Foot Locker 2010 Annual Report Download - page 44

Contractual Obligations and Commitments
The following tables represent the scheduled maturities of the Company’s contractual cash obligations and
other commercial commitments at January 29, 2011:
Payments Due by Period
Contractual Cash Obligations Total Less than 1 Year 2−3 Years 3−5 Years After 5 Years
(in millions)
Long-term debt
(1)
.................... $ 241 $ 11 $ 22 $ 22 $186
Operating leases
(2)
.................... 2,418 481 781 560 596
Other long-term liabilities
(3)
............. 1 1 — — —
Total contractual cash obligations ......... $2,660 $493 $803 $582 $782
(1) The amounts presented above represent the contractual maturities of the Company’s long-term debt, including interest; however it
excludes the unamortized gain of the interest rate swap of $17 million. Additional information is included in the Long-Term Debt note
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 at January 29, 2011 primarily comprise pension and postretirement
benefits, deferred rent liability, income taxes, workers’ compensation and general liability reserves, and various other accruals. The
amount presented in the table represents the Company’s 2011 Canadian qualified plan contributions of $1 million. Other than this
liability, other amounts (including the Company’s unrecognized tax benefits of $62 million) 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 has not been
included as they are minimal and not useful to the presentation. Additional information is included in the Other Liabilities, Financial
Instruments and Risk Management, and Retirement Plans and Other Benefits notes under ‘‘Item 8. Consolidated Financial Statements and
Supplementary Data.’’
Amount of Commitment Expiration by Period
Other Commercial Commitments
Total
Amounts
Committed Less than 1 Year 2−3 Years 3−5 Years After 5 Years
(in millions)
Unused line of credit
(4)
................. $ 199 $ — $199 $— $—
Standby letters of credit ................ 1 — 1 — —
Purchase commitments
(5)
............... 1,660 1,660 — — —
Other
(6)
........................... 32 15 15 2 —
Total commercial commitments ........... $1,892 $1,675 $215 $ 2 $—
(4) Represents the unused domestic lines of credit pursuant to the Company’s $200 million revolving credit agreement. The Company’s
management currently does not expect to borrow under the facility in 2011.
(5) Represents open purchase orders, as well as other commitments for merchandise purchases, at January 29, 2011. 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.
(6) Represents payments required by non-merchandise purchase agreements.
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.
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