Kroger 2010 Annual Report Download - page 103

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A-23
The tables below illustrate our significant contractual obligations and other commercial commitments,
based on year of maturity or settlement, as of January 29, 2011 (in millions of dollars):
2011 2012 2013 2014 2015 Thereafter Total
Contractual Obligations (1) (2)
Long-term debt (3) . . . . . . . . . . . . . . . . . . . $ 549 $ 905 $1,520 $ 308 $ 516 $3,636 $ 7,434
Interest on long-term debt (4). . . . . . . . . . . 408 377 330 274 259 2,385 4,033
Capital lease obligations ............... 60 50 47 43 38 186 424
Operating lease obligations . . . . . . . . . . . . 741 698 651 597 529 2,498 5,714
Low-income housing obligations . . . . . . . . 12 6 2 — — — 20
Financed lease obligations . . . . . . . . . . . . . 14 14 14 14 14 158 228
Self-insurance liability (5) .............. 181 119 78 51 27 58 514
Construction commitments . . . . . . . . . . . . 163 — — — — — 163
Purchase obligations .................. 552 85 37 18 16 23 731
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,680 $2,254 $2,679 $1,305 $1,399 $8,944 $19,261
Other Commercial Commitments
Standby letters of credit . . . . . . . . . . . . . . . $ 252 $ — $ — $ — $ — $ — $ 252
Surety bonds ........................ 348 — — — — — 348
Guarantees ......................... 7 — — — — — 7
Total .............................. $ 607 $ — $ — $ — $ — $ — $ 607
(1) The contractual obligations table excludes funding of pension and other postretirement benefit
obligations, which totaled approximately $165 million in 2010. This table also excludes contributions
under various multi-employer pension plans, which totaled $262 million in 2010.
(2) The liability related to unrecognized tax benefits has been excluded from the contractual obligations
table because a reasonable estimate of the timing of future tax settlements cannot be determined.
(3) We did not have any borrowings under our credit facility as of January 29, 2011.
(4) Amounts include contractual interest payments using the interest rate as of January 29, 2011, and
stated fixed and swapped interest rates, if applicable, for all other debt instruments.
(5) The amounts included in the contractual obligations table for self-insurance liability have been stated
on a present value basis.
Our construction commitments include funds owed to third parties for projects currently under
construction. These amounts are reflected in other current liabilities in our Consolidated Balance Sheets.
Our purchase obligations include commitments to be utilized in the normal course of business, such
as several contracts to purchase raw materials utilized in our manufacturing plants and several contracts
to purchase energy to be used in our stores and manufacturing facilities. Our obligations also include
management fees for facilities operated by third parties. Any upfront vendor allowances or incentives
associated with outstanding purchase commitments are recorded as either current or long-term liabilities
in our Consolidated Balance Sheets.