Urban Outfitters 2012 Annual Report Download - page 37

Table of Contents
common shares at a total cost of $7.2 million and $4.0 million, respectively, from employees to meet minimum statutory tax withholding requirements.
On April 25, 2011, we amended our line of credit facility (the "Line") with Wells Fargo Bank, National Association. This amendment extended the
term of the Line for three years, increased the accordion feature from $100 million to $175 million, reduced the interest rate margin for certain cash advances
and modified certain financial covenants and terms. 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 1.50% based on our achievement of prescribed adjusted debt ratios. The Line subjects us to various
restrictive covenants, including maintenance of certain financial ratios such as adjusted debt. The covenants also include limitations on our capital
expenditures, ability to repurchase shares and the payment of cash dividends. On October 31, 2011, we further amended the Line to revise certain financial
covenants which included removing the limitation on share repurchases, as well as to join certain of our subsidiaries as additional borrowers and guarantors
and release certain others. As of and during the year ended January 31, 2012, there were no borrowings under the Line and we were in compliance with all
covenants under the Line. Outstanding letters of credit and stand-by letters of credit under the Line totaled approximately $59.7 million as of January 31,
2012. The available credit, including the accordion feature, under the Line was $115.3 million as of January 31, 2012. We expect the Line to satisfy our credit
needs through at least fiscal 2014.
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) $ 1,389,003 $ 185,047 $ 519,895 $ 263,462 $ 420,599
Purchase orders (2) 315,890 315,890 — — —
Construction contracts (3) 16,292 16,292 — — —
Tax Contingencies (4) 340 340 — — —
Total contractual obligations $ 1,721,525 $ 517,569 $ 519,895 $ 263,462 $ 420,599
(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 payments as the direct operating costs fluctuate over the term of the lease. Additionally, there are 30 locations
where a percentage of sales are paid in lieu of a fixed minimum rent that are not reflected in the above table. Total rent expense related to these 30
locations was approximately $4,917 for fiscal 2012. It is common for the lease agreements for our European locations to adjust the minimum rental due
to the current market rate multiple times during the term. The table above includes our best estimate of the future payments for these locations.
Amounts noted above include commitments for 36 executed leases for stores not opened as of January 31, 2012.
(2) Our merchandise commitments are cancellable with no or limited recourse available to the vendor until the merchandise shipping date.
(3) Includes construction contracts with contractors that are fully liquidated upon the completion of construction, which is typically within 12 months.
(4) Tax contingencies include $340 that is classified as a current liability in the Company's Consolidated Balance Sheets as of January 31, 2012. Tax
contingencies in the table above do not show an existing liability of $10,910 because we cannot reasonably estimate in which future periods these
amounts will ultimately be settled. As a result, the $10,910 liability was classified as a non-current liability in the Company's Consolidated Balance
Sheets as of January 31, 2012.
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