Staples 2012 Annual Report Download - page 109

B-13
STAPLES, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
agreement with Bank of America, N.A., as Administrative Agent and other lending institutions named therein (the "November
2014 Revolving Credit Facility") which provides for a maximum borrowing of $1.0 billion, and which pursuant to an accordion
feature may be increased to $1.5 billion upon the Company's request and the agreement of the lenders participating in the increase.
At the end of 2012, no borrowings were outstanding under the November 2014 Revolving Credit Facility. We also have various
other lines of credit under which we may borrow a maximum of $309.9 million, and under which we had outstanding borrowings
of $103.7 million and outstanding letters of credit of $0.2 million as of February 2, 2013, leaving $206.0 million of available credit
at that date.
We have a commercial paper program ("Commercial Paper Program") that allows us to issue up to $1.0 billion of unsecured
commercial paper notes ("Notes") from time to time. The November 2014 Revolving Credit Facility serves as a backstop to the
Commercial Paper Program. Maturities of the Notes vary but may not exceed 397 days from the date of issue. In 2012 we borrowed
under our Commercial Paper Program to support our seasonal working capital requirements. In 2012, the weighted-average amount
outstanding under the Commercial Paper Program was $7.3 million, with a weighted-average interest rate of 0.4%. At the end of
2012, there were no outstanding borrowings under the Commercial Paper Program. The maximum amount outstanding under the
Commercial Paper Program during 2012 was $100.0 million.
At February 2, 2013, we had approximately $2.54 billion in total cash and funds available through credit agreements,
which consisted of $1.21 billion of available credit and $1.33 billion of cash and cash equivalents. Of the $1.33 billion in cash
and cash equivalents, approximately $585 million is held in jurisdictions outside the United States. While there could be tax
consequences if such amounts were moved out of these jurisdictions or repatriated to the United States, we currently intend to use
most of the cash and cash equivalents held outside of the United States to finance the obligations and current operations of our
foreign businesses. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings
is not practicable because of the complexities associated with its hypothetical calculation.
Off-Balance Sheet Financing Arrangements
We do not have any off-balance sheet financing arrangements as of February 2, 2013, nor did we utilize any during 2012.
Contractual Obligations and Commercial Commitments
A summary, as of February 2, 2013, of balances available under our credit agreements and contractual obligations is
presented below (amounts in thousands):
Payments Due By Period
Contractual Obligations and
Commercial Commitments (1)(2)(7) Available Credit
Total
Outstanding
Obligations Less than
1 Year 1-3 Years 3-5 Years More than 5 Years
January 2014 Notes (6)(8) $ — $ 867,218 $ 867,218 $ — $ — $ —
January 2018 Notes (6) — 500,000 — — 500,000 —
January 2023 Notes (6) — 500,000———500,000
November 2014 Revolving
Credit Facility 1,000,000 —————
Lines of credit 205,965 103,734 103,734 — — —
Other notes and capital leases — 8,241 3,973 3,159 564 545
Total (6) $ 1,205,965 $ 1,979,193 $ 974,925 $ 3,159 $ 500,564 $ 500,545
Interest expense — $ 372,054 $ 120,179 $ 71,250 $ 71,250 $ 109,375
Operating leases (3)(4) — $ 4,128,870 $ 838,677 $ 1,347,870 $ 910,016 $ 1,032,307
Purchase obligations (4)(5) — $ 631,495 $ 475,540 $ 68,625 $ 29,784 $ 57,546
(1) As of February 2, 2013, we had gross unrecognized tax benefits of $254.7 million, of which $242.9 million, if recognized,
would affect the Company's tax rate, and an additional $37.7 million for gross accrued interest and penalties (see Note
L - Income Taxes in the Notes to the Consolidated Financial Statements). At this time, we are unable to make a reasonable
estimate of the timing of payments in connection with these tax liabilities; therefore, such amounts are not included in
the contractual obligation table above.
(2) The above table excludes expected future contributions to our pension and post-retirement benefit plans. See Note N -
Pension and Other Post-Retirement Benefit Plans in the Notes to the Consolidated Financial Statements for future details
about these future contributions.