Express 2011 Annual Report Download - page 53

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Contractual Obligations
We enter into long-term contractual obligations and commitments in the normal course of business, primarily
debt obligations and non-cancelable operating leases and debt obligations. As of January 28, 2012, our
contractual cash obligations over the next several periods are set forth below.
Payments Due by Period
Total <1 Year 2-3 Years 4-5 Years Thereafter
(in thousands)
Contractual Obligations:
Existing Debt Facilities (1) ..................... $ 200,850 $ — $ — $ — $200,850
Interest Costs (2) ............................. 114,232 17,574 35,148 35,148 26,362
Other Long-Term Obligations (3) ................ 43,422 10,498 21,241 11,683 —
Operating Leases (4) .......................... 923,803 178,368 286,586 184,518 274,331
Purchase Obligations (5) ....................... 273,621 273,621 — — —
Total ..................................... $1,555,928 $480,061 $342,975 $231,349 $501,543
(1) As of January 28, 2012, we had the following amounts outstanding under our existing credit facilities: no
amounts outstanding under the Opco Revolving Credit Facility and $200.8 million in Senior Notes
outstanding. The Opco Revolving Credit Facility matures on July 29, 2016 and the Senior Notes are due in
March 2018. See “Liquidity and Capital Resources- Credit Facilities.”
(2) Includes interest under existing debt facilities.
(3) Other long-term obligations consist of employment related agreements and obligations under other long-
term agreements, including with an affiliate of Limited Brands.
(4) We enter into operating leases in the normal course of business. Most lease arrangements provide us with
the option to renew the leases at defined terms. The future operating lease obligations would change if we
were to exercise these options, or if we were to enter into additional new operating leases. Common area
maintenance, real estate tax, and other customary charges included in our operating lease agreements and
are not included above. Estimated annual expense incurred for such charges are approximately $93.1
million.
(5) Purchase obligations are made up of merchandise purchase orders and unreserved fabric commitments.
Critical Accounting Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and
assumptions that affect the reported amounts of our assets, liabilities, revenues, and expenses, as well as the
related disclosure of contingent assets and liabilities at the date of the financial statements. Management
evaluates its accounting policies, estimates, and judgments on an on-going basis. Management bases its estimates
and judgments on historical experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates under different assumptions and conditions.
Management evaluated the development and selection of its critical accounting policies and estimates and
believes that the following involve a higher degree of judgment or complexity and are most significant to
reporting its results of operations and financial position and are, therefore, discussed as critical. The following
critical accounting policies reflect the significant estimates and judgments used in the preparation of our
Consolidated Financial Statements. More information on all of our significant accounting policies can be found
in Note 2 to our Consolidated Financial Statements.
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