MANAGEMENT’S DISCUSSION & ANALYSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATIONS requirements and planned capital expenditures for the next few years from net cash provided by operations and borrowings under our existing credit facilities. The following tables summarize our material contractual obligations, including both on- and off-balance sheet arrangements, and our commitments  (in millions) : Operating Lease Obligations. Our operating lease obligations are primarily for payments under noncancel- able store leases. The commitment includes amounts for leases that were signed prior to January 29, 2005 for stores that were not yet open on January 29, 2005. Capital Lease Obligations (primarily sale-leaseback). In September 1999, we sold certain retail store leasehold improvements to an unrelated third party and leased them back for seven years. As a result of the transaction, we received net cash of $20.9 million and an $8.1 million 11.0% note receivable, which matures in October 2005. In 2004, we exercised the right to repurchase the leasehold improvements at October 31, 2005. In order to exercise this right, our lease obligation related to these improve- ments increased by $0.2 million. The total amount of the lease obligation at January 29, 2005 was $11.7 million. The obligation and the note receivable will both be satisfied at the buyout date of October 31, 2005. Revolving Credit Facility. In March 2004, we entered into a five-year Revolving Credit Facility (the Facility). The Facility provides for a $450.0 million line of credit, including up to $50.0 million in available letters of credit, bearing interest at LIBOR, plus 0.475%. The Facility, among other things, requires the maintenance of certain specified financial ratios, restricts the payment of certain distributions and prohibits the incurrence of certain new indebtedness. We used availability under this Facility to repay the $142.6 million of variable-rate debt and to purchase short-term investments. As of January 29, 2005, we had $250.0 million outstanding on this Facility. Revenue Bond Financing. In May 1998, we entered  into an agreement with the Mississippi Business Finance Corporation under which it issued $19.0 million of variable-rate demand revenue bonds. We borrowed the proceeds from the bonds to finance the acquisition, construction and installation of land, buildings, machinery and equipment for our distribution facility in Olive Branch, Mississippi. At January 29, 2005, the balance outstanding on the bonds was $19.0 million. We begin repayment of the principal amount of the bonds in June 2006, with a portion maturing each June 1 until the final portion matures in June 2018. The bonds do not have a prepayment penalty as long as the interest rate remains variable. The bonds contain a demand provision and, therefore, outstanding amounts are classified as current liabilities. We pay interest monthly based on a variable interest rate, which was 2.57% at January 29, 2005. The bonds are secured by a $19.3 million letter of credit issued by one of our existing lending banks. The letter  DOLLAR TREE STORES, INC. • 2004 ANNUAL REPORT 21 Long-Term Borrowings Lease Financing Contractual Obligations Total 2005 2006 2007 2008 2009 Thereafter Lease Financing Operating lease obligations  $ 914.9 $216.9 $188.6 $156.3 $119.2 $ 83.6 $150.3 Capital lease obligations (primarily sale-leaseback) 13.7 13.1 0.3 0.2 0.1 0.0 — Long-term Borrowings  Revolving credit facility 250.0 — — — — 250.0 — Revenue bond financing 19.0 19.0 — — — — — Total obligations $1,197.6 $249.0 $188.9 $156.5 $119.3 $333.6 $150.3 Expiring Expiring Expiring Expiring Expiring  Commitments Total in 2005 in 2006 in 2007 in 2008 in 2009 Thereafter Letters of credit and surety bonds $ 129.0 $129.0 $ — $ — $ — $ — $ — Freight contracts 35.5 25.5 10.0 — — — — Technology assets 5.8 5.8 — — — — — Total commitments $ 170.3 $160.3 $ 10.0  $ — $ — $ — $ —