WeightWatchers 2008 Annual Report Download - page 59

The following table summarizes our future contractual obligations as of January 3, 2009:
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 ...................................... $1,647.5 $162.5 $730.0 $290.0 $465.0
Interest ....................................... 279.1 92.5 119.8 64.9 1.9
Operating Leases ................................... 99.5 29.0 38.4 16.0 16.1
Other long-term obligations(2) ......................... 4.4 0.2 1.0 1.2 2.0
Total ......................................... $2,030.5 $284.2 $889.2 $372.1 $485.0
(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 January 3, 2009 remains constant for all periods presented.
(2) Other long-term obligations 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.
Franchise Acquisitions
In June 2008, we acquired substantially all of the assets of two of our franchisees, Weight Watchers of
Syracuse, Inc. and Dieters of the Southern Tier, Inc., for a combined purchase price of approximately $20.9
million.
In June 2008, we acquired substantially all of the assets of our Wichita, Kansas franchisee for a purchase
price of approximately $5.7 million.
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.
In June 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.
China Joint Venture
In February 2008, we entered into a joint venture with Groupe DANONE S.A. to establish a weight
management business in the People’s Republic of China. The joint venture, 51% owned by us and 49% owned by
Groupe DANONE, commenced retail operations in China in September 2008.
Stock Transactions
On October 9, 2003, our Board of Directors authorized a program to repurchase up to $250.0 million of our
outstanding common stock. On each of June 13, 2005 and May 25, 2006, our Board of Directors authorized
adding $250.0 million to this program. Under this program, we will not purchase shares held by Artal. This
program currently has no expiration date. As of fiscal year-end 2008, $100.5 million remains available to
purchase our shares under this program. From fiscal 2003 through fiscal 2008, we purchased 15.6 million shares
of common stock in the open market for a total purchase price of $649.5 million.
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