Office Depot 2008 Annual Report Download - page 36

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Contractual Obligations
The following table summarizes our contractual cash obligations at December 27, 2008, and the effect such
obligations are expected to have on liquidity and cash flow in future periods:
Less than After 5
(Dollars in millions) Total 1 year 1 - 3 years 4 - 5 years years
Contractual Obligations
Long-term debt obligations (1) .................................. $ 526.7 $ 25.5 $ 51.1 $ 450.1 $ —
Short-term borrowings and other (2).......................... 176.6 176.6 — — —
Capital lease obligations (3)....................................... 489.9 35.2 66.9 80.7 307.1
Operating lease obligations (4) .................................. 3,019.5 530.7 847.8 627.9 1,013.1
Purchase obligations (5) ............................................. 213.6 130.5 82.8 0.3 —
Other liabilities (6) ..................................................... 11.0 — 11.0 — —
Total contractual cash obligations ................................ $ 4,437.3 $ 898.5 $ 1,059.6 $ 1,159.0 $ 1,320.2
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(1) Long-term debt obligations consist primarily of our $400 million senior notes and the associated contractual
interest payments. Also included in this amount are the expected payments (principal and interest) on certain
long-term debt obligations related to our international subsidiaries.
(2) Short-term borrowings consist primarily of amounts outstanding under our asset based revolving credit facility
and subsidiary lines of credit.
(3) The present value of these obligations are included on our Consolidated Balance Sheets. See Note E of the Notes
to Consolidated Financial Statements for additional information about our capital lease obligations.
(4) The operating lease obligations presented reflect future minimum lease payments due under the non-cancelable
portions of our leases as of December 27, 2008. Our operating lease obligations are described in Note G of the
Notes to Consolidated Financial Statements. In the table above, sublease income is distributed by period.
(5) Purchase obligations include all commitments to purchase goods or services of either a fixed or minimum
quantity that are enforceable and legally binding on us that meet any of the following criteria: (1) they are non-
cancelable, (2) we would incur a penalty if the agreement was cancelled, or (3) we must make specified
minimum payments even if we do not take delivery of the contracted products or services. If the obligation is
non-cancelable, the entire value of the contract is included in the table. If the obligation is cancelable, but we
would incur a penalty if cancelled, the dollar amount of the penalty is included as a purchase obligation. If we
can unilaterally terminate the agreement simply by providing a certain number of days notice or by paying a
termination fee, we have included the amount of the termination fee or the amount that would be paid over the
“notice period.” As of December 27, 2008, purchase obligations include television, radio and newspaper
advertising, sports sponsorship commitments, telephone services, certain fixed assets and software licenses and
service and maintenance contracts for information technology. Contracts that can be unilaterally terminated
without a penalty have not been included.
(6) Our Consolidated Balance Sheet as of December 27, 2008 includes $586 million classified as “Deferred income
taxes and other long-term liabilities.” This caption primarily consists of our net long-term deferred income taxes,
the unfunded portion of our pension plan, deferred lease credits, and liabilities under our deferred compensation
plans. These liabilities have been excluded from the above table as the timing and/or the amount of any cash
payment is uncertain. See Note F of the Notes to Consolidated Financial Statements for additional information
regarding our deferred tax positions and accruals for uncertain tax positions and Note H for a discussion of our
employee benefit plans, including the pension plan and the deferred compensation plan. The table above
includes scheduled, acquisition-related payments.
In addition to the above, we have letters of credit totaling $179 million outstanding at the end of the year, and we
have recourse for private label credit card receivables transferred to a third party. We record an estimate for losses
on these receivables in our financial statements. The total outstanding amount transferred to a third party at the end
of the year was approximately $184 million.
We have no other off-balance sheet arrangements other than those related to our operating lease agreements as
described above.