Supercuts 2010 Annual Report Download - page 69

Table of Contents
As a result of the repayment of a portion of the senior term notes during the twelve months ended June 30, 2010, the Company incurred
$12.8 million in make-whole payments and other fees along with $5.2 million in interest rate swap settlements, as discussed in Note 9 to the
Consolidated Financial Statements, totaling $18.0 million that was recorded as interest expense within the Consolidated Statement of
Operations.
Acquisitions
Acquisitions are discussed throughout Management's Discussion and Analysis in this Item 7, as well as in Note 4 to the Consolidated
Financial Statements in Part II, Item 8 of this Form 10-K. The acquisitions were funded primarily from operating cash flow, debt and the
issuance of common stock.
Contractual Obligations and Commercial Commitments
The following table reflects a summary of obligations and commitments outstanding by payment date as of June 30, 2010:
On-Balance Sheet Obligations
Our long-term obligations are composed primarily of senior term notes, term loan and a revolving credit facility. A portion of the term
loan is hedged by contracts with financial institutions commonly
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Payments due by period
Contractual Obligations Within 1 years 1 - 3 years 3 - 5 years More than 5 years Total
(Dollars in thousands)
On
-
balance sheet:
Long
-
term debt obligations(a)
$
41,216
$
130,294
$
187,475
$
53,571
$
412,556
Capital lease obligations
10,413
13,518
3,542
—
27,473
Other long
-
term liabilities
1,856
2,867
1,906
19,306
25,935
Total on
-
balance sheet
53,485
146,679
192,923
72,877
465,964
Off
-
balance sheet(b):
Operating lease obligations
301,865
425,379
209,865
107,976
1,045,085
Interest on long-
term debt and
capital lease obligations
25,689
40,349
21,077
8,036
95,151
Total off
-
balance sheet
327,554
465,728
230,942
116,012
1,140,236
Total(c)
$
381,039
$
612,407
$
423,865
$
188,889
$
1,606,200
(a) The net proceeds of the July 2009 financing agreements were approximately $323.8 million after deducting underwriting
discounts and before estimated offering expenses. The Company utilized the proceeds to repay $267.0 million of private
placement senior term notes of varying maturities and $30.0 million of senior term notes under the Private Shelf
Agreement. The remaining proceeds were used for general corporate purposes including the repayment of bank debt.
(b) In accordance with accounting principles generally accepted in the United States of America, these obligations are not
reflected in the Consolidated Balance Sheet.
(c) As of June 30, 2010, we have liabilities for uncertain tax positions. We are not able to reasonably estimate the amount by
which the liabilities will increase or decrease over time; however, at this time, we do not expect a significant payment
related to these obligations within the next fiscal year. See Note 13 to the Consolidated Financial Statements for more
information on our uncertain tax positions.