Foot Locker 2014 Annual Report Download - page 51

Contractual Obligations and Commitments
The following tables represent the scheduled maturities of the Company’s contractual cash obligations and
other commercial commitments at January 31, 2015:
Payments Due by Fiscal Period
Total 2015 2016 − 2017 2018 − 2019 2020 and Beyond
(in millions)
Long-term debt
(1)
$ 195 $ 11 $ 22 $ 22 $ 140
Operating leases
(2)
3,426 567 969 726 1,164
Capital leases 4 2 2 — —
Other long-term liabilities
(3)
———— —
Total contractual cash obligations $3,625 $ 580 $993 $748 $1,304
Other Commercial Commitments
Purchase commitments
(4)
2,238 2,238 — — —
Other
(5)
24 15 9 — —
Total commercial commitments $2,262 $2,253 $ 9 $ — $ —
(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 $12 million. Additional information is included in the Long-Term Debt and
Obligations Under Capital Leases 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 20 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 31, 2015 primarily comprise pension and postretirement
benefits, deferred rent liability, income taxes, workers’ compensation and general liability reserves, and various other accruals. Other
than this liability, other amounts (including the Company’s unrecognized tax benefits of $38 million, as well as penalties and interest
of $2 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.’’
(4) Represents open purchase orders, as well as other commitments for merchandise purchases, at January 31, 2015. 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 suppliers in response to shifts in consumer preferences.
(5) Represents payments required by non-merchandise purchase agreements.
Off-Balance Sheet Arrangements
The majority the Company’s contractual obligations relate to operating leases for our stores. Future scheduled
lease payments under non-cancellable operating leases as of January 31, 2015 are described in the table under
Contractual Obligations and Commitments above and with additional information in the Leases note in ‘‘Item 8.
Consolidated Financial Statements and Supplementary Data.’’
The Company does not participate in transactions that generate relationships with unconsolidated entities or
financial partnerships, including variable interest entities. Our 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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