Dillard's 2013 Annual Report Download - page 38

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32
Fiscal 2014 Outlook
During fiscal 2014, the Company expects to finance its capital expenditures and its working capital requirements,
including stock repurchases, from cash on hand, cash flows generated from operations and utilization of the credit facility. At
present, there are numerous general business and economic factors impacting the retail industry that could affect the Company's
liquidity. These factors include: consumer confidence; high levels of unemployment in various sectors; rising gas prices;
economic instability around the globe; and other factors that are both separate from, and outgrowths of, these listed. These
conditions could impact our net sales which may result in reduced cash flows if we are unable to appropriately manage our
inventory levels and expenses. Depending upon our actual and anticipated sources and uses of liquidity, the Company will from
time to time consider possible financing transactions, the proceeds of which could be used to refinance current indebtedness or
for other corporate purposes.
OFF-BALANCE-SHEET ARRANGEMENTS
The Company has not created, and is not party to, any special-purpose or off-balance-sheet entities for the purpose of
raising capital, incurring debt or operating the Company's business. The Company does not have any off-balance-sheet
arrangements or relationships that are reasonably likely to materially affect the Company's financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or the availability of capital
resources.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
To facilitate an understanding of the Company's contractual obligations and commercial commitments, the following data
is provided:
PAYMENTS DUE BY PERIOD
(in thousands of dollars)
Contractual Obligations Total
Less than
1 year 1 - 3 years 3 - 5 years
More than
5 years
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . $ 614,785 $ — $ — $ 248,160 $ 366,625
Interest on long-term debt . . . . . . . . . . . . . . . . . 432,411 44,507 89,014 77,944 220,946
Subordinated debentures . . . . . . . . . . . . . . . . . . 200,000———200,000
Interest on subordinated debentures. . . . . . . . . . 367,644 14,959 29,918 30,205 292,562
Capital lease obligations, including interest . . . 10,371 1,428 2,856 2,856 3,231
Benefit plan participant payments . . . . . . . . . . . 177,601 3,255 15,923 20,106 138,317
Purchase obligations(1) . . . . . . . . . . . . . . . . . . . 1,202,266 1,202,266 — — —
Operating leases(2) . . . . . . . . . . . . . . . . . . . . . . 74,345 22,197 33,942 13,709 4,497
Total contractual cash obligations(3)(4) . . . . . . $ 3,079,423 $ 1,288,612 $ 171,653 $ 392,980 $ 1,226,178
___________________________________
(1) The Company's purchase obligations principally consist of purchase orders for merchandise and store construction
commitments. Amounts committed under open purchase orders for merchandise inventory represent $1,192.0 million
of the purchase obligations, of which a significant portion are cancelable without penalty prior to a date that precedes
the vendor's scheduled shipment date.
(2) The operating leases included in the above table do not include contingent rent based upon sales volume, which
represented approximately 24% of minimum lease obligations in fiscal 2013.
(3) The total liability for unrecognized tax benefits is $6.4 million, including tax, penalty, and interest (refer to Note 6 to
the consolidated financial statements). The Company is not able to reasonably estimate the timing of future cash flows
and has excluded these liabilities from the table above; however, at this time, the Company does not expect a material
change in unrecognized tax benefits in the next twelve months.
(4) The Company is unable to reasonably estimate the timing of future cash flows of workers' compensation and general
liability insurance reserves of $27.7 million and gift card liabilities of $15.3 million and have excluded these from the
table above.