Office Depot 2010 Annual Report Download - page 17

As of December 25, 2010, we had no off-balance sheet arrangements, other than the agreements described in the
preceding paragraph and operating leases, which are included in the table below.
Contractual Obligations
The following table summarizes our contractual cash obligations at December 25, 2010, and the effect such
obligations are expected to have on liquidity and cash flow in future periods:
Payments Due by Period
(Dollars in millions) Total
Less than
1 year 1 –3 years 4 –5 years
After 5
years
Contractual Obligations
Long-term debt obligations (1) ....................... $ 508.6 $ 28.8 $ 456.8 $ 4.2 $ 18.8
Short-term borrowings and other (2) .................. 53.7 53.7 — — —
Capital lease obligations (3) ......................... 393.1 33.8 61.8 61.3 236.2
Operating lease obligations (4) ....................... 2,431.0 473.1 769.8 518.4 669.7
Purchase obligations (5) ............................ 168.2 95.6 72.0 0.6 —
Other liabilities (6) ................................ — — — — —
Total contractual cash obligations ..................... $3,554.6 $685.0 $1,360.4 $584.5 $924.7
(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 of amounts outstanding under the Facility and subsidiary lines of credit.
(3) The present value of these obligations are included on our Consolidated Balance Sheets. See Note G 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 25, 2010. Our operating lease obligations are
described in Note I 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 25, 2010, 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 25, 2010 includes $514 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, liabilities under our deferred
compensation plans, and accruals for uncertain tax positions. These liabilities have been excluded from the
above table as the timing and/or the amount of any cash payment is uncertain. As of December 25, 2010,
accruals for uncertain tax positions, net of items offset by net operating losses, totaled approximately $72
million. See Note H of the Notes to Consolidated Financial Statements for additional information regarding
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