GNC 2012 Annual Report Download - page 69

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Table of Contents
Contractual Obligations
The following table summarizes our future minimum non-cancelable contractual obligations at December 31, 2011:
Payments due by period
(in millions) Total Less than 1 year 1-3 years 3-5 years After 5 years
Long-term debt obligations(1) $ 904.2 $ 1.6 $ 2.6 $ — $ 900.0
Scheduled interest payments(2) 242.2 39.8 79.0 78.3 45.1
Operating lease obligations(3) 468.5 117.7 172.8 104.3 73.7
Purchase commitments(4)(5) 3.5 1.7 1.4 0.4 —
$ 1,618.4 $ 160.8 $ 255.8 $ 183.0 $ 1,018.8
These balances consist of the following debt obligations: (a) $900.0 million of outstanding borrowings under the Senior Credit Facility
based on a variable interest rate; and (b) $4.2 million for mortgage with a fixed interest rate. Repayment of the Senior Credit Facility
represents the balance remaining after a $300.0 million payment in April 2011 and does not take into account any unscheduled
payments that may occur due at future cash positions.
The interest that will accrue on the long-term obligations includes variable rate payments, which are estimated using the associated
LIBOR index as of December 31, 2011. Interest under the Senior Credit Facility currently accrues based on one month LIBOR.
These balances consist of the following operating leases: (a) $456.4 million for company-owned retail stores; (b) $74.4 million for
franchise retail stores, which is offset by $74.4 million of sublease income from franchisees; and (c) $12.1 million relating to various
leases for warehouses, vehicles, and various equipment at our facilities. Operating lease obligations exclude insurance, taxes,
maintenance, percentage rent and other costs. These amounts are subject to fluctuation from year to year. For each of the years ended
December 31, 2011, 2010 and 2009, these amounts collectively represented approximately 36% of the aggregate costs associated with
our company-owned retail store operating leases.
These balances consist of $3.5 million of advertising agreements.
Excludes cash settlements with taxing authorities for unrecognized tax benefits and rent escalation liabilities because we are unable to
reliably estimate the timing of such payments.
(1)
(2)
(3)
(4)
(5)
In addition to the contractual obligations set forth in the table above, we have entered into employment agreements with certain of our executives that
provide for compensation and certain other benefits. Under certain circumstances, including a change in control, some of these agreements provide for
severance or other payments, if those circumstances occur during the term of the employment agreement.
Off Balance Sheet Arrangements
As of December 31, 2011 and 2010, we had no relationships with unconsolidated entities or financial partnerships, such as entities often referred to as
structured finance or special purpose entities, which would have been established for the purpose of facilitating off balance sheet arrangements, or other
contractually narrow or limited purposes. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we had
engaged in such relationships.
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