Detailed Version - UFA.com

ufa.com

Detailed Version - UFA.com

Capital Lease Obligations

The assets under capital leases are the security for the respective obligations. Scheduled minimum lease

payments for the next five periods total $2.0 million, including $0.2 million in financing expenses. The lease terms

range from 1 to 5 periods at interest rates between 4.2% and 18.1% for 2011 (2010 – 4.2% and 17.9%).

Principal Interest Total

2012 $ 1,010 $ 84 $ 1,094

2013 529 32 561

2014 159 12 171

2015 106 103 209

2016 – – –

$ 1,804 $ 231 $ 2,035

13. Asset Retirement Obligations

2011 2010

Balance, beginning of year $ 22,171 $ 26,207

Accretion expense 1,601 1,829

Revisions in estimated cash flows (3,266) (3,542)

Liabilities settled (1,562) (2,323)

Balance, end of year $ 18,944 $ 22,171

Estimated undiscounted future cash flows, adjusted for inflation, are $46.1 million (2010 – $48.5 million) and are

expected to be incurred up to and including fiscal 2060. The present value or discounted fair value of the

obligations was determined using a 7.7% discount rate and a 2.2% inflation rate (2010 – 7.7% and 2.2%

respectively). The estimates used in determining UFA's asset retirement obligations could change due to changes

in regulations and the timing, nature and extent of environmental remediation required. Changes in estimates are

accounted for prospectively in the period that the estimate is revised.

14. Long-Term Liabilities

December 25,

2011

December 26,

2010

Accrued pension benefit liability (note 18) $ 7,494 $ 8,367

Intangible lease liability 8,767 10,990

Other long-term liabilities 5,277 4,311

$ 21,538 $ 23,668

The intangible lease liability represents the remaining unamortized fair value of lease commitments acquired in the

acquisition of 15 Sportsman’s Warehouse stores.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 19

UFA 2011 Unabridged Annual Report 46

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