.4 $687.0 $45.0
Interest .............................. 193.6 48.0 95.3 48.4 1.9
Operating Leases ......................... 91.2 24.3 28.2 13.5 25.2
Total ................................ $1,030.9 $77.0 $132.9 $748.9 $72.1
(1) Due to the fact that all of our debt is variable rate based, we have assumed for purposes of this table that the
interest rate on all of our debt as of December 31, 2005 remains constant for all periods presented.
Debt obligations due to be repaid in the next 12 months are expected to be satisfied with
operating cash flows. We believe that cash flows from operating activities, together with borrowings
available under our Revolver, will be sufficient for the next 12 months to fund currently anticipated
capital expenditure requirements, debt service requirements and working capital requirements.
Acquisitions
WeightWatchers.com Acquisition
Pursuant to a merger agreement effective July 2, 2005, the last day of our second quarter, Weight
Watchers International increased its ownership interest in WeightWatchers.com from approximately
20% to approximately 53% for a total cash outlay of $136.4 million including $107.9 million paid to
WeightWatchers.com and $28.5 million paid to the non-Artal shareholders. Further to this, on
December 16, 2005, WeightWatchers.com redeemed all of the equity interests in WeightWatchers.com
owned by Artal for the aggregate cash consideration of $304.8 million. As a result of this redemption,
WeightWatchers.com is a wholly-owned subsidiary of Weight Watchers International.
Franchise Acquisitions
On August 22, 2004, we completed the acquisition of certain assets of our Fort Worth franchise for
a purchase price of $30.0 million that was financed through cash from operations.
On May 9, 2004, we completed the acquisition of certain assets of our Washington, D.C. area
franchise for a purchase price of $30.5 million that was financed through cash from operations.
On November 30, 2003, we completed the acquisition of certain assets of our Dallas and New
Mexico franchises for a purchase price of $27.2 million. The acquisition was financed through cash
from operations.
On March 30, 2003, we completed the acquisition of certain assets of eight of the 15 franchises of
the WW Group for a purchase price of $180.7 million. The acquisition was financed through cash and
additional borrowings of $85.0 million.
Stock Transactions
On October 9, 2003, our Board of Directors authorized a plan to repurchase up to $250.0 million
of our outstanding common stock. On June 13, 2005, our Board of Directors authorized adding
$250.0 million to this plan. The repurchase plan allows for shares to be purchased from time to time in
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