[1]

During the fourth quarter of 2019, we recorded an impairment loss of $377.1 million related to the Nutrisystem tradename and the goodwill allocated to the Nutrition segment. In addition, we incurred acquisition, integration, and project costs totaling $5.8 million, which were primarily recorded to selling, general, and administrative expenses (see Note 18 for full year amounts). Also in the fourth quarter of 2019, we recorded a purchase accounting measurement period adjustment to finalize estimates related to the customer list intangible asset recorded in connection with the acquisition of Nutrisystem. The finalization of the estimate resulted in incremental amortization expense during the fourth quarter of 2019 of $17.4 million. Our effective tax rate for the fourth quarter of 2019 was a benefit of 15.2%, which was less than our statutory tax benefit rate and represents a decrease compared to the first three quarters of 2019. This decrease is primarily due to the nondeductible goodwill impairment loss of $137.1 million recorded in the fourth quarter. Finally, the impact of potentially dilutive securities for the three months ended December 31, 2019 was not considered because the impact would be anti-dilutive.

[2]

During the fourth quarter of 2018, we incurred $3.3 million of project costs in connection with potential and pending acquisitions, which were recorded to selling, general, and administrative expenses. In addition, our effective tax rate for the fourth quarter of 2018 of 10.1% was lower than our statutory rate primarily due to positive tax benefits of $4.6 million related to the vesting of stock-based compensation awards during the quarter.

[3]

The figure for total segments equals the consolidated figure for each such item.