Dillard's 2010 Annual Report Download - page 38

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OFF-BALANCE-SHEET ARRANGEMENTS
The Company has not created, and is not party to, any special-purpose or off-balance-sheet entities
for the purpose of raising capital, incurring debt or operating the Company’s business. The Company
does not have any off-balance-sheet arrangements or relationships that are reasonably likely to
materially affect the Company’s financial condition, changes in financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures or the availability of capital resources.
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 ................... $ 746,412 $ 49,166 $ 76,789 $ — $ 620,457
Interest on long-term debt ........... 625,915 53,083 94,057 89,764 389,011
Subordinated debentures ............. 200,000 — — — 200,000
Interest on subordinated debentures .... 419,753 14,959 29,918 29,918 344,958
Capital lease obligations, including
interest ........................ 19,241 3,191 5,679 2,856 7,515
Defined benefit plan participant payments 138,131 6,471 13,758 14,924 102,978
Other liabilities ................... 1,953 486 1,467 — —
Purchase obligations(1) .............. 1,245,789 1,245,789 — — —
Operating leases(2) ................. 142,174 44,710 49,559 20,480 27,425
Total contractual cash obligations(3)(4) . . $3,539,368 $1,417,855 $271,227 $157,942 $1,692,344
(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 $1,234.4 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 8% of minimum lease obligations in fiscal 2010.
(3) The total liability for unrecognized tax benefits is $12.8 million, including tax, penalty, and interest
(refer to Note 7 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 $0.5 million and $2.5 million.
(4) The Company is unable to reasonably estimate the timing of future cash flows of workers’
compensation and general liability insurance reserves of $32.7 million, gift card liabilities of
$15.3 million and other liabilities of $2.9 million and have excluded these from the table above.
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