Urban Outfitters 2009 Annual Report Download - page 35

market conditions. During the fiscal year ended January 31, 2007, we repurchased and subsequently
retired 1,220,000 shares at a cost of approximately $21 million. No shares were repurchased during
fiscal 2008 or fiscal 2009.
On December 11, 2007, we renewed and amended our line of credit facility with Wachovia Bank,
National Association (the “Line”). The Line is a three-year revolving credit facility with an accordion
feature allowing an increase in available credit up to $100.0 million at our discretion, subject to a
seven day request period. As of January 31, 2009, the credit limit under the Line was $60.0 million.
The Line contains a sub-limit for borrowings by our European subsidiaries that are guaranteed by us.
Cash advances bear interest at LIBOR plus 0.50% to 1.60% based on our achievement of prescribed
adjusted debt ratios. The Line subjects us to various restrictive covenants, including maintenance of
certain financial ratios and covenants such as fixed charge coverage and adjusted debt. The covenants
also include limitations on our capital expenditures, ability to repurchase shares and the payment of
cash dividends. As of January 31, 2009, there were no borrowings under the Line. Outstanding letters
of credit and stand-by letters of credit under the Line totaled approximately $35.1 million as of
January 31, 2009. The available credit, including the accordion feature under the Line was $64.9
million as of January 31, 2009. We believe the renewed Line will satisfy our letter of credit needs
through fiscal 2011. Wachovia Bank, National Association was acquired by Wells Fargo, effective
January 1, 2009. The Wells Fargo acquisition does not affect the original line agreement.
We have entered into agreements that create contractual obligations and commercial
commitments. These obligations and commitments will have an impact on future liquidity and the
availability of capital resources. Accumulated cash and future cash from operations, as well as
available credit under our line of credit facility, are expected to fund such obligations and
commitments. The tables noted below present a summary of these obligations and commitments as of
January 31, 2009:
Contractual Obligations
Payments Due by Period (in thousands)
Description
Total
Obligations
Less Than
One
Year
One to
Three
Years
Three to
Five
Years
More Than
Five
Years
Operating leases (1) ................. $1,086,186 $132,497 $392,548 $232,231 $328,910
Purchase orders (2) ................. 302,961 302,961 — — —
Construction contracts (3) ............ 1,684 1,684 — — —
FIN 48 liability ..................... 381 381 — — —
Total contractual obligations ...... $1,391,212 $437,523 $392,548 $232,231 $328,910
The contractual obligations table excludes our FIN 48, “Accounting for Uncertainty in Income
Taxes—an Interpretation of FASB Statement No. 109” (“FIN 48”) liability of $10.7 million
because we cannot reasonably estimate in which future periods these amounts will ultimately be
settled. This amount was classified as a long-term liability in our consolidated balance sheet as of
January 31, 2009. The $0.4 million FIN 48 liability was classified as a current liability in the
Company’s consolidated balance sheet as of January 31, 2009 and is shown in the above table.
(1) Includes store operating leases, which generally provide for payment of direct operating costs in
addition to rent. The obligation amounts shown above only reflect our future minimum lease
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