Pep Boys 2011 Annual Report Download - page 74

Contractual Obligations
The following chart represents our total contractual obligations and commercial commitments as of
January 28, 2012:
From 1 to 3 From 3 to 5 After
Contractual Obligations Total Within 1 year years years 5 years
(dollars amounts in thousands)
Long-term debt(1) ................. $ 295,122 $ 1,079 $294,043 $ — $ —
Operating leases .................. 812,988 98,479 183,929 158,457 372,123
Expected scheduled interest payments on
long-term debt .................. 50,279 21,767 28,512 — —
Other long-term obligations(2) ......... 25,089 — — — —
Total contractual obligations .......... $1,183,478 $121,325 $506,484 $158,457 $372,123
(1) Long-term debt includes current maturities.
(2) Primarily includes defined benefit pension obligation of $10.4 million, deferred compensation items
of $6.2 million, income tax liabilities of $2.6 million and asset retirement obligations of
$5.9 million. We made voluntary contributions of $3.0 million and $5.0 million to our pension plan
in fiscals 2011 and 2010, respectively, and none in fiscal 2009. 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, income tax liabilities and pension
obligation because we cannot make a reliable estimate of the timing of the related cash payments.
From 1 to 3 From 3 to 5 After
Commercial Commitments Total Within 1 year years years 5 years
(dollar amounts in thousands)
Standby letters of credit ................. $31,652 $31,652 $— $— $—
Surety bonds ......................... 8,308 8,308 — — —
Purchase obligations(1)(2) ................. 25,849 25,849 — — —
Total commercial commitments ............ $65,809 $65,809 $— $— $—
(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 (other than(2) below) 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, 2012 that we do not have legal title
to are considered commercial commitments.
(2) In fiscal 2011, we entered into a commercial commitment to purchase 4.2 million units of oil
products at various prices over a two-year period. Based on our present consumption rate, we
expect to meet the cumulative minimum purchase requirements under this contract by the end of
fiscal 2012.
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. The Company did not repurchase Notes in
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