Cracker Barrel 2010 Annual Report Download - page 30

acquisition of sites and construction of eleven new stores to
be opened in 2011, as well as for acquisition and construction
costs for locations to be opened in future years, capital
expenditures for maintenance programs and operational
innovation initiatives. We intend to fund our capital expendi-
tures with cash ows from operations and borrowings under
our Revolving Credit Facility, as necessary.
O-Balance Sheet Arrangements
Other than various operating leases, which are disclosed more
fully in “Material Commitments” below and Notes 2 and 17
to our Consolidated Financial Statements, we have no other
material o-balance sheet arrangements.
Material Commitments
For reporting purposes, the schedule of future minimum
rental payments required under operating leases, excluding
billboard leases, uses the same lease term as used in the
straight-line rent calculation. is term includes certain future
renewal options although we are not currently legally
obligated for all optional renewal periods. is method is
consistent with the lease term used in the straight-line rent
calculation, as described in Note 2 to the Consolidated
Financial Statements.
Our contractual cash obligations and commitments as of
July 30, 2010, are summarized in the tables below:
Payments due by Year
Contractual Obligations (a ) Total 2011 2012-2013 2014-2015 Aer 2015
Term loans payable
on or before
April 27, 2013
( b)
$ 347,559 $ 4,029 $ 343,530 — —
Term loans payable
on or before
April 27, 2016
( b)
232,585 2,617 5,233 $ 5,233 $ 219,502
Note payable
(c)
364 109 218 37 —
Operating leases
excluding
billboards
(d)
748,935 36,078 72,805 73,992 566,060
Operating leases for
billboards 30,576 19,577 10,956 43 —
Capital leases 66 22 44 — —
Purchase
obligations
(e)
184,293 72,717 94,127 15,375 2,074
Other long-term
obligations
(f )
38,929 — 8,649 277 30,003
Total contractual
cash obligations $ 1,583,307 $ 135,149 $ 535,562 $ 94,957 $ 817,639
Amount of Commitment Expirations by Year
Total 2011 2012-2013 2014-2015 Aer 2015
Revolving Credit
facility expiring on
April 27, 2011 ( g ) $ 85,000 $ 85,000 — — —
Revolving Credit
facility expiring on
January 27, 2013 ( g ) 165,000 — $ 165,000 — —
Standby leers of
credit 30,346 4,250 26,096 — —
Guarantees ( h) 2,364 562 975 $ 279 $ 548
Total commitments $ 282,710 $ 89,812 $ 192,071 $ 279 $ 548
(a) At July 30, 2010, the entire liability for uncertain tax positions
(including penalties and interest) is classied as a long-term liability. At
this time, we are unable to make a reasonably reliable estimate of the
amounts and timing of payments in individual years due to uncertainties
in the timing of the eective selement of tax positions. As such, the
liability for uncertain tax positions of $17,467 is not included in the
contractual cash obligations and commitments table above.
(b) e aggregate outstanding on the term loans at July 30, 2010 is
$580,144. Using our expected principal payments on the term loans and
projected interest rates, we will have interest payments of $43,063,
$74,436, $22,000 and $6,061 in 2011, 2012-2013, 2014-2015 and
thereaer, respectively. e projected interest rates for our swapped
portion of our term loans are our xed rates under our interest rate
swaps plus our current credit spreads. Currently, our xed rate is 5.57%
through May 2013 and then our xed rate decreases to 2.73% om
May 2013 through May 2015. e projected interest rates for our
unswapped portion of our term loans are the three-year swap rate at July
30, 2010 of 1.19% plus our current credit spreads. Our current credits
spreads are 1.50% and 2.50%, respectively, on the term loans payable on
or before April 27, 2013 and April 27, 2016.
(c) e note payable consists of a ve-year note with a vendor in the original
principal amount of $507 and represents the nancing of prepaid
maintenance for telecommunications equipment. e note payable is
payable in monthly installments of principal and interest of $9 through
October 16, 2013 and bears interest at 2.88%. Principal and interest
payments for the note payable are included in the contractual cash
obligations and commitments table above.
(d) Includes base lease terms and certain optional renewal periods, for which
at the inception of the lease, it is reasonably assured that we will exercise.
(e) Purchase obligations consist of purchase orders for food and retail
merchandise; purchase orders for capital expenditures, supplies and
other operating needs and other services; and commitments under
contracts for maintenance needs and other services. We have excluded
contracts that do not contain minimum purchase obligations. In 2010,
we increased our use of contracts that do not contain minimum purchase
obligations but do address product specications and pricing. We
excluded long-term agreements for services and operating needs that can
be cancelled within 60 days without penalty. We included long-term
agreements and certain retail purchase orders for services and operating
needs that can be cancelled with more than 60 days notice without
penalty only through the term of the notice. We included long-term
agreements for services and operating needs that only can be cancelled in
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