Famous Footwear 2014 Annual Report Download - page 37

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36 2014 BROWN SHOE COMPANY, INC. FORM 10-K
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no o-balance sheet arrangements as of January 31, 2015.
CONTRACTUAL OBLIGATIONS
The table below sets forth our significant future obligations by time period. Further information on certain of these
commitments is provided in the notes to our consolidated financial statements, which are cross-referenced in this table.
Our obligations outstanding as of January 31, 2015 include the following:
Payments Due by Period
Less Than 1-3 3-5 More Than
($ millions) Total 1 Year Years Years 5 Years
Long-term debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200.0 $ – $ – $ 200.0 $ –
Interest on long-term debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.1 14.3 28.5 21.3 –
Operating lease commitments (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 675.9 153.3 224.7 127.9 170.0
Minimum license commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.2 7.8 15.1 2.1 1.2
Purchase obligations (3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673.8 666.1 6.8 0.9 –
Obligations related to restructuring initiatives (4) . . . . . . . . . . . . . . . . . 1.6 1.6 – – –
Other (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 4.5 4.3 1.7 5.8
Total (6) (7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,657.9 $ 847.6 $ 279.4 $ 353.9 $ 177.0
(1) Interest obligations in future periods have been reflected based on our $200.0 million principal value of Senior Notes and a fixed
interest rate of 7.125% as of fiscal year ended January 31, 2015. Refer to Note 10 to the consolidated financial statements.
(2) A majority of our retail operating leases contain provisions that allow us to modify amounts payable under the lease or terminate
the lease in certain circumstances, such as experiencing actual sales volume below a defined threshold and/or co-tenancy provisions
associated with the facility. The contractual obligations presented in the table above reflect the total lease obligation, irrespective of
our ability to reduce or terminate rental payments in the future, as noted. Refer to Note 11 to the consolidated financial statements.
(3) Purchase obligations include agreements to purchase assets, goods or services that specify all significant terms, including quantity
and price provisions.
(4) Refer to Note 4 to the consolidated financial statements for further information related to these obligations.
(5) Includes obligations for our supplemental executive retirement plan and other postretirement benefits, as discussed in Note 5
to the consolidated financial statements, and other contractual obligations.
(6) Excludes liabilities of $1.0 million, established pursuant to the provisions of ASC 740, Income Taxes, due to their uncertain nature in
timing of payments. Refer to Note 6 to the consolidated financial statements.
(7) Excludes liabilities of $2.9 million, $2.1 million and $8.9 million for our non-qualified deferred compensation plan, deferred
compensation plan for non-employee directors and restricted stock units for non-employee directors, respectively, due to the
uncertain nature in timing of payments. Refer to Note 5, Note 13 and Note 15 to the consolidated financial statements.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
AND FORWARD-LOOKING STATEMENTS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could dier materially
from those projected as they are subject to various risks and uncertainties. These risks and uncertainties include, without
limitation, the risks detailed in Item 1A, Risk Factors, and those described in other documents and reports filed from time to
time with the SEC, press releases and other communications. We do not undertake any obligation or plan to update these
forward-looking statements, even though our situation may change.
ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
FOREIGN CURRENCY EXCHANGE RATES
The market risk inherent in our financial instruments and positions represents the potential loss arising from adverse changes
in foreign currency exchange rates and interest rates. To address these risks, we enter into various hedging transactions.
All decisions on hedging transactions are authorized and executed pursuant to our policies and procedures, which do not
allow the use of financial instruments for trading purposes. We also are exposed to credit-related losses in the event of
nonperformance by counterparties to these financial instruments. Counterparties to these agreements, however, are major
international financial institutions, and we believe the risk of loss due to nonperformance is minimal.