Foot Locker 2007 Annual Report Download - page 34

18
Contractual Obligations and Commitments
The following tables represent the scheduled maturities of the Company’s contractual cash obligations and other
commercial commitments as of February 2, 2008:
Contractual Cash Obligations Total
Payments Due by Period
Less than
1 Year 2 –3 Years 3 –5 Years After 5 Years
(in millions)
Long-term debt(1) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 221 $ — $ 88 $ — $ 133
Operating leases(2) . . . . . . . . . . . . . . . . . . . . . . . . . 2,793 487 832 651 823
Other long-term liabilities(3) . . . . . . . . . . . . . . . . . . — — — — —
Total contractual cash obligations . . . . . . . . . . . . . $3,014 $487 $920 $651 $956
(1) The amounts presented above represent the contractual maturities of the Company’s long-term debt, excluding interest. Additional
information is included in the “Long-Term Debt and Obligations under Capital Leases” footnote under “Item 8. Consolidated Financial
Statements and Supplementary Data.”
(2) The amounts presented represent the future minimum lease payments under non-cancelable operating leases. In addition to minimum
rent, certain of the Company’s leases require the payment of additional costs for insurance, maintenance, and other costs. These costs have
historically represented approximately 25 to 30 percent of the minimum rent amount. These additional amounts are not included in the
table of contractual commitments as the timing and/or amounts of such payments are unknown.
(3) The Company’s other liabilities in the Consolidated Balance Sheet as of February 2, 2008 primarily comprise pension and postretirement
benefits, deferred rent liability, income taxes, workers’ compensation and general liability reserves and various other accruals. These
liabilities have been excluded from the above table as the timing and/or amount of any cash payment is uncertain. The timing of the
remaining amounts that are known have not been included as they are minimal and not useful to the presentation. Additional information
is included in the “Other Liabilities” footnote under “Item 8. Consolidated Financial Statements and Supplementary Data.”
Contractual Cash Obligations
Total
Amounts
Committed
Amount of Commitment Expiration by Period
Less than
1 Year 2 – 3 Years 3 – 5 Years After 5 Years
(in millions)
Line of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 189 $ — $189 $— $—
Stand-by letters of credit . . . . . . . . . . . . . . . . . . . . . . 11 —11 — —
Purchase commitments(4) . . . . . . . . . . . . . . . . . . . . . . 1,453 1,450 3 — —
Other(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 19 33 5 —
Total commercial commitments . . . . . . . . . . . . . . . . . . $ 1,710 $ 1,469 $236 $ 5 $—
(4) Represents open purchase orders, as well as minimum required purchases under merchandise contractual agreements, at February 2, 2008.
The Company is obligated under the terms of purchase orders; however, the Company is generally able to renegotiate the timing and quantity
of these orders with certain vendors in response to shifts in consumer preferences.
(5) Represents payments required by non-merchandise purchase agreements and minimum royalty requirements.
The Company does not have any off-balance sheet financing, other than operating leases entered into in the normal
course of business as disclosed above, or unconsolidated special purpose entities. The Company does not participate
in transactions that generate relationships with unconsolidated entities or financial partnerships, including variable
interest entities. The Company’s policy prohibits the use of derivatives for which there is no underlying exposure.
In connection with the sale of various businesses and assets, the Company may be obligated for certain lease
commitments transferred to third parties and pursuant to certain normal representations, warranties, or indemnifications
entered into with the purchasers of such businesses or assets. Although the maximum potential amounts for such
obligations cannot be readily determined, management believes that the resolution of such contingencies will not
significantly affect the Company’s consolidated financial position, liquidity, or results of operations. The Company
is also operating certain stores for which lease agreements are in the process of being negotiated with landlords.
Although there is no contractual commitment to make these payments, it is likely that leases will be executed.