Staples 2014 Annual Report Download - page 130

APPENDIX B
B-12 STAPLES Form 10-K
STAPLES, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition and
Results of Operations (continued)
of our joint venture arrangement in India, and a $21.7 million
increase in capital expenditures compared with the prior year.
The $12.7 million use of cash related to the disposal of a
business primarily pertained to cash that was on-hand at PSD
at the time the sale transaction was completed.
Cash used in financing activities was $1.44 billion for
2013 compared to $812.3 million for 2012, an increase of
$629.8 million. The increase was primarily attributable to the
repayment of the $866.9 million remaining principal balance
of our January 2014 Notes, partly offset by a $143.4 million
reduction in cash used in our share repurchase plans. In
2013, the Company paid shareholders cash dividends of
$0.48 per share for a total of $312.5 million, an increase from
the $0.44 per share for a total of $294.1 million paid in 2012.
Contractual Obligations and Commercial Commitments
A summary, as of January 31, 2015, of our contractual obligations and balances available under credit agreements is presented
below (amounts in thousands):
Payments Due By Period
Contractual Obligations and Commercial
Commitments (1)(2)(6)
Available
Credit
Total
Outstanding
Obligations
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
January 2018 Notes (5) — 500,000 — 500,000 — —
January 2023 Notes (5) — 500,000 — — — 500,000
May 2018 Revolving Credit Facility 1,000,000 — — — — —
Other lines of credit 138,947 77,214 77,214 — — —
Other notes and capital leases — 40,073 14,504 19,821 5,387 361
Total (5) $1,138,947 $1,117,287 $91,718 $519,821 $5,387 $500,361
Interest payments — $216,250 $35,625 $71,250 $43,750 $65,625
Operating leases (3) — $2,930,521 $703,905 $1,078,745 $602,231 $545,640
Purchase obligations (4) — $656,330 $485,240 $119,697 $48,550 $2,843
(1) See Note J - Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized
tax benefits.
(2) The above table excludes expected future contributions to our pension and post-retirement benefit plans. See Note L -
Pension and Other Post-Retirement Benefit Plans in the Notes to the Consolidated Financial Statements for details about
these future contributions.
(3) The operating lease payments reported above do not include common area maintenance or real estate taxes, which are
expected to approximate 25% to 28% of the related operating lease payments. Utility costs related to leased facilities have
also been excluded from this table because the payments do not represent contractual obligations until the services have
been provided. Future annual minimum payments include restructuring related obligations as of January 31, 2015.
(4) Many of our purchase commitments may be canceled by us without advance notice or payment, and we have excluded such
commitments, along with intercompany commitments. Contracts that may be terminated by us without cause or penalty but
require advance notice for termination are valued on the basis of an estimate of what we would owe under the contract upon
providing notice of termination.
(5) See Note F in the Notes to the Consolidated Financial Statements for information related to our $500 million 2.75% senior
notes due January 2018 (“January 2018 Notes”) and $500 million 4.375% senior notes due January 2023 (“January 2023
Notes”). The amounts shown in the table above represent the par value of the debt obligations. The funds provided by these
issuances were used for general corporate purposes.
(6) As of January 31, 2015, Staples had open standby letters of credit totaling $100.7 million
There were no instances of default during 2014 under any of our debt agreements.
Off-Balance Sheet Financing Arrangements
We do not have any off-balance sheet financing arrangements as of January 31, 2015, nor did we utilize any during 2014.