Print PagePART II
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
CONTRACTUAL OBLIGATIONS AND OTHER COMMERCIAL COMMITMENTS
A summary of payments due for our contractual obligations and commercial commitments, as of December 31, 2007, is shown in the tables below:
| Contractual Cash Obligations | 2008 | 2009-2010 | 2011-2012 | After 2012 | Total | |||||||||
| (in millions) | ||||||||||||||
| Loans payable | $ | 13 | $ | — | $ | — | $ | — | $ | 13 | ||||
| Long-term debt and capital lease obligations(1) | 182 | 184 | 129 | 1,540 | 2,035 | |||||||||
| Operating leases | 50 | 68 | 32 | 30 | 180 | |||||||||
| Capital expenditures | 584 | 1,166 | 949 | 409 | 3,108 | |||||||||
| Purchase commitments for inventory | 573 | 1 | 1 | 1 | 576 | |||||||||
| Other purchase commitments | 136 | 53 | 17 | 1 | 207 | |||||||||
| Joint venture funding commitments(2) | 9 | 26 | — | — | 35 | |||||||||
| Pension funding(3) | 100 | — | — | — | 100 | |||||||||
| Other postretirement benefits | 53 | 108 | 106 | 228 | 495 | |||||||||
| Total | $ | 1,700 | $ | 1,606 | $ | 1,234 | $ | 2,209 | $ | 6,749 | ||||
| (1) | Includes principal payments and expected interest payments based on the terms of the obligations. |
| (2) | In January of 2008, we invested $20 million in two joint ventures that were not commitments at December 31, 2007. |
| (3) | Our minimum required pension funding in the U.S. is zero and approximately $20 million to $25 million in the U.K. for 2008. |
The contractual obligations reported above exclude our unrecognized tax benefits of $49 million, all of which is non-current, as of December 31, 2007. We are not able to reasonably estimate the period in which cash outflows relating to uncertain tax contingencies could occur. See Note 4 to the Consolidated Financial Statements for further details.
| Other Commercial Commitments | 2008 | 2009-2010 | 2011-2012 | After 2012 | Total | |||||||||
| (in millions) | ||||||||||||||
| Standby letters of credit under revolving credit agreement |
$ | 33 | $ | — | $ | — | $ | — | $ | 33 | ||||
| International and other domestic letters of credit | 40 | 4 | — | — | 44 | |||||||||
| Performance and excise bonds | 32 | 16 | 2 | 1 | 51 | |||||||||
| Other guarantees | 2 | 1 | — | 1 | 4 | |||||||||
| Total | $ | 107 | $ | 21 | $ | 2 | $ | 2 | $ | 132 | ||||