Restoration Hardware 2014 Annual Report Download - page 66

amended and restated credit agreement was less than the amount described above, Restoration Hardware, Inc.
would have been in compliance with the consolidated fixed charge coverage ratio described in the previous
sentence.
The amended and restated credit agreement requires a daily sweep of cash to prepay the loans under the
agreement while (i) an event of default exists or (ii) the availability under the revolving line of credit for
extensions of credit is less than the greater of (A) $20.0 million and (B) 10% of the lesser of the domestic
commitments and the domestic borrowing base.
On June 27, 2014, we paid off the principal balance and related interest under the prior credit agreement of
$154.8 million using proceeds from the issuance of the convertible senior notes. As of January 31, 2015,
Restoration Hardware, Inc. had no amounts outstanding under the amended and restated credit agreement. As of
January 31, 2015, Restoration Hardware, Inc. had $401.3 million undrawn borrowing availability under the
amended and restated credit agreement and had $20.2 million in outstanding letters of credit.
Contractual Obligations
As of January 31, 2015, our future contractual cash obligations over the next several periods were as
follows:
Payments Due by Period
Total 2015 2016–2017 2018–2019 Thereafter
(in thousands)
Convertible senior notes $ 350,000 $ — $ — $350,000 $ —
Revolving line of credit (1) —————
Operating leases (2) 582,436 72,274 121,696 94,541 293,925
Other non-current obligations (3) 491,770 19,056 52,939 56,655 363,120
Capital lease obligations 17,224 1,223 2,212 2,243 11,546
Notes payable for share repurchases 19,285 — — 893 18,392
Letters of credit 20,233 20,233 — — —
Total $1,480,948 $112,786 $176,847 $504,332 $686,983
(1) Under the amended and restated credit agreement, the revolving line of credit has a maturity date of
November 24, 2019.
(2) We enter into operating leases in the normal course of business. Most lease arrangements provide us with
the option to renew the leases at defined terms. The future operating lease obligations would change if we
were to exercise these options, or if we were to enter into additional new operating leases. Amounts above
do not include estimated contingent rent due under operating leases of $1.8 million at January 31, 2015.
(3) Other non-current obligations include estimated payments for rent associated with build-to-suit lease
transactions. In addition, includes approximately $8 million in fiscal 2015 related to our commitment to
purchase real estate in Canada, the purchase of which is expected to close in June 2015.
Other Commitments
The Company enters into various cancellable commitments related to the procurement of merchandise
inventory. As of January 31, 2015, these merchandise inventory purchase commitments were $377.6 million.
As of January 31, 2015, the liability of $1.1 million for unrecognized tax benefits associated with uncertain
tax positions (refer to Note 12—Income Taxes in our consolidated financial statements) has not been included in
the contractual obligations table above because we are not able to reasonably estimate when cash payments for
these liabilities will occur or the amount by which these liabilities will increase or decrease over time.
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