Pep Boys 2010 Annual Report Download - page 88

Contractual Obligations
The following chart represents our total contractual obligations and commercial commitments as of
January 29, 2011:
From 1 to 3 From 3 to 5 After 5
Contractual Obligations Total Within 1 year years years years
(dollars amounts in thousands)
Long-term debt(1) ................. $ 296,201 $ 1,079 $147,557 $147,565 $ —
Operating leases .................. 747,617 86,730 166,052 147,435 347,400
Expected scheduled interest payments on
long-term debt .................. 71,526 21,498 40,234 9,794 —
Other long-term obligations(2) ......... 20,830 — — — —
Total contractual obligations .......... $1,136,174 $109,307 $353,843 $304,794 $347,400
(1) Long-term debt includes current maturities.
(2) Primarily includes pension obligation of $12.4 million, income tax liabilities and asset retirement
obligations. We made voluntary contributions of $5.0 million and $19.9 million to our pension
plans in fiscal 2010 and 2008, respectively. Future plan contributions are dependent upon actual
plan asset returns and interest rates. See Note 13 of the Notes to Consolidated Financial
Statements in ‘‘Item 8 Financial Statements and Supplementary Data’’ for further discussion of our
pension plans. The above table does not reflect the timing of projected settlements for our
recorded asset retirement obligation costs of $5.6 million, income tax liabilities of $2.8 million and
pension obligation of $12.4 million because we cannot make a reliable estimate of the timing of
the related cash payments.
Within 1 From 1 to 3 From 3 to 5 After 5
Commercial Commitments Total year years years years
(dollar amounts in thousands)
Commercial letters of credit ............... $ 259 $ 259 $ — $— $—
Standby letters of credit .................. 107,583 107,331 252 — —
Surety bonds .......................... 10,256 10,256 — — —
Purchase obligations(1)(2) .................. 5,048 5,048 — — —
Total commercial commitments ............. $123,146 $122,894 $252 $— $—
(1) Our open purchase orders are based on current inventory or operational needs and are fulfilled by
our vendors within short periods of time. We currently do not have minimum purchase
commitments under our vendor supply agreements and generally, our open purchase orders
(orders that have not been shipped) are not binding agreements. Those purchase obligations that
are in transit from our vendors at January 29, 2011 that we do not have legal title to are
considered commercial commitments.
(2) In fiscal 2010, we entered into a commercial commitment to purchase 1.5 million gallons of oil
products at various prices over a one-year period. At January 29, 2011, we expect to meet the
cumulative minimum purchase requirements under this contract and to completely satisfy and
terminate this contract during fiscal 2011.
Long-term Debt
7.50% Senior Subordinated Notes, due December 2014
On December 14, 2004, we issued $200.0 million aggregate principal amount of 7.50% Senior
Subordinated Notes (the ‘‘Notes’’) due December 15, 2014. During fiscal 2010 and 2009, the Company
repurchased Notes in the principal amount of $10.0 million and $17.0 million, respectively. On
January 29, 2011, the outstanding balance of these Notes was $147.6 million.
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