Kroger 2012 Annual Report Download - page 83

A-25
The tables below illustrate our significant contractual obligations and other commercial commitments,
based on year of maturity or settlement, as of February 2, 2013 (in millions of dollars):
2013 2014 2015 2016 2017 Thereafter Total
Contractual Obligations (1) (2)
Long-term debt (3) ................. $2,700 $ 320 $ 517 $ 463 $ 607 $3,869 $ 8,476
Interest on long-term debt (4). . . . . . . . . 360 318 297 284 257 2,422 3,938
Capital lease obligations ............. 51 47 42 39 38 232 449
Operating lease obligations .......... 707 663 601 540 467 2,025 5,003
Low-income housing obligations ...... 6 1 — — — — 7
Financed lease obligations ........... 13 13 13 13 13 116 181
Self-insurance liability (5) ............ 205 126 84 54 25 43 537
Construction commitments .......... 230 — — — — — 230
Purchase obligations ................ 500 76 45 34 28 68 751
Total ............................ $4,772 $1,564 $1,599 $1,427 $1,435 $8,775 $19,572
Other Commercial Commitments
Standby letters of credit ............. $ 148 $ — $ — $ — $ — $ — $ 148
Surety bonds ...................... 294 — — — — — 294
Guarantees ....................... 6 — — — — — 6
Total ............................ $ 448 $ — $ — $ — $ — $ — $ 448
(1) The contractual obligations table excludes funding of pension and other postretirement benefit
obligations, which totaled approximately $98 million in 2012. This table also excludes contributions
under various multi-employer pension plans, which totaled $492 million in 2012, including our
$258 million contribution to the UFCW consolidated pension plan.
(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) As of February 2, 2013, we had $1.6 billion of borrowings of commercial paper and no borrowings under
our credit agreement and money market lines.
(4) Amounts include contractual interest payments using the interest rate as of February 2, 2013, 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 related to workers’
compensation claims 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.
As of February 2, 2013, we maintained a $2 billion (with the ability to increase by $500 million), unsecured
revolving credit facility that, unless extended, terminates on January 25, 2017. Outstanding borrowings under
the credit agreement and commercial paper borrowings, and some outstanding letters of credit, reduce funds
available under the credit agreement. In addition to the credit agreement, we maintained two uncommitted
money market lines totaling $75 million in the aggregate. The money market lines allow us to borrow from
banks at mutually agreed upon rates, usually at rates below the rates offered under the credit agreement. As of