WeightWatchers 2015 Annual Report Download - page 70

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Acquisition of Wello
On April 16, 2014, we acquired Knowplicity, Inc., d/b/a Wello, an online fitness and personal training
company, for a net purchase price of $9.0 million. Payment was in the form of common stock issued of
$4.2 million and cash of $4.8 million.
Acquisition of Weilos
On March 11, 2015, we acquired Weilos, a California-based startup with an online social platform that
provides a mobile health and weight loss community, for a purchase price of $6.7 million. Payment was in the
form of common stock issued of $2.8 million, restricted stock issued of $0.1 million and cash of $2.8 million
plus cash in reserves of $1.0 million.
Winfrey Transaction
On October 19, 2015, we issued and sold to Ms. Winfrey an aggregate of 6.4 million shares of our common
stock for an aggregate cash purchase price of $43.2 million. For additional details on the Winfrey Transaction,
see “Item 1. Business—History—Winfrey Transaction” in Part I of this Annual Report on Form 10-K.
Factors Affecting Future Liquidity
Any future acquisitions, joint ventures or other similar transactions could require additional capital and we
cannot be certain that any additional capital will be available on acceptable terms or at all. Our ability to fund our
capital expenditure requirements, interest, principal and dividend payment obligations and working capital
requirements depends on our future operations, performance and cash flow. These are subject to prevailing
economic conditions and to financial, business and other factors, some of which are beyond our control.
Off-Balance Sheet Transactions
As part of our ongoing business, we do not participate in transactions that generate relationships with
unconsolidated entities or financial partnerships established for the purpose of facilitating off-balance sheet
arrangements or other contractually narrow or limited purposes, such as entities often referred to as structured
finance or special purpose entities.
Related Parties
For a discussion of related party transactions affecting us, see “Item 12. Certain Relationships and Related
Transactions, and Director Independence” in Part III of this Annual Report on Form 10-K.
Seasonality
Our business is seasonal due to the importance of the winter season to our overall recruitment environment.
Our advertising schedule generally supports the three key recruitment-generating seasons of the year: winter,
spring and fall, with winter having the highest concentration of advertising spending.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to market risks relating to interest rate changes and foreign currency fluctuations. All of our
market risk sensitive instruments were entered into for purposes other than trading. The Company’s exposure to
market risk as of the end of fiscal 2015 is described below.
Interest Rate Risk
Our exposure to market risk for changes in interest rates relates to interest expense of variable rate debt, in
particular changes in LIBOR or the base rates which are used to determine the applicable interest rates for
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