Kroger 2015 Annual Report Download - page 100

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A-26
The tables below illustrate our significant contractual obligations and other commercial
commitments, based on year of maturity or settlement, as of January 30, 2016 (in millions of dollars):
2016 2017 2018 2019 2020 Thereafter Total
Contractual Obligations (1) (2)
Long-term debt (3) $2,318 $ 735 $1,307 $ 774 $ 724 $ 5,538 $ 11,396
Interest on long-term debt (4) 476 410 375 315 279 2,550 4,405
Capital lease obligations 103 72 62 57 52 527 873
Operating lease obligations 967 922 853 774 674 4,199 8,389
Financed lease obligations 1313131313 74 139
Self-insurance liability (5) 223 138 98 63 38 79 639
Construction commitments (6) 418———— — 418
Purchase obligations (7) 532 161 77 58 42 106 976
Total $5,050 $2,451 $2,786 $2,054 $1,822 $13,072 $27,235
Other Commercial Commitments
Standby letters of credit $244$—$—$—$— $ — $244
Surety bonds 332———— — 332
Total $576$—$—$—$— $ — $576
(1) The contractual obligations table excludes funding of pension and other postretirement benefit
obligations, which totaled approximately $30 million in 2015. This table also excludes contributions
under various multi-employer pension plans, which totaled $426 million in 2015.
(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 January 30, 2016, we had $990 million of borrowings of commercial paper and no borrowings
under our credit agreement.
(4) Amounts include contractual interest payments using the interest rate as of January 30, 2016, 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.
(6) Amounts include funds owed to third parties for projects currently under construction. These
amounts are reflected in other current liabilities in our Consolidated Balance Sheets.
(7) Amounts include commitments, many of which are short-term in nature, to be utilized in the
normal course of business, such as several contracts to purchase raw materials utilized in our
food production plants and several contracts to purchase energy to be used in our stores and food
production plants. Our obligations also include management fees for facilities operated by third
parties and outside service contracts. 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 January 30, 2016, we maintained a $2.75 billion (with the ability to increase by $750 million),
unsecured revolving credit facility that, unless extended, terminates on June 30, 2019. Outstanding
borrowings under the credit agreement and commercial paper borrowings, and some outstanding
letters of credit, reduce funds available under the credit agreement. As of January 30, 2016, we had
$990 million of borrowings of commercial paper and no borrowings under our credit agreement. The
outstanding letters of credit that reduce funds available under our credit agreement totaled $13 million as
of January 30, 2016.