Abercrombie & Fitch 2015 Annual Report Download - page 35

Table of Contents
35
CONTRACTUAL OBLIGATIONS
Payments due by period
(in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years
Operating lease obligations (1) $ 1,734,171 $ 390,166 $ 570,920 $ 349,782 $ 423,303
Long-term debt obligations 293,250 — 6,000 6,000 281,250
Purchase obligations 324,538 255,600 40,094 20,145 8,699
Other obligations (2) 131,522 15,823 31,125 38,462 46,112
Capital lease obligations 2,118 634 1,407 77 —
Totals $ 2,485,599 $ 662,223 $ 649,546 $ 414,466 $ 759,364
(1) Includes leasehold financing obligations of $47.4 million. Refer to Note 2, "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES," of the Notes to
Consolidated Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form
10-K for additional information.
(2) Includes estimated interest payments based on the interest rate as of January 30, 2016 and assuming normally scheduled principal payments.
Long-term debt obligations consist of principal payments under the Term Loan Agreement. Refer to Note 11, "BORROWINGS,"
of the Notes to Consolidated Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA” of this Annual Report on Form 10-K for additional information.
Operating lease obligations consist primarily of non-cancelable future minimum lease commitments related to store operating
leases. See Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Leased facilities,” of the Notes to Consolidated
Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report
on Form 10-K, for further discussion. Excluded from the obligations above are amounts related to portions of lease terms that are
currently cancelable at the Company's discretion. While included in the obligations above, in many instances, the Company has
options to terminate certain leases if stated sales volume levels are not met or the Company ceases operations in a given country.
Operating lease obligations do not include common area maintenance (“CAM”), insurance, marketing or tax payments for which
the Company is also obligated. Total expense related to CAM, insurance, marketing and taxes was $171.7 million in Fiscal 2015.
The purchase obligations category represents purchase orders for merchandise to be delivered during Fiscal 2016 and commitments
for fabric expected to be used during upcoming seasons. In addition, purchase obligations include agreements to purchase goods
or services including information technology contracts and third-party distribution center service contracts.
Other obligations consist primarily of asset retirement obligations and the Supplemental Executive Retirement Plan. See Note 17,
“SAVINGS AND RETIREMENT PLANS,” of the Notes to Consolidated Financial Statements included in “ITEM 8. FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K, for further discussion.
Due to uncertainty as to the amounts and timing of future payments, the contractual obligations table above does not include tax
(including accrued interest and penalties) of $2.9 million related to uncertain tax positions at January 30, 2016. Deferred taxes are
also not included in the preceding table. For further discussion, see Note 10, “INCOME TAXES,” of the Notes to Consolidated
Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report
on Form 10-K.
A&F has historically paid quarterly dividends on its Common Stock. There are no amounts included in the above table related to
dividends due to the fact that dividends are subject to determination and approval by A&F's Board of Directors.