Dillard's 2003 Annual Report Download - page 25

facilities were $376.5 million at February 2, 2004. Subsequently, the Company has paid down substantially all of these
borrowings from cash from operations during the first quarter of fiscal 2004.
Fiscal 2004
During fiscal 2004, the Company expects to finance its capital expenditures and its working capital requirements
including required debt repayments and stock repurchases, if any, from cash flows generated from operations. As part of
its overall funding strategy and for peak working capital requirements, the Company expects to obtain funds through its
credit card receivable financing facilities and its revolving credit agreement. The Company’s available receivable
financing facilities provide for borrowings of up to $400 million and mature on September 30, 2004. The Company
intends to renew maturing receivable financing facilities as they become due. The peak borrowings incurred under the
facilities were $381.5 million during 2003. The Company expects peak funding requirements of approximately $600
million during fiscal 2004. This peak demand will be met through a combination of accounts receivable financing and
the $1 billion credit agreement. At January 31, 2004, letters of credit totaling $75.5 million were issued under this line of
credit facility. Other than peak working capital requirements, management believes that cash generated from operations
will be sufficient to cover its reasonably foreseeable working capital, capital expenditure, debt service requirements and
stock repurchase. Depending on conditions in the capital markets and other factors, the Company will from time to time
consider the issuance of debt or other securities, or other possible capital market transactions, the proceeds of which
could be used to refinance current indebtedness or other corporate purposes.
Contractual Obligations and Commercial Commitments
To facilitate an understanding of the Company’s contractual obligations and commercial commitments, the following
data is provided:
PAYMENTS DUE BY PERIOD
(in thousands of dollars) Total Within 1 year 2-3 years 4-5 years After 5 years
Contractual obligations
Long-term debt $1,621,106 $166,041 $190,116 $401,341 $863,608
Guaranteed beneficial interests in
the Company’s subordinated
debentures 531,579 331,579 - - 200,000
Receivable financing facility 400,000 - 400,000 - -
Short-term receivable financing
facility 50,000 50,000 - - -
Capital lease obligations 19,837 2,126 3,849 2,370 11,492
Operating leases 266,073 51,309 80,535 53,339 80,890
Total contractual cash
obligations $2,888,595 $601,055 $674,500 $457,050 $1,155,990
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
(in thousands of dollars)
Total
Amounts
Committed Within 1 year 2-3 years 4-5 years After 5 years
Other commercial commitments
$760 million line of credit, none
outstanding (1) $- $- $- $- $-
$450 million receivables
financing facility, none
outstanding - - - - -
Standby letters of credit 59,325 59,325 - - -
Import letters of credit 16,153 16,153 - - -
Total commercial commitments $75,478 $75,478 $- $- $-
(1) Available amount of $835 million has been reduced by outstanding letters of credit of $75 million.
Other long-term commitments consist of liabilities incurred relating to the Company’s defined benefit plans. The
Company expects pension expense to be approximately $8.5 million in fiscal 2004 with a liability of $83 million. The
Company expects to make a contribution to the pension plan of approximately $3.4 million in fiscal 2004.
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