Dollar Tree 2008 Annual Report Download - page 23

DOLLAR TREE, INC. • 2008 ANNUAL REPORT 21
The following tables summarize our material contractual obligations at January 31, 2009, including both on-
and off-balance sheet arrangements, and our commitments, including interest on long-term borrowings (in millions):
Contractual Obligations Total 2009 2010 2011 2012 2013 Thereafter
Lease Financing
Operating lease obligations $1,439.4 $348.1 $304.6 $251.4 $194.8 $130.1 $210.4
Capital lease obligations 0.6 0.2 0.2 0.1 0.1 — —
Long-term Borrowings
Credit Agreement 250.0 — — — — 250.0 —
Revenue bond financing 17.6 17.6 — — — — —
Interest on long-term borrowings 12.6 3.3 3.0 3.0 3.0 0.3 —
Total obligations $1,720.2 $369.2 $307.8 $254.5 $197.9 $380.4 $210.4
Expiring Expiring Expiring Expiring Expiring
Commitments Total in 2 009 in 2 010 in 2 011 in 2012 in 2 013 Thereafter
Letters of credit and
surety bonds $ 124.3 $124.3 $ — $ — $ — $ — $ —
Freight contracts 109.6 86.6 15.6 4.4 3.0 — —
Technology assets 3.2 3.2 — — — — —
Total commitments $ 237.1 $214.1 $ 15.6 $ 4.4 $ 3.0 $ — $ —
Lease Financing
Operating Lease Obligations. Our operating lease
obligations are primarily for payments under
noncancelable store leases. The commitment includes
amounts for leases that were signed prior to
January 31, 2009 for stores that were not yet open
on January 31, 2009.
Capital Lease Obligations. Our capital lease obliga-
tions are primarily for distribution center equipment
and computer equipment at the store support center.
Credit Agreement. On February 20, 2008, we entered
into a five-year $550.0 million unsecured Credit
Agreement (the Agreement). The Agreement provides
for a $300.0 million revolving line of credit, including
up to $150.0 million in available letters of credit, and
a $250.0 million term loan. The interest rate on the
facility is based, at our option, on a LIBOR rate, plus a
margin, or an alternate base rate, plus a margin. This
rate was 1.21% at January 31, 2009. The revolving line
of credit also bears a facilities fee, calculated as a per-
centage, as defined, of the amount available under the
line of credit, payable quarterly. The term loan is due
and payable in full at the five year maturity date of the
Agreement. The Agreement also bears an administra-
tive fee payable annually. The Agreement, among
other things, requires the maintenance of certain spec-
ified financial ratios, restricts the payment of certain
distributions and prohibits the incurrence of certain
new indebtedness. As of January 31, 2009, we had
$250.0 million outstanding on the Agreement. Our
March 2004, $450.0 million unsecured revolving
credit facility was terminated concurrent with entering
into the Agreement.
Revenue Bond Financing. In May 1998, we entered
into an agreement with the Mississippi Business
Finance Corporation under which it issued $19.0 mil-
lion of variable-rate demand revenue bonds. We used
the proceeds from the bonds to finance the acquisi-
tion, construction and installation of land, buildings,
machinery and equipment for our distribution facility
in Olive Branch, Mississippi. At January 31, 2009, the
balance outstanding on the bonds was $17.6 million.
These bonds are due to be fully repaid in June 2018.