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COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Jun. 30, 2013
COMMITMENTS AND CONTINGENCIES  
Summary of scheduled maturities of contractual obligations for which cash flows are fixed and determinable

 

 

 

 

Payments Due in Fiscal

 

 

(In millions)

 

Total

 

2014

 

2015

 

2016

 

2017

 

2018

 

Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt service (1)

 

$

2,386.3

 

$

79.6

 

$

65.5

 

$

61.8

 

$

361.3

 

$

44.7

 

$

1,773.4

Operating lease commitments (2)

 

1,534.7

 

280.2

 

241.0

 

210.9

 

176.5

 

146.1

 

480.0

Unconditional purchase obligations (3)

 

2,681.7

 

1,441.6

 

346.3

 

358.2

 

139.1

 

143.8

 

252.7

Gross unrecognized tax benefits and interest – current (4) 

 

0.9

 

0.9

 

 

 

 

 

Total contractual obligations

 

$

6,603.6

 

$

1,802.3

 

$

652.8

 

$

630.9

 

$

676.9

 

$

334.6

 

$

2,506.1

 

 

(1)        Includes long-term and current debt and the related projected interest costs, and to a lesser extent, capital lease commitments.  Interest costs on long-term and current debt are projected to be $61.3 million in each of the years from fiscal 2014 through fiscal 2017, $44.6 million in fiscal 2018 and $773.3 million thereafter.  Projected interest costs on variable rate instruments were calculated using market rates at June 30, 2013.  Refer to Note 9 – Debt.

(2)        Minimum operating lease commitments only include base rent.  Certain leases provide for contingent rents that are not measurable at inception and primarily include rents based on a percentage of sales in excess of stipulated levels, as well as common area maintenance.  These amounts are excluded from minimum operating lease commitments and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably measurable.  Such amounts have not been material to total rent expense.  Total rental expense included in the accompanying consolidated statements of earnings was $332.4 million, $304.9 million and $290.9 million in fiscal 2013, 2012 and 2011, respectively.

(3)        Unconditional purchase obligations primarily include inventory commitments, estimated future earn-out payments, estimated royalty payments pursuant to license agreements, advertising commitments, capital improvement commitments, planned funding of pension and other post-retirement benefit obligations, commitments pursuant to executive compensation arrangements, obligations related to the Company’s cost savings initiatives and acquisitions.  Future earn-out payments and future royalty and advertising commitments were estimated based on planned future sales for the term that was in effect at June 30, 2013, without consideration for potential renewal periods.

(4)    Refer to Note 7 – Income Taxes for information regarding unrecognized tax benefits.  As of June 30, 2013, the noncurrent portion of the Company’s unrecognized tax benefits, including related accrued interest and penalties was $80.5 million.  At this time, the settlement period for the noncurrent portion of the unrecognized tax benefits, including related accrued interest and penalties, cannot be determined and therefore was not included.