Family Dollar 2011 Annual Report Download - page 35

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Cash Flows from Financing Activities
Cash used in financing activities increased $148.3 million during fiscal 2011, as compared to fiscal 2010.
The increase was primarily due to an increase in repurchases of common stock and changes in cash overdrafts,
partially offset by the issuance of new debt. During fiscal 2011, we purchased $670.5 million of our common
stock, as compared to $332.2 million in fiscal 2010. Cash overdrafts decreased $47.7 million in fiscal 2011, as
compared to an increase of $49.7 million in fiscal 2010. See Note 1 to the Consolidated Financial Statements
included in this report for an explanation of our cash overdrafts. Additionally, in fiscal 2011, we issued $300
million of 5.00% unsecured senior notes, creating a significant cash inflow from financing activities as compared
to fiscal 2010.
Cash used in financing activities increased $201.3 million during fiscal 2010, as compared to fiscal 2009.
The increase was due primarily to an increase in repurchases of common stock, partially offset by changes in
cash overdrafts. We paid $332.2 million for purchases of our common stock during fiscal 2010 compared to
$71.1 million in fiscal 2009. Cash overdrafts increased $49.7 million during fiscal 2010 compared with a $27.3
million decrease in fiscal 2009.
Contractual Obligations and Other Commercial Commitments
The following table shows our obligations and commitments to make future payments under contractual
obligations at the end of fiscal 2011.
Payments Due During the Period Ending
(in thousands)
Contractual Obligations Total
August
2012
August
2013
August
2014
August
2015
August
2016 Thereafter
Long-term debt .............. $ 550,000 $ 16,200 $ 16,200 $ 16,200 $ 16,200 $185,200 $300,000
Interest ..................... 188,676 27,609 26,760 25,911 25,063 15,833 67,500
Merchandise letters of credit .... 105,501 105,501 — ————
Operating leases ............. 1,426,759 364,228 323,424 273,778 220,029 164,854 80,446
Construction obligations ....... 44,568 44,568 — ————
Minimum royalties(1) .......... 9,050 2,750 2,800 2,800 700 — —
Total ...................... $2,324,554 $560,856 $369,184 $318,689 $261,992 $365,887 $447,946
(1) Minimum royalty payments related to an exclusive agreement to sell certain branded merchandise.
At the end of fiscal 2011, approximately $92.5 million of the merchandise letters of credit were included in
accounts payable and accrued liabilities on our Consolidated Balance Sheet. Most of our operating leases provide
us with an option to extend the term of the lease at designated rates. See Part I—Item 2—“Properties” in this
Report.
As of August 27, 2011, we had $26.3 million in liabilities related to our uncertain tax positions. At this time,
we cannot reasonably determine the timing of any payments related to these liabilities, except for $4.9 million,
which were classified as current liabilities and may become payable within the next 12 months. See Note 8 to the
Consolidated Financial Statements included in this Report for more information on our tax liabilities.
The following table shows our other commercial commitments at the end of fiscal 2011.
Other Commercial Commitments (in thousands)
Total Amounts
Committed
Standby letters of credit .......................................... $137,982
Surety bonds ................................................... 9,445
Total ..................................................... $147,427
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