Dollar Tree 2006 Annual Report Download - page 23

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Funding Requirements
Overview
We expect our cash needs for opening new stores
and expanding existing stores in fiscal 2007 to total
approximately $160.7 million, which includes capital
expenditures, initial inventory and pre-opening costs.
Our estimated capital expenditures for fiscal 2007
are between $170.0 and $190.0 million, including
planned expenditures for our new and expanded
DOLLAR TREE STORES, INC. • 2006 ANNUAL REPORT 21
stores, the addition of freezers and coolers to approxi-
mately 250 stores, an expansion of the Briar Creek
Distribution Center and an expansion to our home
office and data center in Chesapeake, Va. We believe
that we can adequately fund our working capital
requirements and planned capital expenditures for
the next few years from net cash provided by opera-
tions and potential borrowings under our existing
credit facilities.
Lease Financing
Operating Lease Obligations. Our operating lease
obligations are primarily for payments under non-
cancelable store leases. The commitment includes
amounts for leases that were signed prior to
February 3, 2007 for stores that were not yet
open on February 3, 2007.
Capital Lease Obligations. Our capital lease obliga-
tions are primarily for payments for distribution
center equipment and computer equipment at the
store support center.
Long-Term Borrowings
Revolving Credit Facility. In March 2004, we
entered into a five-year Revolving Credit Facility (the
Facility). The Facility provides for a $450.0 million
line of credit, including up to $50.0 million in avail-
able letters of credit. Interest is assessed under the line
based on matrix pricing which currently approxi-
mates LIBOR, plus 0.475%. The Facility, among
other things, requires the maintenance of certain spec-
ified financial ratios, restricts the payment of certain
distributions and prohibits the incurrence of certain
new indebtedness. We used availability under this
Facility to repay the $142.6 million of variable-rate
debt and to purchase short-term investments. As of
February 3, 2007, we had $250.0 million outstanding
on this Facility.
The following tables summarize our material contractual obligations, including both on- and off-balance
sheet arrangements, and our commitments, excluding interest on long-term borrowings (in millions):
Contractual Obligations Total 2007 2008 2009 2010 2011 Thereafter
Lease Financing
Operating lease obligations $1,177.0 $284.2 $246.0 $207.2 $161.5 $110.6 $167.5
Capital lease obligations 0.8 0.4 0.3 0.1 — — —
Long-term Borrowings
Revolving credit facility 250.0 — — 250.0 — — —
Revenue bond financing 18.8 18.8 — — — — —
Total obligations $1,446.6 $303.4 $246.3 $457.3 $161.5 $110.6 $167.5
Expiring Expiring Expiring Expiring Expiring
Commitments Total in 2007 in 2008 in 2009 in 2010 in 2011 Thereafter
Letters of credit and
surety bonds $116.3 $115.6 $ 0.7 $ — $— $— $—
Freight contracts 57.1 38.6 9.9 8.6 — — —
Technology assets 3.8 3.8 — — — — —
Total commitments $177.2 $158.0 $10.6 $8.6 $— $— $—