Contracts and Commitments
The table below shows our payment obligations for long-term debt, capital leases, operating leases, and purchase obligations for the next five years and beyond as of April 27, 2008. These obligations will materially affect our liquidity and cash flow in future periods.
| Payments Due By Period | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Contractual Obligations | Total | Less than 1 year |
1-3 years | 3-5 years | More than 5 years |
||||||||||||||
| (Amounts in thousands) | |||||||||||||||||||
| 5% convertible senior subordinated debentures(1)(2) |
$ | 103,187 | $ | 103,187 | $ | — | $ | — | $ | — | |||||||||
| 6% convertible subordinated debentures(1)(3) |
339,926 | 9,075 | 18,150 | 18,150 | 294,551 | ||||||||||||||
| Other long-term debt (excluding capital lease obligations)(1) |
21,742 | 4,786 | 16,320 | 343 | 293 | ||||||||||||||
| Capital lease obligations(1) | 2,846 | 2,412 | 422 | 12 | — | ||||||||||||||
| Operating leases(4) | 15,752 | 4,795 | 5,134 | 3,028 | 2,795 | ||||||||||||||
| Other long-term liabilities: Deferred compensation and non-qualified retirement plans(1) |
31,218 | 4,452 | 5,038 | 3,438 | 18,290 | ||||||||||||||
| Insurance reserves | 47,346 | 12,508 | 34,838 | — | — | ||||||||||||||
| Warranty | 48,181 | 32,898 | 15,283 | — | — | ||||||||||||||
| Total | $ | 610,198 | $ | 174,113 | $ | 95,185 | $ | 24,971 | $ | 315,929 | |||||||||
(1) The 5% convertible senior subordinated debentures, 6% convertible subordinated debentures, long-term debt obligations, capital lease obligations and deferred compensation and non-qualified retirement plans include both principal and interest commitments for the periods presented. The interest commitment on the deferred compensation is based on an estimated average of the prime rate of 7.33%. The interest commitment on our 5% convertible senior subordinated debentures, and our 6% convertible subordinated debentures, as well as other fixed-rate debt included in other long-term debt above, is based on stated rates. The interest commitment on the Bank of America term loan is based on the rate discussed in Note 11 to the audited financial statements included in this report.
(2) Holders of the $100 million aggregate principal amount of the 5% convertible senior subordinated debentures due in 2023, which are more fully described in Note 12 to the audited financial statements included in this report, have the ability, in whole or in part, to require us to repurchase these debentures as early as December 15, 2008, and the payment maturity above has been presented accordingly. We may, at our option, elect to pay the repurchase price in cash, common stock, or a combination thereof.
(3) Includes $8.9 million of an obligation that represents the purchase by us of the common shares of the underlying trust. Our net obligation to third parties is reduced by a similar amount.
(4) Some of our facilities are leased under terms that range from monthly to seven years. Also included in the above amounts are equipment leases. Management expects that in the normal course of business, leases will be renewed or replaced by other leases to support continuing operations.
We have not included liabilities for uncertain tax positions in the table of contractual obligations as we are unable to make a reasonable estimate of related cash payments, if any.