Pottery Barn 2012 Annual Report Download - page 47

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Contractual Obligations
The following table provides summary information concerning our future contractual obligations as of
February 3, 2013:
Payments Due by Period1
Dollars in thousands Fiscal 2013
Fiscal 2014
to Fiscal 2016
Fiscal 2017
to Fiscal 2018 Thereafter Total
Operating leases2$224,579 $555,502 $266,510 $397,662 $1,444,253
Purchase obligations3641,266 2,635 — — 643,901
Memphis-based distribution
facilities obligation41,635 3,753 — — 5,388
Interest5528 556 — — 1,084
Capital leases 89 — — — 89
Total $868,097 $562,446 $266,510 $397,662 $2,094,715
1This table excludes $11.5 million of liabilities for unrecognized tax benefits associated with uncertain tax positions as we
are not able to reasonably estimate when and if cash payments for these liabilities will occur. This amount, however, has
been recorded as a liability in the accompanying Consolidated Balance Sheet as of February 3, 2013.
2Projected payments include only those amounts that are fixed and determinable as of the reporting date. See Note E to our
Consolidated Financial Statements for discussion of our operating leases.
3Represents estimated commitments at year-end to purchase inventory and other goods and services in the normal course
of business to meet operational requirements.
4Represents bond-related debt pertaining to the consolidation of one of our Memphis-based distribution facilities. See
Note F to our Consolidated Financial Statements.
5Represents interest expected to be paid on our long-term debt and our capital leases.
Other Contractual Obligations
We have other liabilities reflected in our Consolidated Balance Sheet. The payment obligations associated with
these liabilities are not reflected in the table above due to the absence of scheduled maturities. The timing of
these payments cannot be determined, except for amounts estimated to be payable in fiscal 2013, which are
included in our current liabilities as of February 3, 2013.
We are party to a variety of contractual agreements under which we may be obligated to indemnify the other
party for certain matters. These contracts primarily relate to our commercial contracts, operating leases,
trademarks, intellectual property, financial agreements and various other agreements. Under these contracts, we
may provide certain routine indemnification relating to representations and warranties or personal injury matters.
The terms of these indemnifications range in duration and may not be explicitly defined. Historically, we have
not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of
these matters, the loss would not have a material effect on our financial condition or results of operations.
Commercial Commitments
The following table provides summary information concerning our outstanding commercial commitments as of
February 3, 2013:
Amount of Outstanding Commitment Expiration By Period1
Dollars in thousands Fiscal 2013
Fiscal 2014
to Fiscal 2016
Fiscal 2017
to Fiscal 2018 Thereafter Total
Letter of credit facilities $18,578 — — — $18,578
Standby letters of credit 4,970 — — — 4,970
Credit facility — — — — —
Total $23,548 — — — $23,548
1See Note C to our Consolidated Financial Statements for discussion of our borrowing arrangements.
33
Form 10-K