Express 2012 Annual Report Download - page 45

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. As of February 2, 2013, our contractual cash obligations
over the next several periods are set forth in the following table.
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) ............................. 96,657 17,574 35,148 35,148 8,787
Other Long-Term Obligations (3) ................ 32,017 10,602 19,053 2,362 —
Operating Leases (4) .......................... 1,346,182 202,445 321,280 239,443 583,014
Purchase Obligations (5) ....................... 262,876 262,876 — — —
Total ..................................... $1,938,582 $493,497 $375,481 $276,953 $792,651
(1) As of February 2, 2013, we had the following amounts outstanding under our existing debt arrangements: no
amounts outstanding under the Revolving Credit Facility and $200.8 million in Senior Notes outstanding.
The Revolving Credit Facility matures on July 29, 2016 and the Senior Notes are due in March 2018. Refer
to Note 9 of our Consolidated Financial Statements for additional information related to our existing debt
arrangements.
(2) Includes interest under existing debt facilities.
(3) Other long-term obligations consist of employment related agreements and obligations under other long-
term agreements.
(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. These amounts
also include all contractual lease commitments related to our flagship locations, which we are considered the
owner of for accounting purposes. Common area maintenance, real estate tax, and other customary charges
included in our operating lease agreements are not included above. Estimated annual expense incurred for
such charges is approximately $98.7 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 policies 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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