Dollar Tree 2015 Annual Report Download - page 50

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34
The New Senior Secured Credit Facilities contain representations and warranties, events of default and affirmative and
negative covenants. These include, among other things and subject to certain significant exceptions, restrictions on our ability
to declare or pay dividends, repay the Acquisition Notes, create liens, incur additional indebtedness, make investments, dispose
of assets and merge or consolidate with any other person. In addition, a financial maintenance covenant based on our
consolidated first lien secured net leverage ratio will apply to the New Revolving Credit Facility and the Term Loan A tranche
of the New Term Loan Facilities.
Annual interest expense is expected to approximate $360.0 million in 2016, $20.0 million of which is non-cash
amortization of debt-issuance costs.
Historically we have used cash to repurchase shares but we did not repurchase any shares in fiscal 2015 and 2014. We
repurchased 17.4 million shares for $1,112.1 million in fiscal 2013. At January 30, 2016, we have $1.0 billion remaining under
Board repurchase authorization.
Funding Requirements
Overview, Including Off-Balance Sheet Arrangements
We expect our cash needs for opening new stores and rebannering and expanding existing stores in fiscal 2016 to total
approximately $457.9 million, which includes capital expenditures, initial inventory and pre-opening costs.
At January 30, 2016, we have $1,250.0 million available under our New Revolving Credit Facility, less amounts
outstanding for letters of credit totaling $123.0 million.
Our estimated capital expenditures for fiscal 2016 are between $650.0 million and $670.0 million, including planned
expenditures for our new and expanded stores, the addition of freezers and coolers to approximately 400 stores, the completion
the Dollar Tree segment's eleventh distribution center and the expansion of our Stockton, California distribution center. 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 operations and potential borrowings under our New Revolving Credit Facility.
The following tables summarize our material contractual obligations at January 30, 2016, including both on- and off-
balance sheet arrangements, and our commitments, including interest on long-term borrowings (in millions):
Contractual Obligations Total 2016 2017 2018 2019 2020 Thereafter
Lease Financing
Operating lease obligations $ 7,349.4 $ 1,235.4 $ 1,206.7 $ 999.5 $ 838.3 $ 644.6 $ 2,424.9
Long-term Borrowings
Acquisition notes 3,250.0 — — — — 750.0 2,500.0
Term loans 3,908.5 108.0 158.0 183.0 658.0 33.0 2,768.5
Assumed secured senior notes 300.0 — — — — — 300.0
Forgivable promissory note 7.0 — 0.2 1.4 1.4 1.4 2.6
Interest on long-term borrowings 2,064.3 331.2 334.1 325.8 324.9 277.3 471.0
Total obligations $ 16,879.2 $ 1,674.6 $ 1,699.0 $ 1,509.7 $ 1,822.6 $ 1,706.3 $ 8,467.0
Commitments Total Expiring
in 2016 Expiring
in 2017 Expiring
in 2018 Expiring
in 2019 Expiring
in 2020 Thereafter
Letters of credit and surety bonds $ 381.0 $ 376.5 $ 4.3 $ 0.2 $ — $ — $ —
Technology assets 7.0 7.0 — — — — —
Telecommunication contracts 142.7 38.1 34.6 32.5 32.2 5.3 —
Total commitments $ 530.7 $ 421.6 $ 38.9 $ 32.7 $ 32.2 $ 5.3 $ —