Dillard's 2005 Annual Report Download - page 33

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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
Less than
1 year 1-3 years 3-5 years
More than
5 years
Contractual obligations
Long-term debt .......................... $1,257,424 $ 198,479 $298,781 $ 25,489 $ 734,675
Interest on long-term debt ................. 911,627 85,854 135,113 110,363 580,297
Guaranteed beneficial interests in the
Company’s subordinated debentures ....... 200,000 — — — 200,000
Capital lease obligations, including interest .... 37,735 5,929 6,209 3,293 22,304
Defined benefit plan payments .............. 59,946 5,041 10,122 10,817 33,966
Purchase Obligations (1) .................. 1,686,924 1,686,924 — — —
Operating leases (2) ...................... 243,012 49,250 69,096 42,944 81,722
Total contractual cash obligations ........... $4,396,668 $2,031,477 $519,321 $192,906 $1,652,964
(1) The Company’s purchase obligations principally consist of purchase orders for merchandise and store
construction commitments. Amounts committed under open purchase order for merchandise inventory
represent $1.5 billion of the purchase obligations, of which a significant portion are cancelable without
penalty prior to a date that precedes the vendor’s scheduled shipment date.
(2) The operating leases included in the above table do not include contingent rent based upon sales volume,
which represented approximately 17% of minimum lease obligations in fiscal 2005.
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 $1.2 billion
line of credit, none outstanding (1) ........ $ — $ — $ — $— $—
Standby letters of credit ................... 59,025 56,025 3,000 — —
Import letters of credit .................... 8,271 8,271 — — —
Total commercial commitments ............. $67,296 $64,296 $3,000 $— $—
(1) Availability under the credit facility is limited to 85% of the inventory of certain Company subsidiaries
(approximately $994 million at January 28, 2006) which has not been reduced by outstanding letters of
credit of $67.3 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 $10.2 million in fiscal 2006 with a liability of $98
million. The Company expects to make a contribution to the pension plan of approximately $5.0 million in fiscal
2006.
The Company is a guarantor on loans with two separate joint ventures as of January 28, 2006. At
January 28, 2006, the loans had outstanding balances of $45.3 million and $64.8 million, respectively. The loans
are collateralized by malls that are completed or under construction as of January 28, 2006. The timing and
amount of payments under the guarantee, if any, cannot be reasonably predicted and are therefore excluded from
the tables above.
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