WeightWatchers 2007 Annual Report Download - page 56

The following table summarizes our future contractual obligations as of December 29, 2007.
Payment Due by Period
Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
(in millions)
Long-Term Debt(1)
Principal .................................... $1,648.1 $ 45.6 $377.5 $699.0 $526.0
Interest ..................................... 451.5 123.9 186.0 108.3 33.3
Operating Leases ................................. 107.0 27.1 37.7 18.4 23.8
Other long-term liabilities(2) ........................ 4.2 (0.2) 0.6 1.2 2.6
Total ....................................... $2,210.8 $196.4 $601.8 $826.9 $585.7
(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 29, 2007 remains constant for all periods presented.
(2) Other long-term liabilities primarily consist of deferred rent costs. The provision for income tax
contingencies recorded in accordance with FIN 48 and included in other long-term liabilities on the
consolidated balance sheet is not included in the table above due to the fact that the Company is unable to
estimate the timing of payment for this liability.
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 of fiscal 2005,
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
In January 2008, we acquired substantially all of the assets of our Palm Beach, Florida franchisee for a
purchase price of approximately $12.9 million.
On June 3, 2007, we acquired substantially all of the assets of our British Columbia franchisee for a
purchase price of $15.8 million that was financed through cash from operations.
On December 11, 2006, we acquired substantially all of the assets of our western Michigan franchisee for a
purchase price of approximately $39.5 million, and reacquired our franchise rights in Greece and Italy for
approximately $4.3 million, both of which were financed through cash from operations.
On November 2, 2006, we acquired substantially all of the assets of our Suffolk County, New York
franchisee for a purchase price of approximately $24.5 million that was financed through cash from operations.
On August 17, 2006, we acquired substantially all of the assets of our eastern Canadian franchisee and of
Vale Printing Limited for a net purchase price of approximately $51.2 million that was financed through cash
from operations.
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