OfficeMax 2015 Annual Report Download - page 45

Table of Contents
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The following table summarizes our contractual cash obligations at December 26, 2015, and the effect such obligations are expected to have on liquidity and
cash flow in future periods. Some of the figures included in this table are based on management’s estimates and assumptions about these obligations,
including their duration, the possibility of renewal, anticipated actions by third parties and other factors. Because these estimates and assumptions are
necessarily subjective, the amounts we will actually pay in future periods may vary from those reflected in the table.
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(In millions) Total 2016
2017-
2018
2019-
2020 Thereafter
Contractual Obligations
Recourse debt:
Long-term debt obligations $ 703 $ 59 $ 79 $ 302 $ 263
Short-term borrowings 4 4 — — —
Capital lease obligations 263 42 73 59 89
Non-recourse debt 908 40 80 788 —
Operating lease obligations 2,428 619 896 496 417
Purchase obligations 83 55 28 — —
Total contractual cash obligations $4,389 $819 $1,156 $1,645 $ 769
Long-term obligations consist primarily of expected payments (principal and interest) on our $250 million Senior Secured Notes and $186 million of
revenue bonds at various interest rates.
Short-term borrowings consist of amounts outstanding under credit facilities for certain of our international subsidiaries.
The present value of these obligations is included on our Consolidated Balance Sheets. Refer to Note 8, “Debt,” of the Consolidated Financial
Statements for additional information about our capital lease obligations.
There is no recourse against the Company on the Securitization Notes as recourse is limited to proceeds from the pledged Installment Notes receivable
and underlying guaranty. The non-recourse debt remains outstanding until it is legally extinguished, which will be when paid in cash or when the
Installment Notes and related guaranty is transferred to and accepted by the Securitization Note holders. Interest payments on non-recourse debt will be
completely offset by interest income received on the Installment Notes.
The operating lease obligations presented reflect future minimum lease payments due under the non-cancelable portions of our leases, as of
December 26, 2015. Some of our retail store leases require percentage rentals on sales above specified minimums and contain escalation clauses. The
minimum lease payments shown in the table above do not include contingent rental expense and have not been reduced by sublease income of $51
million. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations
would change if we exercised these renewal options and if we entered into additional operating lease agreements. Our operating lease obligations are
described in Note 10, “Leases,” of the Consolidated Financial Statements.
Purchase obligations include all commitments to purchase goods or services of either a fixed or minimum quantity that are enforceable and legally
binding on us that meet any of the following criteria: (1) they are non-cancelable, (2) we would incur a penalty if the agreement was cancelled, or
(3) we must make specified minimum payments even if we do not take delivery of the contracted products or services. If the obligation is non-
cancelable, the entire value of the contract is included in the table. If the obligation is cancelable, but we would incur a penalty if cancelled, the dollar
amount of the penalty is included as a purchase obligation.
If we can unilaterally terminate the agreement simply by providing a certain number of days notice or by paying a termination fee, we have included
the amount of the termination fee or the amount that would be
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