Big Lots 2009 Annual Report Download - page 149

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Contractual Obligations
The following table summarizes payments due under our contractual obligations at January 30, 2010:
Payments Due by Period (1)
Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years
(In thousands)
Obligations under bank credit facility (2)......... $ — $ — $ — $ — $ —
Operating lease obligations (3) (4) ............... 917,454 263,782 386,664 206,795 60,213
Capital lease obligations (4) ................... 3,707 2,352 1,220 135 —
Purchase obligations (4) (5) .................... 839,587 676,012 113,544 49,354 677
Other long-term liabilities (6) .................. 46,652 16,317 7,347 2,371 20,617
Total contractual obligations (7) ............. $1,807,400 $958,463 $508,775 $258,655 $81,507
(1) The disclosure of contractual obligations in this table is based on assumptions and estimates that we
believe to be reasonable as of the date of this report. Those assumptions and estimates may prove to be
inaccurate; consequently, the amounts provided in the table may differ materially from those amounts
that we ultimately incur. Variables that may cause the stated amounts to vary from the actually incurred
include, but are not limited to: the termination of a contractual obligation prior to its stated or anticipated
expiration; fees or damages incurred as a result of the premature termination or breach of a contractual
obligation; the acquisition of more or less services or goods under a contractual obligation than are
anticipated by us as of the date of this report; fluctuations in third party fees, governmental charges, or
market rates that we are obligated to pay under contracts we have with certain vendors; and the exercise of
renewal options under, or the automatic renewal of, contracts that provide for the same.
(2) Obligations under bank credit facility consist of the borrowings outstanding under the 2009 Credit
Agreement. In addition, we had outstanding letters of credit totaling $50.1 million at January 30, 2010.
Approximately $46.8 million of the outstanding letters of credit represent stand-by letters of credit
and we do not expect to meet conditions requiring significant cash payments on these letters of credit;
accordingly, they have been excluded from this table. The remaining outstanding letters of credit represent
commercial letters of credit whereby the related obligation is included in Purchase Obligations. For a
further discussion, see note 3 to the accompanying consolidated financial statements.
(3) Operating lease obligations include, among other items, leases for retail stores, warehouse space, data
center, offices, and certain computer and other business equipment. The future minimum commitments
for retail store, data center, office, and warehouse space operating leases are $687.6 million. For a further
discussion of leases, see note 5 to the accompanying consolidated financial statements. Many of the store
lease obligations require us to pay for our applicable portion of CAM, real estate taxes, and property
insurance. In connection with our store lease obligations, we estimated that future obligations for CAM,
real estate taxes, and property insurance were $221.9 million at January 30, 2010. We have made certain
assumptions and estimates in order to account for our contractual obligations relative to CAM, real estate
taxes, and property insurance. Those assumptions and estimates include, but are not limited to: use of
historical data to estimate our future obligations; calculation of our obligations based on comparable store
averages where no historical data is available for a particular leasehold; and assumptions related to average
expected increases over historical data. The remaining lease obligation of $8.0 million relates primarily to
operating leases for computer and other business equipment.
(4) For purposes of the lease and purchase obligation disclosures, we have assumed that we will make all
payments scheduled or reasonably estimated to be made under those obligations that have a determinable
expiration date, and we disregarded the possibility that such obligations may be prematurely terminated
or extended, whether automatically by the terms of the obligation or by agreement between us and the
counterparty, due to the speculative nature of premature termination or extension. Where an operating
lease or purchase obligation is subject to a month-to-month term or another automatically renewing
term, we disclosed in the table our minimum commitment under such obligation, such as one month in
the case of a month-to-month obligation and the then-current term in the case of another automatically
renewing term, due to the uncertainty of future decisions to exercise options to extend or terminate any
existing leases.