Dillard's 2009 Annual Report Download - page 38

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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) Less than More than
Contractual Obligations Total 1 year 1-3 years 3-5 years 5 years
Long-term debt ................... $ 749,306 $ 1,719 $125,955 $ — $ 621,632
Interest on long-term debt ........... 636,474 55,124 102,493 89,930 388,927
Subordinated debentures ............. 200,000 — — — 200,000
Interest on subordinated debentures .... 419,999 14,959 30,164 29,918 344,958
Capital lease obligations, including
interest ........................ 32,910 3,568 17,295 3,104 8,943
Defined benefit plan participant payments 136,878 6,417 12,834 12,969 104,658
Other liabilities ................... 1,513 775 738 — —
Purchase obligations(1) .............. 1,144,317 1,144,317 — — —
Operating leases(2) ................. 179,044 44,163 78,927 21,172 34,782
Total contractual cash obligations(3)(4) . . $3,500,441 $1,271,042 $368,406 $157,093 $1,703,900
(1) The Company’s purchase obligations principally consist of purchase orders for merchandise and
store construction commitments. Amounts committed under open purchase orders for merchandise
inventory represent $1,137.4 million 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 5% of minimum lease obligations in fiscal 2009.
(3) The total liability for unrecognized tax benefits is $25.3 million, including tax, penalty, and interest
(refer to Note 8 to the consolidated financial statements). The Company is not able to reasonably
estimate the timing of future cash flows and has excluded these liabilities from the table above;
however, at this time, the Company believes the estimated range of the reasonably possible
uncertain tax benefit decrease in the next twelve months is between $4 million and $8 million.
(4) The Company is unable to reasonably estimate the timing of future cash flows of workers’
compensation and general liability insurance reserves of $32.8 million, gift card liabilities of
$15.3 million and other liabilities of $3.1 million and have excluded these from the table above.
AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
(in thousands of dollars) Total Amounts After 5
Other Commercial Commitments Committed Within 1 year 2-3 years 4-5 years years
$1.2 billion line of credit, none outstanding(1) . $ — $ — $— $— $—
Standby letters of credit ................. 86,818 86,818 — — —
Import letters of credit .................. 2,832 2,832 — — —
Total commercial commitments ............ $89,650 $89,650 $— $— $—
(1) Availability under the credit facility is limited to 85% of the inventory of certain Company
subsidiaries (approximately $816 million at January 30, 2010) which has not been reduced by
outstanding letters of credit of $89.6 million.
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